The Value of Information Sharing in the Retail Supply Chain: Two Case Studies

Retail supply chains are complex, with each company in the chain having multiple echelons of distribution. Forecasting and requirements planning are further challenged by managers’ reliance on “local” rather than chain-wide retail demand to make key operational decisions. A frequent consequence is the bullwhip effect. Using two case studies, Tonya and Ram show how information sharing – both within the company’s boundaries and with external partners – can mitigate the bullwhip effect and reduce supply-chain costs. Copyright International Institute of Forecasters, 2008