Critical factors for an effective

business value chain

Pekka Kess
Department of Industrial Engineering and Management,
University of Oulu, Oulu, Finland
Kris M.Y. Law
Department of Industrial and Systems Engineering,
The Hong Kong Polytechnic University, Hung Hom, Hong Kong, China
Rapee Kanchana
Department of Industrial Engineering, Rajamangala University of Technology,
Thanyaburi, Thailand, and
Kongkiti Phusavat
Department of Industrial Engineering, Kasetsart University, Bangkok, Thailand
Abstract
Purpose The purpose of this paper is to identify critical factors for effective business value chains
in the electrical and electronic industries. This knowledge can benet private rms as well as their
supplier management and customer fulllment, and public agencies for relevant policy initiatives.
Design/methodology/approach The research methodology includes the survey development
and the statistical analyses, especially the use of the Pearson correlation. Altogether, a total of 129
rms participated in this study, 97 companies from Hong Kong and 32 rms from Thailand. Included
in this methodology are a pre-test of a survey and follow-up discussions with participating executives.
Findings An effective business value chain essentially depends on good operational systems and
management, and information and communication technology (ICT) linkages with both suppliers and
customers. There are a total of ve critical factors for effective business value chains. For example, an
effective business value chain is inuenced by how well production and delivery systems are
managed. In addition, how well a manufacturer can manage its operation is inuenced by customers
with effective information and communication infrastructures.
Practical implications The ve identied factors can be used as a checklist for planning and/or
monitoring the effectiveness of a business value chain. The ndings also helps develop a newinitiative
to be undertaken by Thailands Department of Industrial Work when attempting to strengthen
business value chains within various industrial clusters.
Originality/value The ndings underline the need to focus on data harmonization and to adapt
ICT standards, such as Control Objectives for Information and related Technology COBIT and
Projects in Controlled Environments PRINCE for data sharing and software development, to promote
supplier audits when sustaining a business value chain.
Keywords Value chain, Suppliers, Customers, Operations management, Hong Kong, Thailand
Paper type Research paper
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm
The authors would like to particularly recognize Mr Naroon Sooksmarn and Miss Nuntaporn
Kaewchimpre from DIW under Ministry of Industry in Thailand for their roles in personally
coordinating with participating rms in Thailand.
Effective
business
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63
Received 16 June 2009
Revised 5 August 2009
Accepted 31 August 2009
Industrial Management & Data
Systems
Vol. 110 No. 1, 2010
pp. 63-77
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635571011008407
I. Introduction
In the current global and dynamic markets, small and large companies alike are
constantly confronted with the challenges of managing their business value chains
(Blanchard, 2008). Effective business value chains indicate innovative capability and
inuence timely product deliveries and cost-effective operations (Hoehn, 2003; Huang
et al., 2009). In this study, the term value chain incorporates the linkages between a
manufacturer and its suppliers and customers. For the supplier side, many
manufacturers have become more proactive in working together with their partners
(Kumar and Liu, 2005). Given the need to balance among cost competitiveness,
customer responsiveness, operational exibility, and regulatory compliances in
occupational health and environment; most manufacturers have opted to cooperate
more closely with their suppliers (Kumar and Liu, 2005; Gunasekaran and Ngai, 2007).
In addition, whether the size is small or large, supplier management nowadays
represents an important task that should be aligned with the companys strategic goals
(Pagell and Krause, 2002; Steiner, 2008).
Suppliers have increasingly become an important strategic partner because of their
impacts on a companys short- and long-term successes (Rungtusanatham et al., 2003;
Sarkis et al., 2007). If a supplier fails to provide incoming parts or delivery services on
time, this will likely lead to poor customer services and will subsequently add cost to
an entire value chain, especially in aviation, electronics, and automotive industries
(Blanchard, 2008). At the same time, when developing new products, a great deal of
consideration must be given to a suppliers ability to come up with a new part on-time
with a required volume and quality (Silva, 2008). In fact, Garfamy (2003) and Green
et al. (2009) suggested that a backbone of a generic supplier-management needs to
consist of at least six main categories:
(1) quality;
(2) service;
(3) organization prole;
(4) process management as well as product and process innovation;
(5) a cycle time for key work processes; and
(6) traceability.
Therefore, an overall aim of supplier management is to nd the best possible supplier
that is able to provide the buyer with right quality products and/or services at the right
price, in the right quantities and at the right time (Talluri and Sarkis, 2002).
