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Abstract:
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This research conducted case studies to define the benefits, costs, and risks
employed with the use of E-business in supply chain management. The case studies
further explored the relationship with customers and suppliers in the supply chain based
on adopting E-business initiatives. Open-ended, in-person interviews with US textile
manufacturing companies were also conducted.
This study used a two-phase mixed methods approach in order to gain
secondary data resources and primary data from in-depth interviews with industry
executives. Ten textile manufacturing companies in the Southeastern United States were
interviewed. All of the interviews were conducted in person except for one that was
conducted via telephone. Three in depth case studies were conducted addressing the uses
of e-business initiatives based on VAN and the internet.
A list of B-2-B supply chain transactions were complied based on the samples
responses. These transaction are being exchanged by VAN EDI based on 58% of the
sample has this e-business technology in place. Advance shipment notification is the
transaction that is being exchanged the most between trading partners. The advance
shipment notification is then being used to manage raw material and finish goods
inventory. This study also found that the lack of IT knowledgeable staff, the cost of ebusiness
technology, and the small demand for this technology from their supply chain
partners are the main barriers of e-business implementation. However, the companies in
this sample that implemented e-business into their supply chain have seen: an increase in
data accuracy, transaction cost reduction, decrease time spent on non value added tasks,
and improved customer satisfaction levels.
This study also contains three case studies that focused on the implementation of
e-business into an US textile manufacturers supply chain when dealing with B-2-B
transactions. The first case study focused on what is the cost difference for a greige
fabric manufacturer to send or receive an advance shipment notice manually, through a
VAN EDI system, or AS2 software. The second case study concentrated on why a large
spun yarn manufacturers customers are starting to inquire about having information
made visible on the internet and also what benefits does this create for their supply chain.
Third case study documented how a fabric manufacturer customized a process to
eliminate VAN charges when exchanging B-2-B supply chain information.
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