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Proceedings of T-LOG 2014 The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand Siripong JUNGTHAWAN MBA Student Department of General Management, Faculty of Business Administration, Ramkhamhaeng University Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240, Thailand. Tel. +66(0)2-310-8000 Fax. +66(0)2-310-8022 M. +66(0)86-368-2805 E-mail: [email protected] Somphon THUNGWHA Associate Professor Department of General Management, Faculty of Business Administration, Ramkhamhaeng University Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240, Thailand. Tel. +66(0)2-310-8000 Fax. +66(0)2-310-8022 E-mail: [email protected] Walailak ATTHIRAWONG Associate Professor Department of Statistics, Faculty of Science, King Mongkut's Institute of Technology Ladkrabang Chalongkung Rd., Ladkrabang, Bangkok 10520, Thailand Tel. +66(0)2-329-8000-99 E-mail: [email protected] Wanchai LEELAKAWEEWONG Assistant Professor Department of Industrial Engineering and Management, Faculty of Engineering and Industrial Technology, Silpakorn University Rachamakha-nai Rd., Prapathomjedee Muang, Nakhonpathom 73000, Thailand Tel./Fax. +66(0)34-219-362 E-mail: [email protected] Abstract: This research investigated the assessment of potential in Supply Chain Management and Logistics for Gem and Jewelry industry of Thailand, and compared the potential based on set of variables, that were business account, size of enterprise, operational period and channels of distribution. The survey approach refers to a group of Gem and Jewelry industry. In this case, the response rate of the completed questionnaire is 70.89%. The methods of survey data collection is Supply Chain Management and Logistics Scorecard (SCMLSC). The result shows that four strategies of Supply Chain Management and Logistics is low potential. In addition, the different of size of enterprise impact the potential of Supply Chain Management and Logistics at statistically significant level of 0.05. However, 4 strategies of Supply Chain Management and Logistics are not different follow business account, operation period and channels of distribution at statistically significant level of 0.05. Key Words: Potential, Supply Chain Management and Logistics, Supply Chain Management and Logistics Scorecard (SCMLSC), Gem and Jewelry industry, Thailand 1. INTRODUCTION The gems and jewelry industry of Thailand, Custom Tariff no. 71 has ranked one of the top 5 highest value or 185,000 million Baht in Thai exported products. It has increased value of 7- 10%, which is important industry in economic system and social system. It could be said that gems and jewelry industry is one of the main industries which is important to the national economic development. Moreover, it can create employment to 1.3 million person and 718 factories have registered. It is expected that create value would increase 50-400 % (Somboonwiwat et al., 2009), foreign interest to invest more than 1,000 million Baht per year
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The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

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Page 1: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

Proceedings of T-LOG 2014

The Assessment of Potential in Supply Chain Management and Logistics in

the Gem and Jewelry Industry of Thailand

Siripong JUNGTHAWAN

MBA Student

Department of General Management,

Faculty of Business Administration,

Ramkhamhaeng University

Ramkhamhaeng Rd., Huamark, Bangkapi,

Bangkok 10240, Thailand.

Tel. +66(0)2-310-8000

Fax. +66(0)2-310-8022

M. +66(0)86-368-2805

E-mail: [email protected]

Somphon THUNGWHA

Associate Professor

Department of General Management,

Faculty of Business Administration,

Ramkhamhaeng University

Ramkhamhaeng Rd., Huamark, Bangkapi,

Bangkok 10240, Thailand.

Tel. +66(0)2-310-8000

Fax. +66(0)2-310-8022

E-mail: [email protected]

Walailak ATTHIRAWONG

Associate Professor

Department of Statistics, Faculty of Science,

King Mongkut's Institute of Technology

Ladkrabang

Chalongkung Rd., Ladkrabang, Bangkok

10520, Thailand

Tel. +66(0)2-329-8000-99

E-mail: [email protected]

Wanchai LEELAKAWEEWONG

Assistant Professor

Department of Industrial Engineering and

Management, Faculty of Engineering and

Industrial Technology, Silpakorn University

Rachamakha-nai Rd., Prapathomjedee

Muang, Nakhonpathom 73000, Thailand

Tel./Fax. +66(0)34-219-362

E-mail: [email protected]

Abstract: This research investigated the assessment of potential in Supply Chain

Management and Logistics for Gem and Jewelry industry of Thailand, and compared the

potential based on set of variables, that were business account, size of enterprise, operational

period and channels of distribution. The survey approach refers to a group of Gem and

Jewelry industry. In this case, the response rate of the completed questionnaire is 70.89%.

