Players throughout the Supply Chain use a variety of tools to reduce the bullwhip effect, ranging from new technology to the changes in terms & conditions they offer to their customers. But accurate market research will help them to make the effect negligible. This presentation give subtle details on how the effect of bullwhip can be made negligible to avoid losses!!

1. The Bullwhip Effect
Explained………..
Tips to Reduce Losses
No. 1

2. No. 2
In An Ideal World, Supply Chains Would Be In Equilibrium
http://upload.wikimedia.org/wikipedia/commons/thumb/5/5c/Fra_Carnevale_‐_The_Ideal_City_‐_Walters_37677.jpg/640px‐Fra_Carnevale_‐_The_Ideal_City_‐_Walters_37677.jpg (Labeled for Reuse)

3. No. 3
At Every Link In The Chain, Each Participant Would Be Armed With
Accurate Information About Demand And Inventory, Enabling
Them To Make Rational Choices And Order Only What They
Needed At Any Time.
http://upload.wikimedia.org/wikipedia/commons/0/04/Kette_Kettenkurve_Catenary_2008_PD.JPG (Labeled for Reuse) http://upload.wikimedia.org/wikipedia/commons/8/80/Field‐Map_birdie.jpg (Labeled for Reuse)

4. No. 4
In The Real World, However, Buyers Often Have
Outdated Or Inaccurate Information About Demand Trends.
http://farm3.staticflickr.com/2350/1676588431_572d2a81e4_o.jpg ((Labeled for Reuse)

5. No. 5
Caught Between The Twin Threats Of Excess Inventory
And Empty Shelves, They Guess Or Hedge Their Bets
Based On The Supplier’s Past Performance At Meeting
Delivery Promises.
http://upload.wikimedia.org/wikipedia/commons/b/bf/FEMA_‐_28948_‐_Photograph_by_Win_Henderson_taken_on_03‐10‐2007_in_Arkansas.jpg (Labeled for Reuse)

6. No. 6
Fearful Of Shortages, They Intentionally Over‐order If Free
Returns Make It Easy For Them To Do So.
http://upload.wikimedia.org/wikipedia/commons/b/b2/Logistics_Specialist_aboard_USS_George_H.W._Bush.jpg (Labeled for Reuse)

7. No. 7
The Resulting And Increasingly
Inaccurate Order Activity Is
Called
“The Bullwhip Effect”
…………………..
http://upload.wikimedia.org/wikipedia/commons/7/7f/Bullwhip_effect.png (Labeled as Reuse)

8. No. 8
……………………Because Minor
Variations Are Amplified As
They Move Up The Supply
Chain, Costing Material
Suppliers, Manufacturers,
Distributors And Retailers An
Estimated Millions Of Money A
Year.
http://upload.wikimedia.org/wikipedia/commons/4/48/Flagellants.png (Labeled for Reuse)
http://upload.wikimedia.org/wikipedia/commons/4/4d/Debret_‐_L'Ex%C3%A9cution_de_la_Punition_de_Fouet.jpg (Labeled as Reuse)

9. No. 9
When Manufacturers, Distributors And Retailers Over‐order,
They Tie Up Excess Capital In Inventory, And Are Forced To Discard
Perishable Raw Materials They Don’t Need Or Pay Inflated Prices
For Inventory (And Its Shipping And Storage) To Meet Demand
That Doesn’t Exist.
http://upload.wikimedia.org/wikipedia/commons/6/61/Allentown_Project_042.jpg (Labeled for Reuse with Non Commercial Use – With Modification)

10. No. 10
If They Under‐order, They Lose Sales When Customers Turn
Away From Their Bare Shelves To A Competitor, Or Lose Profit By
Paying Premium Shipping And Production Rates To Meet Demand.
http://upload.wikimedia.org/wikipedia/commons/2/2a/Ethunu_kaduwa.jpg (Labeled for Reuse)

11. No. 11
Players Throughout The Supply Chain Use A Variety Of
Methods To Reduce The Bullwhip Effect, Ranging From New Technology, To
Changes In The Terms And Conditions They Offer Customers.
http://upload.wikimedia.org/wikipedia/commons/2/29/Supply_and_demand_network_(en).png (Labeled for Reuse Non commercial with Modification)

12. No. 12
However, These Fixes Often Do Not Work Because They Are
Not Aimed At The Decision‐makers Whose Actions Do The Most
Harm
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13. No. 13
Market Research Can Help Business Leaders Understand
The Needs, Desires, Fears And Assumptions Of Consumers At The
End Of The Supply Chain, But It Can Also Serve A Higher Purpose
http://122.182.4.125/infiniumwebsite/images/ContentImages/RFID/SupplyChain.jpg (Labeled for Reuse)
http://upload.wikimedia.org/wikipedia/commons/d/d7/Developing_countries.png (Labeled for Reuse Non Commercial with Modification0

14. No. 14
Market Research Will Identify The Stakeholders Who
Contribute The Most To The Bullwhip Effect And Understand Why
They Act As They Do
http://upload.wikimedia.org/wikipedia/commons/d/d2/The_Thinker_Musee_Rodin.jpg (Labeled for Reuse ‐ Non Commercial with Modification) http://upload.wikimedia.org/wikipedia/commons/8/81/A_woman_thinking.jpg (Labeled for Reuse ‐ Non Commercial with Modification)

15. No. 15
http://122.182.4.125/infiniumwebsite/images/ContentImages/RFID/SupplyChain.jpg (Labeled for Reuse)
These Insights Can Help Companies Create Customized
Solutions With A Higher Return On Investment Than Scattershot
Efforts To Remediate The Bullwhip Effect
http://upload.wikimedia.org/wikipedia/commons/6/63/Sodium‐hydroxide‐crystal‐3D‐vdW.png (Labeled for Reuse ‐ Non Commercial) with Modification

16. No. 16
By Focusing On The Most Critical Causes Of The Bullwhip Effect,
Organizations Can Save Time And Money And Reduce The Most
Inefficient Behaviors Most Quickly.
http://pixabay.com/static/uploads/photo/2012/04/11/12/28/zoom‐27958_640.png (Free Vector Graphic www.pixbay.com (Labeled for Reuse)

17. No. 17

18. I m a g i n e Yo u r O r g a n i z a t i o n W i t h
O p t i m u m U s e O f I n v e n t o r y & S u p p l y
C h a i n I n P e r f e c t E q u i l i b r i u m ! ! !
No. 18

19. W o u l d n ' t T h a t M a k e A D i f f e r e n c e To
A l l T h e S t a k e h o l d e r s O f Yo u r
O r g a n i z a t i o n ?
No. 19

20. W e A t A C T S o l & A s s o c i a t e s
( w w w . a c t s o l . i n )
H e l p I n M a k i n g T h e E f f e c t o f B u l l w h i p
N e g l i g i b l e ! !
W e H e l p Y o u O p t i m i z e I n v e n t o r y & S u p p l y
C h a i n P r o c e s s ! !
Email: sadashiv@actsol.in
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