Alan I. Blankley (Ph.D. Texas A&M University) is currently an Associate Professor of Accounting in the Belk College of Business at University of North Carolina at Charlotte where he teaches in the areas of financial accounting and accounting information systems. Prior to joining the faculty at UNCC, he taught accounting at Miami University (Ohio) and Western Michigan University. He has worked as a consultant for Hewlett-Packard, Wachovia Bank, and Mercari Technologies. He has also worked for Bentonville Associates Ventures, a consulting firm specializing in both supply chain consulting and retail merchandising.
AN INVESTIGATION INTO THE EFFECT OF FULL-SCALE SUPPLY CHAIN MANAGEMENT SOFTWARE ADOPTIONS ON INVENTORY BALANCES AND TURNS
Article first published online: 10 MAY 2011
2008 Council of Supply Chain Management Professionals
Journal of Business Logistics
Volume 29, Issue 1, pages 201–223, Spring 2008
How to Cite
Blankley, A. I., Khouja, M. and Wiggins, C. E. (2008), AN INVESTIGATION INTO THE EFFECT OF FULL-SCALE SUPPLY CHAIN MANAGEMENT SOFTWARE ADOPTIONS ON INVENTORY BALANCES AND TURNS. JOURNAL OF BUSINESS LOGISTICS, 29: 201–223. doi: 10.1002/j.2158-1592.2008.tb00075.x
- Issue published online: 10 MAY 2011
- Article first published online: 10 MAY 2011
- Inventory turns;
- Supply chain management
Supply chain management (SCM) software vendors, analysts, and others claim that firms implementing SCM software stand to benefit by being able to reduce inventory holdings and increase inventory turns. We theorize that full-scale implementations lead to system-wide inventory optimization, which in turn leads to cost improvement associated with inventory balances and turns. To examine the question, we develop an analytical model of inventory optimization, then analyze the effects of the model with a numerical experiment, and finally confirm the results with an empirical examination.
We find that firm-wide implementation is significant in explaining improvement in inventory metrics, relative to pre-implementation metrics for our sample. Our empirical tests indicate that implementing SCM software across only a portion of the firm does not impact inventory metrics, but that the scale of implementation does. More precisely, we find that firms implementing SCM software across the entire company significantly improve both inventory turns and inventory as a percent of revenue relative to partially-implementing firms and non-implementers.