New User? Start here.
Error goes here
The bullwhip effect can be defined as supply chain problem whereby there is variance detected between order made to producer and supplier and sales made to final customers. In context to supply chain the irregularity in the lower level lead to more critical issue in the higher level and impact the smooth flow of the process. The bullwhip effect lead to either over estimation or under estimation in the demand of product and the end is fluctuation.
This effect of bullwhip may be as towards occurrence detected with supply chain explained wherein the orders provided to manufacturers and that of the supplier creates the variance larger as compared to end customer sales. The lower level problem identified in the supply chain process hint at more critical problem in the higher level related with demand and supply (Carranza Torres and Villegas MoraÌn, 2006). The variance thus may interrupt the process of supply chain smoothness as every link that are existing in supply chain shall either underestimate or overestimate the demand of the product that happens to result in the fluctuations those are exaggerated.
Factors contributing towards bullwhip effect
There are various factors contributing towards supply chain process relating to bullwhip effect. The factors such as disorganization in every link in supply chain process with either smaller or larger ordering of production amounts than required. The additional factors like communication lack, policies related to free return, the order batching, variations in price and demand information also contribute to this bullwhip effect.
Example of Bullwhip effect
The customer actual demand for product is 8 units, then the retailer from distributor might order 10 units to ensure these 2 units extra for not running stock out in the floor. The supplier from manufacturer then order the 20 units towards allowing for bulk buy to endure enough stock while shipment to retailer. The manufacturer order 40 units to ensure in meeting demand of product the economies of scale. These 40 units produced for 8 units demand means retailer to increase demand requires price lowering or finding with advertising and marketing more of customers.
SAP is an enterprise resource planning (ERP) software that helps to integrate the various function of the company like production, material management, sales and distribution, finance and costing, human resource, customer relationship management (CRM) and supply chain management (SCM). Thus, real time information can be shared and exchanged between various function. In context to SCM the integration leads to demand signal of consumer that enable supply chain management driven by demand (Tarn, Yen, and Beaumont, 2002). It helps in enhancing the network visibility of demand by optimizing the short term forecast of demand. With regard to the perspective of demand planning it is now possible for SCM planners to make a comparison of the traditional demand forecast consensus against the statistical point of sale forecast and it facilitate the true demand of consumer supported by real time correction.
With regard to the perspective of demand network it is now possible for the managers forecasting the demand to visualize the demand network completely now. This is possible as the manager is able to get real time information from stores inventory management, distribution centre of retailer and point of consumption (Tarn, Yen, and Beaumont, 2002). This integrated real time information related with the supply chain management (SCM) supported with SAP enhance the visibility and help to eliminate the bullwhip effect.
Thus by using the integration of SCM with SAP helps to eliminate the bullwhip effect and provide the below benefits that will flow through the entire supply chain management of the company (Piccoli, 2012).
This SAP enabled supply chain extends the network visibility of demand beyond the SCM of the company and thereby leads to inventory optimization.
Minimize the sakes opportunities loss related with the out of stock common in the traditional system.
This efficiency in operation of SCM enhances the profitability.
Trust is dependability between the partners by being reliable to the words fostered by management. The relationship between manufacturer and retailer has to be supported by shelf positions linked with the product. When a partner crosses the line of faith the relationship broke as the action is impacting both. For instance Japanese manufacturers generate high level of trust than European companies (Kumar, 1996). An important situation governing their relationship is benefits generated from both the parties by being committed to each other. When conducting survey the result suggested that retailers who trust manufacturers produce around 78% of sales at higher level in comparison to others. In simple terms it acts as reservoir that helps in preserving a relationship by building goodwill.