The methods of survey data collection is Supply Chain Management and Logistics Scorecard

(SCMLSC). The result shows that four strategies of Supply Chain Management and Logistics

is low potential. In addition, the different of size of enterprise impact the potential of Supply

Chain Management and Logistics at statistically significant level of 0.05. However, 4

strategies of Supply Chain Management and Logistics are not different follow business

account, operation period and channels of distribution at statistically significant level of 0.05.

Key Words: Potential, Supply Chain Management and Logistics, Supply Chain Management

and Logistics Scorecard (SCMLSC), Gem and Jewelry industry, Thailand

1. INTRODUCTION

The gems and jewelry industry of Thailand, Custom Tariff no. 71 has ranked one of the top 5

highest value or 185,000 million Baht in Thai exported products. It has increased value of 7-

10%, which is important industry in economic system and social system. It could be said that

gems and jewelry industry is one of the main industries which is important to the national

economic development. Moreover, it can create employment to 1.3 million person and 718

factories have registered. It is expected that create value would increase 50-400 %

(Somboonwiwat et al., 2009), foreign interest to invest more than 1,000 million Baht per year

Page 2: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

in this industry (Rikshasuta et al., 2006). Nowadays, we have challenged such as financial

crisis, Generalized System of Preferences (GSP), Non-Tariff Barrier (NTB), and

internationally incentive competitions. Moreover, United State of America, that faces the

financial crisis (Hamburger crisis), is an important importer. The gems and jewelry is most

expensive product, so it will be quite impact in the gems and jewelry industry.

The concept of Supply Chain Management and Logistics is synchronic operations form

sourcing to customer. Moreover, it creates unity; members are higher utilization, increases

higher competitiveness. In 2010 World Economic Forum (WEF) did ranks Thailand (Global

Competitive Index: GCI) in ranking 38 from 139 ranks (Decreased 2 ranks from 2009)

(Schwab, 2010). The development in Supply Chain Management and Logistics should be the

modern management tool, which operate enterprise to challenge the other. They have to know

the potential in Supply Chain Management and Logistics each other (Leelakaweewong et al.,

2009; Somboonwiwat et al., 2009; Sopadang et al., 2007; Yaibuathet et al., 2008). From these

reasons we focused on the potential of Gem and Jewelry Industry.

2. LITERATURE REVIEW

This part reviews literatures relate to Gem and Jewelry industry.

2.1 Supply Chain Management and Logistics in Thailand Wongwaisayawan and Sopadang (2007) studied to develop an effective of supply chain

of Gem and Jewelry industry in Changmai province and Lumpoon Province. The result shown

that sample group has the value of competency level more than all of the average of scoring

rubrics so return on sale (ROS) is positive value (high profit). On the other hand, the sample

group had some value of competency level less than the average of scoring rubrics so return

on sale (ROS) was negative value (low profit).

Sunarak et al. (2007) focused on the suitable factor in logistic field for Small and

Medium Enterprises (SMEs) in Thailand. They developed the authentic assessment in

Logistics Scorecard (LSC) of Tokyo Institute of Technology, Japan. This experiment consisted

of 5 scopes and 26 KPI and gathering data from 61 organizations. Moreover they proposed on

the factor in part of human resource.

Banomyong and Kritcharoen (2007) developed competency and performance of

medium enterprises for logistics management which this method was called as Logistics Audit

and Implementation Methodology. They found that the non-value added activities had 4-22%

and value added activities had 17-29%. Essential non-value added activity has the highest

proportion up to 50-74%, which is the result from fluctuations in various fields.

Banomyong et al., (2007a) proposed on the tool to measure the logistics performance

for SMEs in Thailand. Finally they created the standard operation procedure (SOP) for

measuring the logistics performance, the competency of organization and driving up SME’s

performance.

