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Determining the valueof information for different

partners in the supply chainKenth Lumsden and Vahid Mirzabeiki

Division of Logistics and Transportation, Chalmers University of Technology,Goteborg, Sweden

Abstract

Purpose The paper aims to define the most beneficial types of information within a supply chainand their level of value for different partners in the supply chain. A secondary objective of this study isto compare the literature focus with the practitioners perception concerning the value addinginformation types and their value level in the supply chains.

Design/methodology/approach In this study, by reviewing published papers and textbooks onfunctionality and the value of information in supply chains, the most important types of informationbeneficial for the different partners of the supply chain depending on their position are identified. Thevalue levels are quantified for the different partners through the supply chain by interviews withpractitioners in different segments of the chains. A comparison between values of significantinformation types in the supply chains, concluded from the literature and the practitioners interviews,is presented in this paper.

Findings The study indicates the warehouse operations information as the most valuableinformation type from the practitioners perspective. Also the result of this paper indicates increasingvalue of information further down the supply chain.

Practical implications The result of this study could be applied for prioritizing the need fordifferent information types in designing a supply chain.

Originality/value This paper adds to the literature on the value of information and supply chain

information by identifying and categorizing different types of information which are made available tocreate value for different partners in the supply chain. Also, this study identifies the benefit share ofdifferent supply chain partners from information. A comparison of the ideas of the literature andpractitioners on value of information is shown in this study.

Keywords Supply chain management, Information exchange, Information transfer, Partners,Value chain

Paper type Research paper

1. Introduction1.1 BackgroundThe rise of e-commerce and the development of new information technologies whichpromise more timely and accurate information sharing have led to increasing interest

in the value of information (VOI). Sharing information can occur privately between afirm and its supplier, as illustrated by WalMarts use of information sharing to achievelogistics superiority (Freedman, 1994). Value of information as a general subject hasbeen extensively investigated in different textbooks and papers (Wagner, 1969). Also,there has been recent concern about this issue by both practitioners and academics(Ketzenberg et al., 2007). Although different people have analyzed information typesand their roles in increasing the efficiency of operations, the literature is lacking ageneral view on all value adding information sorts in the supply chain and partners

The current issue and full text archive of this journal is available at

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Determiningthe value ofinformation

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International Journal of Physical

Distribution& Logistics Management

Vol. 38 No. 9, 2008

pp. 659-673

q Emerald Group Publishing Limited

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DOI 10.1108/09600030810925953


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who have benefited from them depending on their position and the structure of thesupply chain (Lee et al., 1997). The intention of this study is to find a generalframework on this issue.

1.2 AimThis paper aims to define the most beneficial types of information in a supply chainand also their value levels for different partners in the total supply chain. Theseinformation types and their importance are to be evaluated by reviewing literature onvalue of information and also by interviewing people who work in the supply chains oflarge industrial companies. The primary aim of this study is to compare the ideas ofliterature (textbooks and papers) with the practitioners ideas about the value addinginformation types and their value level in the supply chains.

1.3 MethodIn this paper, different levels of functionality of information in a supply chain arediscussed. The most important types of information used by different partners in thesupply chain and the functionality and value for each of them are analyzed extensively.Proposing a method for estimating and quantifying the relative value of these types ofinformation is the final outcome of this study.

Finding and evaluating the most important types of information in a supply chain isdone in three steps. In the first step, by investigating the literature on information andits value in the supply chains, the most significant value adding information types andthe partners for which this value is generated are identified.

In the second step, after interviews with the persons working in different segmentsof the total supply chains, these information types are evaluated from the practitionerspoint of view. The interviewed people are representatives from Swedish largeindustrial companies. The first part of the interview is a pilot to certify the importance

of the selected questions in the questionnaires. The later part is an evaluation ofthe importance of the information types identified from the literature.The third step in this study is making an accurate comparison between the value of

significant information sorts in the supply chains concluded from the literature and thepractitioners interviews.

1.4 LimitationsMost of the ideas, in this paper, taken from the literature are related to industrialsupply chains. The interviewed people are practitioners working in largemanufacturing or retailing companies with operational responsibilities. All the dataused in this study from both the literature and the practitioners points of view arerelated only to this type of industrial supply chain.

