Principles of Supply Chain Management, Second Edition, 2nd Edition

502 Principles of Supply Chain Management

Summary

Information ow is essential for operating and managing a successful supply chain.

The absence of information ow can jeopardize the ow of goods and funds. As a

result, many business problems arise because of the inefcient and ineffective infor-

mation ows—customer complaints about back orders or too much inventory in the

warehouse. The delivery of goods and services is unpredictable. However, sharing

information is not a natural trait for business partners of internal and external fac-

tors. Interorganizational trust and building bargaining power are internal factors.

Unpredictable market dynamics ...