2.2 Global Supply Chain Management and Logistics Chow et al., (1994) studied the potential in logistics from international literature review

such as 1) International Journal of Logistic Management 2) International Journal of Physical

Distribution & Logistic Management and its predecessors 3) Journal of Business Logistics 4)

Logistics and Transportation Review and 5) Transportation Journal from 1982 to 1992 to

define and evaluate the performance of logistics systems demonstrate a great variety of "hard"

and "soft" performance measures depending on the focus of the study reported.

Schmitz and Platts (0224 )presented the managing the supply base is an important but

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complex issue for automotive manufacturers. One of the instruments companies used in this

context is performance measurement. In this paper they proposed on a brief discussion of the

literature on inter-organization performance measurement and contrast existing concepts of

intra-organization performance measurement. Then, they presented indications from a study

of four vehicle manufacturers in Europe and one of it in German with regards to their

practices of supplier evaluation and present a conceptual framework identifying the functions

of performance measurement in this context.

Kauremma and Suzuki (2007) presented supply chain management that concerned with

system-level management of material and information flows. In this case study the tool was

called as the SCM Logistics Scorecard (LSC). This paper reported a study to compare firm-

level Finnish (53 organizations) and Japanese (290 organizations). Differences between the

data sets from the two countries were evaluated along with the observation that higher LSC

and LSC-based factor scores are mildly positively associated with some financial indicators.

However, Japanese companies gave higher evaluation to their logistics and supply chain

performance.

Shang and Marlow (2002) studied a survey of 1200 industrial factories in Taiwan, used

structural equation modeling to examine the relationships among logistics capabilities,

logistics performance, and financial performance. This result showed that information-based

capability was the most critical because it could impact on comparing capability, flexibility

and logistics performance. Moreover, information-based capability also indirectly impacts on

financial performance through logistics performance.

Fawcett and Cooper ( 8991 ) studied the logistics performance measurement that was

critical to the success of almost any organization. This research presented findings from a

longitudinal empirical study of logistics performance measurement practice. In addition to the

survey results, findings from executives over 100 interviews with leading companies

worldwide were discussed. The logistics activity was separate in to 5 parts: 1) asset

management 2) cost 3) customer service 4) productivity and (5) quality by using 40 KPIs (70-

185 points/KPI and full score as 200points). The results showed that the high potential

enterprises required superior process measurement both within the firm and across

organizational boundaries more than the low potential enterprises.

2.3 Integrative Research both Domestic and International From the literature review, the study in Supply Chain Management and Logistics of

Gem and Jewelry industry field has decreased significantly. On the contrary, most of people

interest in several industry. However, the study in Gem and Jewelry industry, including

fashion related in industry, can achieve in terms of strategy development and increasing the

potential of Thailand.

3. OBJECTIVE

The main objective for this paper is to assess the potential in Supply Chain Management and

Logistics of Gem and Jewelry industry in Thailand and compare the potential based on set of

variables. These variables using in this case are business account, size of enterprise,

operational period and channels of distribution.

4. SCOPE

This survey research study the potential in Supply Chain Management and Logistics of Gem

Page 4: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

and Jewelry industry in Thailand, which is subset of the potential in organization (Chow et al.,

1994). The potential in Supply Chain Management and Logistics focuses on procurement,

inbound logistics, production/service, outbound logistics, after-sale service and customers

(Suharittdamrong and Ratanonchai, 2006), to develop an effective and productivity (Gleason

and Barnum, (8911 . Moreover, it concerns with customer satisfaction and business partners,

which related to sales growth, an affective for cost management (Arashida et al., 2004;

Kauremma and Suzuki, 2007), preservation of contract. Details of scope are as follows:

4.1 Population refers to the Gem and Jewelry industry in Bangkok, Thailand (Type

084XX).

4.2 Sample refers to enterprises in Bangkok.

4.3 Variables are divided into 2 types.

4.3.1 Independent Variable consists of

(1) Types of business: gold jewelry, silver jewelry and gold and silver jewelry

(2) Size of enterprise: small, medium and large

(3) Operational period: less than 20 years, between 20 to 40 years and more than

40 years.

(4) Channels of distribution: Exclusive distributor and Multi distribution.

