Monday, September 10, 2007

The Bullwhip Effect

The "bullwhip" effect is an extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being back ordered to being in excess. This is usually caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving products down the chain.

The bullwhip effect can be avoided by carefully synchronizing the supply chain. This is the primary reason we advocate integrating your internal company supply chain with your suppliers supply chain and your customers supply chain. The benefits are many including better planning and scheduling, smarter inventory management, and preventing the bullwhip effect.

Please be advised that Synchronous has transformed our service offering to providing industry and operational excellence concepts and advice, but we are currently unable to provide on-site consultations or engage new clients. Current clients can continue to expect the same fully dedicated support and advice, but on limited hours of availability as we have already communicated to designated company contacts - usually the project manager. Thanks to all of our loyal and dedicated clients, who have allowed and honored us to be part of their transformation efforts...

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