The role of information technology and supply chain integration on production cost performance

The objective of this paper is to increase the understanding of supply chain integration implementation through a selection of information technology (IT). Survey response from production/purchasing managers in 141 of Thai automotive industry are analyzed to test the effect of types of information technology and supply chain integration on production cost performance. Analysis of Variance (ANOVA) was used to analyze the data. The results suggest an interaction effect of collaboration/decision support information technology to enhance the effectiveness of supply and customer integration. The results from this study provide a framework linking supply chain integration strategies and production cost, leading to valuable insights into how information technologies can be configured for enhancing production cost performance.

[1]  K. Tan,et al.  Benchmarking supply chain management practice in New Zealand , 2003 .

[2]  J. Auramo,et al.  Benefits of IT in supply chain management: an explorative study of progressive companies , 2005 .

[3]  Asoo J. Vakharia,et al.  e-Business and Supply Chain Management , 2002, Decis. Sci..

[4]  Sengun Yeniyurt,et al.  THE IMPACT OF INFORMATION TECHNOLOGY ON SUPPLY CHAIN CAPABILITIES AND FIRM PERFORMANCE: A RESOURCE-BASED VIEW , 2006 .

[5]  R. Handfield A resource dependence perspective of Just-in-Time purchasing , 1993 .

[6]  E. Morash,et al.  Supply Chain Integration: Customer Value through Collaborative Closeness versus Operational Excellence , 1998 .

[7]  P. Lawrence,et al.  Organization and Environment: Managing Differentiation and Integration , 1967 .

[8]  Laura M. Birou,et al.  The Product Life Cycle: A Tool for Functional Strategic Alignment , 1998 .

[9]  Fu-Ren Lin,et al.  Effects of information sharing on supply chain performance in electronic commerce , 2002, IEEE Trans. Engineering Management.

[10]  J. Hair Multivariate data analysis , 1972 .

[11]  Martin Müller,et al.  Reducing information technology-based transaction costs in supply chains , 2007, Ind. Manag. Data Syst..

[12]  Injazz J. Chen,et al.  The role of information technology in supply chain integration , 2006, Int. J. Inf. Syst. Chang. Manag..

[13]  Robert E. Spekman,et al.  An empirical investigation into supply chain management: a perspective on partnerships , 1998 .

[14]  G. Stevens Integrating the Supply Chain , 1989 .

[15]  I. Chen,et al.  Strategic buyer-supplier relationships, information technology and external logistics integration , 2007 .