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Determining the value of information for different partners in the supply chain
Kenth Lumsden and Vahid Mirzabeiki
Division of Logistics and Transportation, Chalmers University of Technology, Goteborg, Sweden
Abstract
Purpose The paper aims to dene the most benecial types of information within a supply chain and their level of value for different partners in the supply chain. A secondary objective of this study is to compare the literature focus with the practitioners perception concerning the value adding information types and their value level in the supply chains. Design/methodology/approach In this study, by reviewing published papers and textbooks on functionality and the value of information in supply chains, the most important types of information benecial for the different partners of the supply chain depending on their position are identied. The value levels are quantied for the different partners through the supply chain by interviews with practitioners in different segments of the chains. A comparison between values of signicant information 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 valuable information type from the practitioners perspective. Also the result of this paper indicates increasing value of information further down the supply chain. Practical implications The result of this study could be applied for prioritizing the need for different 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 to create value for different partners in the supply chain. Also, this study identies the benet share of different supply chain partners from information. A comparison of the ideas of the literature and practitioners on value of information is shown in this study. Keywords Supply chain management, Information exchange, Information transfer, Partners, Value chain Paper type Research paper

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1. Introduction 1.1 Background The rise of e-commerce and the development of new information technologies which promise more timely and accurate information sharing have led to increasing interest in the value of information (VOI). Sharing information can occur privately between a rm and its supplier, as illustrated by WalMarts use of information sharing to achieve logistics superiority (Freedman, 1994). Value of information as a general subject has been 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 types and their roles in increasing the efciency of operations, the literature is lacking a general view on all value adding information sorts in the supply chain and partners

International Journal of Physical Distribution & Logistics Management Vol. 38 No. 9, 2008 pp. 659-673 q Emerald Group Publishing Limited 0960-0035 DOI 10.1108/09600030810925953

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who have beneted from them depending on their position and the structure of the supply chain (Lee et al., 1997). The intention of this study is to nd a general framework on this issue. 1.2 Aim This paper aims to dene the most benecial types of information in a supply chain and also their value levels for different partners in the total supply chain. These information types and their importance are to be evaluated by reviewing literature on value of information and also by interviewing people who work in the supply chains of large industrial companies. The primary aim of this study is to compare the ideas of literature (textbooks and papers) with the practitioners ideas about the value adding information types and their value level in the supply chains. 1.3 Method In this paper, different levels of functionality of information in a supply chain are discussed. The most important types of information used by different partners in the supply 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 of information is the nal outcome of this study. Finding and evaluating the most important types of information in a supply chain is done in three steps. In the rst step, by investigating the literature on information and its value in the supply chains, the most signicant value adding information types and the partners for which this value is generated are identied. In the second step, after interviews with the persons working in different segments of the total supply chains, these information types are evaluated from the practitioners point of view. The interviewed people are representatives from Swedish large industrial companies. The rst part of the interview is a pilot to certify the importance of the selected questions in the questionnaires. The later part is an evaluation of the importance of the information types identied from the literature. The third step in this study is making an accurate comparison between the value of signicant information sorts in the supply chains concluded from the literature and the practitioners interviews. 1.4 Limitations Most of the ideas, in this paper, taken from the literature are related to industrial supply chains. The interviewed people are practitioners working in large manufacturing or retailing companies with operational responsibilities. All the data used in this study from both the literature and the practitioners points of view are related only to this type of industrial supply chain. 2. Functionality of information A special form of information may be a very signicant decision-making factor for one partner in the supply chain but a meaningless piece of data for another player. King and Grifths (1986) suggested two approaches to estimate the value of information. The rst approach is to consider the organizations willingness to pay for the information. This is measured by the budget for books, periodicals and other source of information, plus the individuals investment in time and effort to discover, retrieve

