An Intelligent Supply Chain Design for Improving Delivery Reliability

An Intelligent Supply Chain Design for Improving Delivery Reliability

Tobias Mettler (University of St. Gallen, Switzerland), Roberto Pinto (University of Bergamo, Italy) and David Raber (SAP Research and University of St. Gallen, Switzerland)
DOI: 10.4018/jisscm.2012040101
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In order to flexibly respond to market demands and changing business environments, today’s European machinery and equipment manufacturers are organized in agile, non-hierarchical business networks. As a consequence, relationships with suppliers are often highly volatile, instable and inapprehensible, which in turn causes turbulences with respect to reliability of deliveries. Following the design research paradigm, both practical and knowledge problems are considered by this paper. First, from a practical point of view, a new intelligent supply chain design for non-hierarchical manufacturing networks is developed, that pledges to improve the delivery reliability. Second, from a knowledge point of view, the underlying hypotheses that go along with this new design are validated using structural equation modeling. The results confirm several previously proposed assumptions, including the importance of an electronic procurement process as well as the use of incentive mechanisms for influencing a supplier’s delivery reliability.
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Research Method

Since Herbert Simon’s foundational “The Sciences of the Artificial” (Simon, 1969) numerous contributions have been made by Information Systems (IS) scholars all over the world to explain and promote design-oriented research. Especially in Europe, this research paradigm has a long tradition.

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