The value of anonymity in supply chain relationships

Commingling inputs reduces traceability and creates an incentive for moral hazard among suppliers with commingled products which can create a value for anonymity. We show that this value is influenced by inequitable power distribution and imperfect inspection at exchange points in the supply chain. We argue that since perfect inspection can be uneconomical. supply chains can minimize the value of anonymity by designing relationships to ensure a perception of equitable power distribution. We conclude that designing supply chains to minimize anonymity conditions focuses participants on maximizing the collective, instead of individual, value.