Visibility in Supply Chains
Information Quality
The term visibility has been used in describing how 'it' can help supply chains in different ways. To determine what visibility is apparently is not straightforward. So, we look at visibility from another angle - information quality with the premise that certain quality in information renders desirable behaviors of supply chains visible. Sahin & Robinson (2002) discussed physical flow coordination and information sharing in supply chains. They suggested a "fully coordinated" supply chain gains global system objectives as each partner can make aligned decision based on 'complete information' available. In here, we say that with visibility, supply chains are fully coordinated.
Visibility can be viewed with respect to 'channel structure: breadth and depth of the supply chain.' Visibility can be said to involve integration of upstream only parties or downstream only, or both. Visibility can be justified with respect to certain KPI such as demand variance, total costs (system, or 'individual channel members'). Visibility can be measured by the willingness of the partners to share information, leading to different levels of information quality. These many dimensions of visibility must be clearly articulated and the implication of each established empirically or theoretically. As such, how would RFID adoption in supply chains affect such implications and if of these dimensions.
In here, we define two terms: clarity and fidelity - the objectives of why visibility is 'wanted' in supply chains. Based on these two concepts, we will then define a framework to describe the visibility services that are needed in RFID-aware business chains, now specifically supply chains. Briefly, 'clarity' is defined as the state of being 'clear' leading to no inconsistency in the decision process of a partner in the supply chain. Clarity alone is not sufficient as clarity does not offer assurance the the information is accurate to a certain degree. That is, what we often speak of distortion and delay concerning information flow in supply chains, fidelity must accompany clarity. Therefore, 'fidelity' is simply defined as accuracy that is virtually without delay and distortion as inherent with the RFID technology (how to realize and capitalize the characteristics is another matter). We will extend this discussion next.
Sahin, F., & Robinson, E.P. "Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research," Decision Sciences, 33 (4), Fall 2002, 505-536.
Visibility can be viewed with respect to 'channel structure: breadth and depth of the supply chain.' Visibility can be said to involve integration of upstream only parties or downstream only, or both. Visibility can be justified with respect to certain KPI such as demand variance, total costs (system, or 'individual channel members'). Visibility can be measured by the willingness of the partners to share information, leading to different levels of information quality. These many dimensions of visibility must be clearly articulated and the implication of each established empirically or theoretically. As such, how would RFID adoption in supply chains affect such implications and if of these dimensions.
In here, we define two terms: clarity and fidelity - the objectives of why visibility is 'wanted' in supply chains. Based on these two concepts, we will then define a framework to describe the visibility services that are needed in RFID-aware business chains, now specifically supply chains. Briefly, 'clarity' is defined as the state of being 'clear' leading to no inconsistency in the decision process of a partner in the supply chain. Clarity alone is not sufficient as clarity does not offer assurance the the information is accurate to a certain degree. That is, what we often speak of distortion and delay concerning information flow in supply chains, fidelity must accompany clarity. Therefore, 'fidelity' is simply defined as accuracy that is virtually without delay and distortion as inherent with the RFID technology (how to realize and capitalize the characteristics is another matter). We will extend this discussion next.
Sahin, F., & Robinson, E.P. "Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research," Decision Sciences, 33 (4), Fall 2002, 505-536.