Investigation Through System Dynamics for the Benefits of ICT Intervention in Distribution

Abstract

The objective of the paper was to investigate through Systems Dynamics (SD) methodology, the impact and benefits of information and communication technology (ICT) tools' intervention in the supply chain process of distribution. Accessing information in a timely and actionable manner as also negotiating and managing relationships within and between organizations in the supply chain has become a source of competitive advantage for businesses. ICT deployments and interventions across the supply chain have become a performance enabler and determinant of competitive advantage for many corporations. These improve supply chain visibility, collaboration, coordination and integration, and thereby dramatically improve the supply chain performance. One process in supply chain management, namely distribution, was described using SD. Introduction of a parameter, ICT capability dramatically changed the status quo and gave rise to new positive balancing or reinforcing loops. This parameter was measured in terms of an index, ICT capability index, which depends on knowledge, social, and economic dimensions.