<ul><li>COORDINATION IN </li></ul><ul><li>A  </li></ul><ul><li>  SUPPLY  CHAIN </li></ul><ul><li>Presented by: Simranjeet ...
Lack of supply chain coordination <ul><li>Conflicts in objectives of different stages of supply chain. </li></ul><ul><li>D...
BULLWHIP EFFECT <ul><li>Fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to ...
 
Effect on Performance of Lack of Coordination <ul><li>Manufacturing Cost </li></ul><ul><li>Inventory Cost </li></ul><ul><l...
Obstacles to Coordination in SC <ul><li>Incentive Obstacles </li></ul><ul><ul><li>Sales force incentives </li></ul></ul><u...
Managerial Levers to Achieve Coordination <ul><li>Aligning of goals & incentives </li></ul><ul><ul><li>Aligning incentives...
<ul><li>Designing pricing strategies to stabilize orders </li></ul><ul><ul><li>Moving from Lot Size-based to Volume Based ...
<ul><ul><ul><ul><ul><li>THANK YOU </li></ul></ul></ul></ul></ul>
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Bullwhip Effect

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Bullwhip Effect

  1. 1. <ul><li>COORDINATION IN </li></ul><ul><li>A </li></ul><ul><li> SUPPLY CHAIN </li></ul><ul><li>Presented by: Simranjeet Singh </li></ul><ul><li>50802063 </li></ul>
  2. 2. Lack of supply chain coordination <ul><li>Conflicts in objectives of different stages of supply chain. </li></ul><ul><li>Distorted & delayed information between supply chain stages. </li></ul><ul><li>e.g.- FORD MOTORS </li></ul><ul><li>Bullwhip Effect. </li></ul>
  3. 3. BULLWHIP EFFECT <ul><li>Fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers. </li></ul><ul><li>It distorts demand information within the supply chain, with each stage having a different estimate of what demands looks like. </li></ul><ul><li>E.g. Apparel & Grocery industry. </li></ul>
  4. 5. Effect on Performance of Lack of Coordination <ul><li>Manufacturing Cost </li></ul><ul><li>Inventory Cost </li></ul><ul><li>Replenishment lead time </li></ul><ul><li>Transportation Cost </li></ul><ul><li>Shipping & receiving cost </li></ul><ul><li>Level of product availability </li></ul><ul><li>Profitability </li></ul>
  5. 6. Obstacles to Coordination in SC <ul><li>Incentive Obstacles </li></ul><ul><ul><li>Sales force incentives </li></ul></ul><ul><li>Information-processing obstacles </li></ul><ul><li>Forecasting based on orders and not customer demand </li></ul><ul><li>Lacking of information sharing </li></ul><ul><li>Operational </li></ul><ul><li>Ordering in large lots </li></ul><ul><li>Large replenishment Lead times </li></ul><ul><li>Pricing </li></ul><ul><li>Lots size-based quantity discounts </li></ul><ul><li>Price fluctuations </li></ul><ul><li>Behavioral </li></ul>
  6. 7. Managerial Levers to Achieve Coordination <ul><li>Aligning of goals & incentives </li></ul><ul><ul><li>Aligning incentives across functions </li></ul></ul><ul><ul><li>Pricing for Coordination </li></ul></ul><ul><ul><li>Altering Sales Force Incentives from Sell-in to Sell-through </li></ul></ul><ul><li>Improving information accuracy </li></ul><ul><ul><li>Sharing point-of-Sale Data </li></ul></ul><ul><ul><li>Implementing Collaborative Forecasting and Planning </li></ul></ul><ul><ul><li>Designing Single-Stage Control Replenishment </li></ul></ul><ul><li>Improving operational performance </li></ul><ul><ul><li>Reducing replenishment lead Time </li></ul></ul><ul><ul><li>Reducing Lot Sizes </li></ul></ul><ul><ul><li>Altering </li></ul></ul>
  7. 8. <ul><li>Designing pricing strategies to stabilize orders </li></ul><ul><ul><li>Moving from Lot Size-based to Volume Based quantity Discounts </li></ul></ul><ul><ul><li>Stabilizing Pricing </li></ul></ul><ul><li>Building partnerships and trust </li></ul>
  8. 9. <ul><ul><ul><ul><ul><li>THANK YOU </li></ul></ul></ul></ul></ul>

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