Supply chain analytic capability: environment and performance
by Karthik N.S. Iyer, Richard Germain, Gary L. Frankwick
International Journal of Integrated Supply Management (IJISM), Vol. 3, No. 3, 2007

Abstract: The research studies antecedents and consequences of enhanced decision-making capability fostered by advanced analytic software such as warehouse management systems and advanced planning and scheduling. The results show that analytic capability leads to better logistical performance (e.g. inventory turnover rates, length of the order cycle) and better operational stability (e.g. more consistent order cycles and warehouse throughput rates). The environment in the form of process turbulence and demand unpredictability affects analytic capability, logistical performance and operational stability. Process turbulence generally has a positive impact: it associates with greater levels of analytic capability, improved logistical performance, and more consistent operations. On the other hand, demand unpredictability has negative implications: it associates with a lower level of analytic capability, poorer logistical performance and inconsistent operations.

Online publication date: Wed, 28-Feb-2007

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