Key success factor analysis for e‐SCM project implementation and a case study in semiconductor manufacturers

Abstract

PurposeThe semiconductor market exceeded US$250 billion worldwide in 2010 and has had a double‐digit compound annual growth rate (CAGR) in the last 20 years. As it is located far upstream of the electronic product market, the semiconductor industry has suffered severely from the “bullwhip” effect. Therefore, effective e‐based supply chain management (e‐SCM) has become imperative for the efficient operation of semiconductor manufacturing (SM) companies. The purpose of this research is to define and analyze the key success factors (KSF) for e‐SCM system implementation in the semiconductor industry.Design/methodology/approachA hierarchy of KSFs is defined first by a combination of a literature review and a focus group discussion with experts who successfully implemented an inter‐organizational e‐SCM project. Fuzzy analytic hierarchy process (FAHP) is then employed to rank the importance of these identified KSFs. To confirm the research result and further explore the managerial implications, a second in‐depth interview with the e‐SCM project executives is conducted.FindingsThe KSF hierarchy is constructed with two levels: a top‐level consisting of four dimensions and a detailed‐level consisting of 15 individual factors. The research shows that, in the top‐level, strategy is the most critically successful dimension followed by process, organization, and technical; whereas in the detailed‐level, the top management commitment, clear project goal and business requirements, and business process re‐engineering are the top three critical successful factors.Research limitations/implicationsResearch surveys and interviews were conducted with two leading companies: Taiwan Semiconductor Manufacturing Company (TSMC) and ASE; they are the largest front‐end and back‐end SM companies in the world, respectively. Although the data collected was primarily based on the experience of one successful e‐SCM project, the significant roles of these two companies and compelling contribution made by the e‐SCM project leading to the research resulted in valuable guidelines for the companies in the semiconductor industry and a useful reference for companies in other manufacturing industries.Originality/valuee‐SCM system has a high failure rate and there is little literature discussing the KSF of e‐SCM implementation from a holistic view for certain industries. This paper not only provides a structured and comprehensive list of KSFs but also illustrates the application of the most critical factors by examples. In addition to the contributions made to industries, the research results can also serve as a foundation for related academic research when comparing the KSFs of implementing e‐SCM by different industries.

Critical success factors of supply chain management: a literature survey and Pareto analysis

“…That is why Cullen and Taylor (2009) accentuate the criticality of having a quality information system at the managers' disposal. However, drawing from the study done by Hwang and Lu (2013), having IT capability is futile without the drive and support from the top management. Therefore, it is not surprising for CSF2 to be among the vital CSF.…”

“…According to Ngai et al (2004) and Hwang and Lu (2013), commitment from the top management is critical for incorporating IT elements and SCM operation. Ngai et al indicated that besides driving the use of IT in SCM operation, top management support can come from psychological and behavioural support.…”

“…Past logistics and SCM CSF literature have extensively discussed the importance of human resource or human capital (Hidalgo and López, 2009;Mothilal et al, 2012;Hwang and Lu, 2013;Lin et al, 2013). Human resource as CSF is apparent in the field of logistics information communication technology (ICT), third-party logistics (3PL), e-SCM, and supply chain quality.…”

Collaborative Cassava-Chip Supply Chain Mobile Application in Thailand

“…Moreover, the supply chain of agricultural products has become a huge issue because the citizen increasingly concerned about the safety of the foods being is consumed. At present, the process of farming, distribution, transportation, and other activities are interested for consumers of agricultural products [1] [13] [37]. Further, consumer behavior as such involves issues related to public health, which is influenced by existing cases on contaminated products [8].…”

3PL selection criteria in integrated circuit manufacturing industry in Taiwan

“…The high level of uncertainty around market demand and the long lead-times required by the manufacturing process mean that IC manufacturers seek effective and efficient logistics management capability as a means to maximise the utilisation of manufacturing equipment. Located in the centre of the IC industry value chain, the IC manufacturing companies also need to collaborate closely with their partners both up and down the value chain to achieve high performance throughout the entire supply chain (Hwang and Lu, 2013).…”