This is an interesting question. Not many organisations would like to share sensitive information with suppliers lest that information may be misused or used by competitors. Striking a balance between what is to be shared and what is to be withheld is to be decided judiciously.
As Mr. Deshmukh said, I think there is a lot of information that OEMs should share with strategic suppliers, but the point is what is the reward? Does information sharing can help improve responsiveness? Does information sharing help supplier be more flexibility? for instance? to what extent?
Through ongoing strategic relationships, suppliers become partners when they contribute to competitive advantage. To ensure that the supply chain supports the company's strategy, managers need to consider several things such as: accounting, finance, marketing, and operating disciplines.
Competition is no longer just about companies, but also between supply chains. The key to success is collaborating with members, both in the supply and supply chain distribution to make decisions that will benefit the entire channel. For companies, the supply chain determines a substantial portion of product costs and quality and opportunities for responsiveness and differentiation.
With collaboration, costs for buyers or suppliers will decrease. For example when both parties want to share sales and cost information, profits can increase for both parties.
Examples of supply chain coordination include:
• Walmart works with 200 main suppliers in China to achieve the goal of increasing energy efficiency by 20%
• Mercury Marine, a major ship engine manufacturer, uses the internet to improve the design of shipbuilders and machine sellers when struggling in competition with Honda, Yamaha and Volvo
• Unifi, the youngest maker of synthetic yarns in the US, shares information on daily production schedules and quality control with its raw material supplier DuPont.