The Influence of Information Sharing on Supply Chain Management

Mohammad Mohammad

doi:10.3844/pisp.2010.83.89

Abstract

Problem statement: Implementing information sharing and coordination can enhance the performance of supply chain management, such as a short response time, minimum cost, low inventory and joint production and transportation. Approach: Through information sharing among all supply chain members, stable long-term relationships can be established and maintained. Results: This study uses a quantitative cost model to identify the interaction among the supply chain members and to analyze the benefits of implementing information sharing. Conclusion: Through the joint procurement, production and transportation that is made possible under information sharing, the total cost of supply chain collaboration can be optimized for better supply chain management. Moreover, a successful supply chain management system with effective strategies can also be facilitated.

Highlights

Chain management can use information sharing and coordination to facilitate logistical efficiency and achieve the goals of a short response time, minimum cost, low inventory and joint production and transportation. Sahin and Robinson (2005) considered that the more complete the information sharing is, the more the cost can be reduced without inventory risks through joint planning by suppliers and manufacturers
Information sharing is often considered as a generic cure for the bullwhip effect and one that can improve overall supply chain performance (Huang and Gangopadhyay, 2004)
A quantitative cost model is used to examine the interaction among supply chain members and to analyze the benefits of implementing information sharing

Summary

Introduction

Chain management can use information sharing and coordination to facilitate logistical efficiency and achieve the goals of a short response time, minimum cost, low inventory and joint production and transportation. Sahin and Robinson (2005) considered that the more complete the information sharing is, the more the cost can be reduced without inventory risks through joint planning by suppliers and manufacturers. Chain management can use information sharing and coordination to facilitate logistical efficiency and achieve the goals of a short response time, minimum cost, low inventory and joint production and transportation. Sahin and Robinson (2005) considered that the more complete the information sharing is, the more the cost can be reduced without inventory risks through joint planning by suppliers and manufacturers By following such policies collaborative planning and execution, such as the coordination of purchasing, manufacturing and product delivery, can be implemented efficiently among supply chain partners. Through information sharing among all the partners in a supply chain, the upstream material suppliers are be able to modify their production strategies from make-to-order to make-to-stock after obtaining figures on future demand from the downstream retailers. The suppliers’ batching delivery strategies can be formulated so that the delivery date can reduce the total cost for the downstream retailers, since it can mitigate the bullwhip effect and achieve better performance (Sahin and Robinson, 2005)

Objectives

Conclusion