CONTRIBUTION OF INFORMATION TECHNOLOGY TO COMMODITY SUPPLY CHAIN MANAGEMENT IN THE ABOABO MARKET OF TAMALE METROPOLIS

Abstract

Although most institutions heavily invest in Information Technology (IT), there is little empirical evidence to show how IT creates value in Supply Chain Management (SCM), especially in developing contexts. This study sought to assess the impacts of IT on SCM in Tamale Aboabo Market. Cross sectional data were obtained from a sample of 90 enterprise workers in the Tamale Aboabo market, using a multistage sampling technique. The data were analysed using qualitative instruments as well as a quantitative instrument (linear regression). Results of the mixed methods study indicated that distribution, resource planning, and warehouse management systems were statistically significant, with positive influence on inventory management performance such as vendor managed inventory and materials resource planning. More importantly, it was observed that, these achievements were possible largely as a result of the use of smart phones and computers with installed software in transacting business in the Tamale Aboabo market. Nonetheless, the adoption of IT by firms in inventory and supply chain management was found to have been constrained by factors such as lack of IT specialists in the firms, high cost of acquiring and installing IT facilities, and poor awareness about the benefits of IT usage in supply chain management. It was, therefore, recommended that enterprises in the country should collaborate with government and other stakeholders in the IT industry to help educate current and prospective entrepreneurs on IT usage and benefits.