INFLUENCE OF INFORMATION TECHNOLOGY ON LOGISTICS INTEGRATION AND DELIVERY RELIABILITY OF SMALL AND MEDIUM ENTERPRISES IN GAUTENG PROVINCE

Abstract

Products and services have no value unless they are in the possession of the customers when (time) and where (place) they wish to consume them. Delivery reliability is so important that non-adherence could lead to SMEs failure. On the other hand, the ability of SMEs to meet delivery orders on time could lead to business success, which may further depend on the extent of information technology and logistics integration. The spread of information technology is transforming both global and local flow of goods, services, finance and information. As a result, creating value for customers has led to many organisations, if not all, looking for a more agile strategic road map that could help in understanding how to satisfy customers better and improve both business and service performance. Information technology makes it possible for different SMEs in the supply chain network to integrate their systems and databases despite compatibility differences. Information technology improves the flow of information and information exchange, as well as response time at various levels of the supply chain network. Effective business design and execution depends on how technology is used to deliver services faster, cheaper and with better quality than that of competitors. The purpose of this study is to determine the influence of information technology on logistics integration and SMEs delivery reliability in Gauteng province. Through a quantitative method using Smart PLS, this study tested the relationships among the three variables, which are information technology, logistics integration and delivery reliability. The results showed that there is a positive relationship between research variables. The proposed study is expected to have practical and theoretical implications to SMEs owners and managers. In addition, it will provide added insights and knowledge to the existing body of literature.

Keywords

• information technology, logistic integration, delivery reliability, supply chain, SMEs, Gauteng province