Information‐sharing in supply chains: five proposals on how to proceed

Abstract

Purpose

This paper aims to focus on supply chain visibility in practice and to suggest ways to improve the supply chain performance through information sharing.

Design/methodology/approach

A case study exploring the current state of visibility in the demand‐supply network of an original equipment manufacturing company was carried out. The goal was to understand how a manufacturing company and its suppliers can benefit from incremental demand information sources. Data were collected through interviews and data analyses and focused on an end‐to‐end view of demand information. The most relevant information uses were tested in pilot projects. A literature review on demand information sources and benefits of visibility was conducted.

Findings

On the basis of the case results and a literature survey, five proposals on how to improve visibility are presented. They suggest that only information that improves supply chain performance should be shared, demand‐supply planning processes be stabilized and synchronized, different demand data sources should be used in parallel, customer collaboration offers a wider view to demand, and that suppliers' need for demand information differs from those of downstream actors.

Practical implications

The paper proposes solutions to managers on how they can benefit from improved access to demand information.

Originality/value

The paper shows, via case study and literature review, how information sharing can improve supply chain performance.

Citation

Kaipia, R. and Hartiala, H. (2006), "Information‐sharing in supply chains: five proposals on how to proceed", The International Journal of Logistics Management, Vol. 17 No. 3, pp. 377-393. https://doi.org/10.1108/09574090610717536