Abstract
The chapter presents case studies showing how Chinese automotive companies realise IS enabled supply chain agility and what its effects are on operational performance. It focuses on one OEM and two first tier suppliers. The analysis is based on individual companies, providing a detailed picture of the information flow and the status quo of IS applications. The approaches taken for achieving supply chain agility through IS integration are also discussed through four dimensions of supply chain agility.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
SAP AG is the largest European software enterprise with headquarters in Germany. It focuses on ERP and the company’s main product is SAP ERP. It is one of the most popular ERP systems in Chinese automotive industry (Peng 2006).
- 2.
In mid-1990, out of 1.2 MM total vehicle output, passenger cars were produced only 300,000 in total. The majority of the vehicle production was heavy trucks and buses. However, the passenger car production was nearly 50% of total production in 2004 (Tang 2009). The control on private purchase was only lifted in mid-1980s. By 2009, 61% of the total vehicle sold in China represents passenger vehicles (Booz & Co 2009).
- 3.
SAP R/3 is the third version of SAP real-time data processing. Its new name is SAP ERP (www.sap.com).
- 4.
EDIFACT is abbreviation for electronic data interchange for administration, commerce and transport, an international EDI standard developed under United Nations.
- 5.
The CAGR numbers for personal car sales from 2005 to 2016 are provided by The International Organization of Motor Vehicle Manufacturers (http://www.oica.net/category/sales-statistics/).
- 6.
The definition (manufacturing industry) small enterprise is (1) the number of employees < 300; (2) annual revenue < RMB30m (£3.50m); (3) total asset < RMB40m (£4.67m); and the medium size enterprise is (1) the number of employees 300–2000; (2) annual revenue RMB30m–300m (£3.50m–35.0m); (3) total asset RMB40m–400m (£4.67m-46.7m) (state economic & trade commission, 2003). Exchange rate of GBP: RMB is at 8.56 on 11 September 2017.
References
Agarwal, A., Shankar, R., & Tiwari, M. K. (2006). Modelling the metrics of lean, agile and leagile supply chain: An ANP-based approach. European Journal of Operational Research,173, 211–225.
Barratt, M., & Oke, A. (2007). Antecedents of supply chain visibility in retail supply chains: The resource-based theory perspective. Journal of Operations Management,25, 1217–1233.
Booz & Co. (2009). The eight overarching China automotive trends that are revolutionizing the auto industry Part 1 [online]. Available at https://www.strategyand.pwc.com/media/file/The_Eight_Overarching_China_Automotive_Trends_en_part_1.pdf. Accessed 8 February 2018.
Childerhourse, P., Hermiz, R., Mason-Jones, R., Popp, A., & Tower, D. R. (2003). Information flows in automotive supply chains-identifying and learning to overcome barriers to change. Industry Management & Data System,103(7), 491–502.
Christopher, M. (2005). Logistics and supply chain management: Creating value-adding networks (3rd ed.). Harlow, England: Prentice Hall.
Davenport, T. H., & Short, J. E. (1990). The new industrial engineering: Information technology and business process redesign. Sloan Management Review,31(4), 11–27.
Denolf, J. M., Trienekens, J. H., Wognum, P. M., van der Vorst, J. G. A. J., & Omta, S. W. F. (2015). Towards a framework of critical success factors for implementing supply chain information systems. Computers in Industry,68, 16–26.
Devaraj, S., Krajewski, L., & Wei, J. C. (2007). Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain. Journal of Operations Management,25, 1199–1216.
Disney, S. M., & Towill, D. R. (2003). The effect of vendor managed inventory (VMI) dynamics on the bullwhip effect in supply chains. International Journal of Production Economics,85(2), 199–215.
Fawecett, S. E., Magnan, G. M., & McCater, M. W. (2008). Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal,13(1), 35–48.
Fawcett, S. E., Osterhaus, P., Magnan, G. M., Brau, J. C., & McCarter, M. W. (2007). Information sharing and supply chain performance: The role of connectivity and willingness. Supply China Management: An International Journal,12(5), 358–368.
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management,19(2), 185–200.
Goldman, S. L., Nagel, R. N., & Preiss, K. (1995). Agile competitors and virtual organisations. New York: Van Nostrand Reinhold.
Gorla, N., Somers, T. M., & Wong, B. (2010). Organisational impact of system quality, information quality, and service quality. Journal of Strategic Information Systems,19, 207–228.
Gunasekaran, A. (2005). The build-to-order supply chain (BOSC): A competitive strategy for the 21st century. Journal of Operations Management,23(5), 419–422.
Harland, C. M., Caldwell, N. D., Powell, P., & Zheng, J. (2007). Barriers to supply chain information integration: SMEs adrift of eLands. Journal of Operations Management,25, 1234–1254.
