The importance of information flow within the supply chain Janak Singh Logistics Information Management Volume 9 · Number 4 · 1996 · pp. 28–30. MCB University.

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Presentation transcript:

The importance of information flow within the supply chain Janak Singh Logistics Information Management Volume 9 · Number 4 · 1996 · pp. 28–30. MCB University Press · ISSN Linking productivity to efficient information flow along administrative flow (invoices etc) in parallel to process supply chain – linked to customer satisfaction.

Effects of Information Feedback Loops on Supply Chain Performance Amitava Dutta and Rahul Roy Integration is the key to supply Chain performance. Information integration is important. Supply chain information and non-information characteristics results in business performance. In systems dynamics, a system is viewed as network of stocks and flows. Stock variables represent accumulations. Flows can be of two types. Physical flows either fill or drain stocks. They may only connect stocks and flow must be conserved. Information [FLOW TRIGGERS] flows connect different parts the structure and are used for controlling physical flows. These flows need not be conserved. We use the methodology of systems dynamics (SD) due to its close fit with the purpose.

Effects of Information Feedback Loops on Supply Chain Performance Amitava Dutta and Rahul Roy The SD model captures generic physical and information flow characteristics of a supply chain in the manner given below. Number of stages: Each stage of the chain is represented by two stocks representing inventory [STATIONARY KNOWLEDGE] of stage and material in transit [MOVING KNOWLEDGE] ; three flows that represent consumption [___], replenishment [___] and transition [___] from stock in transit to inventory. An n stage structure can be constructed by a cascade of N single stage structures. For this paper we used a two-stage supply chain. Shipping delays: These delays are represented by conveyers, which are simply special cases of stocks, where inflows are accumulated for a certain period of time before flowing out. The delay is determined by the transit time of the conveyer [SUBCONTACTOR…ETC]. Information [FLOW TRIGGERS] content: Ordering policies, identified as common information flow content for supply chains, are represented via formulas associated with appropriate converters. The formula we have used indicates that reordering policy can make inventory replenishment more or less sensitive to demand fluctuations by adjusting a factor that expresses aggressiveness of inventory replenishment. Information delays: Information delay is also captured through formulas specifying information flows.

n th tierOEM Demands for full solutions from higher up and for all associated details- lower tiers vulnerable OEMs have knowledge to change supplier Consequence of supplying info/consequence of not supplying info Sub-con Sub contract out 1.Provide info/knowledge for job to be undertaken 2.Effectively train sub-contractor Qus: 1.Is there an understanding of critical/threatening information.v. harmless 2.Does the situation in 1 exist –or is all experience gained by subcontractor detrimental to the contractor 3.What happens to knowledge stocks in both partners? 4.Time effects of knowledge distribution(?) People leave: Retire Die New job Promoted Leave sector (still contactable or not contactable) Knowledge loss Identifying/knowing when and criticality of knowledge loss – what are the triggers ie product quality falls, accounts late… Delay (time scale) on knowledge replenishment – linear, exponential- function of type? Time effect Lose in-house capability become reliant on suppliers …stocks representing inventory of stage and material in transit; three flows that represent consumption, replenishment and transition from stock in transit to inventory. How can company develop the value added if not doing some of the clever bits?

AIM Scholar launches large survey on Outsourcing and Offshoring AIM Scholar Phanish Puranam and PhD student Kannan Srikanth have launched a large scale survey of management practices in Business Process Outsourcing and Offshoring. The first phase of the project is supported by CAPCO, a financial services consulting firm, and targets senior ("CXO") level respondents in the financial services sector to assess their opinions about the trends and strategies they feel affect outsourcing/offshoring in their sector. This survey has already received responses from about 50 of the largest financial services companies. In the second phase, Puranam and Srikanth are surveying project managers to statistically validate their arguments about the coordination and control strategies that are most likely to be effective in offshoring/outsourcing services. For more information, please contact Phanish Puranam on or