Towards The Internet Of Production – How To Increase Data Sharing For Successful Supply Chain Collaboration

Abstract

Numerous start-ups and now even some major corporates are currently trying to improve visibility and foresight in the manufacturing industry through connected supply chains, or in other words, through increased data sharing. This study strives to support companies in leveraging the potential of increased data sharing in supply chain collaborations. Despite the great potential of digitizing manufacturing and automated data sharing throughout the supply chain, most companies are not yet able or willing to implement this kind of openness. The main reason for this lack of transparency in the supply chain is the high complexity and high cost of the required interfaces. In practice, instead of automated and extensive data sharing, companies exchange spreadsheets and PDFs with minimum information. This study supports companies in the pre-stage before automated data sharing is technically implemented. We find that building trustful relationships is a necessary step towards extended and automated data sharing. Moreover, we find that social capital provides a means to partially compensate for a lack of automation in terms of shortening lead times and dealing with disruptions. Introducing a supply chain collaboration typology and showcasing descriptive and qualitative results for 36 firms, we show how to navigate the frontend of the Internet of Production.