2. Functionality of informationA special form of information may be a very significant decision-making factor for onepartner in the supply chain but a meaningless piece of data for another player. Kingand Griffiths (1986) suggested two approaches to estimate the value of information.The first approach is to consider the organizations willingness to pay for theinformation. This is measured by the budget for books, periodicals and other source ofinformation, plus the individuals investment in time and effort to discover, retrieve

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utilizing the internet is facilitating collaboration and redefining supply chainrelationships (Bowersox et al., 2007).

Functionality level of information is a tool for determining the value of a special sortof information in the supply chain. There are in general two approaches suggested formeasuring the value of information: first, to consider the willingness of partners to payfor it and second, to analyze the benefits resulted from that information (King andGriffiths, 1986).

Supply chain information systems link logistics activities into an integrated processand this integration is built on four levels (Stair and Reynolds, 2007). The transactionsystem (IV) records and initiates individual logistics activities and functions. Decisionanalysis (III) focuses on software tools to assist management in identifying, evaluating,and comparing strategic and tactical alternatives to improve effectiveness.Management control (II) focuses on performance measurements and reporting.On the lowest level, strategic planning (I) organizes and synthesizes transaction datainto a relational database (Bowersox et al., 2007).

3. Analyzed kinds of informationThis study conducts a review of the literature that addresses the concepts of value ofinformation and information sharing in supply chains. The results concluded from thisresearch identify the most important types of information in a supply chain.

One of the most significant types of information is the location of product in supplychains. This information can create values of different levels depending on the partner,the type of product and the supply chain structure. Condition of the product during

shipment is another important kind of information in supply chains. Physical conditionof a product such as level of temperature, vibration, pressure, humidity, etc. can createvalue for different partners. The significance of this information depends on theconfiguration of the supply chain and the type of market.

Point-of-sale and inventory levels of retailers for each stock-keeping unit (SKU)are some of the most important types of information in the supply chain for decreasingthe bullwhip effect (Simchi-Levi et al., 2002). Information about different availablesuppliers in the market for each product can create benefits for suppliers and

Figure 2.Information value chainand component valuechain in a supply chain

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manufacturers in different markets. E-markets are created based on the centralizationof this sort of data in supply chains. Statistical information about the history of salesfor different products in different seasons and occasions is another value-adding typeof knowledge that helps retailers and manufacturers to have more accurate forecasting

about order quantity and batch sizing.Furthermore, information on warehouse operations, putting available offers from

retailers on websites, shipment quantity information in the supply chain and knowledgeabout placement and sequencing of product in the shipment or the inventory are othertypes of information whose use and sharing have benefits for different partners.

The selected sorts of value-adding information are identified as the most significantsorts from papers and books on value of information in the supply chain. The structureis built on the defined nine different types of information. These are value adders to thedifferent partners of the supply chain. We name them additive information in supplychains.

3.1 Location of the products in supply chain (I)

Information about location of product gained by using systems like track-and-traceallow us to make well-thought-out decisions to locate available resources and lost orstolen assets, get idle assets and operators back into service and verifybilling/subcontractor activities. Communication technologies like bar code scanningand radio frequency identification (RFID) help us to gather real-time information aboutthe location of product in shipment.

Having this kind of knowledge for the shippers can and will improve recordkeeping. It is also an important issue that can help logistics service providers managetheir resources. Carrier selection, carrier scheduling, dispatching, documentpreparation, performance measurement, shipment consolidation, routing, shipmentrating, shipment scheduling, shipment tracing and expediting vehicle loading are otherfunctionalities that, if this information is provided for carriers, can and will increase

efficiency in cost and time (Bowersox et al., 2007). Furthermore, this information leadsto shipment traceability and higher service levels because of customer access toreal-time information.

Another participant in the supply chain for whom this knowledge can add value isthe warehouse operator. This information can and will lead to accurate inventorycontrol and improved order preparation, processing and shipment. Manufacturers canbetter plan their resources and lower inventory costs by having this type ofinformation about materials flow in the supply chain.

