Information technology and performance management for build‐to‐order supply chains

Abstract

Purpose

This paper aims to address the growth and importance of build‐to‐order (BTO) supply chains, which allow consumers and supply chain participants to select, configure, purchase and view order delivery status. The paper supports BTO as a source of critical competitive advantage to many organizations.

Design/methodology/approach

This paper uses an interpretivist case study research strategy that exploits multiple research methods. It presents an overview of supply chain management (including BTO‐centric approaches) and performance management and then focuses on a case study in which an aerospace components company was attempting to become a BTO enterprise. Thenceforth, the paper analyses key business drivers of using performance management systems (PeMS), and how supply chain‐oriented organizations can best leverage IT and PeMS solutions in this regard.

Findings

The case study has highlighted the need for the evaluation of PeMS implementation solutions regardless of their typology; wholly vendor‐based, best of breed or combination of vendor solution and in‐house development, but also an internal audit of processes and existing IS that would aid the implementation of such a concept. Furthermore, the intra‐ and inter‐company political/social/commercial tensions (e.g. relating to anxieties about measuring and highlighting relative business performance) need to be recognized, acknowledged in an open/honest manner and addressed in order that such tensions do not outweigh the concept justifiers which drive systems improvements. Education, ownership, responsibility, sponsorship, openness and collaboration between and amongst the supply chain participants will aid in overcoming these barriers.

Originality/value

This paper offers a novel insight into BTO supply chains.

Citation

Sharif, A.M., Irani, Z. and Lloyd, D. (2007), "Information technology and performance management for build‐to‐order supply chains", International Journal of Operations & Production Management, Vol. 27 No. 11, pp. 1235-1253. https://doi.org/10.1108/01443570710830610