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

Abstract

Purpose of this paperThis paper is addressing 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/approachThis paper uses an interpretivist case study research strategy that exploits multiple research methods. FindingsThis paper 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 authors analyse 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. Research limitations/implications (if applicable)This paper is not seeking to produce generalisable conclusions due to the research strategy adopted.In expanding the research presented, a large scale survey could be used to see how generic the resulted reported are in a bigger context. Practical implications (if applicable)Initial expectations by the case study company were unrealistic in terms of outcomes and costs; Cost estimate and project review prior to commencing development and implementation should have been undertaken more rigorously; Better appreciation of the challenges faced in terms of existing IT/IS arrangements, resources and infrastructure; Recognition that unless a more open and collaborative approach (both internally and externally) is adopted, such an initiative will fail to deliver desired outcomes; Trial and error approach to development that was (implicitly) adopted is not a cost-effective way to proceed (i.e.foresight is better than hindsight).What is original/value of paper This paper offers a novel insight into BTO supply chains.

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