The contribution and role of information management in supply chains: a decomposition-based approach

Abstract

This paper investigates how information management (IM) and information technology (IT) can support supply chain management (SCM). The objective is to develop a methodology for the alignment of all activities, which relate to IM in supply chains with supply chain targets in order to optimally support SCM. Following the Axiomatic design method, supply chain design decomposition is developed that distinguishes objectives and means of SCM at different levels. Results show that IM has an impact on all target areas of SCM, i.e. quality, delivery reliability, delivery lead times, flexibility, assets, and costs. The methodology can be used to identify appropriate measures related to IM and IT for a specific target area as well as to assess their contribution to the corporate strategy of a company and the supply chain targets. Furthermore, interdependencies and prerequisites can be analysed. In particular, information quality must first be established. Two short case studies illustrate the application of the methodology.

Keywords:

• Supply chain management
• Information management
• Information technology
• Axiomatic design

Acknowledgements

The authors wish to acknowledge the European Commission, the Swiss Federal Office for Education and Science, and all partners of ProdChain for their support.