The retailers who trust manufacturer retaliate on not looking into the product line of manufacturer. Alternatively, it helps in realizing the individuals their potential by sharing confidential information related to business. At last trust is capturing both minds and heart by channeling the partners for believing in each other for long-term (Bigne and Blesa, 2003). Similarly, as the industries are expanding the power between retailer and manufacturer are shifting by its virtue and nature. Companies use their strength for being powerful but, the fear is on how they will manage relationships. When organizations are established huge or small investments are required so exploiting power is not a good option for long term sustenance. The power changes its position so attracting unfair concession is not right in case of big companies like Procter and Gamble.
The organizations might exploit others like retailers may form an association or group, acquisition etc. for counteracting with power. Hence, the game of trust and power is different as per nature. Power develops fear and trust builds interdependence so both have to be used as per the condition (Kumar, 1996).
With the industries that are diverse like the consumer-packaged goods, the pharmaceuticals, the apparel, the hardware, the power balance is shifting among the retailers and the manufacturers. This specialty superstores rise with the buying alliances formation along with consolidation wave related to acquisitions and mergers makes the retailers in small numbers that presently controls the larger consumer numbers. Thus with the trust and the power relationship in the area with manufacturers who earlier controlled the retailers find in present times the mega retailers holding upper hand.
Yes, it is believed that trust and power are important for managing a relationship effectively for a better outcome. The communication between the parties should be of bilateral nature that works in two ways just like Marks and Spencer. The company encourages its suppliers to be frank and active by helping in finding weakness as it builds healthy relationship. When a party is powerful the way of handling its channel partners is identical in nature. The companies are moving their relationships by transforming it to channel partnership base for making transition. In trust game attitude, management system, people and culture are different than in power game (Bigne and Blesa, 2003).
With respect to the YouTube video of Wal-Mart it is established that the trust based relationship lead to better outcomes compared to the power based relationship. The company achieved the trust of customers by providing the best product at the cheapest price and created a retail revolution in the US market. Similarly its acquisition of ASDA in the UK market was under the same concept (Davenport, 2006). The major benefits of this trust based relationship with regard to Wal- Mart are
Cheapest price from supplier based on the size of the retail chain that is the largest in the world.
Multiple suppliers providing different products.
Lowest price promise to customers.
Brand awareness of Wal-Mart in the domestic and global market.
Bigne, E. and Blesa, A. (2003). Market orientation, trust and satisfaction in dyadic relationships:a manufacturerâ€retailer analysis. Intl J of Retail & Distrib Mgt, 31(11), pp.574-590.
Carranza Torres, O. and Villegas MoraÌn, F. (2006). The bullwhip effect in supply chains. Basingstoke [England]: Palgrave Macmillan.
Davenport, T.H., 2006. Competing on analytics. harvard business review, 84(1), p.98.
Kumar, N. (1996). The Power of Trust in Manufacturer-Retailer Relationships. [online] hbr.org. Available at: https://hbr.org/1996/11/the-power-of-trust-in-manufacturer-retailer-relationships [Accessed 19 Sep. 2016].
Piccoli, G., 2012. Essentials of Information Systems for Managers: Text Only. Wiley Publishing.
To View this & another 50000+ free samples. Please put
your valid email id.
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
Get Moneyinto Your Wallet
Total 6 pages, 1 USD Per Page
*The content must not be available online or in our existing Database to qualify as
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Supply Chain Management : Chain Relation Management. Retrieved from https://myassignmenthelp.com/free-samples/supply-chain-management-chain-relation-management.
"Supply Chain Management : Chain Relation Management." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/supply-chain-management-chain-relation-management.
My Assignment Help (2018) Supply Chain Management : Chain Relation Management [Online]. Available from: https://myassignmenthelp.com/free-samples/supply-chain-management-chain-relation-management[Accessed 17 September 2021].
My Assignment Help. 'Supply Chain Management : Chain Relation Management' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/supply-chain-management-chain-relation-management> accessed 17 September 2021.
My Assignment Help. Supply Chain Management : Chain Relation Management [Internet]. My Assignment Help. 2018 [cited 17 September 2021]. Available from: https://myassignmenthelp.com/free-samples/supply-chain-management-chain-relation-management.