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and read the information. The second approach is to estimate the cost saving or other advantages that result from having the information. For generating useful knowledge, we should give meaning to the row data and meaningless information stored in databases. If the data is structured it becomes information in the sense that it can be communicated, analyzed, interpreted or modeled. Knowledge is thus the information that has been given meaning by its user through analysis, interpretation or modeling (Stair and Reynolds, 2007). Figure 1 shows this value chain, which leads to generation of knowledge from row data. Hence for measuring the value of this information in the supply chain, rst different kinds of gains and their importance for a special partner should be considered. This means that investment in information systems in supply chains should be correlated with the willingness of different parties to pay for that special sort of knowledge (King and Grifths, 1986). The relation between the component value chain and the information value chain in a supply chain can be identied (Figure 2). As seen, the value of a special piece of raw data or unprocessed information can be increased through structuring and transformation in different steps (Lumsden et al., 1997). This means that the value level of different types of information for different partners of the supply chain may be dissimilar. Consequently, the level of processing on raw data for each of the partners is associated with the level of their benets in time, cost and other types of gains generated from this knowledge. There are four reasons showing that timely and accurate information is critical for logistics systems design and operations. First, customers perceive real-time information about order status, product availability, delivery tracking, and invoices as a necessary dimension of customer accommodation. Second, information can be used to reduce inventory and human resource requirements. Third, information increases exibility with regard to how, when and where resources may be utilized to gain strategic advantages. Fourth, enhanced information transfer and exchange

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Figure 1. Information value chain

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Figure 2. Information value chain and component value chain in a supply chain

utilizing the internet is facilitating collaboration and redening supply chain relationships (Bowersox et al., 2007). Functionality level of information is a tool for determining the value of a special sort of information in the supply chain. There are in general two approaches suggested for measuring the value of information: rst, to consider the willingness of partners to pay for it and second, to analyze the benets resulted from that information (King and Grifths, 1986). Supply chain information systems link logistics activities into an integrated process and this integration is built on four levels (Stair and Reynolds, 2007). The transaction system (IV) records and initiates individual logistics activities and functions. Decision analysis (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 data into a relational database (Bowersox et al., 2007). 3. Analyzed kinds of information This study conducts a review of the literature that addresses the concepts of value of information and information sharing in supply chains. The results concluded from this research identify the most important types of information in a supply chain. One of the most signicant types of information is the location of product in supply chains. 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 condition of a product such as level of temperature, vibration, pressure, humidity, etc. can create value for different partners. The signicance of this information depends on the conguration 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 decreasing the bullwhip effect (Simchi-Levi et al., 2002). Information about different available suppliers in the market for each product can create benets for suppliers and

manufacturers in different markets. E-markets are created based on the centralization of this sort of data in supply chains. Statistical information about the history of sales for different products in different seasons and occasions is another value-adding type of 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 knowledge about placement and sequencing of product in the shipment or the inventory are other types of information whose use and sharing have benets for different partners. The selected sorts of value-adding information are identied as the most signicant sorts from papers and books on value of information in the supply chain. The structure is built on the dened nine different types of information. These are value adders to the different partners of the supply chain. We name them additive information in supply chains. 3.1 Location of the products in supply chain (I) Information about location of product gained by using systems like track-and-trace allow us to make well-thought-out decisions to locate available resources and lost or stolen assets, get idle assets and operators back into service and verify billing/subcontractor activities. Communication technologies like bar code scanning and radio frequency identication (RFID) help us to gather real-time information about the location of product in shipment. Having this kind of knowledge for the shippers can and will improve record keeping. It is also an important issue that can help logistics service providers manage their resources. Carrier selection, carrier scheduling, dispatching, document preparation, performance measurement, shipment consolidation, routing, shipment rating, shipment scheduling, shipment tracing and expediting vehicle loading are other functionalities that, if this information is provided for carriers, can and will increase efciency in cost and time (Bowersox et al., 2007). Furthermore, this information leads to shipment traceability and higher service levels because of customer access to real-time information. Another participant in the supply chain for whom this knowledge can add value is the warehouse operator. This information can and will lead to accurate inventory control and improved order preparation, processing and shipment. Manufacturers can better plan their resources and lower inventory costs by having this type of information about materials ow in the supply chain. 3.2 Condition of products in shipment (II) Having real-time information about the condition of product in shipment has a signicant importance for partners in a supply chain. In cold chains such as supply chains for medicines and perishables foods and in supply chains for chemicals or explosives, which all have to be kept in special condition, lack of knowledge about temperature, humidity, pressure, vibration, etc. might be dangerous or costly. By using track-and-trace systems built up by sensors, senders and communication systems providing continuous information about the status of the product in the containers, this kind 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 the supplier who sends the raw material, the manufacturer who makes and sends the nal