4.3.2 Dependent Variable is the potential of Supply Chain Management and

Logistics for Gem and Jewelry industry based on Prof.Dr.Takao Enkawa’s concept (Enkawa,

2005) and Assoc.Prof.Dr.Apichat Sopadeng (Kauremma and Suzuki, 2007; Leelakaweewong

et al., 2009; Sopadang et al., 2007; Sunarak et al., 2007; Wongwaisayawan and Sopadang,

2007, Yaibuathet et al., 2008).

4.4 Data Collection Period were gathered during June 2009-March 2010

5. METHOD OF APPROACH

This paper is the survey research. Details of each step are as follows:

5.1 Population and Sample 5.1.1 Population: There are a total of 368 registered enterprise of Gem and

Jewelry industry (type 084XX), Bangkok where is the city of Thailand.

5.1.2 Sample: There are a total of 79 registered enterprise of Gem and Jewelry

industry with standard error of 0.10 (from Arithmetic Formula of Taro Yamane)

5.2 Research Tools a tool for evaluating is Supply Chain Management and Logistics Scorecard (SCMLSC)

with Cronbach's Alpha of 0.978

5.3 Sampling procedure This method bases on systematic probability sampling. Each interval of 4 samples is

presented below and then select the first sample by random.

i = Number of population/Number of sample (1)

if i = sampling interval

Page 5: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

5.4 Data Collection A potential assessment can be completed by mail, face to face interviews with

entrepreneurs.

5.5 Data Analysis and Interpretation Statistical Package for the Social Sciences (SPSS) and hypothesis testing with 0.05 of

statistical significance are required.

5.6 Summarize the results and recommend for the further studies.

6. THE RESULTS

The completed questionnaires are 56 samples from 79 enterprises (or 70.89 percent) that are

separated into 3 parts as follow:

6.1 Preliminary Data of Organization

Table 1 Preliminary data of organization

Title n Percentage (%)

1. Preliminary data of organization (n=56)

Your job title:

Managing director (MD) / Executive Directors/Owner 29 51.79

Manager 23 41.07

Supervisor 2 3.57

Operation Staff 2 3.57

Total 56 100.00

2. Address: Office (District) Pranakorn, Pom prap sattru phai, Sampantawong, Dusit 2 3.57

Pathumwan, Bang rak, Sathorn, Wattana 18 32.14

Jatujak, Bang-sue, Phayathai, Dindaeng, Huai khwang, Ratchathewi 4 7.14

Klong toey, Bangkorlaem, Yannawa, Prakanong, Bang na 5 8.93

Thonburi, Bangkok yai, Klongsan, Bangkok noi, Bang pad 8 14.29

Phasi charoen, Chom thong, Ratchaburana 1 1.79

Bang khen, Lak si, Don mueang, Sai mai, Lad phrao 1 1.79

Bang kapi, Kunna yao, Wang thong lang, Bung kum, Saphan sung, Suan luang 3 5.36

Klongsamwa, Nong chok 1 1.79

Lad krabang, Minburi, Prawet 9 16.07

Thawiwatthana, Taling chan, Bang khae, Nongkham 2 3.57

Bang khun thian, Bang bon, Tung kru 2 3.57

Total 56 100.00

3. Address: Factory (District)

Pranakorn, Pom prap sattru phai, Sampantawong, Dusit 2 3.57

Pathumwan, Bang rak, Sathorn, Wattana 18 32.14

Jatujak, Bang-sue, Phayathai, Dindaeng, Huai khwang, Ratchathewi 4 7.14

Klong toey, Bangkorlaem, Yannawa, Prakanong, Bang na 4 7.14

Thonburi, Bangkok yai, Klongsan, Bangkok noi, Bang pad 8 14.29

Phasi charoen, Chom thong, Ratchaburana 1 1.79

Bang khen, Lak si, Don mueang, Sai mai, Lad phrao 1 1.79

Bang kapi, Kunna yao, Wang thong lang, Bung kum, Saphan sung, Suan luang 3 5.36

Klongsamwa, Nong chok 1 1.79

Page 6: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

Table 1 Preliminary data of organization (cont.)

