Enhancing agility by timely sharing of supply information

Gang Li, Yi Lin, Shouyang Wang, Hong Yan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

14 Citations (Scopus)

Abstract

Purpose - Although demand information sharing has attracted much attention in the last decade, few studies have been concerned with the value of supply information sharing. This paper seeks to address the importance of timely supply information sharing to supply chain management under disruption. Design/methodology/approach - By introducing a directed acyclic supply network (DASN) model and an impact network (INet) model, the authors first quantify the impact of a disruption on the performance of the supply chain. A comprehensive algorithm is developed to calculate the time and cost impacts of the disruption. Insights about the value of timely supply information sharing are further discussed, based on quantitative relationships of material flows. Finally, the authors introduce an application of the above model in a main manufacturer in China and compare its performance in the case of timely supply information sharing with cases where information is not shared or is shared late. Findings - By timely sharing of supply information, firms at downstream stages can be alerted to a disruption at an upstream stage in a timely way, derive the correct early warning time, and make proper decisions to offset the impact of the disruption. Information sharing therefore enhances the agility of firms while improving the stability and performance of the whole supply chain. Research limitations/implications - This paper only considers the time and cost impacts from a single source of disruption. Further work may investigate other impacts from disruptions, which may arise from multiple sources. Practical implications - This paper provides an effective method to quantify the impact of disruption. The method is applied successfully in a supply chain management information system. Originality/value - This paper is among the initial studies seeking to understand and quantify the value of supply information sharing. The work undertaken indicates the importance of timely supply information sharing to improve the performance of a supply chain.
Original languageEnglish
Pages (from-to)139-149
Number of pages11
JournalSupply Chain Management
Volume12
Issue number2
DOIs
Publication statusPublished - 16 Mar 2007

Keywords

  • Agile production
  • Information transfer
  • Modelling
  • Networking

ASJC Scopus subject areas

  • Strategy and Management

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