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value-added products, the retailer and the nal customer at different levels. This also makes it possible for the carrier to compare its service level by conditions in the contract. For example, if some fault has happened in shipment the information about the 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 technologies enable operators in warehouses to improve their time efciency in order preparation and processing by providing accurate inventory control and reducing labor costs (Bowersox et al., 2007). These values are also added to the supplier, manufacturer and retailer by improving inventory because of unit precision. As an example, assume a container Ro-Ro-Ship that takes hours between unloading of the rst unit and loading of the last one. In such a case, a system built on bar codes or transponders could be installed, telling the customer exactly when the consignment is 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 thus generated. But it is the customer who denes 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. Other might nd it very difcult to change their plans on such short notice and will use the scheduled time instead. The overriding idea is to let the customer have knowledge of the status of his consignment (Ketzenberg et al., 2007). This type of information can create value for suppliers, manufacturers, retailers, or nal customers, depending on the type of product delivered and its application. 3.4 Inventory level and point-of-sale of retailer (IV) Benets from having real-time information of inventory level at the retailer for each SKU include lower inventory-keeping costs, obsolescence costs, back order costs and lost order costs for retailers, suppliers and manufacturers. The vendor managed inventory concept is created by sharing this information between retailers and suppliers (Yao et al., 2007). Another benet for the customer having this information is improved availability of products on the shelves. Another important concept fullled by using this kind of information is sharing inventories between different retailers for the same products. When different retailers have real-time information about the level of inventory in other stores, this can increase the availability of a product for the customer and decrease lost order costs (Simchi-Levi et al., 2002). In this case there is a value created for all retailers that share their inventories. Point-of-sale information for each SKU facilitates inventory replenishment. Furthermore, the most signicant benet of having centralized information concerning retailers point-of-sale available for all partners in the supply chain is decreasing bullwhip effect. Consequently, this will minimize the stock-keeping cost and back order cost. This information has the potential to create value for all the upstream partners in the supply chain including distributors, manufacturers and suppliers. Different information systems 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 the suppliers working in the markets. These portals have increased the market of interest for buyers and suppliers, reduced procurement costs, and supported paperless transactions. This business-to-business marketplace forces many suppliers offering similar products to compete against each other. Consequently, procurement cost can be signicantly reduced. Depending on the industry, e-markets have reduced procurement costs from a few percentage points to as much as 40 percent and, on average, about 15 percent (Simchi-Levi et al., 2002). By providing this kind of information, the marketing and sales costs of suppliers are reduced and their ability to compete with price increases. E-markets also allow suppliers to better utilize their available capacities and inventories. Generally, information about the available suppliers in different markets can add value in the form of cost reduction and better resource planning. E-commerce allows manufacturers to buy at lower prices worldwide, and the rm can sell its products to a global market. Thus, it makes value for the supplier and the manufacturer (Kaplan and Sawhney, 2000). 3.6 History of sales (VI) Data capturing and storage systems are used to improve the availability of information on past sales of a company for a particular product in different time periods for partners in the supply chain. Historical information about system performance is necessary 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 of batches. This knowledge can create value for suppliers and manufacturers by helping them plan for production, and for retailers decision-making about batch sizes and frequency 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 in forecasting (Simchi-Levi et al., 2002). 3.7 Warehouse operation information (VII) Warehouse operations incorporate processes to guide physical activities, including product receipt, material movement and storage, and order selection. For this reason, they are often termed inventory control or warehouse management systems and sometimes warehouse locator systems, referring to the capability to track inventory storage locations in warehouses. Warehouse operations direct all material handling activities using a combination of batch and real-time assignments. In a batch environment, the warehouse operations system develops a to-do list of instructions or tasks 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 time between decision and action (Bowersox et al., 2007). Data provided by these kinds of information systems create value for warehouse operators by allowing for more efcient assignment and tracking of storage locations, inventory cycle counting, labor scheduling, equipment scheduling, lot control, order selection, location, replenishment and receiving, storage and performance measurement. 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 batches which 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 of products and retailers. Customizing the product before shopping is another advantage created by this kind of information system. In addition, this information allows retailers to sell their products to a global market. Generally, the value of this type of information is for the retailer as it decreases xed and variable costs related to warehouses and retailer shop-keeping. For the nal customer the benets could be a higher variety of products to choose from and lower prices. E-businesses have led to more activities for logistics service providers. In many cases products are delivered directly to the customer instead of being distributed from the shop. Companies such as Dell and Amazon work this way. 3.9 Sharing shipment quantity information in the supply chain (IX) Shipment quantities arriving at the customer site may deviate from what the customer expects. We dene this phenomenon as shipment quantity uncertainty. Where shipment quantity information is not shared with customers, the only way to respond is through safety stock. If the supplier shares such information, the customer is informed every period of the shipment quantity dispatched. Customers may have time to adapt and resolve this uncertainty by adjusting their future order decisions. Results indicate 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 giving them more time to adapt and resolve uncertainty in shipment quantity by adjusting future order decisions (Zhanga et al., 2006). 4. Analysis 4.1 Evaluation out of literature study A number of value adding information types with different functionalities in the supply chain have been identied through the performed literature study in the initial phase of this study. This discussion concludes by indicating partners who benet by using the mentioned kinds of knowledge. In Table I, the predened partners who benet from the described kinds of information in a supply chain are identied. As mentioned before, a special sort of information may have different value levels for different partners in a supply chain. This value can be quantied as a price 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 of knowledge and considering the willingness of each partner to pay for that sort of knowledge (Lumsden et al., 1997). Measurement of this value level is quantied based 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 that build up the total share of value for each partner in the supply chain. As Figure 5

