Skin ADV

Supply Chain Glossary

Glossary  >  B  >  Bullwhip Effect  


 

Bullwhip Effect


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

Also known as the Forrester Effect, the term applies to the responsiveness of supply chains to a change in demand.  As an example, supposing there is a fire in a factory bottling cola.  Retailers hear of the fire and, fearing an interruption to supply, double their orders with their distributors.  The distributors experience an increase in orders and, fearing a stock-out, increase their orders on the bottler, adding a ‘just in case’ component to the retailer’s original orders.  The bottler is inundated with orders and can only supply a proportion of the orders, so puts the distributors on allocation.  In panic, the distributors raise fresh orders on the bottler and encourage the retailers to do the same.  The demand amplification causes the bottler to experience a distorted perception of actual market demand, as retailer sales and consumption of cola may well be unchanged.  See also Agility, Forrester Effect and Supply Chain.

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Job Opportunities
 
Procurement Manager Bay Area, CA
     
     Bay Area, CA  -  PERM  -  Teldar Group

Procurement Director Bay Area, CA
     
     Bay Area, CA  -  PERM  -  Teldar Group

Sourcing Manager North Carolina
     
     North Carolina  -  PERM  -  Teldar Group

Senior Buyer San Francisco, CA
     
     San Francisco, CA  -  PERM  -  Teldar Group

Sourcing Manager Travel FL or TX
     
     FL or TX  -  PERM  -  Teldar Group

Supply Chain Manager Chicago, IL
     
     Chicago, IL  -  PERM  -  Teldar Group

Senior Sourcing Manager FL or TX
     
     FL or TX  -  PERM  -  Teldar Group

Sourcing Manager Fl or Tx
     
     Fl or Tx  -  PERM  -  Teldar Group

Facilities Procurement Manager San Mateo, CA
     
     San Mateo, CA  -  PERM  -  Teldar Group

IT Procurement Manager San Mateo, CA
     
     San Mateo, CA  -  PERM  -  Teldar Group

Senior Procurement Manager San Mateo, CA
     
     San Mateo, CA  -  PERM  -  Teldar Group

Sourcing Manager Nebraska
     
     Nebraska  -  PERM  -  Teldar Group

Senior Sourcing Analyst Metals North Carolina
     
     North Carolina  -  PERM  -  Teldar Group

Procurement Services Supervisor Sacramento, CA
     
     Sacramento, CA  -  PERM  -  Teldar Group

Global Category Leader Chicago, IL
     
     Chicago, IL  -  PERM  -  Teldar Group

 

Supply chain E-learning



Explore available supply chain e-learning modules by language and academy



News & Trends
 

Last update 11 Jan 2023
US manufacturing operating conditions deteriorate at fastest rate since May 2020
   Source: S&P Global US Manufacturing PMI   -  IHS Markit
United States 


Fashion

Today’s omni-channel marketplace means competition is increasing, consumers are demanding more relevant products, inventory lifecycles are shorter and fulfillment is incredibly complex. Business conditions are constantly changing, which means you need the flexibility to adapt quickly and continu...


Education
 

Resources
 
Tudor Rose International increases productivity through integrated SCM platform ASSIST4

Tudor Rose International is Europe’s leading export market management company specialising in building brands around the world. In business for nearly 30 years, the innovative company mastered an ambitious IT mo...

After-sales service as a driver for word-of-mouth and customer satisfaction: insights from the automotive industry

This study aims to study the effect of the after-sales service experience and its quality on overall customer satisfaction and word-of-mouth (WOM) within the automotive industry. Based on the additional marketing mix ele...


International Agenda