Determining the core activities in the order fulfillment process: An empirical application

Résumé du document

This work examines the relationship between internal and relational capabilities and the creation of value to the end consumer in the order fulfillment process. The study is applied to firms manufacturing and distributing food products. This work develops a methodology to identify activities that generate core competences and those that do not, with the aim of improving the management of the supply chain. Moreover, it compares the contributions of core and non-core activities to the creation of value to the end consumer. The results of the study reveal that internal and relational capabilities explain the creation of value to the consumer. The study demonstrates that the core activities generate a more differentiated view of consumer value than those that do not comprise part of the core competences. It also shows that non-core activities complement value to the end consumer.
This work analyzes the extent to which resources and capabilities influence the creation of value to the end consumer from the manager's perspective (Barney, 1991; Grant, 1991; Peteraf, 1993). To that end, we propose an exploratory study in which we consider value from a general perspective. It is necessary to study the way in which the resource and capabilities of each activity in a determined process contribute value to the end consumer from the manager's perspective since it is he who manages the firm's resources. The activities that create value to the end consumer can be linked to the concept of core competences (Prahalad and Hamel).

Extraits

[...] Table 2 displays the correlations between the different variables used in the study. Table 2.- Correlations analyses a The correlation is significant at 0.05 b The correlation is significant at Testing hypotheses Test of hypothesis 1. To test Hypotheses H1a and H1b, a multiple regression analysis was applied using the stepwise method, where the dependent variable is the creation of value and the independent variables are the two factors extracted from the confirmatory factor analysis. Table 3 shows the results, where the adjusted R-squared was 0.32 and the factors (internal and relational capabilities) are significant in explaining the creation of value. [...]

[...] The greater the external capabilities developed by the firm in the order fulfillment process, the greater the orientation toward the creation of value to end consumers will be. H1b The greater the internal capabilities developed by the firm in the order fulfillment process, the greater the orientation toward the creation of value to end consumers will be. Following Figure the previous analysis must be complemented at an activity level in order to compare the contributions of core activities versus non-core activities to the creation of value. [...]

[...] Measure of variables Activities in the order fulfillment process. This process was selected for the empirical study because it is a key process to the supply chain and to the sales distribution channels activities were identified of which correspond directly to the process being studied. Those activities are: receipt of the order in the warehouse, stock control, production order, manufacture, transfer to the warehouse, storage, preparation of the consignment, control of delivery note, shipment of consignment, and transport. Internal capabilities or core competences. [...]

[...] Determining the core activities in the order fulfillment process: An empirical application ABSTRACT This work examines the relationship between internal and relational capabilities and the creation of value to the end consumer in the order fulfillment process. The study is applied to firms manufacturing and distributing food products. This work develops a methodology to identify activities that generate core competences and those that do not, with the aim of improving the management of the supply chain. Moreover, it compares the contributions of core and non-core activities to the creation of value to the end consumer. [...]

[...] The convergent validity can be seen in the weights of different indicators used in the confirmatory factor analysis. The indicators show Chi-square values of 4.526 (df 0.33 which confirms the general validity of the tested model. The indicators NFI= GFI = AGFI= CFI= 0.992 confirm the validity of the model. Moreover, the fact that RMSEA= 0.042 also validates the model. The two indicators of internal capabilities are above 0.5 (competitive strength 0.877 and valuable resources 0.727 which confirms the convergent validity of this factor. [...]