Knowledge flow in demand chains

Technology has multiplied the potential for information flows through a value chain, but often human behavior hampers it as individuals use the available information to enhance their own position. This happens internally, but is even more prevalent in the interactions between firms, as individuals seek to enhance not only their own position, but the perceived negotiating position of their firm.

A key metric to look at when assessing the health of a value chain is the exchange of information between firms. The actual measurement will usually be a combination of hard & soft data such as joint strategic planning, shared KPI’s, availability of data when needed and in a useable form. A technique I have sometimes found useful is an adaptation of an HR practice, do a “360 degree” performance assessment on the available information amongst those who come into contact with it, and have a use for it.

Another of those paradoxes that exist in human relations, elicited by the information exchange in supply value chains:

Why is it that the passionate exchange of information that occurs on social networking sites is rarely replicated in a value chain?

It seems odd to me that people who are willing to share sometimes pretty personal stuff on a networking site are unwilling to share information of a non- personal nature in a commercial situation, even where the commercial case for the exchange is clearly made.

Such information exchange is a pre-requisite of creating a demand chain from a bog standard supply chain.



About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Demand chains, Management, Strategy and tagged , , . Bookmark the permalink.

2 Responses to Knowledge flow in demand chains

  1. strategyaudit says:

    Thought about it, but decided at this point it was more trouble than it was worth.
    The readership of the blog is pretty low, to be expected I guess, but has some quality, as it has generated some conversation with me, rather than just on the blogg site.

    At this time, quality rather than quantity is the objective, I am seeking to develop a highly targetted readership, rather than being seduced by the siren song of numbers.

  2. ron hartman says:


    have you thought of doing this on Twitter? Why? because I see you are blogging on topical events and you could get your point across in 140 characters! plus you can link up and comment on other business thinkers very easily. Twitter is more interactive than blogging.

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