The Motivation and Methods of Information Sharing in Supply Chain

The nature of supply chain management is to optimize the decision such as production of the enterprise, inventory, marketing and so on through information sharing in supply chain, so information sharing among node enterprises is a fundamental work in the supply chain. Firstly, this paper puts forward the view that information sharing can not only reduce risk brought by asymmetric information, but also promote whole performance of supply chain, meanwhile sharing the private information among the partners will bring certain risk and information cost. Then analyzes the major motivation of information sharing from four aspects, and indicates that node enterprise can get better by sharing itself private information with another enterprise. Finally, it brings forward the primary methods to realize effective information sharing such as information technology methods, shareholding swap incentive method, back selling incentive method, pricing incentive method, and order Incentive method and so on.