Summary
The video explains the Bullwhip Effect in the supply chain, using Pampers diapers as an example. It details how small changes in consumer demand can lead to significant disruptions in inventory, quality, and costs. Factors like promotions, order batching, and lack of supply chain visibility contribute to the amplification of this effect throughout the supply chain, affecting manufacturers, distributors, and retailers. This phenomenon showcases the importance of efficient supply chain management to mitigate the negative impacts of demand fluctuations.
Introduction to Boip Effect
Explanation of the Boip Effect, its impact on the supply chain, and why it is called the bullwhip effect.
Case Study: Pampers Diapers
Illustration of the bullwhip effect using the example of Pampers diapers supply chain.
Impact of Bullwhip Effect
Details on how the bullwhip effect can negatively affect business performance, causing disruptions in inventory, quality, service, and increased costs.
Chain of Events
Step-by-step explanation of how the bullwhip effect escalates through the supply chain, starting from consumer demand to manufacturers, distributors, and retailers.
Causes of Bullwhip Effect
Identifying the key factors that contribute to the bullwhip effect, including promotions, large orders, order batching, and supply chain ignorance.
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