Impact of Electronic Data Interchange Technology on JIT Shipments

We investigates the degree to which increasing vertical information integration using Electronic Data Interchange technology enhances shipment performance of suppliers in a Just-in-Time environment. Our analysis of shipment data in the automobile industry suggests that shipment performance degrades substantially due to increases in part variety and trading partners from diverse industries. However, investments in information technology to support both the sharing of JIT schedules and the establishment of integrated information links are related to significant reduction in the level of shipment discrepancies.