THE RELATIONSHIP MANAGEMENT BETWEEN SUPPLY CHAIN MANAGEMENT AND BUSINESS PERFORMANCE: EMPIRICAL EVIDENCE FROM TRANSPORTATION INDUSTRY

Abstract

Logistics is a part of supply chain management that controls and streamlines the flow of
activities, allowing customers’ needs to be fulfilled. A significant portion of drives and supports
to logistics management strategies came from policies implemented by executives. The
transportation industry is an important part in supply chain management, being the link that
connects the customers’ needs to the providers. Important strategies in managing road
transports every operator must consider are maximizing responsiveness and diversifying
services. This study aims to study factors constituting relationship management and supply
chain management that affect business performance of transport operators. This quantitative
study collected data from 200 operators, using questionnaires. The relevance of the
questionnaires was assessed using Cronbach's alpha coefficient before the questionnaires were
distributed. The collected data were analyzed using the structural equation model. Results of
the study revealed that factors constituting relationship management and supply chain
management affected business performance of transport operators. Organizations that
implemented relationship management strategies – such as supplier management, customer
relation management, customer retention strategies, and customer complaint handling services
– could create effective collaborations throughout their supply chains. Organizations must
recognize that aiming to exceed customer expectations was a worthwhile endeavor which could
profit the business in the long run.