The Impact of e-Supply Chain Management Systems on Procurement Operations and Cost Reduction in the Electronics Manufacturing Services Industry

Abstract

The article examines the effect of e-supply chain management systems in the operations and business models in the North American electronics manufacturing services (EMS) industry. A causal and descriptive research study was conducted based on a survey applied to thirty-six individuals in EMS firms in order to determine the impact of e-SCM on their key supply chain operations and business models. Results of the research revealed that e-SCM had a positive effect in the operations and business models of the EMS industry as these showed that the profits of the firm increased and internal communications was improved due to the implementation of e-SCM. The research also showed that e-SCMs have many technical issues such as problems with process automation and transmission of supply chain data, e-procurement effectiveness, integration with existing systems and the monitoring of inventory systems and the purchasing process. The research also shows how social media and the internet has affected the business models of the EMS by improving communications and operations in the overall supply chain.