A01 chaf6542 06 se fm indd

information supply 

chain

  (ISC) as suggested by Marinos (2005) and Sun and Yen (2005). March  et al  .  (2007) 

describe the ISC as: 

  an  information-  centric view of physical and virtual supply chains where each entity adds 

value to the chain by providing the right information to the right entity at the right time in 

a secure manner. ISCs create value for the collaborating entities by gathering, organizing, 

selecting, synthesizing, and distributing information. The challenges to cultivating an ISC 

arise from both organizational and technological perspectives. Agility and flexibility in both 

internal and  inter-  organizational business processes are required to benefit from technol-

ogy investments in ISCs.  

 This definition shows the scope and challenges of managing the ISC. Research by Legner 

and Schemm (2008) suggests two different types of information sharing and coordination 

problems in the retail and consumer goods industries: (1) the transactional information flow 

that allows for coordinating the physical demand and supply chain (demand signals, fore‑

casts, orders, shipping, notifications, or invoices), and (2) the contextual information flow 

that ensures that retailers and manufacturers interpret data in the same way. They explain 

that a  well‑  established problem is the ‘bullwhip effect’ or