The effects of data sharing on a perishable goods supply chain

Abstract

This research project explores the benefits of retail data sharing in a high-velocity perishable goods supply chain. While this technique has been largely effective in improving supply chain performance in different industries, its benefits are unproven in the perishable goods business. Specifically, due to the short shelf life of produce, it remains to be seen whether data sharing can generate actionable plans for retailers to reduce out-of-stock events and shrinkage due to spoilage. As a result, suppliers and retailers alike have been reluctant to invest in the technology and cultivate the business relationship required to enable data sharing. The findings of this thesis could help companies determine whether a business case can be built for suppliers to invest in the necessary technology, as well as for retailers to share operational data for the greater good of overall supply chain efficiency and profitability. Ultimately, our research indicates that without some fundamental changes to the retailers' ordering process, data sharing does not provide substantial operational benefits for the perishable goods supply chain.