Overview
Today’s global supply chain is under stress. First the pandemic closed factories, displaced workers and crippled production worldwide – and sent economies around the world into a deep recession. Fortunately, the global demand for goods bounced back fast, fueled by the rapid development of COVID-19 vaccines, high levels of government assistance, and changed spending habits. The quick rebound in demand has left processing plants, manufacturers and businesses struggling to keep up.
The coronavirus continues to challenge areas around the world and make transportation and logistics more costly. Critical components from shipping containers to semiconductors and raw materials like rubber, lumber and steel are in short supply. Compounding all of this is a shortage of essential workers and, in some cases, outdated capital infrastructure. This is leading to deliver delays, product shortfalls and price increase.
Savvy supply chain management involves the leveraging of channel wide integration to better serve customer needs. By coordinating quality management activities, productivity and efficiencies can increase. If we implement a control technique based on a divergence system, we might be able to reduce the bullwhip effect and gain more control in a single product supply chain. Let’s take a deeper look into how exactly we can reduce the bullwhip effect.
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