Abstract

This paper addresses supply chain transparency improvement in a triadic manufacturersupplier-supplier relationship. It investigates the problem of improving transparency using a set of interviews; then, a detailed problematization and a simulation model is formulated based on the results. The interview results show that there are two key issues to be considered: information systems issues related directly to transparency and capability issues related to utilizing transparency. The simulation results support developing capabilities by illustrating the effects of different options for coordinating material flow. The results of the study also indicate that while solutions to improve transparency can be relatively straightforward to implement, developing the capability to benefit from it can be more challenging, even in a well-established close partnership. In addition, suppliers may be hesitant to collaborate without active manufacturer involvement.