Developing an incentive system to improve the efficiency of logistics between related enterprises

The unit of competition is not a single firm any more, but group of firms. They make a supply chain and compete with other chains. In this study, we investigate success factors of supply chains from the supplying firm's perspective. We consider various success factors such as commitment, trust, communication, conflict resolving techniques, vendor selection process and incentive systems. A set of hypotheses is tested based on the data collected from the electronics and automobile part manufacturers. Samples are divided by the length of the relationship between the vendor and assembler. Joint problem solving under the long-term relationship plays an important role for the success of the supply chain. The findings offer insight into how to better manage the supply chains.