One of the key challenges in managing supply chains for most manufacturers is the
uncertainty in contractual fulllment to customers (Sridharan and Laforge, 1990; Zhao
et al., 2001; Hilletofth, 2009). According to Kadipasaoglu and Sridharan (1997), frequent
product changes, new product developments, technology upgrades, staff turnovers,
labor and management disputes, and emerging competitors are considered as the
sources of this uncertainty. Based on Blackburn et al. (1987) and Pujawan (2004), to
help overcome the uncertainty on the supplier side, constant communication and
information sharing with suppliers are necessary. Otherwise, this uncertainty likely
undermines managements condence in customer fulllment. As a result, more excess
capability (e.g. more inventory space, machines, and other related resources) have to be
prepared. This will eventually result in less than optimum operations.
IMDS
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To ensure better business value chains, manufacturers are also required to work more
closely with their customers (Collin and Lorenzin, 2006). Given the advancement in
information and communication technology (ICT), it is now more convenient to share
information such as the requirements between customers and manufacturers (Hoehn,
2003). According to Blanchard (2008), aircraft manufacturers such as Boeing had
extensively cooperated with launch customers, airport operators, nancial institutions,
and regulators on the design and development of its new aircrafts. Constant
communications between users and/or customers with manufacturers (also acting as a
designer andnewproduct developer) helps accelerate the mobile-communicationindustry,
notably in the areas of technology convergence (Chan, 2005; Collin and Lorenzin, 2006).
In addition, Hoehn (2003) stressed the importance of ICT in reducing operational
uncertainty between manufacturers and customers (mainly retailers and distributors),
especially in the purchaser-driven products such as electronics. Simply put, dealing with
the increasingly shorter product life cycles, manufacturers require accurate and timely
information to assist their design, planning, production, and deliveries while reducing
excess capacities and unnecessary cost (Lynn et al., 1996; Blanchard, 2008).
II. Problem background
Many newly industrialized countries such as Singapore, Taiwan, South Korea,
Hong Kong, China, Thailand, and Malaysia have improved their industrial sectors by
focusing on both export potentials and domestic demands. The success in their
industrial development can be attributed to value-chain management (Manasserian,
2005). Key industries that have enjoyed the success from the viewpoint of the cluster or
value-chain concept include automotive, electrical and electronic, foods, garments,
etc.[1] For example, the 8th National Economic and Social Development Plan for
Thailand advocates the stronger industrial cooperation and development, especially
among the four major clusters, i.e. automotive and auto parts, electronic and electrical
parts, foods, textiles and garments, and petro-chemical. In addition, the electrical and
electronic industry is the largest merchandise export earner, estimated to be 50 percent
of total export value from Hong Kong as of 2006[2]. The success in Hong Kongs rms
can be attributed primarily to effective management of their business value chains.
Given its importance on industrial management and long-term performance excellence,
there have been several calls to identify and map out how the business value chains are
perceived and managed (Walters and Lancaster, 2000; Kim and Rogers, 2005).
To further elaborate the previous discussion, the studyfocuses onhowcompanies view
their business value chains and manage to sustain these operations. This knowledge can
benet relevant public agencies (such as Thailands Department of Industrial Work
(DIW)) andprivate rms (large corporations, andsmall andmediumenterprises) as well as
their suppliers and customer fulllment. Pubic agencies can plan for possible policy
initiatives in supporting the collaborations among suppliers, manufacturers, and
customers. Large corporations can use this knowledge to evaluate and assess how well
their business value chains are managed. Small and medium enterprises can plan their
management systems so that they can be a strong partner to manufacturers. Furthermore,
small rms in the emerging area so-called knowledge-intensive business service (KIBS)
providers, have actively observed howa business value chain is managed so that they can
prepare their business proposals (see http://lib.tkk./Diss/2004/isbn9512273152/is
bn9512273152.pdf (as of April 2008)). This is due to the fact that KIBS providers offer
Effective
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65
specialized technical and managerial knowledge (e.g. social, administrative, regulatory,
and customer knowledge) to large manufactures. As a result, Tiddand Hull (2003) and Lee
et al. (2008) suggested that constantly understanding on how a manufacturer works with
its customers and suppliers could further strengthen the growth of the KIBS, especially
among European countries.
III. Objectives
The study aims to gain knowledge into how executives and managers view their
business value chains by focusing on the following two areas:
(1) internal operations of a manufacturer; and
(2) its interrelationships with suppliers and customers.
