The impact of the retailing industry's EDI-based Quick Response systems on vendor logistics operations

This paper describes research as to how information technology triggers the reorganization of logistics systems. Specifically, it looks at EDI-based "Quick Response (QR)" systems being implemented by major American general merchandise retailers with their vendors. Data on how vendors' logistics systems were adapting to tightened requirements for delivery were gathered. The effort involved case studies (eight firms), a mail survey of vendors (67 responses), and a sensitivity analysis.; The first three chapters review relevant literature and develop the theoretical models used in the research. Chapter Four develops the theory into a research agenda and chapters Five through Seven report the findings.; A common thread that binds the findings of this research is that EDI-based QR programs raise the level of interdependence between subsystems in product delivery systems by eliminating buffers that previously kept them safely at a distance from one another. Implications include: (1) The existence of heterogeneity in logistics system designs causes diversity in retailers' information systems requirements--the technological problem of QR most frequently cited by the vendors. Variables determined to be related with the choice of logistics system designs included (i) product value density (value per bulk), (ii) product fashionability and (iii) customer size. (2) Poorly implemented QR programs expose vendors to excessively high levels of unpredictable fluctuation in order quantity. (3) There are some structural causes for difficulties in retailer-vendor coordination. (4) Functional suboptimization can lead to deterioration of system performance overall; specifically, an overemphasis on inventory reduction may lead to selection of an inappropriate logistics structure. (5) An evolutionary model of information technology adoption explains EDI and barcode technology adoption well. According to such a model, an organization adopts a technology to deal with a constraint in the system, but the introduction of the technology creates a new constraint, which induces a search for a new technology.