Discuss the role of information in the supply chain, and identify the three principle requirements for supply chain information.

It has been said that information is the lifeblood of business, driving appropriate decisions and actions. Across the supply chain, store inventory replenishment decisions are based on point-of-sale data, carrier selection is driven by delivery service goals, and production schedules are derived from forecasts. Essentially, information connects the extended supply chain, providing managers with insights about activities taking place at distant supplier and customer locations. This cross-chain visibility to demand, customer orders, delivery status, inventory stock levels, and production schedules gives managers the ability to properly assess situations and develop appropriate responses. There are three principle supply chain information requirements that support effective decision making. First, the information in a system must meet quality standards to support fact-based decision making. Second, the information must readily flow within and between organizations. Third, the information must support multiple types of supply chain decisions.