Developing measures for the evaluation of information flow efficiency in supply chains

Abstract

Member organisations in a supply chain are dependent on each other to provide material, services and information to perform optimally in the supply chain. Efficient, unrestricted information flow is needed in supply chains to function properly. Information flow is thus an element of supply chain management that needs to be managed. Yet, no indication could be found in supply chain management literature of the measurement of information flow efficiency. Hence, the aim of this article is to explore the measurement of information flow efficiency in supply chain management (SCM) and exploratively develop possible measures (indicators and associated metrics) to measure the efficiency of information flow.In this research the theory of information and related concepts, the basic notions of information systems and the models of business performance measurement were explored. Based on information flow theory and information flow characteristics a research instrument was developed. It was used in a survey to seek inputs from supply chain managers as to the usefulness of characteristics as indicators and metrics for the measurement of information flow efficiency in a supply chain. The main contribution of the study is the development of a conceptual framework of indicators and metrics that may be used to evaluate the efficiency of information flows in supply chains. The results of this study can be used as a basis for further studies to validate the instrument for measuring information flow efficiency and to develop scales to actually measure information flow efficiency.