What is The Bullwhip Effect?
The bullwhip effect occurs when small fluctuations in retail demand cause fluctuations in wholesale, distributor and manufacturer demand, resulting in inefficiency and disorganization throughout the supply chain. It happens when stakeholders create too little — or too much inventory — due to a limited understanding of demand and continued dependence on traditional forecasting methods. The misalignment increases exponentially as actions and reactions continue.
Real-time information sharing along the supply chain can minimize the bullwhip effect. If partners know what is causing — or is likely to cause — a demand distortion, they can better anticipate risk. Learn more about the supply chain software and supply chain management services offered by GEP
World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management
GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.
Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise
GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.