3.2 Condition of products in shipment (II)Having real-time information about the condition of product in shipment has asignificant importance for partners in a supply chain. In cold chains such as supplychains for medicines and perishables foods and in supply chains for chemicals orexplosives, which all have to be kept in special condition, lack of knowledge abouttemperature, humidity, pressure, vibration, etc. might be dangerous or costly. By usingtrack-and-trace systems built up by sensors, senders and communication systemsproviding continuous information about the status of the product in the containers, thiskind of information can become available for different partners (Simchi-Levi et al., 2002).

Information about the condition of product in shipment can create value for thesupplier who sends the raw material, the manufacturer who makes and sends the final


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value-added products, the retailer and the final customer at different levels. This alsomakes it possible for the carrier to compare its service level by conditions in thecontract. For example, if some fault has happened in shipment the information aboutthe conditions of the product will be sent during shipment, which will show the

accuracy of the service provided by the legal services program (LSP).

3.3 Positioning and sequencing of products in shipment or inventory (III)Systems such as bar code scanning and radio frequency communication technologiesenable operators in warehouses to improve their time efficiency in order preparationand processing by providing accurate inventory control and reducing labor costs(Bowersox et al., 2007). These values are also added to the supplier, manufacturer andretailer by improving inventory because of unit precision.

As an example, assume a container Ro-Ro-Ship that takes hours between unloadingof the first unit and loading of the last one. In such a case, a system built on bar codesor transponders could be installed, telling the customer exactly when the consignmentis unloaded and ready to be carried away (Lumsden et al., 1997). It can be stated that

there is a value to this scheme of letting the customers know the information thusgenerated. But it is the customer who defines this value through his valuation criteria.This value can differ a lot, depending, for example, on the type of product transported.Some customers might take full advantage of the time generated by this scheme. Othermight find it very difficult to change their plans on such short notice and will use thescheduled time instead. The overriding idea is to let the customer have knowledge ofthe status of his consignment (Ketzenberg et al., 2007). This type of information cancreate value for suppliers, manufacturers, retailers, or final customers, depending onthe type of product delivered and its application.

3.4 Inventory level and point-of-sale of retailer (IV)Benefits from having real-time information of inventory level at the retailer for each

SKU include lower inventory-keeping costs, obsolescence costs, back order costs andlost order costs for retailers, suppliers and manufacturers. The vendor managedinventory concept is created by sharing this information between retailersand suppliers (Yao et al., 2007).

Another benefit for the customer having this information is improved availability ofproducts on the shelves. Another important concept fulfilled by using this kind ofinformation is sharing inventories between different retailers for the same products.When different retailers have real-time information about the level of inventory inother stores, this can increase the availability of a product for the customer anddecrease lost order costs (Simchi-Levi et al., 2002). In this case there is a value createdfor all retailers that share their inventories.

Point-of-sale information for each SKU facilitates inventory replenishment.Furthermore, the most significant benefit of having centralized informationconcerning retailers point-of-sale available for all partners in the supply chain isdecreasing bullwhip effect. Consequently, this will minimize the stock-keeping costand back order cost.

This information has the potential to create value for all the upstream partners in thesupply chain including distributors, manufacturers and suppliers. Different informationsystems and technologies such as bar coding, electronic data interchange, the internet,and RFID are used to decrease this destructive effect on supply chains.

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3.5 Different suppliers available for each product (V)E-markets exist in many industries to increase the availability of information about thesuppliers working in the markets. These portals have increased the market of interestfor buyers and suppliers, reduced procurement costs, and supported paperless

transactions. This business-to-business marketplace forces many suppliers offeringsimilar products to compete against each other. Consequently, procurement cost can besignificantly reduced. Depending on the industry, e-markets have reducedprocurement costs from a few percentage points to as much as 40 percent and, onaverage, about 15 percent (Simchi-Levi et al., 2002).

By providing this kind of information, the marketing and sales costs of suppliers arereduced and their ability to compete with price increases. E-markets also allowsuppliers to better utilize their available capacities and inventories.

Generally, information about the available suppliers in different markets can addvalue in the form of cost reduction and better resource planning. E-commerce allowsmanufacturers to buy at lower prices worldwide, and the firm can sell its products to aglobal market. Thus, it makes value for the supplier and the manufacturer (Kaplan andSawhney, 2000).

