Management Efficiency Improvement Plan for the Cold Chain Industry Using DEA-SBM Methodology

Abstract

Objective: This study aims to present processes and strategies to improve management efficiency in the cold chain industry and secure corporate competitiveness.
Background: In Korea, the cold chain industry has established itself as a significant growth engine within the logistics sector. However, due to the technological transition to smart cold chains and chronic structural issues within the industry, the management efficiency of some firms is declining, leading to a crisis of losing competitiveness for the entire industry.
Methodology: This study applies the DEA-SBM methodology. This methodology presents a process for analyzing the causes of inefficiency by considering slack factors and setting target values for input factors subject to improvement.
Results/Conclusion: Input factors (assets, liabilities) and output factors (revenue) were selected for 12 cold chain firms. Using the DEA-SBM model, the relative efficiency of the firms was evaluated under the assumptions of CRS (Corporate Size Expansion) and VRS (Corporate Size Reduction). The causes of inefficiency were identified through SE (Corporate Size) analysis. Based on the RTS analysis, companies in an IRS state should expand their scale in the mid-to-long term, while those in a DRS state should downsize to improve management efficiency. This approach has been proven to contribute to enhancing corporate competitiveness.