Breakpoints and Black Boxes: Information in Global Supply Chains

Abstract:Supply chain management (SCM) deals with the procurement and assembly of goods, from raw material to the consumer. With the growing prevalence of offshore manufacturing and suppliers' reliance on "just-in-time" inventory management, SCM has become both astoundingly complex and critical to companies' competitiveness. This essay examines how data works in global supply chains, focusing on SAP SCM, the huge but hard-to-access SCM software with the greatest market share. It argues that SCM is characterized by two countervailing tendencies: the demand for perfect information about goods and movement, and the need to erect strategic barriers to the fullest knowledge about supply chains. Counterintuitively, this selective obscurantism is what makes supply chains so fast and efficient.