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The impact of e-business technologies on supply chain operations: a macroeconomic perspective

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  • Amit Basu
  • Thomas F. Siems

Abstract

New information technologies and e-business solutions have transformed supply chain operations from mass production to mass customization. This paper assesses the impact of these innovations on economic productivity, focusing on the macroeconomic benefits as supply chain operations have evolved from simple production and planning systems to today's real-time performance-management information systems using advanced e-business technologies. While many factors can influence macroeconomic variables, the impact of IT-enabled supply chains should not be overlooked. We find evidence that the impact of e-business technologies on supply chain operations have resulted in a reduced \"bullwhip effect,\" lower inventory, reduced logistics costs, and streamlined procurement processes. These improvements, in turn, have likely helped to lower inflation, reduce economic volatility, strengthen productivity growth, and improve standards of living.

Suggested Citation

  • Amit Basu & Thomas F. Siems, 2004. "The impact of e-business technologies on supply chain operations: a macroeconomic perspective," Working Papers 0404, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:04-04
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    References listed on IDEAS

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    6. Margaret M. McConnell & Gabriel Perez-Quiros, 2000. "Output fluctuations in the United States: what has changed since the early 1980s?," Proceedings, Federal Reserve Bank of San Francisco, issue Mar.
    7. Arthur M. Geoffrion & Ramayya Krishnan, 2003. "E-Business and Management Science: Mutual Impacts (Part 1 of 2)," Management Science, INFORMS, vol. 49(10), pages 1275-1286, October.
    8. Arthur M. Geoffrion & Ramayya Krishnan, 2003. "E-Business and Management Science: Mutual Impacts (Part 2 of 2)," Management Science, INFORMS, vol. 49(11), pages 1445-1456, November.
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    Cited by:

    1. Daniel A. Glaser-Segura & Laurentiu Dan Anghel & Jack E. Tucci, 2006. "Supply Chain Management And The Romanian Transition," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 8(19), pages 18-26, February.

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    Keywords

    Information technology; Macroeconomics; Productivity;
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