These changes are driving retailers and suppliers to share more information than ever before in order to deliver goods faster and keep inventories lower. Two Stanford Business School professors have assessed this trend as well as what data should be shared and what should be kept secret. For years, companies have used their internal information systems to increase productivity. The new emphasis is on data systems that are tightly linked with outsiders, such as subcontractors or delivery agents. Now the mentality has changed.
Companies have to gain efficiencies within the supply chain.
One form of supply chain data sharing is implemented through vendor managed inventory. Suppliers also benefit because if they know how sales are going, they can better manage production schedules. In Japan, a buyer typically visits a supplier many times a year and gives advice on where sales and growth are headed. The American adoption of this relationship is more formal. American manufacturers and suppliers are learning to use the Internet to connect with 300 buyers at once to share data.