The Impact of ICT on Supply Chain Management Efficiency and Effectiveness: A Literature
Review
Husein Osman Abdullahi
1
, Ibrahim Hassan Mohamud
2
1
Faculty of Computing, SIMAD University, Mogadishu JH09010, Somalia
2
Faculty of Management Science, SIMAD University, Mogadishu JH09010, Somalia
Corresponding Author Email: husein@simad.edu.so
https://doi.org/10.18280/jesa.560216
Received: 13 March 2023
Accepted: 3 April 2023
ICT plays a vital role in enhancing supply chain operations, leading to improved efficiency
and productivity within the industry. This study aims to examine how information and
communication technologies can improve supply chain management's efficiency and
effectiveness through a comprehensive literature review. The study utilized various
databases such as Scopus, Emerald, Sage, spring link and Taylor. The study employed a
predefined search strategy that used "ICT in Supply Chain" as the primary keyword search
term. Additionally, the study examined research articles published from 2018 to 2023.
Initially, 1086 references were retrieved, but eventually, only 10 articles were deemed
eligible and met the inclusion criteria for the analysis. The key findings and suggestions
of each selected publication have been carefully considered and synthesized. The study
outlines future research opportunities and highlights the consequence of continued
leveraging ICT for sustainable and competitive supply chain management practices.
Nevertheless, the study suggested that there is a need to strengthen the implementation of
ICT in supply chain management to enhance the performance and efficiency of supply
chain operations and their members. Furthermore, the study emphasizes the importance of
implementing ICT tools in supply chain sectors while considering factors hindering ICT
utilization in supply chains.
Keywords:
ICT, supply chain, literature review
1. INTRODUCTION
Information Technology and Communication (ICT) has
become an essential aspect of supply chain management (SCM)
that helps improve the organization's performance. Moreover,
implementing ICT will enhance the performance of supply
chain management. Many companies seek to improve their
supply chain management effectiveness through ICTs. ICT
innovations are creating new ways for companies to manage
their supply relationships with and access suppliers. Hence,
using ICT can improve supply chain activities [1].
ICT's effect on the SCM process can be seen in different
ways that make a company more competitive, such as a shorter
response time, better logistics management, better
collaboration between the upstream and downstream for better
demand forecasting, and establishing international vertical
integration across the Company's divisions. According to
several studies, an ICT-enabled supply chain process that
includes control technology and sensing tools can significantly
contribute to making supply chain operations more
environmentally friendly [2, 3].
Similarly, one of the primary benefits of ICT in SCM is the
real-time and accurate exchange of information (EI) made
possible by using ICT advances such as the internet, ERP, SCI,
CRM, and others in the supply chain. Additionally, every SC
member uses ICT, which also has the added advantages of
increasing productivity, promoting more environmentally
friendly behaviors, reducing costs, and eliminating the
requirement for inventory [4].
ICT has significantly and effectively changed many
industrial and transportation operations. It enables the
digitalization of information, the virtualization of products, a
reduction in storage space and the de-materialization of
transport [5].
According to the study [6], implementing ICT significantly
enhances supply chain operations. Adding to that, electronic
mail (Email), enterprise resource planning (ERP), Supply
chain communication system (SCCS), barcoding, radio
frequency identification (RFID), and electronic data
interchange (EDI) are examples of ICT tools that improve SC
efficiency. As a result, the authors contend that it is clear that
information and communication technology (ICT) serves as
the core of supply chain management, helping to provide real-
time critical information by eliminating inconsistency and
ambiguities in the system [7-11].
Information and communication technology (ICT)-based
information sharing encourages information consumption,
increasing supply chain actors' willingness to share [12].
Information and communication technology (ICT) enables
partners in the supply chain to share information more reliably
and correctly, improving demand forecasting and reducing
costs by optimizing inventory at each level of the supply chain
[13]. The quality of information significantly reduces the risks
associated with demand uncertainty for supply chain partners
[14].
The research also demonstrated that ICT enhances quality
information by providing a consolidated view of data from
several sources used in the supply chain ecosystem. In order
Journal Européen des Systèmes Automatisés
Vol. 56, No. 2, April, 2023, pp. 309-315
Journal homepage: http://iieta.org/journals/jesa
