Developing the Business Model Evaluation Scorecard and Self-evaluation Simulator Support for Building SCM

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Being exposed to fierce competition and changing circumstances, interest in logistics and supply chain management has grown explosively in these years. This interest has led many companies to build their supply chain. In most cases, however, organizational constraints disturb their formation of supply chain management (SCM). To breakthrough these constraints, various kinds of scorecard have been developed. Scorecard is a simplified benchmark methodology to diagnose and evaluate one's advantages and disadvantages of several aspects, which concerning to their business style, IT utilization and so on, from the point of total optimization of SCM. In this Research, we at first develop the general-purpose scorecard named SCM logistics scorecard (LSC) Ver. 4, after repeating the process of version up through testing and verifying its validity and effectiveness. LSC includes 22 items related to 4 fundamental areas : Strategy/Organization, Planning/Execution Capabilities, Logistics Performance and IT practical use.Based on this LSC, we gather actual data from about 150 companies and extract five factors, which represent managerial performance and those drivers through these data. And using the corresponding companies' financial bottom line indexes, we analyze the correlation between these indexes and our extracting factors. The result shows that higher scores of LSC, which leads to higher scores of five factors, bring significantly positive financial outcomes.Using this results and data base, we then develop self-evaluation simulator. After filling LSC, this simulator will automatically determine and show not only the company's relative strong and weak points, position and rank of one's company's current working methods from an SCM viewpoint but also show the point aimed at improvement corresponding to financial performance. In fact this simulation system has already put into practical use and its data are continuously undated.