Content uploaded by Murali Sivanesan
Author content
All content in this area was uploaded by Murali Sivanesan on Nov 15, 2017
Content may be subject to copyright.
International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 11 161 – 165
_______________________________________________________________________________________________
161
IJFRCSCE | November 2017, Available @ http://www.ijfrcsce.org
_______________________________________________________________________________________
Analyzing the Information Sharing Practices and Barriers in Supply Chain of
Automotive Industries
R. Sendhil Kumar1,*, S. Pugazhendhi2, C. Muralidharan3, S. Murali4
1Dymos Lear automotive India Pvt Ltd, Hyundai Motor Group, Chennai, India
2 Directorate of Distance Education, Annamalai University, Annmalainagar, India
3 Department of Manufacturing Engineering, Annamalai University, Annmalainagar,India
4 Department of Mechanical Engineering, Sri SaiRam Institute of Technology, Chennai,India.
1, *sastha2004@gmail.com, 2 pugazhs12@gmail.com, 3 muralre@yahoo.co.in
4 murali.mech@sairamit.edu.in
Abstract— Information sharing and technology remain one of the key factors of coordination amongst the parties in a supply chain. Supply
chain efficiency is highly important as today’s competition is no longer between companies, but between supply chains. Information sharing can
increase supply chain efficiency by reducing inventories and smoothing the production. The purpose of this study is to assess the status of the
supply chain information sharing practices in Indian automotive industries. This study is focused on identifying the types of information shared,
determining the level of information sharing , usage of Information Technology (IT) tools and identifying the barriers of information sharing.
Data for this study is collected from the respondents of Original Equipment Manufacturer (OEM), Tier 1, Tier 2 and Tier 3 Indian automobile
industries. Frequency analysis is employed to derive the results from the survey.
Keywords—Information sharing; IT tool; Barriers; supply chain
__________________________________________________*****_________________________________________________
I. INTRODUCTION
Supply chain management (SCM) is associated with the
management of products and information flows among
suppliers, manufacturers, distributors, retailers, and customers
[1]. By appropriate sharing of data between suppliers and
retailers and co-coordinating their replenishment and
production decisions under the demand uncertainty, it is
possible to reduce costs and improve customer service levels.
During the past one decade, supply chain management and
information technology management have attracted much
attention from both researchers and practitioners. As
information technology evolves, firms tend to become more
integrated. Therefore, incorporating effective supply chain
practice with effective data sharing becomes critical for
improving supply chain performance (SCP). The supply chain
practice focuses on material movement [2], while information
sharing focuses on information flow [3].
Information sharing is an important element of cooperation in
SCM. It can be categorized according to operations areas such
as sale, demand forecasting, inventory, order status, and
production plan [4]. Looking at the flow direction of
information, the production demand plan and inventory related
information is a two-way communication within the upstream
and downstream industries in the supply chain [5]. The
information of sales and demand forecast is flowing from
downstream companies to their upstream partners. The
information about demand status is provided by upstream
organizations to their downstream partners. In addition,
information sharing includes the part quality data, details of
early completion date and production feasible capacities
among the partners. Sharing of information is often affirmed
by an electronic data interchange, internet and other
communication devices between the supply chain partners [6].
Information shared can be tactical like effective operations
scheduling, purchasing, logistics planning or strategic like
long-term commercial objectives, client information and
marketing. Past studies on the importance of informal and
formal information sharing between trading partners has
shown that effective information sharing increases visibility
and reduces uncertainty [7]. It permits firms to access data
across their supply chains, leaving them to collaborate in
activities like production, sales and logistics. The range to
which information is shared can improve opportunities for
firms to influence. The scope of this study is to investigate the
effectiveness of information sharing in supply chain
management. This study elaborates the profit and barriers of
sharing information leading to improved supply chain
incorporation among enterprises.
II. RESEARCH FRAMEWORK
The supply chain is a network of interrelated members such
as raw material suppliers, manufacturers, distributors, retailers
and consumers with a lot of different flows moving through it.
Not only products, but also information, money, services and
materials move amongst members of a chain. Effective
management of these flows in the supply chain is necessary to
satisfy the growing demands expected of today’s
organizations.
Looking at the flow of information, benefits can be
achieved by sharing parts of this information flow with the rest
of the supply chain and sharing information is regarded as one
of the most effective ways of improving supply chain
International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 11 161 – 165
_______________________________________________________________________________________________
162
IJFRCSCE | November 2017, Available @ http://www.ijfrcsce.org
_______________________________________________________________________________________
performance. The essence of SCM is, through sharing
information, to optimize the decision-making of members of
the supply chain on activities related to production, inventory,
marketing and so on, and it has become imperative to achieve
information sharing among members of the supply chain.
