Jouni Kauremaa

Benefits of IT in supply chain management: an explorative study of progressive companies

Purpose – To provide empirical evidence of benefits from IT in supply chain management.Design/methodology/approach – Data in this qualitative study were collected through multiple enquiries. SCM consultant interviews gave an understanding of the current state of practice. A survey of 48 progressive companies was conducted to identify what IT solutions they have implemented in SCM. This was followed by 18 in‐depth case studies to identify the mechanisms for achieving benefits of IT in SCM.Findings – Based on the empirical studies five propositions are presented on the use and benefits of IT. First, successful companies have developed focused e‐business solutions for improving customer service elements that are most important in their business. Second, improved efficiency allows company personnel to focus more on critical business activities. Third, the use of e‐business solutions improves information quality. Fourth, e‐business solutions support planning collaboration and improved agility of the supply net...

Patterns of vendor-managed inventory: findings from a multiple-case study

Purpose – This paper aims to address two questions: what kinds of benefits are realized from a vendor‐managed inventory (VMI) program (operational, i.e. efficiency related, vs strategic, i.e. sales related) and how the benefits are shared at the dyad level (suppliers vs buyers).Design/methodology/approach – The paper uses an exploratory multiple case study with data from five operational VMI dyads, evaluating both buyer and supplier perspectives.Findings – Three empirically grounded patterns of VMI are proposed. Five contextual inhibitors of VMI impacts are suggested.Research limitations/implications – The framework presented has been generated from a relatively small number of cases. Threats to external validity have been mitigated with case selection from multiple operational contexts and grounding findings in prior literature.Practical implications – Using the conceptualization, potential VMI adopters can set more realistic and explicit implementation targets. The suggested contextual factors will help...

Business-to-business integration: Applicability, benefits and barriers in the telecommunications industry

This paper statistically analyzes applicability of business-to-business integration (B2Bi), benefits from and barriers to electronic data interchange (EDI) and RosettaNet between major original equipment manufacturers and European operators in the telecommunications industry. Based on coordination costs and nine business processes, frequency of the business process and timeliness required in the business process have clearer positive influences on applicability of B2Bi than does accuracy required in the business process. Complexity of the business process does not have such a positive relation to this applicability. Comparison of 12 benefits and eight barriers between EDI and RosettaNet shows no considerable differences. RosettaNet yields only slightly higher direct benefits than EDI, whereas all indirect benefits from RosettaNet are significantly higher than indirect benefits from EDI. Surprisingly, barriers to RosettaNet are not lower than barriers to EDI although only a lack of knowledge on EDI or RosettaNet is a significantly higher barrier to RosettaNet.

Designing interorganizational information systems for supply chain integration: A framework

Purpose – The purpose of this paper is to increase understanding on the essential managerial and technical decisions in the design of IOIS for supply chain integration (SCI). Toward this end, the authors elaborate on IOIS constructs in the SCI context, and propose a framework on the design of IOIS for SCI based on the current literature. Design/methodology/approach – The paper draws from prior literature on interorganizational information systems (IOISs) and supply chain management (SCM), and builds a conceptual framework that is illustrated by empirical examples from three case studies of a ten-year research program that focussed on e-business in SCM. Findings – Based on prior literature from several domains, the authors propose a framework, which combines the managerial viewpoints and the technical viewpoints for designing IOIS for SCI. The authors argue that these decisions form the basis for constructing three main elements of the IOIS for SCI design theory, namely, purpose and scope, design principle...

Logic for Accumulation of Design Science Research Theory

The paper introduces a structured logic for iterative and incremental accumulation of a design theory during a research project and across research programs. The logic is proposed to help researchers understand the links between parallel search spaces related to a particular design and linking to theoretical knowledge bases produced by previous search processes. The proposition rests on the notion that representing the structure and logic of design science research (DSR) theory using CIMO enables the elements of the knowledge base to be more easily evaluated, combined, and transferred between related search spaces. We view DSR theory development as an iterative and incremental social process and propose a structured logic as a means to better understand, but also guide, DSR theory development over time.

Differences in adoption of global spare parts management in autonomous service units

Purpose The purpose of this paper is to study the adoption and motivation to adopt global spare parts practices in autonomous units servicing the products of an original equipment manufacturer. Design/methodology/approach The methodological approach is case study investigating the reasons for different levels of use and the perceptions regarding the benefits of a centralized supply chain management in four representative service units. Findings Autonomous spare part units often source locally because local suppliers are easy to work with in terms of purchasing processes and have no requirements for systematic planning and control of spare parts purchases and inventory management. However, increasing the share of centrally sourced and managed spare parts in the supply chain brings advantages in terms of lower total cost and higher availability. From the perspective of individual subunits engaged in providing product support services, this advantage of relying on a centrally managed spare parts supply chain of an original equipment manufacturer is not self-evident. Autonomous units frequently choose to continue sourcing spare parts from alternative sources, undermining the economies of scale attainable through the original equipment manufacturer’s supply chain. Higher levels of use are facilitated by back-office purchasing management at the unit level. The positive perceptions of centralized supply management in general – including the relationship between the supply unit and the service unit – further facilitate adoption, while local requirements and practices inhibit it. Research limitations/implications The study is a single case study and presents proposals requiring further study of the reasons for the observed differences in use of centralized supply chain management. Practical implications Centralized spare parts management service requires investment in back-office resources at the service unit level. Originality/value The research increases the practical relevance of existing research through an empirical investigation on the autonomous units’ motivations for and perceived benefits of centralized spare parts supply.