“Swamped in information but starved of data”: information and intermediaries in clothing supply chains

Abstract

Argues that the existing supply chain literature provides no explanation for the role of intermediation and intermediaries and may even be said to predict their demise. This claim is made on the basis of two assumptions derived from the literature, namely that intermediation reduces supply chain transparency and adds cost but not value. Observes, however, that intermediation is an important component in many international clothing supply chains and outlines an explanatory framework that focuses on information costs. The principal sources of information costs in international markets for clothing are then identified and, finally, a case study is presented to provide empirical illustration of the preceding arguments, demonstrating the explanatory power of the theory advanced.