Electronic information integration
Information integration is the basis for supply chain integration. For companies inside the entire supply chain, in order to coordinate their products, finance and information flow, they must be able to get the right, timely information on their supply chain status. Therefore, all supply chain partners have the ability to achieve timely sharing information is the key to improving supply chain performance.
In order to ensure that the supply chain is driven by real consumption, information sharing is driven, this is critical. This is the most effective way to overcome the distortion of demand information - well known "bullwhip effect". When partners use local information to do demand forecasts, and transmit predictive results to upstream partners; partners are based on local economic factors, local constraints or business measurement; gambling behavior is exaggerated when the uncertainty in the perceived supply environment Order, the distortion of the information is often happened. These distortions are gradually enlarged from a level to another level in the supply chain, which is seen as one of the largest reasons for the supply chain.
Increase the visibility of orders in the supply chain
Figure 1: Information distortion and bullwhip effect
One of the methods of overcoming the oxygen effect is to transparent the demand information. In fact, in the food industry, this transparency is considered to be the cornerstone of the supply chain integration, and is the main factor of "effective customer response", but also in that industry to move toward the overall supply chain integration. Companies involved in information sharing efforts usually share sales data, inventory status, production schedules, promotional plans, demand forecasts, and shipping schedule information.
Internet Information Center: The key to sharing information
Internet is a valid electronic link between different entities, and it is also proven to be an ideal platform for information sharing. The power of the Internet is derived from an open standard, allowing large-scale visits to obtain information with low cost, simple, universal, still safe way.
One of the methods based on Internet-based supply chain integration is the information center, and the information center can process and deliver all relevant information to all appropriate participants uninterrupted. The node of the information center data network, multi-woven, pursues supply chain integration in the mutual impact. The information center has data storage, information processing, and uploading and downloading features. The entire network forms a system of hub-and-spoke, while the participant's internal information system is auxiliary (such as ERP, or other enterprise systems).
In the logistics world, and the information center is similar to the "Through Logistics Center" in which the product from multiple supply resources to the logistics center is classified according to the demand of the destination. They are then sent to the center, the center allows key supply and demand data downloads, and seamlessly sent to the appropriate partner when appropriate.
Collaboration = profit
Does the information share are worth such efforts and risks like this? The recent report of the Joint Research of Stanford University and Accenture (former Andersen Consulting) surveyed 100 manufacturers and 100 retailers in the food and consumer industry. The results of the survey show that those companies that have higher profits than the average levels are usually actively involved in higher levels of information sharing.
