Overview
Today’s global supply chain operates in a state of near-constant volatility. While the COVID-19 pandemic exposed critical vulnerabilities by disrupting production, displacing workers, and triggering economic recession, the challenges haven’t disappeared. The rapid demand rebound that followed put immense pressure on processing plants, manufacturers, and businesses, leading to persistent bottlenecks.
Now, a confluence of factors, including geopolitical instability, extreme weather events, and evolving consumer behavior, continues to create disruptions. These disruptions manifest as transportation and logistical challenges, shortages of critical components (from shipping containers to semiconductors), rising material costs, labor shortages, and infrastructure limitations. The result: delivery delays, product shortfalls, and price increases.
In this increasingly volatile environment, effective supply chain management is critical. Leveraging integration across the supply chain can help businesses better serve customer needs by boosting productivity, reducing inefficiencies, and gaining greater control. By implementing control techniques based on divergence systems, it’s possible to reduce the bullwhip effect and stabilize the supply chain.
Let’s take a closer look at how to tackle the bullwhip effect and optimize supply chain performance.
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