V. The Big Issue - Trust
A. The whole issue here is "trust". In most industries the supply chain is like a big card
game. The players don't want to show their cards because they don't trust anyone else
with the information. But if they showed their hands they could all benefit.
1. Suppliers wouldn't have to guess how much raw materials to order
2. Manufacturer's wouldn't have to order more than they need from suppliers to make sure
that they have enough on hand if demand for their product unexpectedly goes up.
3. Retailers would have fewer empty shelves if they shared the information they had about
sales of a manufacturer's product in all their stores with the manufacturer.
B. The Internet makes showing your hand to others possible, but centuries of distrust and lack
of coordination within industries make it difficult.