The classic bull-whip effect means that the further a supplier is removed from the end consumer, the worse are the fluctuations in demand that they see. This has led many to recommend an n-tier approach to demand management, where everyone gets visibility to the end-customer demand at the same time. In practice, very few companies have been able to actually realize this vision. There are some practical approaches that a few leading suppliers deep in the supply chain are have taken to successfully mitigate the bull-whip effect.
upstream downstream logistic
These steps can help upstream manufacturers avoid much of the misery and destructive force of the bull-whip effect that is normally the bane of their existence. This article is from Parallax View, ChainLink Research's on-line magazine, read by over 150,000 supply chain and IT professionals each month. Thought-provoking and actionable articles from ChainLink's analysts, top industry executives, researchers, and fellow practitioners. To view the entire magazine, click here . About the Author Bill