For this study, they are two primary objectives, identifying the key factors:
(1) inuencing of a manufacturers internal operations; and
(2) that help a manufacturer link with its suppliers and customers.
IV. Research methodology
The research methodology can be viewed as the two-stage process. The rst stage
involved extensive literature reviews to help identify the key components when
managing an internal operation within a business value chain. These reviews were
important to the development of a survey. Initially, the reliability of the survey questions
was tested by using the SPSS
w
reliability analysis technique. The validity of the
constructs of the questionnaire was conrmed through the principal component
analysis of factor analysis[3]. To nalize the survey, two pilot studies were conducted. In
the rst pilot study, ten specialists were interviewed to discuss the contents. Among
these ten specialists, eight are senior managers, one representative from a unit of
Hong Kong Productivity Council, and one academician. The second pilot study
represented a pre-test of the revised survey. A total of 30 supervisors and managers
participated in this pre-test. The overall process of the questionnaire development
followed the guideline suggested by Flynn et al. (1990) and Cooper and Schindler (2003).
The second stage involved the distribution of a survey and the analysis of the surveys
results. The distributions took place in Hong Kong and Thailand between 2008 and early
2009. Afterwards, the statistical techniques and analyses, and the interpretations of the
results were completed. It is important to note that the participating companies in
Hong Kong are randomly selected from the industry directories the Hong Kong Trade
Development Council and the Federation of Hong Kong Industries. For the Thai side, the
participating companies were randomly approached by DIW with strong cooperation
from the Federation of Thai Industry. Altogether, a total of 129 manufactures in the
electrical and electronic sector participated (i.e. 97 and 32 companies fromHong Kong and
Thailand, respectively). In addition, all participating rms were familiar with the concept
of value-chain management (see Figure 1 for the research methodology). Also, see
Appendix 1 for more details on participating companies.
V. Results
According to previous literatures, there are many common components critical for
managing a business value chain. In other words, the surveys development was based on
IMDS
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the commonality that has been identied fromBlackburn et al. (1987), Lambert et al. (1998),
Pagell and Krause (2002), Garfamy (2003), Rungtusanatham et al. (2003), Pujawan (2004),
Collin and Lorenzin (2006), Gunasekaran and Ngai (2007) and Blanchard (2008). For the
manufacturers, their internal operations mainly consisted of a system, a structure and
staffs. Some of these components relatingtosuppliers andcustomers includedthe reliability
of a supplier, information sharing, and the contractual commitment of a customer. The
survey contains the ve-point scale. Level 5 represents the most important (Table I).
The overall results, based on 129 rms, show the high level of importance placed by
the components within the internal operations (IO), relationships with suppliers (RS),
Figure 1.
Research methodology
Literature review Business value chains
Key factors
Survey development
Survey distribution
129 manufactures from
Hong Kong and Thailand
Business value chain model
Comparisons and conclusion Cases in Finland and literatures
Stage 1
Stage 2
Statistical analyses
Internal operations (IO)
IO1 Reliable production/service delivery system
IO2 Materials/components commonality
IO3 Flexible planning system
IO4 Skillful and able planning staffs
IO5 Good operations management
Relationships with suppliers (RS)
RS1 Flexible suppliers in delivery
RS2 Reliable suppliers with on-time delivery
RS3 Suppliers are willing to share information
RS4 Effective information and communication infrastructures of suppliers
Relationships with customers (RC)
RC5 Availability of information by customers well in advance
RC6 Customers commitment to the agreed order
RC7 Customers are collaborative and willingness to share
RC8 Customers with effective information and communication
infrastructures
Table I.
The items in the
questionnaire
Effective
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67
and relationships with customers (RC) categories. There is only one component that
has the mean score of less than 3.30 customers commitment to the agreed order. The
reason is that the ability to deal with customers commitment is perceived to be limited
(Table II).
To ensure the ndings credibility, the consistency of the opinions expressed by the
executives from both countries was tested. It indicated that the IO4 (i.e. skillful and
able planning staffs) represented the signicant difference in the perceptions of
participating executives between Hong Kong/China and Thailand as the level of
signicance is less than 0.05. As a result, the IO4 was excluded from further analyses
(Table III and Appendix 2).