Title n Percentage (%)

3. Address: Factory (District) (cont.)

Lad Krabang, Minburi, Prawet 9 16.07

Thawiwatthana, Taling chan, Bang khae, Nongkham 2 3.57

Bang khun thian, Bang bon, Tung kru 2 3.57

No answer 1 1.79

Total 56 100.00

4. Address: Shop (District)

Pranakorn, Pom Prap sattru phai, Sampantawong, Dusit 2 3.57

Pathumwan, Bang rak, Sathorn, Wattana 16 28.57

Jatujak, Bang-sue, Phayathai, Dindaeng, Huai khwang, Ratchathewi 3 5.36

Klong toey, Bangkorlaem, Yannawa, Prakanong, Bang na 3 5.36

Thonburi, Bangkok yai, Klongsan, Bangkok noi, Bang pad 2 3.57

Phasi charoen, Chom thong, Ratchaburana 1 1.79

Bang khen, Lak si, Don mueang, Sai mai, Lad phrao

Bang Kapi, Kunna yao, Wang thong lang, Bung kum, Saphan sung, Suan luang 2 3.57

Lad krabang, Minburi, Prawet 2 3.57

No answer 25 44.64

Total 56 100.00

5. Business Account

Gold jewelry 12 21.43

Silver jewelry 17 30.36

Gold and silver jewelry 27 48.21

Total 56 100.00

6. Information of organization

Annual Sale (Million Bath)

Less than 20 3 5.36

20-40 1 1.79

41-60 1 1.79

80-100 1 1.79

No answer 50 89.29

Total 56 100.00

7. Number of employee

Less than 50 persons (small enterprises) 12 21.43

50-200 persons (medium enterprises) 39 69.64

More than 200 persons (large enterprises) 5 8.93

Total 56 100.00

8. Characteristic of business

Original Equipment Manufacturer (OEM) 6 10.71

Original Design Manufacturer (ODM) 1 1.79

Original Brand Manufacturer (OBM) 1 1.79

OEM and ODM 34 60.71

OEM and OBM 2 3.57

ODM and OBM 3 5.36

OEM, OBM and ODM 9 16.07

Total 56 100.00

Page 7: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

Table 1 Preliminary data of organization (cont.)

Title n Percentage (%)

9. Type of customer

Upper class 2 3.57

Middle class 11 19.64

Lower class 2 3.57

Upper and middle class 20 35.71

Middle and lower class 10 17.86

Upper and lower class 7 12.50

Upper middle and lower class 4 7.14

Total 56 100.00

10. Period of business

Less than 20 years 36 64.29

20-40 years 18 32.14

More than 40 years 2 3.57

Total 56 100.00

11. Channel of distribution

Direct marketing channel 9 16.07

Indirect marketing channel 10 17.86

Retailing 7 12.50

Others 1 1.79

Multi distribution 29 51.79

Total 56 100.00

From table 1, the most of sample shows as follow:

- Position: managing director/executive directors/owner of 51.79%.

- Office’s location: Pathumwan, Bang rak, Sathorn, Wattana of 32.14%

- Shop’s location: Pathumwan, Bang rak, Sathorn, Wattana of 28.57%

- Type of business: the gold and silver jewelry of 48.21%,

- Annual sale: less than 20 million bath of 5.36%,

- Number of employee: between 50-200 persons (medium enterprises)

- Characteristic of business: made to order based on customer/shop’s design of 60.71%

- Type of customer: upper and middle class of 35.71%

- Period of operation: less than 20 years of 64.29%

- Channel of distribution: Multi distribution of 51.79%

6.2 The Potential of Supply Chain Management and Logistics: Enterprise of Gem

and Jewelry Industry The four stategies of Supply Chain Management and Logistics in Gem and Jewelry’s

enterprise is low potential. Overall of the potential in Supply Chain Management and

Logistics refers to main index in figure 1. In term of the number of main index, low potential

has the maximum value of 57.14%, medium potential of 23.81%, lowest potentail of 14.29%

and high potential of 4.76% respectively.

Page 8: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

Figure 1 The potential of Supply Chain Management and Logistics

6.3 The Result from Hypothesis Testing

6.3.1 Hypothesis 1: The results show as follows:

H0 is the potential of Supply Chain Management and Logistics that is not

different follow 3 types of business (gold business, silver business and gold and silver

business).

H1 is the potential of Supply Chain Management and Logistics that is different

follow 3 types of business.

