1. Sharing information across the Supply Chain
Dr. Ron Lembke
Sharing information across the Supply Chain

2. Supply Chain Technologies
ASN -- lets customer know exactly what has been sent
Drop Shipping -- Supplier sends directly to the store, not to store’s warehouse
Computer sent to house via UPS
3PL: Third-party Logistics Provider
Trucking companies, manage inventories, anything you don’t want to do

3. Bullwhip Effect
Lack of information sharing can cascade through the supply chain.
Small changes at retail level lead to huge swings at manufacturing, like a bullwhip
Several retailers order all at once, distributor thinks sales have jumped, orders a much bigger order, etc.
Better: sales info shared along “Value Chain.”
Graph: Disney & Towill, 2006, Supply Chain Mgt: An Intl J

4. Electronic Data Interchange
My computer talks to yours, tells you exactly what I want to order, when
You fill out a form, very compressed message sent, viewed as form
Software, hardware expensive to implement
Sample Purchase Transaction
ST88850*1 Transaction Set identifier
BEG*00*NE* ** Beginning of Segment
PID*X*08*MC**Large Widget Description of Product
P01**5*DZ*4.55*TD Baseline Item Data
CTT*1 Transaction Totals
SE*1*1 End of Segment

5. XML eXtensible Markup Language Standard for E-Business
XML provides self-describing information.
Easier to implement or modify than EDI.
Expected to eventually, replace EDI, but not nearly as fast as was expected.
Standardization through RosettaNet efforts

6. XBRL Standardized set of tags for financial transaction
Identifies data as being Q3 EBITDA, 2011, for WidgetCo.
No rekeying, fewer errors, easier research
SEC required for external reporting, 500 largest public cos.
XBRL.org

7. Video conferencing
Nothing can go wrong now

8. Summary Bullwhip effect: small changes can have huge consequences
Sharing information can be very valuable
Technologies:
EDI, XML, XBRL
Importance of face to face