The next step was to identify the interrelationships among the IO components. The
ndings from 129 participating executives show that all IOs are interrelated, especially
the IO1-IO5 (reliable production/service delivery system and good operation
management) (Table IV and Figure 2).
Then, the focus of the correlation analysis was on examining how the IO1-IO5
relation, and the RS and RC were interrelated. The reason is that, from the viewpoint of
participating executives, an effective business value chain depends on how well
production and delivery systems are managed. Apparently, all except for the RC6
(customer commitment to agreed orders) have signicantly correlated. In fact, the RC6
has no relationship with the IO5 (good operation management) while the signicant
relationship with the IO1 is not relatively strong.
The ndings indicate ve critical factors for managerial consideration for aneffective
business value chain from the viewpoint of participating executives. These factors can
be used as a checklist for planning and/or monitoring of a business value chain:
(1) An effective business value chain is inuenced by how well production and
delivery systems are managed.
(2) How well a manufacturer can manage its operation is inuenced by a reliable
supplier(s) with on-time delivery.
Survey items Mean scores (all)
IO (3.62)
IO1. Reliable production/service delivery system 3.78
IO2. Materials/components commonality 3.57
IO3. Flexible planning system 3.57
IO4. Skillful and able planning staffs 3.60
IO5. Good operations management 3.57
RS (3.45)
RS1. Flexible suppliers in delivery 3.45
RS2. Reliable suppliers with on-time delivery 3.30
RS3. Suppliers are willing to share information 3.44
RS4. Effective information and communication infrastructures of suppliers 3.50
RC (3.44)
RC5. Availability of information by customers well in advance 3.50
RC6. Customers commitment to the agreed order 3.04
RC7. Customers are collaborative and willingness to share 3.56
RC8. Customers with effective information and communication
infrastructures 3.66
Table II.
Overall results from
the surveys
IMDS
110,1
68
Sum of squares df Mean square F Sig.
IO1
Between groups 0.495 1 0.495 0.783 0.378
Within groups 80.265 127 0.632
Total 80.760 128
IO2
Between groups 0.786 1 0.786 1.084 0.300
Within groups 92.051 127 0.725
Total 92.837 128
IO3
Between groups 0.699 1 0.699 0.921 0.339
Within groups 96.340 127 0.759
Total 97.039 128
IO4
Between groups 3.072 1 3.072 5.030 0.027
*
Within groups 77.549 127 0.611
Total 80.620 128
IO5
Between groups 0.006 1 0.006 0.008 0.928
Within groups 101.389 127 0.798
Total 101.395 128
RS1
Between groups 0.709 1 0.709 1.297 0.257
Within groups 69.446 127 0.547
Total 70.155 128
RS2
Between groups 0.277 1 0.277 0.418 0.519
Within groups 84.049 127 0.662
Total 84.326 128
RS3
Between groups 0.627 1 0.627 1.146 0.286
Within groups 69.466 127 0.547
Total 70.093 128
RS4
Between groups 1.313 1 1.313 2.113 0.148
Within groups 78.889 127 0.621
Total 80.202 128
RC5
Between groups 0.887 1 0.887 1.290 0.258
Within groups 87.314 127 0.688
Total 88.202 128
RC6
Between groups 1.504 1 1.504 1.736 0.190
Within groups 110.000 127 0.866
Total 111.504 128
RC7
Between groups 0.282 1 0.282 0.453 0.502
Within groups 79.113 127 0.623
Total 79.395 128
RC8
Between groups 0.609 1 0.609 1.027 0.313
Within groups 75.360 127 0.593
Total 75.969 128
Table III.
Results from the
consistency tests
Effective
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69
(3) How well a manufacturer can manage its operation is inuenced by customers
with effective information and communication infrastructures.
(4) How well a manufacturer can work with and assures a reliable supplier(s) with
on-time delivery is inuenced by collaborative customers.
(5) How well a manufacturer can satisfy the requirements from customers (despite
having effective information and communication infrastructures) is inuenced
by collaborative suppliers and suppliers with compatible information and
communication structures (Table V and Figure 3).
IO1 IO2 IO3 IO5
IO1 1.000 0.389
* *
0.525
* *
0.598
* *
IO2 1.000 0.468
* *
0.275
* *
IO3 1.000 0.476
* *
IO5 1.000
Notes: Correlation is signicant at:
*
0.05 and
* *
0.01 levels (two-tailed), respectively; n 129
Table IV.
Correlation analysis
within the IO
Figure 2.
