Abstract
Information sharing in a retail supply chain presents challenges of mapping information flow in terms of collection and transfer capabilities from one point to other internal and external users. Efficient mapping information flow seems to be dependent on information availability, velocity and the level of volatility. This would strengthen partnerships between the upstream and downstream sites of a supply chain in terms of information capturing, transformation and exchange between both internal and external supply chain users. This study examines the relative magnitude of advance economic information sharing in optimizing integrated supply chain activities in the consumer goods industry. It further analyses the challenges of bullwhip effect from the perspective of electronically-enabled supply chain management (eSCM) systems and information sharing in the fast moving consumer goods (FMCG) industry. The study finds that information sharing is related to supply chain performance targets in the FMCG industry in terms of a higher order fulfillment rate and achieving shorter order cycle time through integrated e-SCM systems. The managerial implications of this study are that integrated IT infrastructure capability and top management support (in terms of visible involvement, commitment and participation of executives and the allocation of the necessary resources) are significant antecedents of the quality of shared information.
Highlights
Chain relationships with suppliers and customers are impacted by the accuracy of information, but its availability, velocity and volatility (Wisner and Stanley, 2008)
This study investigates amplified consumer demand order variability (DoV) in the fast moving consumer goods (FMCG) industry as orders cascade from downstream to the midstream and upstream sites of the supply chain network
Multivariate analysis as a statistical technique was organized around a scheme of dependence procedure in order to develop models that best describe the population as a whole
Summary
Chain relationships with suppliers and customers are impacted by the accuracy of information, but its availability, velocity and volatility (Wisner and Stanley, 2008). A number of scholars have provided empirical evidence on the role of information sharing in consumer goods retail supply chains, including the value of shared information on inventory (Cachon and Fisher, 2000), optimal inventory holding policies (Gavirneni, Kapuscinski and Tayur,1999), and centralized demand (Chen, 2003). These generic mitigation, simulation and modeling approaches were reviewed to examine the cascading supply chain bullwhip effect (Forrester (1958); Lee, Padmanabhan and Whang, 1997) and Balan, Vrat and Kumar, 2009). The degree to which supply chain partners have on-hand information relating to demand and supply for planning and control management was attributed to supply chain information visibility (Barratt and Oke, 2007)
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