| This study uses firm data survey responses aggregated to the industry level for 30 industries, from 2001 to 2007, to determine if specific supply chain management practices can be identified as having a significant effect on supply chain efficiency, as measured by two proxy variables. Two multiple least squares regression models are estimated to determine the relationship between: the average annual spending on training per procurement employee, the percent of procurement spending via e-activities, the percent of procurement spending via strategic alliances, and the total procurement spending per procurement employee and the cost reduction as a percent of procurement spending. The findings show that spending via strategic alliances improved both supply chain efficiency indicators, the total procurement spending per procurement employee and the cost reduction as a percent of procurement spending. However, the results for spending on training and spending via E-Activities were mixed in their effect on the two supply chain efficiency indicators. The greater the industry average annual spending on training per procurement employee, the larger the total procurement spending per procurement employee resulting in greater efficiency per procurement employee (and the potential need for fewer employees) and the smaller the cost reduction as percent of total procurement spending resulting in less efficiency. The larger the proportion of industry electronic data interchanges, the lower the procurement spending per procurement employee resulting in less efficiency per procurement employee and the greater the cost reduction as percent of total procurement spending resulting in greater efficiency. This study provides evidentiary reasoning to supply chain managers to use in the competitive distribution of total firm resources. In developing the supply chain management strategy, resources will be utilized to the fullest advantage when allocated to the supply chain management practices that have the greatest impact on efficiency. During the planning process supply chain managers can more effectively make a case for a greater share of corporate resources if they can provide evidence that particular supply chain practices have been shown to enhance the supply chain's efficiency. The extant literature has not fully developed the connection between strategic planning, supply chain practices, and supply chain efficiency. This study serves to address that research gap. |
