A comparative analysis of information visibility in two supply chain management information systems

Abstract

PurposeCoordination in supply chains and networks calls for information sharing among the members of the supply chain. Accordingly, information visibility – the availability of relevant information for making supply chain related decisions is an important concept in the context of supply chain management. The purpose of this paper is to identify the different dimensions of information visibility and propose a framework based on these information visibility dimensions. The proposed framework can be used to evaluate supply chain information systems (SCIS) and their contribution towards information visibility in supply chains.Design/methodology/approachUsing the proposed framework, we compare two different SCIS (SAP APO and SupplyOn) to assess the extent to which these systems meet the information visibility needs within supply chains and networks. In order to carry out the comparison, data regarding the two systems in collected using multiple methods such as from system documentations, training sessions, interviews with experts and systems engineers.FindingsThe findings indicate that both systems perform well in terms of supporting information visibility, however they serve different purposes within supply chains and networks. Based on the findings, the authors discuss the role of different types of SCIS depending on the characteristics of adopting firms and their supply chains, and how the use of these different systems can complement each other. The research and practical implications of this study are discussed in the overall context of supply chain management.Originality/valueThe framework can be used by organizations to assess the extent to which relevant information is accessible within their supply chains and to select from various SCIS solutions that are available. This research advances understanding on ways of achieving information visibility.

Supply Chain Management Information Systems and Organisational Performance in economic turbulent environments

“…There is an assumption that 'competition is no longer between organisations but through their supply chains'. As such, research interest has focused on supply chain performance [6]. For example, a survey of Taiwanese manufacturers, found that supply chain practices have an indirect impact on financial performance [7], whereas a survey of US manufacturers found a strong relationship between supply chain practices and organisational performance [8].…”

Proactive inventory policy intervention to mitigate risk within cooperative supply chains

“…There is an increasing level of information sharing among supply chain partners (Albani & Dietz, 2009) and (Goswami et al, 2013). When operational information about key parameters (e.g., inventory level, yield rate) is shared, the customer can establish his own policies in accordance with an acceptance risk level.…”

“…In short, companies are now recognizing that their competitive strengths lie not only in their core competencies, but also in their ability to cooperate effectively with business partners. Goswami et al (2013) also examine the need for collaborative information sharing among supply chain partners in terms of information visibility, namely the availability of relevant information for making supply chain decisions. Three dimensions of information visibility are considered -variety, quality and transfer -in a comparative analysis of two supply chain management information systems (SCIS).…”

“…In such friendly contexts, information sharing is more forthcoming and, thus, application of the proposed strategy may be feasible. Further examples of inter-organizational information sharing in modern supply chains have been presented as well (Albani & Dietz, 2009) and (Goswami et al, 2013).…”

“…In the past, supply chain partners have been reluctant to share operational information and, thus, inventory risk mitigation has been done in isolation using practices such as safety stock. However, recently there are increasing cooperation and information sharing in supply chains (Albani & Dietz, 2009) and (Goswami et al, 2013). When operational information about key parameters (e.g., inventory level, yield rate) is shared with a partner, he can be more proactive in establishing his own inventory risk control policies in accordance with an acceptance risk level.…”