The Effects of IT on Supply Chain Management in the Automobile Industry

Abstract

This chapter introduces the concept of electronic supply chain design (eSCD) and empirically examines the impacts of eSCD on supply chain management. eSCD is a supply chain design that integrates and coordinates suppliers, manufacturers, logistic channels, and customers using information technology (IT). In this chapter, a model that shows the effects of eSCD on the customization capability of companies was developed. From previous studies, the model identifies three major effects of eSCD—electronic linkage effect, supply chain coordination effect, and co-engineering effect. The model also shows a process through which an electronic supply chain network is transformed from a simple infrastructure for data exchange into a knowledge-sharing network for fast response and customization. The model was tested using the data collected from the automobile industry in Korea. It was shown that eSCD has significant effects on the supply chain coordination and co-engineering. It was also shown that eSCD affects the customization capability.