Barriers and driving forces for increasing supply chain visibility
Many supply chain concepts developed and implemented lately (e.g. Vendor Managed Inventory and Collaborative Planning Forecasting and Replenishment) are built on a high degree of visibility created by increased information sharing between companies in the supply chain. Much of the logic behind this is that a better informed supply chain can make better joint decisions and thus create more efficient and effective supply chains.
But even if the benefits of increased information sharing are known, there is still issues surrounding the sharing of information that have impact on the successes of the visibility related implementations. It was concluded at a workshop with industry representatives from NGIL that they experienced that the relationships between the companies were a major barrier towards increasing the visibility in the supply chain. Although there might be a joint intention between companies to increase visibility, current business models and incentives could create barriers and behaviours in the opposite direction. One example is that private information, especially when asymmetrically divided, sometimes can be seen as a powerful tool in relationships and negotiations between companies in the supply chain.
The purpose of this project is therefore to explore and analyze barriers and driving forces for increasing supply chain visibility, with focus of the analysis on issues regarding business models and incentives.
The project was financed by NGIL - Next Generation of Innovative Logistics.
For more information, please, contact Andreas Norrman.