The benefits of supply chain visibility: A value assessment model
In recent years, much attention has been devoted to the topic of supply chain visibility in the scientific literature. However, a thorough assessment of the benefits enabled by supply chain visibility has not yet been undertaken. This paper aims to provide a structured method and a set of assessment tools for quantifying the benefits that can be achieved through better visibility on the inbound supply chain. The method consists of a nine step process for assessing the value of an improvement in supply chain visibility; the tools are ten causal maps, which depict the KPIs affected by an improvement in the quality and/or quantity of focal company׳s visibility on specific information flows (e.g. order status, inventory level, delivery plan, etc.). The method is based on the literature, while the tools were developed through a focus group of nine practitioners. The resulting model (i.e. method and tools) was applied to the supply chain of a prominent company in the aerospace industry in order to explore its applicability in a practical context. The model proved to be efficient, since it could be easily customised in accordance with the level of effort managers wanted to put into the evaluation, and effective, thus providing reliable estimates of likely KPI improvements.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Srinagesh Gavirneni, 2002. "Information Flows in Capacitated Supply Chains with Fixed Ordering Costs," Management Science, INFORMS, vol. 48(5), pages 644-651, May.
- Disney, S. M. & Towill, D. R., 2003. "The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains," International Journal of Production Economics, Elsevier, vol. 85(2), pages 199-215, August.
- Hau L. Lee & V. Padmanabhan & Seungjin Whang, 2004. "Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect"," Management Science, INFORMS, vol. 50(12_supple), pages 1887-1893, December.
- Gérard P. Cachon & Marshall Fisher, 2000. "Supply Chain Inventory Management and the Value of Shared Information," Management Science, INFORMS, vol. 46(8), pages 1032-1048, August.
- Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
- Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
- Frank Chen & Zvi Drezner & Jennifer K. Ryan & David Simchi-Levi, 2000. "Quantifying the Bullwhip Effect in a Simple Supply Chain: The Impact of Forecasting, Lead Times, and Information," Management Science, INFORMS, vol. 46(3), pages 436-443, March.
- Ding, Huiping & Guo, Baochun & Liu, Zhishuo, 2011. "Information sharing and profit allotment based on supply chain cooperation," International Journal of Production Economics, Elsevier, vol. 133(1), pages 70-79, September.
- Ryu, Seung-Jin & Tsukishima, Takahiro & Onari, Hisashi, 2009. "A study on evaluation of demand information-sharing methods in supply chain," International Journal of Production Economics, Elsevier, vol. 120(1), pages 162-175, July.
- Choi, Tsan-Ming & Sethi, Suresh, 2010. "Innovative quick response programs: A review," International Journal of Production Economics, Elsevier, vol. 127(1), pages 1-12, September.
- Hau L. Lee & Kut C. So & Christopher S. Tang, 2000. "The Value of Information Sharing in a Two-Level Supply Chain," Management Science, INFORMS, vol. 46(5), pages 626-643, May.
- Brun, Alessandro & Caridi, Maria & Fahmy Salama, Kamal & Ravelli, Ivan, 2006. "Value and risk assessment of supply chain management improvement projects," International Journal of Production Economics, Elsevier, vol. 99(1-2), pages 186-201, February.
- H. A. Bassioni & A. D. F. Price & T. M. Hassan, 2005. "Building a conceptual framework for measuring business performance in construction: an empirical evaluation," Construction Management and Economics, Taylor & Francis Journals, vol. 23(5), pages 495-507.
- Russell L. Ackoff, 1958. "Towards a Behavioral Theory of Communication," Management Science, INFORMS, vol. 4(3), pages 218-234, April.
- Srinagesh Gavirneni & Roman Kapuscinski & Sridhar Tayur, 1999. "Value of Information in Capacitated Supply Chains," Management Science, INFORMS, vol. 45(1), pages 16-24, January.
- Susan Cohen Kulp & Hau L. Lee & Elie Ofek, 2004. "Manufacturer Benefits from Information Integration with Retail Customers," Management Science, INFORMS, vol. 50(4), pages 431-444, April.
- Kamran Moinzadeh, 2002. "A Multi-Echelon Inventory System with Information Exchange," Management Science, INFORMS, vol. 48(3), pages 414-426, March.
- Zhang, Allan N. & Goh, Mark & Meng, Fanwen, 2011. "Conceptual modelling for supply chain inventory visibility," International Journal of Production Economics, Elsevier, vol. 133(2), pages 578-585, October.
- Caridi, Maria & Crippa, Luca & Perego, Alessandro & Sianesi, Andrea & Tumino, Angela, 2010. "Do virtuality and complexity affect supply chain visibility?," International Journal of Production Economics, Elsevier, vol. 127(2), pages 372-383, October.
- Yao, Yuliang & Dresner, Martin, 2008. "The inventory value of information sharing, continuous replenishment, and vendor-managed inventory," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 361-378, May.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:151:y:2014:i:c:p:1-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.