The respective sample has been mail to your register email id
* $5 to be used on order value more than $50. Valid for
We have sent login details on your registered email.
For years, MyAssignmenthelp.com has been operating as one of the cheap assignment help providers in the USA. We are one of the best college paper writing services that keep service price minimal. We do not let the affordability of our service to hamper the standard of our work. We have separate teams of experts to provide report writing help . At MyAssigenmnthelp.com, we believe in earning credibility, so students can pay for assignments only after getting satisfied solutions. Tough assignments bother you? Trust us with your project. You will not regret paying us to write assignments for you.
The (IoT) stands for Internet of Things which is also referred to as the Internet of Objects. The Internet affects communication, business, government, science, education and also the humanity (Kopetz, 2011, p. 322). It is also interconnected network and sensor-equipped devices to collect data. Internet of things is a new technology for accessing the internet. Internet of things can be applied to any domain.
Mission and vision
MacVille is a successful import/export business organization located in Sydney. The organization was a new one and had a history of only two years. The mission of the company was to establish itself as a multinational brand in the upcoming five years. The company is also committed to provide reliability and sustainability to the clients. The vision of the company is to cultivate leadership among the ...
The concept of ethical use of computers and networks in an organization is relatively new but is a growing field of study. Nowadays, with the increasing use of computers in the organizations, official code of ethics has started to be published that specify the use of computers. However, the advancement in technology sometimes results in the leaving of ethical considerations behind. Therefore, when various technological di...
Mitchells and Butlers Plc generally deals in managing the restaurants and pubs. The main objective of the company is to make their guests comfortable and make them love to eat and drink with the brand. They deal in the large and fragmented UK eating and drinking out market (Mbplc.com 2017). The format and the portfolio of the company includes some big names like Browns, Toby Carvey, All Bar One, Harvester, Sizzling ...
1. In the technique for setting up the audit plan of Double Ink Printers Limited (DIPL), the investigative strategy related with financial data gives gigantic esteem. Actually, audit plan conveys the required bearings and rules to the evaluators amid the audit operations. Exactly, audit plan empowers the evaluators in keeping up the cost of audit in a specific point of confinement for anticipating misconception with the audit customers ...
Are you confident that you will achieve the grade? Our best Expert will help you improve your grade
SOC 3116 Technologies, World And Societies
0302362 International Business
6HL007 Research For Health Project
TACC406 Accounting Theory And Applications
MGMT6004 Performance Management
INF701 Management Informatics
HISTORY 226 Ancient And Early Modern Japan
IMT6011 Introduction To Information Security
PRS305 Corporate Communications And PR
ACCT3016 Sustainability Accounting
Just refer 5 friends to earn more than $2000.
After the successfull payment you will be redirected to the detail page where you can see download full answer button over blur text.You can also download from there.
Or you can also download from My Library section once you login.Click on the My Library icon
My Library page open there you can see all your purchased sample and you can download from there.
That's our welcome gift for first time visitors
It is too easy to create or access your own library, just enter your email and make your search
MyAssignmenthelp.com stores a huge
COLLECTION OF QUESTIONS AND SAMPLES, which you can refer to any time you want.
Every time you find something useful, you can save that using the bookmark tool. From the next time,
can access that from your personalized library.
With this feature, you get to create your own collection of documents. You get free
choose and bookmark any document you wish.
Accessing the collection of documents is absolutely easy. Once you bookmark a sample,
access its content with a few clicks on your mouse.
This personalized library allows you to get faster access to the necessary documents.
longer need to spend hours to locate the sample you need.
Finding a sample from a list of thousands is nothing less than spotting a needle in a
Personalizing your own library relieves you from that stress.
On APP - grab it while it lasts!
*Offer eligible for first 3 orders ordered through app!
ONLINE TO HELP YOU 24X7
OR GET MONEY BACK!
OUT OF 33845 REVIEWS
Received my assignment before my deadline request, paper was well written. Highly