In addition, there were gaps in the supply chain. Each of theparticipants might not have a full picture of what the others aredoing or even what the final product would be. These gaps wouldsometimes slow down communication between the participants. Often,many components go into the final manufacturing process. If forinstance the component suppliers were not well-informed of shipmentdates of the final products, they may not have the incentive to giveextra attention to secure ample supplies. Sometimes, without knowingwhat the final products were, component suppliers would also not beable to suggest alternatives if supplies were short. It is importantthat the activities of all the supply chain participants move in sync.If one goes out of step, the chain might end up getting clogged. Andthis is why there has been a need to improve transparency to allinvolved in the production process.

Let us get back to the example of our U.S. retail chain. In thetraditional supply chain, there is no compelling reason for the shirtmaker to tell the button manufacturer that the shirts are for saleduring Christmas. In other words, the component supplier lacks fulltransparency of the entire process. The shirt maker might just simplysay, "I need 100,000 buttons of type XYZ by this date." However, ifthe button manufacturer knows what the final product is, it has theopportunity to offer the shirt maker a button that is especiallysuitable for a shirt of the type that is on order. Also, if acomponent supplier has a complete picture of the retailer's order, ithas the opportunity cross sell or offer products that are especiallysuitable for this order.