Today’s business environment is unstable and uncertain. Shorter product life cycles, uncertain demand due to quickly changing customer needs, offshore production, higher supply chain complexity as a consequence of global and severe competition, and fast technological progress are all factors that foster this.
“The economic environment is dynamic and the only certainty about it is it will continue to change." To cope with a high degree of uncertainty and increasing supply chain risk a company needs to establish a robust, resilient but still efficient supply chain.
Due to the strong competition companies have to be responsive, introduce customized products quickly to the market and constantly work on their internal and external operations in order to gain a competitive advantage. They not only have to offer quality to gain customer satisfaction, but also speed and a reasonable price.
Table of Contents
1 Introduction
2 Methodology
3 Descriptive Analysis
4 Does Information Technology influence Supply Chain Performance?
4.1 Higher Supply Chain Performance through Information Technology Application
4.1.1 Increase in Supply Chain Efficiency
4.1.2 Higher Responsiveness to environmental Changes
4.1.3 Achievement of more Integration and Coordination
4.2 Negative Influences of Information Technology in regard to Supply Chain Performance
4.2.1 High implicit and explicit Costs
4.2.2 Increase in Dependency on Information Technology
5 Conclusion
Research Objective and Core Topics
The primary objective of this paper is to explore the multi-faceted impacts of information technology on supply chain performance, balancing both the efficiency-enhancing benefits and the potential risks or negative consequences associated with its implementation.
- Positive influence of IT on supply chain efficiency and cost reduction.
- Enhancement of responsiveness to environmental changes and market agility.
- Role of IT in fostering supply chain integration and coordination.
- Analysis of implicit and explicit costs linked to technology deployment.
- Risks regarding operational dependency and IT infrastructure management.
Excerpt from the Book
4.1.1 Increase in Supply Chain Efficiency
As explained in the introduction, efficiency gains occur when costs are reduced or profits increased. Ongoing technological progress makes it continuously easier for companies “to collect, analyze, and disseminate information among members of the chain” (Fawcett et al., 2007, p. 2). Information technology not only provides reliable, accurate and high-quality information with high accessibility and timeliness, but also processes and exchanges information in an adequate way and speeds up the information flow (Gilaninia, 2011; Pereira, 2009; Yang et al., 2009; Perego, Perotti, & Mangiaracina, 2011). The ability to track and automate real-time information flows also makes product movement as well as the integration of remote labor and processes easier (Savitskie & Katrina, 2007; Marchet, Perotti, & Mangiaracina, 2012).
According to Wang, Lai & Zhao, “IT is one of the few productivity tools that can increase capability, reduce costs, and improve service simultaneously” (Wang, Lai, & Zhao, 2008, p. 2). Operational benefits such as cost and waste reduction, tighter processes and value creation for the customer can be achieved (Koh et al., 2008; Vijayasarathy, 2010). This enables a company to gain a competitive cost-based advantage (Marchet, Perotti, & Mangiaracina, 2012). Vijayasarathy mentioned that “the use of EDI in supply chains benefited Chrysler Corporation by at least $220 million in annual savings as a result of improved information exchange and reduction in operating cost” (Vijayasarathy, 2010, p. 2). Qrunfleh & Monideepa suggest that information systems which improve information availability and accuracy can help a firm to establish a cost efficient, that means lean, supply chain and thereby increase supply chain performance. A lean supply chain strategy is achieved by decreasing inventory, waste, lead time and moreover establishing economies of scale and standardization (Qrunfleh & Monideepa, 2012; Mithas et al., 2012).
Summary of Chapters
1 Introduction: Provides a background on the unstable business environment and defines supply chain performance as a combination of efficiency, responsiveness, and integration.
2 Methodology: Details the systematic literature search process across academic databases and the criteria used to select 27 primary papers for analysis.
3 Descriptive Analysis: Discusses the predominant research views in existing literature and identifies five key clusters of IT influence on supply chains.
4 Does Information Technology influence Supply Chain Performance?: Examines the dual impact of IT, contrasting performance improvements with cost challenges and operational risks.
4.1 Higher Supply Chain Performance through Information Technology Application: Explores how IT drives efficiency, enhances responsiveness to changes, and improves partner integration.
4.2 Negative Influences of Information Technology in regard to Supply Chain Performance: Investigates the hidden costs, financial risks, and the growing dependency on IT systems.
5 Conclusion: Summarizes the findings and suggests that while IT is critical for competitiveness, it requires complementary investments and risk management.
Keywords
Information Technology, Supply Chain Performance, Efficiency, Responsiveness, Integration, Coordination, Operational Risk, Electronic Data Interchange, Resource-based View, Information Sharing, Competitive Advantage, IT Infrastructure, Supply Chain Agility, Cost Reduction, Literature Review.
Frequently Asked Questions
What is the core focus of this research paper?
The paper evaluates the relationship between information technology and supply chain performance, specifically looking at how technology affects efficiency, responsiveness, and integration.
What are the primary thematic areas covered?
The study covers the positive drivers of performance such as connectivity and information flow, alongside the negative aspects like high implementation costs and operational dependency.
What is the central research question?
The study seeks to answer: "What influences does information technology have on supply chain performance?"
Which methodology was employed to conduct this study?
The author conducted a structured literature review, screening 104 articles from premier academic journals to select 27 primary papers based on relevance and quality.
What topics are discussed in the main body?
The main body breaks down IT impacts into clusters, specifically detailing benefits like efficiency gains and responsiveness, and challenges such as explicit costs and systemic risks.
What are the characterizing keywords of this work?
The work is characterized by terms like Information Technology, Supply Chain Performance, Efficiency, Responsiveness, Integration, and operational risks.
Does the paper suggest that IT is a guaranteed source of competitive advantage?
No, the paper notes that IT is a "necessary but not sufficient" condition; it must be embedded in firm strategy and combined with other resources to provide value.
What does the paper conclude about the "IT Productivity Paradox"?
The paper highlights that despite high investments, productivity gains are not always realized, often due to poor implementation or a lack of alignment with business processes.
- Arbeit zitieren
- Inge Wedel (Autor:in), 2012, Influences of Information Technology on Supply Chain Performance, München, GRIN Verlag, https://www.grin.com/document/300076
