Abstract
The business environment challenges the competence of supply chain performance on responsiveness, connectivity and agility to ameliorate phenomenon of bullwhip effect.The extent of relationship between bullwhip effect and supply chain strategies should optimize product flows and availability from the amplified demand order oscillations. The study has used multiple regression techniques on 448 responses to tentatively develop the supply chain models. This study reveals that the challenges of bullwhip effect are explained by accuracy of demand forecasting, transport systems, information sharing and velocity, risk pooling system and integrated e-SCM systems. The results provide new perspective in managing amplification in the consumer demand order variability moving upstream supply chain network. The model will help to address the challenges of bullwhip effect and further enhance the overall efficient frontiers of supply chain performance. This paper provides insights to FMCG industry on using innovative strategies and modern technology to enhance supply chain visibility through integrated systems networks. DOI: 10.5901/mjss.2014.v5n20p570
Highlights
In the fast moving consumer retail downstream site of supply chain networks, the underlying appeal depends on product availability on a broad selection of goods underpinned by frequencies of order replenishment rate which are, normally not susceptible to demand order variability to efficiently maximise customer service
The literature review identified a number of positive and negative empirical permutations on enabled supply chain management (eSCM) diffusion, this study explores the role of enabled supply chain management (e-SCM) systems in retail supply chain to manage bullwhip effect
The value-based information sharing depends on integrated eSCM systems and quality of information shared to improve supply chain responsiveness and frequencies of order replenishment capabilities
Summary
In the fast moving consumer retail downstream site of supply chain networks, the underlying appeal depends on product availability on a broad selection of goods underpinned by frequencies of order replenishment rate which are, normally not susceptible to demand order variability to efficiently maximise customer service. While the upstream site in FMCG industry expects an acceptable degree of intelligent supply chain cooperation and coordination that enhance visibility of point-of-sales data. This should contribute to updated demand and supply forecasts for better capacity planning and schedules as well as earning economies of scale. The lapse in integrity spurs amplification of demand order rate to exceed the actual demand order rates as the manufacturer creates an ordering policy for each item Under these circumstances, the supply chain trading partners are expected to leverage upstream and downstream relationships to create fundamental supply chain performance outcomes while integrating the resources and capabilities of supply chain members
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