Information sharing in decentralised supply chains with partial collaboration

Abstract

We explore the value of information sharing for smoothing the dynamics of supply chains when some echelons do not collaborate. To this end, we study seven information sharing structures in a four-echelon supply chain using a system dynamics approach. We find that the overall propagation of the bullwhip effect in supply chains decreases as the number of echelons sharing information grows, but it is not dependent on their position. Nonetheless, the performance of the echelons strongly relies on the degree of downstream collaboration; therefore, information sharing in the lower nodes has a higher impact on the overall supply chain costs. We also investigate the benefits of adding new members to the collaborative strategy in different lead-time scenarios. Finally, we provide managerial recommendations for decentralised supply chains.