Supply Chain Maturity Model
The third and final section of the survey questionnaire that shall discussed in this chapter deals with the specific characteristics of supply management practices of each institution belonging to the healthcare industry of the United States of America. The first item under this category deals with the stage wherein the respondents’ organizations belong in, based on the Supply Chain Maturity Model.The results reveal the following: (1) thirty respondents (20. 0%) find SCM in their organization to belong to the first stage (Ad Hoc); (2) thirty respondents (22.0%) said that SCM in their organization is in the second stage (Defined); (3) forty respondents (26.
7%) find their SCM practices in the third stage (Linked); (4) thirty one respondents (20. 7%) revealed that their practices concerning the management of the supply chain is currently in the fourth stage (Integrated); and lastly, (5) only sixteen respondents or 10. 7% said that their practices of SCM are already in its’ fifth stage (Extended). These results shall be presented in Table 4. 3. 1 and Chart 4.
3. 1.After looking into the stage wherein supply management practices of different healthcare institutions, the researcher then asked the respondents to evaluate different statements that would enable the latter to determine the specific characteristics of the healthcare industry, taking into the practices of its members into consideration. These statements shall be analyzed and examined using a Likert-scale, with 5 (strongly agree) being the highest and 1 (strongly disagree), the lowest.The first item subject to analysis states: our organization has an executive officer who manages all supply chain functions. For this statement, the highest rating given was a 5 (strongly agree) and the lowest was a 1 (strongly disagree).
These varied responses produced a mean of 3. 62 with a standard deviation of 1. 21 showing that the respondents are generally undecided that in their organizations, they are undecided with the fact that there is indeed an efficient manager who handles all activities of the supply chain.The next statement is then concerned with the strong connection between the supply chain and information technology in the organizations. For this statement, the highest rating given was still a 5 (strongly agree) and 1 was still the lowest (strongly disagree).
These, in turn, produced a mean of 3. 77, with a standard deviation of 1. 20, showing that the respondents neither agrees nor disagrees with the fact that there is a strong connection between supply chain and information technology in the different healthcare organizations.It also looked into strategic use of technology to support supply management practices in the different healthcare organizations. Just like the two previous statements, the highest rating given to this item was a 5 (strongly agree), and the lowest was a 1 (strongly disagree).
The results of the survey reveal a mean of 3. 74 with a standard deviation of 1. 26, showing that the participants neither agree nor disagree with the fact that technology is being used strategically in the different healthcare organizations.The fourth statement then is concerned with the proper incorporation of supply chain planning and strategy into healthcare organizations’ business plan. The highest rating given to this particular statement is still a 5 (strongly agree) and the lowest, a 1 (strongly disagree).
The varied responses to this particular item produced a mean of 3. 83 and a standard deviation of 1. 23, showing once again that these employees of the healthcare industry neither disagree nor agree with the proper integration of supply chain planning and strategy into the business plan.The one hundred and fifty employees who served as respondents for this study also neither disagreed nor agreed with the item stating that supply chain strategies and goals are communicated to all employees. This is because of the fact that the responses of the participants for this item produced a mean of 3.
29 with a standard deviation of 1. 13. For this item, 5 (strongly agree) remains to be the highest rating and 1 (strongly disagree), the highest.Meanwhile, this was also in the case for the sixth statement that looked into belief of the respondents regarding the importance of internal integration to accomplish supply chain planning and execution. For this item, 5 (strongly agree) was the highest rating given and 1 (strongly disagree) was the lowest.
These produced a mean of 3. 41 and a standard deviation of 1. 40, showing once again that the respondents neither agree nor disagree with this particular item and characteristic of the supply management practices within healthcare institutions.Finally, the last item state, our planning identifies contingencies with a risk analysis and scenario evaluations. It still received 5 (strongly agree) as the highest rating and only 1 (strongly disagree) as the lowest.
Thus, these responses produced a mean of 4. 09 with a standard deviation of 1. 14. These results only show that to some extent, the respondents agree with the last statement under this category. Table 4.
3. 2. and Chart 4. 3. 2.
present a summary of these results.Aside from obtaining the perceptions of the respondents with regard to the aforementioned statements that would be essential in determining the specific characteristics of supply management practices in every organization belonging to the healthcare industry, this category also looked into the over all impact of supply chain initiatives on costs and revenues. From this then, the survey participants are asked to rate the overall level of supply chain competence. As to the impact of supply chain initiatives on the costs of the organization, the respondents were asked to determine whether reduced, increased or has no effect at all.
The results show that: (1) sixty nine respondents or 46. 0% said that their costs were reduced; (2) Thirty respondents or 20. 0% said that their costs are increased; and finally, (3) fifty one (34. 0%) said the initiatives concerning supply chain had no significant effects on the costs of the company. These results are presented in Table 4.
4. 3. and Chart 4. 4. 3.
