The Bullwhip Effect: Small changes on the consumer side that have cascading effects on vendors, manufacturers, and suppliers. Navigating the bullwhip effect can be a challenge during the best of times – but when supply chains are volatile and industries strained by the lasting effects of COVID-19, it can feel nearly impossible. Market pressures have put an enormous pressure on the interactions between manufacturers and suppliers and, if left unchecked, could continue to strain relationships even after the world returns to something approaching “normal.” Now more than ever, manufacturers need effective digital tools that can streamline communications, track essential data, and ensure business runs as smoothly as possible.
The Bullwhip Effect: Small changes on the consumer side that have cascading effects on vendors, manufacturers, and suppliers. Navigating the bullwhip effect can be a challenge during the best of times – but when supply chains are volatile and industries strained by the lasting effects of COVID-19, it can feel nearly impossible. Market pressures have put an enormous pressure on the interactions between manufacturers and suppliers and, if left unchecked, could continue to strain relationships even after the world returns to something approaching “normal.” Now more than ever, manufacturers need effective digital tools that can streamline communications, track essential data, and ensure business runs as smoothly as possible.
In this episode of Transformation @ Work, we discuss relationship building between manufacturers and suppliers, and how digital tools can facilitate seamless operations even during uncertain times.
Key Insights
03:24 - How the supply chain disruptions of the past few years have impacted manufacturers and suppliers
07:46 - How the “bullwhip effect” impacts relationships between manufacturers and suppliers in the short term and long term
09:33 - The impact of digitalization on manufacturers’ ability to react to sudden supply-side changes
11:00 - Demonstrating reliability during turbulent times through digitalization
14:10 - How integrating systems and embracing digitalization helps businesses maintain steady operations despite market disruptions