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Signicant sorts of information I. Location of products II. Condition of products III. Placement and sequencing IV. Retailers point-of-sale V. Available suppliers on the market VI. History of sales VII. Warehouse operations VIII. Available offers on the websites IX. Shipment quantity information General number of information sorts Percentage of share holding in total benet from information sorts Relative factor (Max: 100 percent)

Partners of the supply chain Supplier Manufacturer LSP Retailer Customer X X X X X X X X X X X X X X X X 7 21.9 78 percent 8 25 89 percent 3 X X X X X X X X X X 8 X X 6 18.8 67 percent X X X X

Rank 1 1 3 3 9 5 5 5 5

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9.4 25 33 89 percent percent

Ave: 71.2 percent

Table I. Logistics information in supply chains and partners for which the value is created

shows, the value share each partner in the supply chain gains from the availability of information in the supply chain is different. In this analysis the maximum level of value added from information to each partner of the supply chain can be nine the same as the number of signicant information types in the supply chain. All the information kinds are weighted equally. The literature summarized (Table II) show that 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 the supply chain are 7 out of 9 possible additive information values. The number of steps shown in Figure 3 are seven and therefore we dene the level of information value which is added to the supplier in the supply chain here as 7/9. In a similar way, this ratio 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 the variation in the value along the supply chain. Based on the results of the study of literature the logistics service provider is the partner who has the least benet from the nine signicant information types in the supply chain. On the other hand, the retailer and manufacturer benet the most from the information in the supply chain. 4.3 Value level of additive information concerning each partner in the SC The method used for this analysis is to evaluate the mentioned sorts of information for ve different partners (supplier, manufacturer, logistics service provider, retailer, and nal customer) through interviews with individuals or companies working as real players in supply chains. We determine the value of information in the supply chain by interviewing practitioners working as partners in different segments of real supply chains. This means that, for each partner of the supply chain above, three persons

