A01 chaf6542 06 se fm indd

information asymmetry

   which 

results in amplification of the demand signal and fluctuation of inventory level along a supply 

chain. The ECR concept introduced earlier in this chapter is an attempt to reduce information 

asymmetry. Although information asymmetry can be reduced through the use of technology, 

technical barriers such as the lack of standards, expertise or the cost of implementation will 

prevent it. Organisational issues such as the level of trust of supply chain partners and the 

competitive advantage that may result from keeping information are equally significant.     

 In this section we review efforts to optimise the ISC and describe the benefits of imple‑

menting ISC support technologies. We then consider how companies can use technologies to 

support the management of the upstream and downstream supply chain.