Based on this background, this study focused on to examine
the level of information sharing practices among the Indian
automobile industries.
A. Type of information shared
Sharing of information refers to the exchange of critical, often
proprietary, information between supply chain members and it is
a strategy for achieving cohesion of all functions among the
members of the supply chain. There is a wide range of
information that could be shared within the firm and across the
supply chain. Depending on the need of the organization,
information related to market, design, product, process,
production, pricing, planning, inventory, logistic, forecasting
demand, order, promotion strategies, customer demand,
production schedule, distribution operation, technological,
manufacturing process and sales forecast can be shared with the
supply chain partners [8] and the typical information shared may
include inventory and replenishment, sales, demand forecast,
order status, production capacity, production schedule, delivery
status [9,10]. Researchers have shown that a variety of
information needs to be exchanged to improve supply chain
coordination, which in turn improves SCP [9, 10]. Table 1
exhibits typical types of information that are usually shared
among supply chain partners.
TABLE I. TYPES OF INFORMATION SHARING
Types of Information
Production plans (PP)
Inventory status (IS)
Order status (OS)
Purchase and sales (P&S)
Quality status (QS)
Delivery schedule (DS)
Product development (PD)
Production/process cost (PPC)
Demand forecast (DF)
Design specifications (DS)
Capacity planning (CP)
Future plans (FP)
B. Information Technology (IT) tools employed
Supply chain members connect through information
sharing support tools. Information Sharing technology support
includes the hardware and software needed to support
information sharing. There are different type of information
sharing tools used by industries in an effort to process more
accurate information, from more different sources frequently
[11]. The increasing attractiveness of e-commerce and Internet
use facilitates the creation of global supply chain. Supply
chain members are using the different type of IT tools for
communication and data transfer. These tools include variety
of technologies such as auto identification, EDI, Global
positioning system (GPS), sensors, radio frequency technique,
advance planning and scheduling (APS). General accounting
system, material planning, enterprise resource planning are
found to be more popular among by Indian industries. Other
IT tools, namely distribution resource planning, global
positioning, SCM module, and customer relationship
management software are used to enhance the communication.
The major IT tools used in a supply chain are presented in
Table 2.
TABLE II. INFORMATION TECHNOLOGY TOOLS
IT Tools
Accounting system (AS)
Material resource planning (MRP)
Enterprise resource planning (ERP)
Bar coding/automatic identification system
Customer relationship management (CRM)
E-commerce module (EC)
Electronic data interchange (EDI)
E-procurement system (EP)
OEM’s own system (OEM)
Supplier relationship management (SRM)
C. Barriers of information sharing
The difficulties involved in the information systems
implementation are mainly due to the technologies needed for
this purpose and they give rise to barriers, which are termed as
technological barriers. The complexity of a technology is a
major element that affects the adoption of information sharing
and the technology factor can cause the failure of supply chain
information sharing so that technological barriers need to be
tackled at the earliest in the organization. Information sharing
initiatives require essential changes in behavior and process of
individuals as well as organizations. Normally the individuals
and organizations resist the changes because of structural
conflicts and managerial practices of different organization in
the supply chain.
Barriers that arise due to the cost and investment related to
implementation of information sharing systems are
categorized as fiscal barriers. Effective information sharing
depends on the advanced information and technology systems.
It requires more investment because without this efficient
sharing of information cannot take place in a supply chain.
Financial constraints are key barriers to information sharing in
a supply chain. Cost considerations are the prime challenges to
support the IT infrastructure and skilled manpower
requirements. Initial investment for the infrastructure, training
and running maintenance cost of an information system in a
supply chain needs the high investment required to set up the
system. Lack of experience, training and low literacy about the
new technology are also considered as some of the barriers of
information sharing.
The barriers that provide hindrance in supply chains are
identified from a detailed literature survey and thereby a total
of 36 only 10 are presented. such barriers are identified [12]
and the top 10 most important barriers, as identified in this
study, are presented in Table 3.
International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 11 161 – 165
_______________________________________________________________________________________________
163
IJFRCSCE | November 2017, Available @ http://www.ijfrcsce.org
_______________________________________________________________________________________
TABLE III. BARRIERS OF INFORMATION SHARING
Barriers
Shared vision between supply chain partners
B1
Different organizational culture
B2
Cost of maintenance and specialized man power
& training
B3
Lack of willingness and spirit among employees
B4
Lack of employee education and
training/knowledge
B5
Lack of clear alliance guidelines
B6
Lack of top management commitment or support
B7
Integration with suppliers and customer's system
B8
Mismatched data structures
B9
Lack of leadership and managerial direction
B10
The type of information sharing used, usage of IT tools and
barriers of information sharing in the automotive industries
located in India are analysed by the frequency analysis.
