Third, information sharing can lead to a violation of antitrust regulations. If two retailers regularly tell their supplier their demand projections for the next 10 weeks, the forecast may signal plans for a future promotional campaign. When that information is relayed to the other retailer through the supplier, it may potentially be used as a price-fixing instrument between the two retailers to avoid cutthroat competition. Antitrust authorities are likely to scrutinize such practices, so suppliers must be sure that shared data is not used for purposes other than its original intent. Fourth, the technology itself presents another hurdle.
Partners have to negotiate specifications as well as how to split the cost of the system.
Finally, information sharing has to be timely and accurate. Personal computer makers, for example, often complain about receiving poor sales data from resellers because some end their reporting on different days of the month. While manufacturers have to be sure that data is consistent, increased information sharing seems to be an inevitable part of supply chain management. The mentality has changed. Companies have to gain efficiencies within the supply chain.