Table 2 The results from hypothesis 1

Index Data n X SD F Sig

1- Corporate strategy and inter-organizational alignment 56 2.43 0.6377 1.7842 0.1779

2- Planning and execution capability 56 2.46 0.5773 0.0450 0.9560

3- Logistics Performance 56 2.56 0.6282 0.0579 0.9438

4- IT methods and implementation 56 2.18 0.5885 0.3683 0.6936

From table 2, they are not different of the potential of Supply Chain Management

and Logistics that concerns with type of business at statistically significant level of 0.05 in

four strategies.

Page 9: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

6.3.2 Hypothesis 2: The results show as follows:

H0 is the potential of Supply Chain Management and Logistics that is not

different follow three size of enterprise (small, medium and large).

H1 is the potential of Supply Chain Management and Logistics that is different

follow three size of enterprise.

Table 3 The results from hypothesis 2

Index Data n X SD F Sig

1- Corporate strategy and inter-organizational alignment 56 2.43 0.6377 6.0957 0.0041*

2- Planning and execution capability 56 2.46 0.5773 4.0491 0.0231*

3- Logistics Performance 56 2.56 0.6282 10.1377 0.0002*

4- IT methods and implementation 56 2.18 0.5885 4.4376 0.0165*

From table 3, The potential of Supply Chain Management and Logistics has

different that concerns with size of enterprise at statistically significant level of 0.05. Then,

this experiment can be proven by comparing the multiple comparisons with Sheffe’s method

as shown in Table4.

Table 4 Multiple comparison test of hypothesis 2 by Sheffe’s method Index Data Enterprise Small Medium Large

1- Corporate strategy and inter-organizational

alignment

X 2.25 2.37 3.29

Small 2.25 -

Medium 2.37 0.8225 -

Large 3.29 0.0067* 0.0073

* -

2- Planning and execution capability

X 2.11 2.51 2.88

Small 2.11 -

Medium 2.51 0.1006 -

Large 2.88 0.0380* 0.3647 -

3- Logistics Performance

X 2.08 2.60 3.36

Small 2.08 -

Medium 2.60 0.0195* -

Large 3.36 0.0003* 0.0196

* -

4- IT methods and implementation

X 1.85 2.21 2.71

Small 1.85 -

Medium 2.21 0.1530 -

Large 2.71 0.0201* 0.1808 -

6.3.3 Hypothesis 3: The results show as follows:

H0 is the potential of Supply Chain Management and Logistics that is not

different follow the three period of operation (less than 20 years, 20-40 years and more than

40 years).

H1 is the potential of Supply Chain Management and Logistics that is different

follow the three period of operation.

Page 10: The Assessment of Potential in Supply Chain Management and Logistics in the Gem and Jewelry Industry of Thailand

Table 5 The results from hypothesis 3

Index Data n X SD F Sig

1- Corporate strategy and inter-organizational alignment 56 2.43 0.6377 0.2880 0.7510

2- Planning and execution capability 56 2.46 0.5773 0.4800 0.6215

3- Logistics Performance 56 2.56 0.6282 0.7678 0.4691

4- IT methods and implementation 56 2.18 0.5885 0.9745 0.3840

From table 5, they are not different of the potential of Supply Chain Management and

Logistics that concerns with period of operation at statistically significant level of 0.05 in

four strategies.

6.3.4 Hypothesis 4: The results shown as follows:

H0 is the potential of Supply Chain Management and Logistics that is not

different follow the two channel of distribution (Exclusive distributor and Multi distribution).

H1 is the potential of Supply Chain Management and Logistics that is different

follow the two channel of distribution.

Table 6 The results from hypothesis 4

Index Data n X SD t Sig

1- Corporate strategy and inter-organizational alignment 56 2.43 0.6377 -0.9131 0.3652

2- Planning and execution capability 56 2.46 0.5773 -1.5111 0.1366

3- Logistics Performance 56 2.56 0.6282 -1.0815 0.2843

4- IT methods and implementation 56 2.18 0.5885 0.4748 0.6369

From table 6, they are not different of the potential of Supply Chain Management and

Logistics that concerns with the channel of distribution at statistically significant level of

0.05 in four strategies.

