Coordinating material and information flows with supply chain planning
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 22 May 2009
Abstract
Purpose
The purpose of this paper is to study how companies can select a supply chain planning (SCP) mechanism to improve the balance between material flow and information flow.
Design/methodology/approach
The methodology of the paper is an inductive case study approach. Coordination theory is used as a background for the paper. Based on a literature survey, determinants of the selection of a SCP approach are defined. Cases of SCP are used to validate the framework presented.
Findings
The paper suggests that specific supply chain characteristics need to be balanced by selecting a coordination mechanism that uses information optimally to support the material flow. Flexible material flow needs frequent updates of the plan based on accurate information. If frequent information sharing and planning practices are used to support inflexible material flow, the result may be volatility in plans, and planning resources are wasted. If a flexible material flow is supported by inadequate information, waste may be produced in the material flow, in the form of excess inventories or capacity.
Research limitations/implications
The paper presents a framework for finding the balance between information flows and material flows and for applying a coordination mechanism.
Practical implications
Companies can use the framework to analyse the management of their material flow and their use of information. In future research the framework could be developed to give more support for situations with different levels and sources of uncertainty.
Originality/value
The framework provides a new perspective on the discussion how information should be used to improve supply chain performance.
Keywords
Citation
Kaipia, R. (2009), "Coordinating material and information flows with supply chain planning", The International Journal of Logistics Management, Vol. 20 No. 1, pp. 144-162. https://doi.org/10.1108/09574090910954882
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited