Supply chain replenishment: before‐and‐after EDI implementation

Abstract

Purpose

This study seeks to determine whether electronic supply chains using electronic data interchange (EDI) are more successful than non‐electronic supply chains using manual (paper) purchase orders by analyzing the supplier‐manufacturer link in the SC.

Design/methodology/approach

Identical products are analyzed before‐and‐after EDI implementation in an organization, therefore representing both electronic supply chain products and non‐electronic supply chain products.

Findings

The empirical findings indicate that the EDI supply chain is more effective than the manual supply chain in terms of: shorter order cycles, greater availability, lower (purchase) price, and lower (transaction) cost.

Originality/value

The present research study provides for a number of future research possibilities. First, the present research study focuses only on the supplier‐manufacturer link of the SC. Other links in the SC (manufacturer‐distributor, distributor‐retail outlet, and retail outlet‐customer) should be analyzed for products that have been replenished manually and then replenished using EDI.

Citation

Leonard, L.N.K. and Clemons Davis, C. (2006), "Supply chain replenishment: before‐and‐after EDI implementation", Supply Chain Management, Vol. 11 No. 3, pp. 225-232. https://doi.org/10.1108/13598540610662121