Effects of SCM Activities on Competence, Cooperation and Management Performance
Authors:   Asia-Europe Perspective Association, Choi Sooho 
Published: December 2024

SCM is intended to reduce uncertainty in the business environment related to the supply chain. SCM is necessary to efficiently manage and reduce costs incurred in the supply chain, such as logistics costs. SCM is meaningful in supplying products and services that can satisfy the needs of end consumers at a minimum cost. SCM refers to all the processes of organizing the connections formed to provide the desired product or service to achieve maximum performance with resources.
Supply Chain refers to the process of connecting supply activities such as consumers-retailers-wholesalers-manufacturers-parts and raw material suppliers. Supply Chain Management is to reduce uncertainty in the business environment related to the supply chain. In addition, SCM is necessary to efficiently manage and reduce costs incurred in the supply chain, such as logistics costs.
The business functions of SCM are as follows. First, it is a function that determines the transportation process as a supply chain function that determines the service and cost structure. Second, in SCM, planning is an important function, and it is determined in logistics transportation and warehouse management personnel allocation planning tasks. Third, the goal of SCM is to efficiently achieve quality, cost, delivery, and safety, which belong to the execution task. Fourth, SCM can continuously improve while setting and evaluating key performance indicators.
This research purpose is to inspect the force of SCM activities on competence, cooperation and business performance. To this end, a survey was conducted targeting employees of domestic companies where SCM activities are taking place.
In this study, SCM Activities, Competency, Cooperation, and Business Performance were selected as four variables by referring to previous studies. Based on this, four research hypotheses were composed as “SCM Activities ⇒ Competency, Activities ⇒ Cooperation, Competency ⇒ Business Performance, Cooperation ⇒ Business Performance”. The survey was conducted on a Likert 5-point scale for each item, and reliability, importance, validity, and correlation analysis were verified. In this study, SPSS 23.0 was used for this analysis. A company's SCM activities are expected to ultimately lead to business performance.
As a research result, it was detected that the independent variable SCM activities had a significant effect on the parameters competency and cooperation. Competency appeared significantly in the independent variable business performance. However, Cooperation was found to be insignificant to business performance. Competency and cooperation will improve in companies with active SCM activities.
As a result of the empirical analysis, the following items should be considered in order to improve SCM activities. We share costs and profits with our business partners. We jointly manage our business partners and distribution networks. We share technical information and training with business partners. We utilize the knowledge and information we obtain from trading companies in a variety of ways.
In order to improve management performance, which is the purpose of this study, the following two items should be considered. Profitability is improving due to trading companies. Sales are increasing due to trading companies. And SCM activities are ultimately expected to have a favorable impact on business performance.