3.6 History of sales (VI)Data capturing and storage systems are used to improve the availability of informationon past sales of a company for a particular product in different time periods forpartners in the supply chain. Historical information about system performance isnecessary for the system to identify operational exceptions (Bowersox et al., 2007).Also, this kind of information is used for forecasting the number of orders or sizes ofbatches. This knowledge can create value for suppliers and manufacturers by helpingthem plan for production, and for retailers decision-making about batch sizes andfrequency and number of orders. In cases like the introduction of new products to the

market, historical point-of-sale data of similar products can be very useful inforecasting (Simchi-Levi et al., 2002).

3.7 Warehouse operation information (VII)Warehouse operations incorporate processes to guide physical activities, includingproduct receipt, material movement and storage, and order selection. For this reason,they are often termed inventory control or warehouse management systems andsometimes warehouse locator systems, referring to the capability to track inventorystorage locations in warehouses. Warehouse operations direct all material handlingactivities using a combination of batch and real-time assignments. In a batchenvironment, the warehouse operations system develops a to-do list of instructions ortasks to guide each material handler in the warehouse. In a real-time environment,

information-directed technologies such as bar coding, radio frequency communication,and automated handling equipment operate interactively to reduce the elapsed timebetween decision and action (Bowersox et al., 2007).

Data provided by these kinds of information systems create value for warehouseoperators by allowing for more efficient assignment and tracking of storage locations,inventory cycle counting, labor scheduling, equipment scheduling, lot control, orderselection, location, replenishment and receiving, storage and performancemeasurement. The value of having this information predominantly exists for the


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retailer and manufacturer as they know the receiving time and the sizes of batcheswhich will be sent to them (Bowersox et al., 2007).

3.8 Offers of companies on their websites (VIII)

This information makes it possible for customers to choose between a variety ofproducts and retailers. Customizing the product before shopping is another advantagecreated by this kind of information system.

In addition, this information allows retailers to sell their products to a globalmarket. Generally, the value of this type of information is for the retailer as itdecreases fixed and variable costs related to warehouses and retailer shop-keeping.For the final customer the benefits could be a higher variety of products to choosefrom and lower prices. E-businesses have led to more activities for logistics serviceproviders. In many cases products are delivered directly to the customer insteadof being distributed from the shop. Companies such as Dell and Amazon workthis way.

3.9 Sharing shipment quantity information in the supply chain (IX)Shipment quantities arriving at the customer site may deviate from what the customerexpects. We define this phenomenon as shipment quantity uncertainty. Whereshipment quantity information is not shared with customers, the only way to respondis through safety stock. If the supplier shares such information, the customer isinformed every period of the shipment quantity dispatched. Customers may have timeto adapt and resolve this uncertainty by adjusting their future order decisions. Resultsindicate that in most circumstances this strategy, enabled by information technologies,helps supply-chain members resolve shipment quantity uncertainty. Consequently,this kind of information creates value for both the retailer and manufacturer by givingthem more time to adapt and resolve uncertainty in shipment quantity by adjusting

future order decisions (Zhanga et al., 2006).

4. Analysis4.1 Evaluation out of literature studyA number of value adding information types with different functionalities in thesupply chain have been identified through the performed literature study in the initialphase of this study. This discussion concludes by indicating partners who benefit byusing the mentioned kinds of knowledge. In Table I, the predefined partners whobenefit from the described kinds of information in a supply chain are identified.

As mentioned before, a special sort of information may have different valuelevels for different partners in a supply chain. This value can be quantified as aprice tag for this sort of information by a combination of analyzing advantages

such as cost reduction and time gains generated by using this special type ofknowledge and considering the willingness of each partner to pay for that sort ofknowledge (Lumsden et al., 1997). Measurement of this value level is quantifiedbased on the literature study.

