Data Sharing in Supply Chain Network

Published: 15/September/2022

Reading time: 3 mins

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Key Takeaways

⇨ Lack of visibility and trust in supply chain networks lead to issues like bullwhip effect.

⇨ The primary factor behing bullwhip effect may not just be lack of data sharing but trust in the data being shared.

⇨ Sharing operational data, in addition to planning data, may help build trust with the entities in a supply chain network.

When the pandemic made the demand for certain products skyrocket, we started hearing the term “bullwhip effect” a lot. But the bullwhip effect has existed in supply chains for decades. The fact is, the technology to address this has existed for a few years now. The issue is more rooted in trust among the players in a chain and the lack of will to invest in near real-time, seamless data sharing with each partner in the supply chain. Many may argue that it is more a result of a lack of technology. Still, the fact is, for many supply chains where every player involved in the value chain is a major corporation, technology exists today to help address the bullwhip effect, provided these players are willing to invest money and trust. Technologies like EDI have existed for decades to allow sharing the level of data that can help mitigate the bullwhip effect. Collaborative planning processes like CPFR have also existed for years. This article discusses an example of architecture that can help facilitate data sharing across all entities in a supply chain network.

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