7. CONCLUSION, RECOMMENDATIONS AND THE FURTHER STUDIES

7.1 Summary

The potential of Supply Chain Management and Logistics in Gem and Jewelry Industry

has low value of four strategies. In addition, This is different that depended on the size of

enterprise at statistically significant level of 0.05. In part of the potential of Supply Chain

Management and Logistics is not different for type of busines, operational period and channel

of distribution at statistically significant level of 0.05.

7.2 Discussion

7.2.1 Corporate strategy and inter-organizational alignment: both small and

medium enterprises has the potential lower than large enterprises because they do not give

priority to supplier contract terms, the degree of information sharing and the system for

measurement and improvement of customer satisfaction including the system for employee

training and evaluation.

7.2.2 Planning and execution capability: small enterprises has the potential lower

than large enterprises because they are not interested in the strategies for optimizing logistics

system resources base on design for logistics, accuracy and adaptability of SCM planning

including process standardization and visibility.

7.2.3 Logistics Performance: the large enterprises can reasonably manage the

logistics performance. In case of small and medium enterprises are different from the large

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enterprises. Both of small and medium enterprise do not focus on just-in-time (JIT), inventory

turnover and cash-to-cash cycle time, delivery performance and quality, total logistics cost

(transportation cost, inventory holding cost, order management cost) and environmental

activities.

7.2.4 IT methods and implementation: since the small enterprises do not

understand the importance of effective usage of computers in operations and decision making

(ERP, supply chain planning software, etc.), the small enterprises are different from the large

enterprises. The medium enterprises are similar to small and large enterprises thus the large

enterprise has the potential of this strategy.

7.3 Recommendations

7.3.1 Both small and medium enterprises has low of corporate strategy and inter-

organizational alignment because the main index of corporate strategy regarding logistics and

supply chain and its importance, supplier contract terms and degree of information sharing,

customer contract terms, system for employee training and evaluation has low potential.

Therefore, the entrepreneurs should train the employee to achieve the importance of Supply

Chain Management and Logistics, both suppliers and customers contract term, degree of

information sharing and employee evaluation.

7.3.2 Small enterprises had low of planning and execution capability because the

main index of accuracy and adaptability of SCM planning, control and tracking of service has

the low potential. For this reason, small enterprises should improve about optimizing logistics

facilities and resource based on design for logistics that directly relates on accuracy and

adaptability of SCM planning and applying the production technology and information

system to increase the standard by supporting of government.

7.3.3 From the testing for hypothesis 1, although logistics performance is not low

performance, they are not high from the average value. We found that the main index of just-

in-time (JIT), inventory turnover, cash-to-cash cycle time, customer lead time, delivery

performance, transportation quality and supply chain inventory visibility and opportunity

costs has low potential so small enterprise should recognize the importance of JIT philosophy

to minimize the inventory turnover and the customer lead time that directly concerns with

delivery performance and cash-to-cash cycle time for enterprise.

7.3.4 Both of small and medium enterprises is poor of IT methods and

implementation because the potential of electronic data interchange (EDI) coverage, usage of

bar code/automatic identification and data capture (AIDC), effective usage of computers in

operations and decision making, unique identification codes is low. Therefore, small and

medium enterprises should use information system, especially computer to operate and make

a decision.

7.4 Recommendations for the further studies

7.4.1 More number of samples should be added to Gem and Jewelry industry

(084XX) in all area.

7.4.2 This questionnaire should be studied other industry but this should improve

and develop the details in term of quality for proper their industry.

7.4.3 Besides quantitative research was studied, we also should apply qualitative

research.

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ACKNOWLEDGEMENTS

We would like to say thank you for Mr.Sumrit Siriaramkul, Mr.Thongsak Chintakarnruek,

Mr.Werapan Subanan, Mr.Worachart Kowinwiwat, Assoc.Prof.Tuanjai Somboonwiwat,

Assoc.Prof.Duangpun Kritchanchai Singkarin, Dr. Kageeporn Wongpreedee and

Asst.Prof.Dr.Korrakot Yaibuathet to advise and consult with in Supply Chain Management

and Logistics Scorecard (SCMLSC), and Thai Gem and Jewelry Manufacturers Association,

and Gemopolis for cooperation with enterprises and cases.

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