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This paper examines the financial benefits of adopting IT-based supply chain management (SCM) systems by 123 manufacturing firms over the period 1994 to 2000. By examining the change in financial performance pre and post adoption controlling for industry median changes in performance, we find that SCM systems increase gross margin, inventory turnover, market share, return on sales, and reduce selling, general, and administrative expenses. High-tech firms implementing SCM systems have similar benefits and even greater increases in gross margin, market share, and return on sales.

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