Influence of ICT on Supply Chain Trust Levels
I am looking for information on the influence of recent electronic supply chain methods and technologies such as the Internet, EDI, APS, CPFR, JIT, etc. on
trust levels in supply chain relationships.
On one hand these recent technologies and supply chain models seem to
require higher trust levels, on the other hand, when implemented, they may also
result in higher trust levels.
Please share your experiences.
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Jaap de Jonge
Editor, Netherlands
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Influences of ICT on SCM and Supply Chain Trust
There are many ways in which ICT and various applications like the ones you are mentioning are influencing supply chains and in particular trust levels among supply chain partners.
Here are a few areas you can think of to get started:
- SECURITY AND RELIABILITY ISSUES (e.g., hackers) significantly inhibit ICT adoption, supply chain integration and trust levels between organizations.
- E-BUSINESS SOLUTIONS can improve many supply chain and customer service elements. Electronic Data Interchange (EDI) for example contributes positively to order cycle time, product availability, distribution malfunctions, product availability, and distribution flexibility among other things.
- INTERNET has made it easier to share/transfer information along the supply chain. This has led to streamlined logistics flows, reduced inventory levels, better operational performance, customer service and helps to improve trust levels.
- INVENTORY MANAGEMENT is improved dramatically, allowing for lower safety stock levels. But again this does require trust in partners as well as trust in used technologies.
- SUPPLY CHAIN APPLICATIONS like CPFR and advanced planning systems (APS) also enable a reduction in cycle time, reduction in inventories, minimization of bullwhip effect and improvements in the effectiveness of distribution channels.
- VENDOR-MANAGED INVENTORY has enabled sharing of information between buyer and seller but also requires a high trust level. Buyers are able to share their information on demand to their supplier. The supplier in turn manages this information and can be able to do forecasting based on the data received.
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