Illustration of IO
interrelationships
IO1
IO3
IO5 IO2
0.598**
0.525**
0.496**
0.468**
0.389**
0.275**
0.476**
Strongest
relationship
RS1 RS2 RS3 RS4 RC5 RC6 RC7 RC8
IO1 0.389
* *
0.454
* *
0.307
* *
0.379
* *
0.444
* *
0.186
*
0.289
* *
0.469
* *
IO5 0.315
* *
0.406
* *
0.286
* *
0.355
* *
0.392
* *
0.163 0.216
*
0.420
* *
RS1 0.385
* *
0.285
* *
0.369
* *
0.348
* *
RS2 0.362
* *
0.283
* *
0.374
* *
0.304
* *
RS3 0.201
*
0.241
* *
0.243
* *
0.302
* *
RS4 0.407
* *
0.284
* *
0.276
* *
0.516
* *
Notes: Correlation is signicant at:
*
0.05 and
* *
0.01 levels (two-tailed), respectively; n 129
Table V.
Correlation analysis
among the IO1-IO5,
RS, and RC
IMDS
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VI. Implications
Based on the surveys results, managing and sustaining a business value chain
requires the effective ICT infrastructure with customers, and the roles of able and
skillful staffs. Specically, in Hong Kong, the ICT infrastructures have been
extensively modernized during the past two decades (Chan, 2005). It is important to
recognize that the Hong Kongs successful business value chains are due to its
geographical location, historical background as the major trading post for the old
British empire, extensive ICT infrastructures, competent workforce, and language
capability (especially English) (Commission on Strategic Development, 2006).
To support this implication, Pikka et al. (2004) mentioned that overcoming the
language barrier had helped maintain innovation within and support business value
chains information sharing and transfer.
Specically from the surveys, the effective business value chains appear to depend
on many factors, especially on:
(1) a manufacturers own operations in production and delivery systems; and
(2) information and communication infrastructures that strengthen sharing across
a manufactures and its suppliers and customers.
The above ve critical factors appear tobe consistent withthe previous ndings discussed
by Lambert et al. (1998), Talluri and Sarkis (2002), Garfamy (2003) and Chan and Chan
(2004). Interpreting and communicating customer requirements throughout an
organization and to suppliers are necessary for planning staffs. This sharing helps
synchronize sequencing and scheduling as well as arrivals of materials and components
for further operations by a manufacturer. Walters and Lancaster (2000) specied
organizational structure, operational management, logistic support, and clearly dened
requirements of customers (e.g. cost and performance) and internal communication of
these requirements as part of the crucial drivers of a successful business value chain.
Specically, for the electrical and electronic industry, building successful business
value chains requires ICT usages and integration into operations (Helo, 2005). In his
research, one of the most difcult challenges in building a successful business value
chain is a lack of information and resource sharing between manufacturers and their
suppliers and customers. Therefore, the ability to constantly communicate with
customers and suppliers represents one of the critical success factors for an effective
business value chain. Poor ICT design is commonly cited as the main attribute (Helo,
2005; Sandhu and Helo, 2006).
Figure 3.
Critical factors for
an effective business
value chain
IO1 IO5
RC8 RS3 RS4
RS2 RC7
Effective
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71
In spite of several available standards for quality and customer safety (e.g. ISO
9001:2008, QS9000, Verication and Validation, Hazard Analysis and Critical Control
Points, etc.), there is a lack of awareness on practical standards that contribute
effectively to design, manage, deploy, and implement ICT-related initiatives (Helo,
2005). Given large ICT investments in recent years by Thai companies, especially in
the electrical and electronic industry; there seems to be a lack of concrete changes and
improvements in the desirable impacts such as improved work ows for internal
operations and better linkages with customers (Manasserian, 2005). The promotion of
ICT standards represents a new initiative to be undertaken by Thailands DIW in
support of strengthening the capability of industrial operations for sustainable
development across different industrial clusters such as automotive and auto parts,
electronic and electrical parts, foods, textiles and garments, and petro-chemical[4].
