Supply Chain Collaboration between Cane Growers and Related Members of Cane and Cane Sugar Supply Chain in Central Region of Thailand
Abstract
Cane and cane sugar industry plays significant contribution role to Thai economy in term of domestic consumption and export to foreign countries. Net export value of sugar cane has been continuing in the 2nd rank of agricultural industrial products in 3 consecutive years (2015-2017) and Thailand is the 2nd rank of major sugar cane exporters of the world in 2017/2018. Sugar cane production involves many supply chain members starting from cane grower to the sugar cane factory, therefore supply chain management of sugar cane production is vital to pay close attention to the collaboration among supply chain members. The researcher addresses to study Supply Chain Collaboration (SCC) between cane growers and 8 related members of cane and cane sugar supply chain.
This study applies research methodology of mixed method. Qualitative research is executed by a structured interview incorporating an observation on empirical data to obtain data and then perform content analysis and quantitative research is proceeded by survey method of questionnaires to collect all data. The main purpose of the paper is to study psychological, operational and economic factors affecting SCC between cane growers and related supply chain members and the defined population is all cane growers under 69,669 memberships of Sugar Cane Association Zone 7 (Ratchaburi, Kanchanaburi, Nakhonnathom and Suphanburi provinces)
The qualitative study reveals of eight supply chain members relating to the cane grower (Cane harvester, Clapping machine, Cane cutting machine, Transporter, Sugar cane factory, Head of cane grower group, Cane grower’s Associations and Driving mechanism parties under Cane and Sugar Cane Act) and 7 psychological factors (Long-term focus, Trust, Willing to compensate, Personal relationship, Creativity, Collaborative cultures, and Mutual involvement in Societal and family activities), 2 operational factors (Joint planning and decision making and Information sharing) and 2 economic factors (Financial and Non-financial) to effect on SCC between cane grower and supply chain members.
The quantitative study is conducted by questionnaire survey. IOC process on the questionnaires is done completely and 30 sets of try out procedures is tested for reliability and discriminant analysis. 438 sets of questionnaires are handed over to Sugar Cane Association Zone 7 to distribute to the cane grower members and 418 sets are filled in and returned. However, only 404 sets are valid for further analysis. 404 sample data describe most of them are 261 male (64.6%), 173 people of 51-60 year age (42.8%), 160 people of 21-25 continuing years of cane grower careers (39.6%), 232 people of rental land occupancy status (57.8%) and 179 people of occupying 76-100 Rais of land size (44.3%)
In conclusion, all 11 factors influence the Supply Chain Collaboration (SCC) between cane growers and related supply chain members at different levels. Collaborative cultures has the strongest significant level on the collaboration between cane growers and cane harvester, clapping machine, cane cutting machine, transporter whereas creativity play the highest role on the collaboration between cane growers and sugar cane factory and driving mechanism parties under Cane and Sugar Cane Act. Moreover, joint planning and decision making and personal relationship are top influencing factors of the collaboration between cane growers and head of cane grower group and Cane grower’s Associations consecutively. Last but not least, collaborative cultures are only one factor among all 11 factors that influences the supply chain collaboration between cane growers and all 8 related members.
