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Supply chain analytic capability: environment and performance

Author

Listed:
  • Karthik N.S. Iyer
  • Richard Germain
  • Gary L. Frankwick

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.

Suggested Citation

  • Karthik N.S. Iyer & Richard Germain & Gary L. Frankwick, 2007. "Supply chain analytic capability: environment and performance," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 3(3), pages 302-320.
    • Handle: RePEc:ids:ijisma:v:3:y:2007:i:3:p:302-320
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