Aside from this, the researcher also looked into the overall impact of the proper management of the supply chain on revenue, choosing from three options once again: reduced, increased or no effect.The results of the survey show the following: (1) forty respondents (26. 7%) said that supply chain initiatives has reduced organizational revenue; (2) sixty six respondents or 44. 0% then revealed that supply chain management has relatively increased the revenue of the organization; and finally, (3) forty four (29. 3%) said that it has no effect at all on the revenue of organization.
These results are summarized in Table 4. 3. 4. and Chart 4. 3.
4. Finally, the respondents were asked to rate the overall level of their supply chain competence. The survey results show that: (1) nine respondents (6.0%) find their organizations as the leaders in terms of their competence; (2) forty four respondents or 29.
3% see themselves above average; (3) fifty six respondents or 37. 3% find themselves about average, in terms of the competence of their Supply Management practices; (4) thirty three respondents or 22. 0% find themselves below average; and lastly, (5) only eight respondents (5. 3%) believes that they still need improvement in terms of increasing the competence of their supply management practices.
These results are summarized to Table 4. 3. 5. and Chart 4. 3.
5.This subsection shall present the results of the regression analysis undergone by the researcher in order to model and analyze the different numerical data, showing the different values of the dependent variable and the independent ones (See Appendix B for the Regression Charts). This analysis also becomes essential to establish trends. The regression results suggest that the following variables are predictors of the supply chain maturity phase as perceived by the respondents. At the .
01 significance level, these are III6 (supply chain strategies and goals being communicated to employees) (B=.195, p=. 029), and III8 (contingency planning through risk analysis and scenario evaluation) (B=-. 278, p=. 002). The first variable is significantly and positively related to maturity phase, while the other holds a negative correlation with it.
This indicates that as the level of communication of supply chain strategies is increased amongst employees, the greater is the probability of the supply chain system to mature. On the other hand, the presence of contingency planning through risk analysis and scenario evaluation is even negatively correlated with maturity phase.It is possible that increase planning is necessary for new or neophyte supply chain organizations more than those who have plateued into a maturity phase. There are no significant predictors at the . 05 level.
The regression results for cost impact indicate that the determinants of this dependent variable are III2 (presence of an executive officer who manages all supply chain functions) (B=. 891, p=. 000), and III8 (contingency planning through risk analysis and scenario evaluation) (B=-. 248, p=.
000). Both are significant at the .01 level; the former is positively correlated with cost impact, while the latter holds a negative correlation. Substantively, these results suggest that the presence of a supply chain officer is strongly correlated with a positive cost impact for the organization, while the identification of contingencies with risk analysis and scenario evaluations is even negatively correlated with cost impact. One part of supply chain success is planning; however, the other half is spelled by deployment.
While risk planning may be effective, the implementation phase must be equally effective.There are no significant predictors at the . 05 level. For the predictors of revenue impact, it was found that III5 (supply chain planning and strategy being incorporated into the business plan) is significantly and positively correlated with revenue impact (B=.
211, p=. 044) at the . 05 level. This indicates that as the integration of supply chain management into the enterprise’s plan increases, so does the impact on revenue.
In addition, III8 (contingency planning through risk analysis and scenario evaluation) is again significantly and negatively correlated with revenue impact (B=-. 361, p=. 000) at the .01 level of significance. As pointed out in the previous regression results, the presence of a contingency plan may be no assurance of a positive impact on cost, since planning is starkly distinguished from actual implementation.
Finally, on the predictors of supply chain competence, III7 (internal integration) turned out marginally and positively significant at the . 05 level (B=. 149, p=. 061).
Moreover, at the . 05 level, III3 (the connection between supply chain and information technology (IT) organizations) is significantly and positively correlated with supply chain competence (B=. 218, p=. 050).III8 (contingency planning through risk analysis and scenario evaluation), on the other hand, was significantly and negatively correlated with supply chain competence (B=-. 365, p=.
000). Thus, as risk analysis competence tends to increase, competence tends to be perceived as low. This may be anchored on the implicit notion those who need to plan for risk are also those organizations that are prone to such risks due to supply chain competence issues. It is possible that those organizations that do not need to plan for contingencies may likely be those who are already efficient in terms of their supply management processes.4.
6. Conclusion This chapter revealed the different characteristics of the American healthcare industry in general as well as its defining features in its member organization based on the perceptions of the one hundred and fifty respondents who answered the survey questionnaire developed by the researcher. In the same manner, this chapter also presented the views of the respondents regarding the perceived impacts of the efficient management of supplies to the revenue and costs of the different organizations.More importantly, these results reveal the necessary factors that may help in assuring the maturity of a supply chain management framework.
Moreover, these results reveal the perceptions of the respondents with regard to the factors that are also needed in order to determine the competence of supply management processes. The results presented in this chapter shall then be discussed in the succeeding chapter, based on the findings of the secondary analysis of data which had been previously discussed in the literature review.
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