Question

To avoid bullwhip effect, it is important that players in the whole supply chain share information, especially the demand information. While it is clear that upstream players, like the manufacturer, can benefit a lot from this information sharing, the benefit to down stream players is not clear.

The question is how we can convince the downstream players to share with us their information? Especially the demand information may be considered as part of its own business secret.

Answer 1

First we have to know what is bull whip effect, So, it is a distribution channel phenomenon in which forecast yield supply chain inefficiencies. It also refers to increase the swings in inventory in response to shifts the customer demand.

The downstream players are those players such as , distributors, wholesaler and retailer so we have to convince them with the information because these people are those who can help to generate the revenue for the organisation.The downstream players also plays a key role in other sectors and industries of the economy that may not necessary be obvoius to some . The upstream players has to share complete information about the demand and convince them to tell the it will beneficial for both parties.