Chitkara Bullwhip
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Transcript of Chitkara Bullwhip
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Bull Whip Effect
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The Bullwhip Effect
Can be explained as an occurrence detected by the supplychain where orders sent to the manufacturer and suppliercreate larger variance then the sales to the end customer.
These irregular orders in the lower part of the supply chaindevelop to be more distinct higher up in the supply chain.
This variance can interrupt the smoothness of the supplychain process as each link in the supply chain will over orunderestimate the product demand resulting in exaggeratedfluctuations.
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Role Of IT in SCM
Effective use of information technology Maximizes the advantages and minimizes the risks
inherent in LTL transportation.
Each package must be positively identified everytime it is handled.
Information about every destination must bechecked and double checked to maximize cargospeed while minimizing empty trailer miles
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Cont
Implementation of competitive information technologies Begins wherever carriers feel they need the most assistance.
For many, dock management represents a logical startingpoint.
Positive tracking of every package in and out of every hub
drastically reduces the possibility of cargo delays and damage.
Automatic optimisation techniques simultaneously reducehandling expenses and allow some trailers to bypass
consolidation hubs entirely.
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Supply Chain Performance Measures
Supply chain performance measures can beclassified broadly into two categories:-
Qualitative measures (such as customersatisfaction and product quality)
Quantitative measures (such as order-to-delivery lead time, supply chain responsetime, flexibility, resource utilization, deliveryperformance, etc.).
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Cont
Quantitative metrics of supply chain performance can beclassified into two broad categories:
Non-financial and financial.
Non-Financial Performance Measures Cycle time Customer Service Level Inventory Levels Resource utilization
Financial Measures
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Financial Measures
Cost of raw material Revenue from goods sold Activity-based costs such as material handling, manufacturing,
assembling, etc. Inventory holding costs Transportation costs Cost of expired perishable goods Penalties for incorrectly filled or late orders delivered to
customers
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