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Assessing the impact of e-business on supply chain dynamics
S.M. Disney, M.M. Naim*, A. Potter
Logistics Systems Dynamics Group, Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive,
Cardiff, CF 10 3EU, UK
Received 15 April 2002; accepted 18 November 2002
Abstract
The Internet and related information and communication technologies (ICT) have recently enabled the cost-effective dissemination of information between disparate parties in the supply chain. New supply chain strategies, such as vendor managed inventory (VMI), collaborative planning, forecasting and replenishment (CPFR) and efficient consumer response (ECR), have begun to exploit these new communication channels, principally at the retail end of the supply chain. The impact of the e-business enabled supply chain on manufacturers and materials/component suppliers is,however, less well understood and exploited. This paper is aimed at establishing e-business enabled supply chain models for quantifying the impact of ICT, in particular its effect on dynamic behaviour. The paper concludes that simple, yet robust, models enable considerable quantitative insights into the impact of e-business on supply chain dynamic behaviour prior to their implementation.
Keywords
Supplychaindynamics7e;Lommerce7Kullwhip7+ZQS7Vendormanagedinventory7e;Shopping
1. Introduction
While information and communication technologies (ICT) in the form of e-business is advocated as an enabler to the 1–2–1 enterprise (Peppers and Rogers, 1997) by allowing market place information to be shared by all businesses in the supply chain, there is little analytical or quantifiable evidence that it will actually improve the overall performance of the enterprise in delivering customer wants. It is usually proposed that passing information to all businesses in the supply chain via ICT will improve performance. In fact, recent research (Hong-Minh et al., 2000) has shown, via the supply chain ‘‘Beer Game’’ (Sterman, 1989), that
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