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The Relationship Between EDI and Supplier Reliability
Author(s) -
Walton Steve V.,
Marucheck Ann S.
Publication year - 1997
Publication title -
international journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 1055-6001
DOI - 10.1111/j.1745-493x.1997.tb00029.x
Subject(s) - reliability (semiconductor) , quality (philosophy) , supplier relationship management , business , sample (material) , delivery performance , electronic data interchange , supplier evaluation , computer science , production (economics) , supply chain management , operations management , process management , supply chain , marketing , database , engineering , philosophy , power (physics) , physics , chemistry , epistemology , chromatography , quantum mechanics , economics , macroeconomics
IN BRIEF Past studies into EDI have shown, mostly by examples, that EDI can be used as a supplier management tool to achieve improved supplier reliability by providing both trading partners with better information. This, in turn, leads to closer supplier relationships, fewer late orders, and a decrease in problems with delivered quality, quantity, or mix. The research discussed in this article tests this contention by examining EDI usage patterns and supplier reliability in a sample of 30 companies that transmit purchase orders to their suppliers via EDI. The study found that the quality of delivered products and materials, as well as the delivery of the correct item/mix, is related significantly to (1) the buyer's experience using EDI as a tool in supplier management; (2) the willingness of both the buyer and supplier to share sensitive production and capacity information; (3) the acquisition of the EDI system; and (4) the level of EDI integration with other computer applications. Integrating the findings of this study with past research suggests that EDI can be used as part of an overall supplier management strategy to improve supplier performance and reduce the cost associated with materials acquisition.