Adoption of web-based order-processing systems: experiences from tier-1 suppliers in the automotive supply chain

Abstract

According to Vigtil (2007), EDI is an enabler of Vendor Managed Inventory (VMI). This paper is focused on the use of VMI-based web ordering systems in Thailand, a developing economy, and based on the activities of the first tier suppliers of original equipment manufacturers (OEMs). The VMI systems used by the OEMs are based on the following process. The system will generate orders either on a monthly or weekly cycle depending on customer orders and inventory status. The generated orders are then translated into web-based purchase orders which the suppliers can access electronically. Based on the purchase orders, the suppliers are then required to print a standardized label including a barcode and attach to the products. The labels improve receipt accuracy and invoice management. The suppliers will then use the web-based system to inform the customers that the products have been shipped prior to physical arrival of the products.This type of web-based system, while commonly in use in developed economies, is not as common in developing economies such as Thailand. It is important therefore to understand how the supplier community has received and perceives such systems. From a Thai industry perspective, it is also important to understand the difficulties, if any, that implementation of such systems bring as well as understand factors that can enable effective implementation of such technologies. This issues have not been studied in a Thai automotive context and understanding the issues will be of significant benefit to other organizations in the automotive as well as other industries in Thailand that intend to deploy webbased VMI systems. Potentially, it could also hold lessons for organizations in other developing economies. Therefore, this study is based on the phenomenon of adoption of web-based ordering

Adoption of internet-enabled supply chain management systems

“…Our results thus extend prior studies by identifying that coercive pressures of suppliers are the significant factors forcing buyers to adopt IOS, whereas the pressures from dominant buyers are not significant affecting suppliers. This finding reflects the difficulty of many large companies in convincing their suppliers to adopt IOS together (Adebanjo and Laosirihongthong, 2014). One possible explanation could be that compared with buyers who have the initiative to start or continue a trading relationship, suppliers are less certain about whether their buyers will continue to source products from them.…”

The impact of IT application on supply chain learning and service performance

“…This group of IT application includes warehouse management systems, order management systems, quality management systems and performance management systems (Autry et al , 2010; Patterson et al , 2004). These systems serve as a source of competitive advantage and offer cost-effective customer order management, reduce error-related costs through real-time performance measurement, handle inventories and reduce storage costs (Adebanjo and Laosirihongthong, 2014; Autry et al , 2005, 2010; Patterson et al , 2004).…”

E-business capabilities in developed and developing countries: Different or the same?

“…A final set of barriers includes the skills present within the organization; a lack of in-house capabilities is an obvious barrier to adoption [24,26], and there can also be employee resistance (especially if the tool is seen as a threat to employee's jobs) [28,29]. A lack of sufficient training [23] and a lack of top management commitment [30] can also have a negative impact on the adoption of these tools.…”