Benefits of IT in supply chain management: an explorative study of progressive companies

Abstract

Data in this qualitative study was collected through multiple inquiries. SCM consultant interviews gave understanding of the current state of practice. A survey of 48 progressive companies was conducted to identify what IT solutions they have implemented in SCM. This was followed by 18 in-depth case studies to identify the mechanisms for achieving benefits of IT in SCM. Findings Based on the empirical studies five propositions are presented on the use and benefits of IT. First, successful companies have developed focused e-business solution for improving customer service elements that are most important in their business. Second, improved efficiency allows company personnel to focus more on critical business activities. Third, the use of e-business solutions improves information quality. Fourth, e-business solutions support planning collaboration, and improved agility of the supply network. Finally, to gain strategic benefits, the use of IT has to be coupled with process redesign. Research limitations / implications The sample of companies used in the study was selected by expert assessment and is biased towards companies willing to discuss and share results openly. Additionally, the focus of the paper was on single companies and not on the entire supply networks. However, the findings of this study present an opportunity to further develop understanding of the underlying mechanisms of how IT investments benefits supply chain management. Originality / value The paper fulfils an identified need for in-depth case studies that analyze the possible mechanisms behind practical benefits of IT in supply chain management.

The impact of business analytics on supply chain performance

“…The link between IT use and the simultaneous design of business processes is a vital ingredient to bring a benefit from such development efforts. In fact, in practice it is often difficult to separate the origin of the benefit, whether it has derived from IT, a process change, or both [2]. This is understandable since organizations interact on a real-time basis and business processes cut across multiple departments and business lines [69].…”

The Use of RFID Based Supply Chain Systems in Data Centers for the Improvement of the Performance of Financial Institutions

“…For example, a major retailer like Wal-mart can use RFID based supply chain systems to not only identify to the supplier up to date stock levels, but also provide ample information relating to consumer purchasing habits and needs. The general consensus around RFID, with its real time access to data, has led to retailers experiencing added value being created for their businesses (Auramo, Kauremaa, & Tanskanen, 2005;Ranadive, 2006;Schuster, Allen, & Brock, 2006). In actual fact (Auramo, Kauremaa, & Tanskanen, 2005) has identified the following benefits to retailers (Table 1).…”

Integrating supply chain operations in the internet era

“…Regarding cost reduction, it arises as companies improve a number of business processes in the supply chain, mainly by achieving higher levels of coordination due to more efficient information exchanges. Other authors (Cross, 2000;Auramo et al 2004) take a less tangible approach by focusing on the qualitative benefits of Internet. These benefits include facilitated transaction execution, better coordination and collaboration and enhancement in the decision support process.…”

“…However, in many cases Internet's role on supply chain operations and its integration has been often approached in a very generic way (Cross, 2000;Auramo et al 2004) and moreover, most of this research is carried out and is limited in knowledge and information high intensive sectors. In addition, much of the confusion arises as a result of the fact that the notion of integration is not very clearly defined yet.…”