| Summary: | The aim of this paper is to examine the impact of
information and communication technology dimensions namely information sharing, quality of information, and compatibility of information
system towards VMI performance.Questionnaire
was the main instrument for the study and it was
gathered from 101 of suppliers in manufacturing
companies.The findings show that information
sharing and quality of information system
contributes to service performance.Meanwhile, only quality of information system contributes to cost performance.Although, literature suggest that
information sharing, quality of information,
compatibility of information system have a positive impact on both cost reduction and service
improvement in VMI program, this study shows that
there is a limited effect on cost performance. In fact, compatibility of information system has not played any major role to increase performance of VMI program.This study recommends that the supplier should urge their customer to share demand information through the quality of information system.
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