4.2 Theoretical statement on partnering information value chain (PIVC)Each of the information types above is assumed to have additive characteristics thatbuild up the total share of value for each partner in the supply chain. As Figure 5

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shows, the value share each partner in the supply chain gains from the availability ofinformation in the supply chain is different. In this analysis the maximum level ofvalue added from information to each partner of the supply chain can be nine thesame as the number of significant information types in the supply chain. All theinformation kinds are weighted equally. The literature summarized (Table II) showthat each of these partners gains value from a special part of the nine information kinds

depending on their position and also depending on the structure of the supply chain.Figure 3 illustrates these information parts as additive steps for each partner of the

supply chain. For example, the information sorts that add value to the supplier in thesupply chain are 7 out of 9 possible additive information values. The number of stepsshown in Figure 3 are seven and therefore we define the level of information valuewhich is added to the supplier in the supply chain here as 7/9. In a similar way, thisratio for the manufacturer, logistics service provider, retailer and customer are,respectively, 8/9, 3/9, 8/9 and 6/9. The line joining these value levels clearly shows thevariation in the value along the supply chain. Based on the results of the study ofliterature the logistics service provider is the partner who has the least benefit from thenine significant information types in the supply chain. On the other hand, the retailerand manufacturer benefit the most from the information in the supply chain.

4.3 Value level of additive information concerning each partner in the SCThe method used for this analysis is to evaluate the mentioned sorts of information forfive different partners (supplier, manufacturer, logistics service provider, retailer, andfinal customer) through interviews with individuals or companies working as realplayers in supply chains. We determine the value of information in the supply chain byinterviewing practitioners working as partners in different segments of real supplychains. This means that, for each partner of the supply chain above, three persons

Partners of the supply chainSignificant sorts of information Supplier Manufacturer LSP Retailer Customer Rank

I. Location of products X X X X X 1

II. Condition of products X X X X X 1III. Placement and sequencing X X X X 3IV. Retailers point-of-sale X X X X 3V. Available suppliers on the

market X X 9VI. History of sales X X X 5VII. Warehouse operations X X X 5VIII. Available offers on the

websites X X X 5IX. Shipment quantity

information X X X 5General number of informationsorts 7 8 3 8 6

Percentage of share holding intotal benefit from informationsorts 21.9 25 9.4 25 18.8Relative factor (Max: 100percent)

78percent 89 percent

33percent

89percent

67percent

Ave: 71.2percent

Table I.Logistics information insupply chains and

partners for which thevalue is created


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Additiveinformationsor

ts(x)

S

M

LSP

R

C

Total(percent)

x

I.Locationoftheproducts

3.67

3

4.3

3

2.3

3

4.3

3

12.4

7

3.5

3

II.

Conditionoftheprodu

cts

3

3.67

3.6

7

3.6

7

4.3

3

12.9

5

3.6

7

III.Placementandsequencing

2

2.67

2.6

7

2.3

3

3

8.9

4

2.5

3

IV.

Retailerspoint-of-saleandinventorylevel

3.67

2.67

3

4

4.3

3

12.4

7

3.5

3

V.

Availablesuppliersin

themarket

3

2

2.3

3

3.3

3

3

9.6

4

2.7

3

VI.Historyofsales

3.67

2.33

2.6

7

3.6

7

3.3

3

11.0

6

3.1

3

VII.

Warehouseoperationsinformation

4.33

4.33

4.3

3

4.3

3

5

15.7

5

4.4

6

VIII.Availableoffersofsupplierontheinternet

2

2

2

2.3

3

1.6

7

7.0

5

2

IX.

Sharingshipmentquantityinformation

2.33

3.33

4

2

2

9.6

4

2.7

3

Totalvaluegeneratedforpartners(percent)

19.53

18.35

20.4

7

19.7

6

21.8

8

100

28.3

3

Table II.Average value of additiveinformation kinds forpartners of the supplychain

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representing three Swedish companies are selected. They are asked to determine the

value of the nine information types that are determined to be the most additiveinformation kinds in a supply chain as defined in the literature. They are asked to tellhow important the information types in the supply chain are for them. The method ofevaluation is to allocate the numbers between 1 and 5 (these numbers stand for: 1,without importance; 2, rather important; 3, important; 4, very important; and 5, vital) tothe information kinds.

The result is summarized in Table II. For each information type in each type ofsupply chain partner, the average values resulted from interviews with three differentcompanies are given. The data shows that different information kinds generatedifferent levels of value for the partners of the supply chain.

After considering the total level of value that these sorts of information generate forthe supply chain partners, they are divided into three main groups. The first group

(group I) contains the most value adding information type in a supply chain. Thesecond group (group II) contains the information kinds where the level of valuegenerated is in the middle. Finally, the third group (group III) are the information kindswhich generate the lowest value.