The follow-up discussion with larger electronics and electrical manufacturers (i.e.
multi-national corporations) reveals the need to look at the possible applications of
ICT-related standards such as Control Objectives for Information and related
Technology (COBIT), and Projects in Controlled Environments (PRINCE). As indicated
by the surveys ndings, ICT infrastructure is perceived to be a critical factor for
effective IO and business value chains. These COBIT and PRINCE can potentially
strengthen business value chains particularly for ICT compatibility design among
suppliers, manufacturers, and customers to ensure interoperability. These vigorous
frameworks or standards can bridge the gap between a manufacturer and its suppliers
and customers, especially when dealing with data interchanges, sharing, and
communication so-called data harmonization. This term explains how data can be
standardized, exchanged, transferred, traced, and utilized by all sides within business
value chains (Folinas et al., 2006).
Selecting suitable suppliers (i.e. collaborative with effective information and
communication infrastructures) has often been viewed as a prerequisite for an effective
business value chain (Kannan and Tan, 2003; Ndubishi et al., 2005). Therefore, supplier
audit will become more prominent when managing a business value chain (Onesime
et al., 2004). Some of the potential audit tools include the capability maturity model
(CMM). The CMM ensures that a suppliers operations and process management reect
capability, maturity, consistency, and continuous improvement (Blanchard, 2008). This
is essential when upkeep and upgrades of ICT are constantly required. In addition, the
CMM can be used to help manufacturers manage the risk relating to ICT and software
developers.
Despite positive comments expressed by participating executives as well as the
feedback from Thailands DIW, it is important to recognize that the ndings only
represent the preliminary framework on building and sustaining an effective business
value chain for electrical and electronic rms. More specic studies are still needed to
assure better insights and knowledge. Some of the future research may focus on the
difference between local and international companies, and between consumer and
industrial electronic products.
VII. Conclusion
An attempt has been made to review the challenges faced by the high-tech companies
in region, in particular their business value chains. The study deals directly with the
main concern on the management of effective business value chains, especially for the
IMDS
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electrical and electronics sector. This concern is very important considering the
dynamic global market as the companiere aim to be more agile and cost-effective while
responding to the nature of product demands. The ndings from this study should
result in more understanding on how to plan and improve industrial operations
and practices as well as to strengthen the academic premise on the economics and
optimality of the business value chains. This understanding should help ensure timely
and accurate information sharing across the business value chains in order to reduce
miscommunication, misunderstandings, and mistakes. Otherwise, manufacturers can
expect frequent schedule changes, excess capacity, inventory surpluses for
manufacturers and subsequently suppliers, and ineffective cost management.
Notes
1. The White Paper on Small and Medium Enterprises of Thailand in 2003 and Trends for
2004-2009 prepared for Thailands Ministry of Industry by Ofce of Small and Medium
Enterprises Promotion.
2. According to the Trade Development Council from www.hktdc.com (as of November 2007).
3. Cronbachs alpha is to be used to assess the scale reliability. The alpha of every factor needs
to be more than 0.70 considered as a good statistical result. The high value of a suggests
the high level of the datas internal consistency.
4. In reference to DIWs four-year Strategic Plan for Administration (www.diw.go.th as of
March 6, 2009).
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(The Appendices follow overleaf.)
Effective
business
value chain
75
Appendix 1. Details of participating companies
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Table AI.
Demographic details by
country
IMDS
110,1
76
Appendix 2. Country-based results
This appendix aims to further illustrate that the overall results from Hong Kong and Southern
China, and Thailand are similar. The critical component for IO appears to be IO1 or reliable
production/service delivery system. The detailed analyses on the two countries are illustrated.
Corresponding author
Kongkiti Phusavat can be contacted at: fengkkp@ku.ac.th
Survey items
Mean scores
(HongKong)
Mean
scores
(Thailand)
IO 3.67 3.56
IO1. Reliable production/service delivery system 3.76 3.91
IO2. Materials/components commonality 3.65 3.47
IO3. Flexible planning system 3.64 3.47
IO4. Skillful and able planning staffs
*
3.70 3.34
IO5. Good operations management 3.58 3.59
RS 3.47 3.36
RS1. Flexible suppliers in delivery 3.52 3.34
RS2. Reliable suppliers with on-time delivery 3.30 3.41
RS3. Suppliers are willing to share information 3.51 3.34
RS4. Effective information and communication infrastructures of suppliers 3.58 3.34
RC 3.47 3.42
RC5. Availability of information by customers well in advance 3.57 3.38
RC6. Customers commitment to the agreed order 3.00 3.25
RC7. Customers are collaborative and willingness to share 3.61 3.50
RC8. Customers with effective information and communication
infrastructures 3.72 3.56
Table AII.
Surveys results
Effective
business
value chain
77
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