Coordination among supply chain partners

It is important to recognize that the value of the IT system in each of the cases discussed here is tightly linked to the accuracy of the inventory information. Inaccurate inventory information leads to flawed decisions and could in the worst case create mistrust among supply chain partners attempting to coordinate the decisions and actions. A study by DeHoratius and Raman (2008) found that about 65 percent of the inventory records checked for a retailer were inaccurate. That is, for 65 percent of the records checked, the inventory on hand did not match the inventory showing in the IT system. Without reasonably accurate inventory records, the value provided by an IT system will be limited. 

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