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Additive information sorts (x) 3.67 3 2 3.67 3 3.67 4.33 2 2.33 19.53 3 3.67 2.67 2.67 2 2.33 4.33 2 3.33 18.35 4.33 3.67 2.67 3 2.33 2.67 4.33 2 4 20.47 2.33 3.67 2.33 4 3.33 3.67 4.33 2.33 2 19.76

I. Location of the products II. Condition of the products III. Placement and sequencing IV. Retailers point-of-sale and inventory level V. Available suppliers in the market VI. History of sales VII. Warehouse operations information VIII. Available offers of supplier on the internet IX. Sharing shipment quantity information Total value generated for partners (percent)

Table II. Average value of additive information kinds for partners of the supply chain S M LSP R C 4.33 4.33 3 4.33 3 3.33 5 1.67 2 21.88 Total (percent) 12.47 12.95 8.94 12.47 9.64 11.06 15.75 7.05 9.64 100  x 3.53 3.67 2.53 3.53 2.73 3.13 4.46 2 2.73 28.33

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Figure 3. Level of information value added to each partner of the supply chain

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 additive information kinds in a supply chain as dened in the literature. They are asked to tell how important the information types in the supply chain are for them. The method of evaluation 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) to the information kinds. The result is summarized in Table II. For each information type in each type of supply chain partner, the average values resulted from interviews with three different companies are given. The data shows that different information kinds generate different levels of value for the partners of the supply chain. After considering the total level of value that these sorts of information generate for the supply chain partners, they are divided into three main groups. The rst group (group I) contains the most value adding information type in a supply chain. The second group (group II) contains the information kinds where the level of value generated is in the middle. Finally, the third group (group III) are the information kinds which 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 chain are willing to acquire this real-time knowledge in their supply chain. Condition of the products, retailers point-of-sale, location of the product, history of sales, available suppliers in the market and shipment quantity information are, respectively, the most value generating information sorts in group II. Information about placement and sequencing of the products in inventory and shipment and available offers of the suppliers on the internet are the least benecial 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. There exists a signicant gap between the levels of value of information types between groups I, II and III. It is obvious that the level of value generated from these groups is almost the same for all the partners of the supply chain. As we see, the graphs are at when considering different partners of the supply chain. It shows that almost all the partners of the supply chain have the same evaluation of these information sorts and

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Figure 4. Total value of additive information kinds in a supply chain

the gap between their values is the same for almost all different partners. If there is a low percentage of the information it is valid for all partners across the supply chain (Figure 5). To compare the level of the total benet of all supply chain partners from these information kinds in a supply chain, they are aggregated out of a partners perspective (Figure 6). The benet 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 benets generated for retailers and nal customers from having knowledge of information types than there is for manufacturers and suppliers. The results are in accordance with the IBM research on

Figure 5. Logistics information behavior of different levels of value adding

Maximum = 9 5 = 4 5= [No. of sorts of info.] [Highest value] 46 40 35 Value 30 25 20 15 10 Supplier Manufactrurer LSP Partner Retailer Customer

