Supply Information Visibility from Subcontractor Network to Manufacturer to Decrease Supply Risk

This paper presents a web-based operational model which improves the visibility of inventories in a subcontractor network to the manufacturer, and consequently, reduces the supply risk for the manufacturer. There is a need for a new operational model because the supply problems in a subcontractor network disrupt the activity of the manufacturer. In practice, the manufacturer sees these disturbances especially as an increase in production costs, but they also impact the manufacturer's product sales because delayed delivery to end-customers leads to potential losses in sales. The operating model developed offers the manufacturer advance information on the possible supply problems of subcontractors. Consequently, delays in deliveries can be reduced or better anticipated. At present, subcontractors in the supply chain studied mainly manage inventory and production information with Excel, and transfer information by e-mail. A centralised, web-based system would make the activity more organised and systematic, and would make the information flows uniform.