The Impact of e-Supply Chain Management Systems on Procurement Operations and Cost Reduction in the Electronics Manufacturing Services Industry

The Impact of e-Supply Chain Management Systems on Procurement Operations and Cost Reduction in the Electronics Manufacturing Services Industry

Sherif Barrad, Raul Valverde
Copyright: © 2020 |Pages: 27
DOI: 10.4018/JMME.2020010101
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Abstract

The article examines the effect of e-supply chain management systems in the operations and business models in the North American electronics manufacturing services (EMS) industry. A causal and descriptive research study was conducted based on a survey applied to thirty-six individuals in EMS firms in order to determine the impact of e-SCM on their key supply chain operations and business models. Results of the research revealed that e-SCM had a positive effect in the operations and business models of the EMS industry as these showed that the profits of the firm increased and internal communications was improved due to the implementation of e-SCM. The research also showed that e-SCMs have many technical issues such as problems with process automation and transmission of supply chain data, e-procurement effectiveness, integration with existing systems and the monitoring of inventory systems and the purchasing process. The research also shows how social media and the internet has affected the business models of the EMS by improving communications and operations in the overall supply chain.
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Literature Review

The literature review will start with an overview of the EMS industry, later the effect of information technology (IT) and internet in the supply change management will be examined and its impact in the EMS business model will be discussed. The literature review will end by outlining some key considerations with regards to platform security.

The electronic manufacturing services (EMS) industry started over 30 years ago when companies were formed to manufacture designs created by governmental agencies such as the Department of Defense (DOD) and NASA. During the 1980s, a handful of contract manufacturing companies or board stuffers were formed each year. Many of these companies started with one or two surface mount technology or SMT lines, accepting contracts from companies that had an overflow of work (ILO 2000, 2011).

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