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Outlines cost benefits for information system implementation using electronic data interchange as the enabling tool. Highlights rarely cited on‐cost benefits through the examination of supply chain dynamics,and their relative reductions created through increased stability. Examines two business re‐design strategies, namely lead time reduction via information systems implementation and information integration in the form of actual customer demand fed forward to all supply chain members. Highlights global integrated logistics information systems and describes their role in overall supply chain system optimization.

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