Understanding the Value of Information in Supply Chain Management

Abstract

Supply chain is a composite structure which integrates logistics, capital flow and information flow. It connects manufacturers, retailers, until the end consumers. Traditional supply chain companies only focus on logistics and capital flow, but often neglect information flow. The information flow is the flow of information throughout the supply chain. It is a virtual form, including the supply and demand information and supply chain management information. Company ignores information flow resulting in serious information asymmetry, leading to the lack of coordination of supply chain operations, supply chain information distortion, and mutual trust between the enterprises. The information has a high value in supply chain, and it is important to supply chain. This paper will discuss the value of information in supply chain and try to find the best way to improve the value of information in supply chain.