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Figure 6. Total value generated for partners (N 15) from additive logistics information (Table II)

value of information for partners of a supply chain. Based on their results the most value of information in a supply chain benets the downstream partners. 5. Conclusion The perspective from the literature can be compared with the perspective of the practitioners concerning the level of benet that is generated for different partners from the used information sorts in the supply chain. It comes out clearly that the retailer and manufacturer are the partners who have the least benets from the information sorts available in a supply chain. The supplier and customer are, on the other hand, the partners who have the most benet from the information sorts. When comparing the value generated for the partners upstream and downstream of a supply chain, by considering the literature it can be concluded that the benets from these information types are almost the same for both groups. As discussed, from the practitioners point of view, the benet to the downstream partners from using the information aspects of the supply chain is higher than the upstream partners benet. A signicant conclusion from this study is that different information sorts in a supply chain have different levels of value and their total benet for all the partners of the supply chain is dissimilar. Categorizing the information kinds into three main groups was done to emphasize the stage of value. By considering these categories we can have a deeper understanding about prioritizing them in our supply chain, in particular the warehouse information and the condition of the product. Another important outcome of the study is generated by considering the homogeneous value of the information. The value level of the same information group as it applies to different partners in the supply chain is the same. This means that if companies reduce or highlight the value of information impact, it goes all the way from supplier 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.

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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 Business Review, Vol. 78 No. 4, pp. 97-103. Ketzenberg, M.E., Rosenzweig, E.D., Marucheck, A.E. and Metters, R.D. (2007), A framework for the value of information in inventory replenishment, European Journal of Operational Research, Vol. 182, pp. 1230-50. King, D. and Grifths, J. (1986), Measuring the value of information and information systems services and products, AGARD Conference Proceedings, No. 385, p. 1986. Lee, H.L., Padmanabhan, P. and Whang, S. (1997), Information distortion in a supply chain: the bullwhip effect, Management Science, Vol. 43 No. 4, pp. 546-58. Lumsden, K., Roudolphe, P. and Sjostedt, L. (1997), Information as a Value Adder for the Transport User, Division of Logistics and Transportation, Chalmers University of Technology, Goteborg. Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2002), Designing and Managing the Supply Chain, 2nd ed., Mcgraw-Hill, New York, NY. Stair, R.M. and Reynolds, G.W. (2007), Principles of Information Systems A Managerial Approach, 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-managed inventory, Decision Support Systems, Vol. 43, pp. 663-74. Zhanga, C., Tanb, G., Robbc, D.J. and Zhengd, X. (2006), Sharing shipment quantity information in 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 of Management 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 supply chains, 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-order supply 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 of International Management, Vol. 11, pp. 201-27. Wu, F., Yeniyurt, S., Kim, D. and Cavusgil, S.R. (2006), The impact of information technology on supply chain capabilities and rm performance: a resource-based view, Industrial Marketing Management, Vol. 35, pp. 493-504.

Appendix 1

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

Partners of the supply chain Supplier Manufacturer LSP Retailer Customer S1 S2 S3 M1 M2 M3 L1 L2 L3 R1 R2 R3 C1 C2 C3 3 1 1 2 4 4 4 2 2 3 5 2 4 2 3 5 2 1 5 3 3 5 3 4 4 2 4 4 5 2 4 2 2 4 2 4 2 2 2 2 2 2 4 2 2 3 4 4 2 2 3 5 2 4 5 3 2 2 2 2 4 2 4 4 5 2 4 2 3 5 2 4 4 3 4 3 3 3 4 2 4 3 2 2 4 3 3 5 2 2 2 4 2 5 3 4 4 3 2 2 5 3 3 4 4 4 2 2 4 4 3 4 3 4 5 2 2 5 5 4 5 2 3 5 1 3 4 4 2 4 4 3 5 2 1

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Table AI. Quantied signicant information sorts in a supply chain

Appendix 2. Value of additive information kinds in the supply chain regarding different partners
Supplier 5 4.5 4 3.5 3 2.5 2 1.5 1 History of sales Available suppliers in market Location of products Condition of products Placement and sequensing Retailer's Point-Of-Sale Warehouse operations Shipment quantity information Manufacturer LSP Retailer Customer

Value

Information types

Figure A1. Different values generated for partners from the same information type

Corresponding author Vahid Mirzabeiki can be contacted at: vahid.mirzabeiki@chalmers.se

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