Research on The Optimization Strategy of Cross-border B2B Supply Chain with Service Cost Information Sharing

The development of cross-border e-commerce highlights the importance of service integration and information sharing. This paper considers a cross-border B2B supply chain which consists of a local manufacturer and a foreign trade service integrator. The service integrator holds the service cost structure as private information. The optimal decisions and maximum expected profits of the manufacturer and service integrator are analyzed under two scenarios: no information sharing versus information sharing. The paper finds that information sharing always benefit the manufacturer but not for the service integrator. In the meanwhile, the value of information is increased with the manufacturer's forecast uncertainty about the service integrator's service cost. The whole supply chain can get pareto improvement through the Nash bargaining mechanism.