Howard, M. (2005). Collaboration and the 3DayCar: A study of automotive ICT adoption. Journal of Information Technology,20, 245–258.
Ismail, H. S., & Sharifi, H. (2006). A balanced approach to building agile supply chains. International Journal of Physical Distribution & Logistics Management,36(6), 431–444.
Johnson, P. F., Klassen, R. D., Leenders, M. R., & Awaysheh, A. (2007). Utilizing e-business technologies in supply chains: The impact of firm characteristics and teams. Journal of Operations Management,25, 1255–1274.
Koh, S. L., Gunasekaran, A., & Goodman, T. (2011). Drivers, barriers and critical; success factors for ERP II implementation in supply chains: A critical analysis. Journal of Strategic Information Systems,20(4), 385–402.
Lee, H. L., So, K. C., & Tang, C. S. (2000). The value of information sharing in a two-level supply chain. Management Science,46(5), 626–643.
Maiga, A. S., Nilsson, A., & Ax, C. (2015). Relationships between internal and external information systems integration, cost and quality performance ad firm profitability. International Journal of Production Economics,169, 422–434.
Mondragon, A. E., Lyons, A. C., & Kehoe, D. F. (2004). Assessing the value of information systems in supporting agility in high-tech manufacturing enterprises. International Journal of Operations & Production Management,24, 1219–1246.
Nakatani, K., Chuang, T., & Zhou, D. (2006). Data synchronization technology: Standards, business values and implications. Communications of AIS,17, 2–60.
Ngai, E. W. T., Chau, D. C. K., & Chan, T. L. A. (2011). Information technology, operational, and management competencies for supply chain agility: Findings from case studies. Journal of Strategic Information Systems,20, 232–249.
Ngai, E. W. T., & Gunasekaran, A. (2004). Implementation of EDI in Hong Kong: An empirical analysis. Industrial Management & Data Systems,104(1), 88–100.
Pagell, M. (2004). Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics. Journal of Operations Management,22, 459–487.
Peng, J. S., 2006. Automotive supply chain: Strategy, management and information system (in Chinese). Beijing: Publishing House of Electronic Industry.
Prajogo, D., & Olhager, J. (2012). Supply chain integration and performance: The effects of long-term relationships. Information technology and sharing, and logistics integration. International Journal of Production Economics,135, 514–522.
Rai, A., Patnayakuni, R., & Seth, N. (2006). Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Quarterly,30(2), 225–246.
Sanders, N. R. (2007). An empirical study of the impact of e-business technologies on organisational collaboration and performance. Journal of Operations Management,25, 1332–1347.
Sanders, N. R. (2008). Pattern of information technology use: The impact on buyer-supplier coordination and performance. Journal of Operations Management,26, 349–367.
Seethamraju, R., 2006. Do enterprise systems enable supply chain integration. ICBE +eBRF Conference, Tampere, Finland 28 November–2 December 2006.
Sum, C., Yang, K., Ang, J., & Quek, S. (1995). An analysis of material requirements planning benefits using alternating conditional expectation. Journal of Operations Management,13(1), 35–48.
Swafford, P. M., Ghosh, S., & Murthy, N. N. (2006). A framework for assessing value chain agility. International Journal of Operations & Production Management,26(2), 118–140.
Swafford, P. M., Ghosh, S., & Murthy, N. (2008). Achieving supply chain agility through IT integration and flexibility. International Journal of Production Economics,116(2), 288–297.
Tang, R., 2009. The rise of China’s auto industry and its impact on the U.S. motor vehicle industry [online]. Congressional Research Service report. Available at https://fas.org/sgp/crs/row/R40924.pdf. Accessed 10 February, 2018.
van Hoek, R. I., Harrison, A., & Christopher, M. (2001). Measuring agile capabilities in the supply chain. International Journal of Operations & Production Management,21(1/2), 126–147.
Wilkin, C. L., & Chenhall, R. H. (2010). A review of IT governance: A taxonomy to inform accounting information systems. Journal of Information Systems,24(2), 107–146.
Yusuf, Y. Y., Gunasekaran, A., Adeleye, E. O., & Sivayoganathan, K. (2004). Agile supply Chain capabilities: Determinants of competitive objectives. European Journal of Operational Research,159, 379–392.
Zhou, H., & Benton, W. C., Jr. (2007). Supply chain practice and information sharing. Journal of Operations Management,25, 1348–1365.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2019 The Author(s)
About this chapter
Cite this chapter
Wu, Y. (2019). Case Studies: Supply Chain A. In: Achieving Supply Chain Agility. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-98440-7_4
Download citation
DOI: https://doi.org/10.1007/978-3-319-98440-7_4
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-98439-1
Online ISBN: 978-3-319-98440-7
eBook Packages: Business and ManagementBusiness and Management (R0)