From the practitioners point of view, warehouse operations information (Figure 4)is the most value adding information type. Most of the partners in the supply chainare willing to acquire this real-time knowledge in their supply chain. Condition of theproducts, retailers point-of-sale, location of the product, history of sales, availablesuppliers in the market and shipment quantity information are, respectively, the mostvalue generating information sorts in group II. Information about placement andsequencing of the products in inventory and shipment and available offers of thesuppliers on the internet are the least beneficial information sorts from the

practitioners point of view.The average value generated from groups I, II and III associated to the different

information types and for different partners of a supply chain are analyzed. Thereexists a significant gap between the levels of value of information types betweengroups I, II and III. It is obvious that the level of value generated from these groups isalmost the same for all the partners of the supply chain. As we see, the graphs are flatwhen considering different partners of the supply chain. It shows that almost all thepartners of the supply chain have the same evaluation of these information sorts and

Figure 3.Level of information value

added to each partner ofthe supply chain


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the gap between their values is the same for almost all different partners. If there is alow percentage of the information it is valid for all partners across the supply chain(Figure 5).

To compare the level of the total benefit of all supply chain partners from theseinformation kinds in a supply chain, they are aggregated out of a partners perspective(Figure 6). The benefit generated from the mentioned information sorts in a supply

chain is higher for the downstream partners than for the upstream partners.An interpretation is that there is a potential for more benefits generated for retailersand final customers from having knowledge of information types than there is formanufacturers and suppliers. The results are in accordance with the IBM research on

Figure 4.Total value of additiveinformation kinds in asupply chain

Figure 5.Logistics informationbehavior of different levelsof value adding

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value of information for partners of a supply chain. Based on their results the mostvalue of information in a supply chain benefits the downstream partners.

5. ConclusionThe perspective from the literature can be compared with the perspective of thepractitioners concerning the level of benefit that is generated for different partnersfrom the used information sorts in the supply chain. It comes out clearly that the retailerand manufacturer are the partners who have the least benefits from the informationsorts available in a supply chain. The supplier and customer are, on the other hand, thepartners who have the most benefit from the information sorts. When comparing thevalue generated for the partners upstream and downstream of a supply chain, by

considering the literature it can be concluded that the benefits from these informationtypes are almost the same for both groups. As discussed, from the practitioners pointof view, the benefit to the downstream partners from using the information aspects ofthe supply chain is higher than the upstream partners benefit.

A significant conclusion from this study is that different information sorts in asupply chain have different levels of value and their total benefit for all the partners ofthe supply chain is dissimilar. Categorizing the information kinds into three maingroups was done to emphasize the stage of value. By considering these categories wecan have a deeper understanding about prioritizing them in our supply chain, inparticular the warehouse information and the condition of the product.

Another important outcome of the study is generated by considering thehomogeneous value of the information. The value level of the same information groupas it applies to different partners in the supply chain is the same. This means that ifcompanies reduce or highlight the value of information impact, it goes all the way fromsupplier to customer.

References

Bowersox, D.J., Closs, D.J. and Cooper, M.B. (2007), Supply Chain Logistics Management, 2nd ed.,McGraw-Hill, New York, NY.

Figure 6.Total value generated for

partners (N 15) fromadditive logistics

information (Table II)

Maximum = 9 5 = 4 5= [No. of sorts of info.] [Highest value]

10

30

25

20

15

35

40

46

Supplier Manufactrurer LSP Retailer Customer

Partner

Value


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Freedman, D.H. (1994), Why big retailers love little scotch mail, Forbes, Vol. 28, February,pp. 104-8.

Kaplan, S. and Sawhney, M. (2000), E-hubs: the new B2B marketplaces, Harvard BusinessReview, Vol. 78 No. 4, pp. 97-103.

Ketzenberg, M.E., Rosenzweig, E.D., Marucheck, A.E. and Metters, R.D. (2007), A framework forthe value of information in inventory replenishment, European Journal of Operational

Research, Vol. 182, pp. 1230-50.

King, D. and Griffiths, J. (1986), Measuring the value of information and information systemsservices and products, AGARD Conference Proceedings, No. 385, p. 1986.

