Analysis of Bullwhip Effect Under Different Segmentation Conditions of Daily Used Chemical EnterpriseTake P&G and Unilever as Examples

Abstract

The Fortune Global 500, which includes industrial, corporate and service companies, released its latest ranking on August 2nd, 2021. As the most famous and authoritative list to measure the world’s largest companies, it provides the latest development trend of the world’s largest enterprises. The companies on the list are all the best in every field. There is no doubt that these enterprises provide reference value to similar enterprises in marketing strategies, supply chain management, talent training and product orientation. This paper focuses on the products demand and supply chain management of daily used chemical enterprises, take Protect & Gamble (rank 128th in The Fortune Global 500, 2021) and Unilever (rank 175th in The Fortune Global 500, 2021) as examples and explore their products demand under different conditions. The STP strategy is applied to re-segment the market of the two companies. The data are collected and sorted from the three aspects of geographic regions, product categories and four quarters to obtain the volatility of each group of data under each segmentation condition. The data are combined and analyzed using the Bullwhip Effect to find out the largest and smallest fluctuations of combinations. According to the relevant results, the preventive measures and solutions to Bullwhip Effect are proposed for reference to reduce costs and improve efficiency.