III. CASE STUDY
A. Focus on Automotive sector in India
Indian auto component manufacturers have successfully
managed to cut down costs, apart from improving upon
quality. At the same time, many overseas firms are setting up
export bases in India because of the growing demand
potential. True, Indian automotive industries have gone
through a steep learning curve and are all set to make an
impact on the global scenario.
B. Objectives
The main objective of this study is to develop a
comprehensive report on information sharing practices,
utilization of IT tools and barriers of information sharing on
supply chain in automotive industries in Indian context.
C. Data collection
Data for this study are collected through questionnaire
based cross sectional survey method. The target population of
the survey was the respondents who are serving as the middle
and top level executives in OEM, tier1, tier2 and tier3
automotive industries in India. The senior-level and middle-
level managers of the target organizations from different
departments working as a supply chain manager, logistics
manager, and purchase manager, who, thereby, are
responsible for the organization’s supply chain activities were
selected for the administration of the questionnaire. The
questionnaire was developed based on related literature and
through interaction with academics and industrial
practitioners. A pilot survey was conducted and the
questionnaire was modified. The revised questionnaire
consisted of questions that elicited the response of the
managers in regard to information sharing practices. The
respondents were taken to indicate their perception, on a 5-
point Likert scale ranging from 1 (= Poor) to 5 (= Excellent).
The survey questionnaire was sent to 350 industrial
respondents of automotive industries. From the collection of
response, 158 usable responses were considered giving a net
useful response rate of 45% and the remaining were discarded.
In this case, the sample size is found to be adequate following
the Evan’s rule [13]. These 158 questionnaires include 8 from
OEM, 49 from Tier 1, 70 from Tier 2 and 31 from Tier 3
industries, which are analysed.
IV. RESULTS AND DISCUSSION
A. Types of information sharing
Figure 1 shows the pictorial view of survey results with
regard to importance of types of information sharing. The
results showed that the Production planning (PP) is the most
widely shared information followed by iinventory status (IS),
order status (OS) and purchase and sales information (P&S).
Information regarding Quality status (QS) and delivery status
(DS) are the next most widely shared information, between the
customer and suppliers. From the results, it is also found that
the information related to factors such as new product
development status (PD), production process cost (PPC),
demand forecast (DF) and design sophistication (DS) are not
so frequently shared among the automotive industries.
Fig. 1. Priority of types of information shared
Fig. 2 Frequency of using the variuos types of information
Figure 2 shows the frequency of sharing the various types
of information sharing among the supply chain partners.
Results showed that the quality information sharing (QS) is the
most frequently used type of information followed by
production planning (PP), order status (OS) and delivery status
(DS). Purchase and sales detail and inventor status are sharing
lesser frequency than quality status. Furthermore, Demand
forecast (DF) and capacity planning (CP), production planning
(PPC) and future planning (FP) are shared only between the
supply chain members.
International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 11 161 – 165
_______________________________________________________________________________________________
164
IJFRCSCE | November 2017, Available @ http://www.ijfrcsce.org
_______________________________________________________________________________________
B. Usage of IT tools
The pictorial representation of the findings is shown in
Figure 3. From the results, it is revealed that most of the
respondents indicated that the “accounting system” (AS) is the
most widely used IT tool in automotive industries followed by
material requirement planning (MRP) and Enterprises resource
planning (ERP). Usage of other IT tools such as auto
identification (AI) of product tracking, customer relationship
(CRM), E-commerce (EC), Electronic Data Interchange (EDI)
and E-Procurement (EP) are observed to be among the next
most widely used IT tools among the supply chain entities. It
is found that the most of the Tier-1 industries are using the
OEM’s own software for direct communication. On the other
hand, only a few industries use supplier relationship
management (SRM) as IT tool. This may be due to the fact
that the organizations have not upgraded their usage of IT
tools.
