Performance observation and analysis of an information re‐engineered supply chain: a case study of an automotive firm

This paper provides an empirical illustration of the potential of a cross‐supply chain information system (CSCIS) in an automotive industry setting. Whilst dramatic reductions in downstream finished goods, work‐in‐progress and raw materials inventories have taken place in many automotive supply chains, this paper looks at how demand information can be made more transparent in order to improve the efficiency of upstream operations. The paper concentrates on the findings from a case study that used a prototype Internet‐based system to convert original equipment manufacturer (OEM) demand into second and third‐tier component requirements. A computer‐based value analysis illustrates how this information might be used to significantly improve supply chain synchronisation in the lower tiers. The research demonstrates how information systems can be used to improve supply chain performance and provides further motivation for the development of more holistic supply chain planning information systems.