Lee, H.L., Padmanabhan, P. and Whang, S. (1997), Information distortion in a supply chain: thebullwhip effect, Management Science, Vol. 43 No. 4, pp. 546-58.

Lumsden, K., Roudolphe, P. and Sjostedt, L. (1997), Information as a Value Adder for theTransport User, Division of Logistics and Transportation, Chalmers University ofTechnology, Goteborg.

Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2002), Designing and Managing the SupplyChain, 2nd ed., Mcgraw-Hill, New York, NY.

Stair, R.M. and Reynolds, G.W. (2007), Principles of Information Systems A ManagerialApproach, Thomson Learning, Inc., Mason, OH.

Wagner, H.M. (1969), Principles of Operations Research, Prentice-Hall, Inc, Englewood Cliffs, NJ,Chapter 16.

Yao, Y., Evers, P.T. and Dresner, M.E. (2007), Supply chain integration in vendor-managedinventory, Decision Support Systems, Vol. 43, pp. 663-74.

Zhanga, C., Tanb, G., Robbc, D.J. and Zhengd, X. (2006), Sharing shipment quantity informationin the supply chain, The International Journal of management Science, Vol. 34, pp. 427-38.

Further reading

Fiala, P. (2005), Information sharing in supply chains, The International Journal ofManagement Science, Vol. 33, pp. 419-23.

Funda, S. and Robinson, P. (2002), Flow coordination and information sharing in supply chains:review implications and directions for future research, Decision Sciences, Fall.

Gavirneni, S., Kapuscinski, R. and Tayur, S. (1999), Value of information in capacitated supplychains, Management Science, Vol. 45 No. 1, pp. 16-24.

Lumsden, K. (2006), Logistikens Grunder, Studentlitteratur, Lund.

Sahina, F. and Robinson, E.P. Jr (2005), Information sharing and coordination in make-to-ordersupply chains, Journal of Operations Management, Vol. 23 No. 6, pp. 579-98.

Tilanus, B. (1997), Information Systems in Logistics and Transportation, Elsevier Science,Kidlington.

Wareham, J., Mathiassena, L., Raia, A., Strauba, D. and Kleinc, R. (2005), The business value of

digital supply networks: a program of research on the impacts of globalization, Journal ofInternational Management, Vol. 11, pp. 201-27.

Wu, F., Yeniyurt, S., Kim, D. and Cavusgil, S.R. (2006), The impact of information technology onsupply chain capabilities and firm performance: a resource-based view, Industrial

Marketing Management, Vol. 35, pp. 493-504.

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Appendix 1

Appendix 2. Value of additive information kinds in the supply chain regardingdifferent partners

Corresponding authorVahid Mirzabeiki can be contacted at: [email protected]

Partners of the supply chainSupplier Manufacturer LSP Retailer Customer

Significant sorts of information S1 S2 S3 M1 M2 M3 L1 L2 L3 R1 R2 R3 C1 C2 C3

I. Location of products 3 3 5 4 2 3 5 4 4 3 2 2 4 5 4II. Condition of products 1 5 3 5 2 4 3 5 3 2 4 5 4 5 4III. Placement and sequencing 1 2 3 2 2 4 2 2 4 2 2 3 3 4 2IV. Retailers point-of-sale 2 4 5 4 2 2 2 4 3 4 5 3 4 5 4V. Available suppliers in market 4 2 3 2 2 2 2 2 3 3 3 4 3 2 4VI. History of sales 4 3 4 2 2 3 2 3 3 3 4 4 4 3 3VII. Warehouse operation 4 5 4 4 4 5 4 5 4 5 4 4 5 5 5VIII. Available offers on website 2 2 2 2 2 2 2 2 2 2 3 2 2 1 2IX. Shipment quantity information 2 1 4 4 2 4 4 4 4 2 2 2 2 3 1

Table AI.Quantified significantinformation sorts in a

supply chain

Figure A1.Different values generatedfor partners from the same

information type

1

1.5

2

2.5

3

3.5

4

4.5

5

Information types

V

alue

Supplier Manufacturer LSP Retailer Customer

Shipmentquantity

information

Warehouse

operations

History

ofsales

Availablesuppliers

inmarket

Retailer's

Point-Of-Sale

Placementand

sequensing

Conditionof

products

Locationof

products

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determining the

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