4.22
2.99 2.65 2.28 2.08 2.02 2.02 1.99 1.92 1.89
AS
MRP
ERP
AI
CRM
EC
EDI
EP
OEM
SRM
Fig. 3 Frequency of using IT tools
C. Barriers of information sharing
There exist many barriers that act as hindrances to the
process of information sharing in supply chains and the study
has ranked these barriers in the context of Indian automotive
industries, out of which the ten topmost important barriers are
shown in Figure 4. As shown in Figure 4, lack of sharing
vision among the supply chain partners (B1) is observed to top
the list of barriers followed by different organization culture
(B2), the cost of specialized training to operator and
maintenance (B3). For the effective information sharing,
employee support and involvement (B4) is very essential and
lack of such a support is found to be the next most important
barrier in the select case industry the survey has brought
forward the finding that the lack of employee education (B5)
and lack of guidelines (B6) act as the next most impotsant
barriers. The support from the top management is plays a
crucial role in implementing information sharing practices in
an organization and lack of top management support (B7) and
supplier and customer integration (B8) are observed to occupy
the next two positions. Mis-matched data structure (B9) slow
down the supply chain process and thus leads to creation of
conflicts among the supply chain partners. mis-managed data
structure (B9) and lack of managerial and leadership direction
(B10) are found to be the barriers that are considered to be the
next most important barriers in information sharing.
Fig. 4 Barriers of information sharing
V. CONCLUSION
This study is an attempt to assess the ststus of information
sharing practices among automotive industries in Indian
context. The types of information shared among the partners of
automotive supply chains alongwith the frequency of sharing of
information are anlysed. It is found that information regarding
production planning is considered to be the most dominant one
among the entities of the supply chain. The usage of IT tools by
the members of the supply chain is also analyzed and the
results revealed that the accounting system is most widely used
IT tool. It seems that there is a lack of specialized training and
maintenance of IT tools. There is a need for the top
management support in training and motivation of employee
which will increase the supply chain performance of case
companies. The results also indicated that the type of
information shared and the use of support tools differed
between the supply chain members due to variation in the level
of information technology employed. The top management of
case companies has to pay more attention in upgradation of
information technology for enhancing the use of information
sharing practices.
REFERENCES
[1] Simchi-Levi, D., Kaminski, P., Simchi-Levi, E. and Shankar, R.
(2008), Designing and Managing Supply Chain, Tata McGraw-
Hill, New Delhi.
[2] Chopra, S., Meindl, P., 2001. Supply Chain Management:
Strategy Planning and Operation. Prentice Hall, Upper Saddle
River, NJ.
[3] Premkumar, G., William, R., 1994. Organizational
characteristics and information systems planning: an empirical
study.Information Systems Research 5 (2), 75–119.
[4] Lee, H., Whang, S., 2000. Information sharing in a supply chain.
International Journal of Manufacturing Technology and
Management 1 (1), 79–93.
[5] Frohlich, M.T. (2002), “E-integration in the supply chain:
barriers and performance”, Decision Sciences, Vol. 33 No. 4,
pp.537-56.
[6] Handfield, R.B. and Nichols, L.E. (1999), Introduction to
Supply Chain Management, Prentice-Hall, New Delhi.
[7] Handfield, R.B. and Bechtel, C. (2002), “The role of trust and
relationship structure in improving supply chain
responsiveness”, Industrial Marketing Management, Vol. 31 No.
4, pp. 367-82.
International Journal on Future Revolution in Computer Science & Communication Engineering ISSN: 2454-4248
Volume: 3 Issue: 11 161 – 165
_______________________________________________________________________________________________
165
IJFRCSCE | November 2017, Available @ http://www.ijfrcsce.org
_______________________________________________________________________________________
[8] Omar, R., Ramayah, T., Lo, M-C., Sang, T.Y., and Siron, R.
(2010) Information sharing, information quality and usage of
information technology (IT) tools in Malaysian organizations,
African Journal of Business Management, 4(12), pp. 2486-2499.
[9] Kulp, S.C., Lee, H.L. and Ofek, E. (2004) Manufacturer benefits
from information integration with retail customers, Management
Science, 50 (4), pp. 431-444.
[10] Cai, S., Jun, M., and Yang, Z. (2010) Implementing supply chain
information integration in China: The role of institutional forces
and trust, Journal of Operations Management, 28, pp. 257-268.
[11] Jharkharia, S. (2012) IT-Applications in supply chain
management: A review of issues, International Journal of
Research in Management, Economics and Commerce, 2(11),
pp.289-296.
[12] R. SendhilKumar, S. Pugazhendhi., C. Muralidharan., and K.
Essakimoorthy, “An analysis of barriers in information sharing
in supply chains”, International Journal of Enterprise Network
Management.,in press.
[13] Evans, Martin G. (1991).The problem of analyzing
multiplicative composites: Interactions revisited. American
Psychologist, Vol 46(1), pp.6-15.
