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IDC PeerScape: Practices for Addressing Bullwhip Effect for Retail Supply Chains

IDC PeerScape: Practices for Addressing Bullwhip Effect for Retail Supply Chains

This IDC study is designed to help readers understand strategies that retailers have used to combat different aspects of bullwhip effect. Bullwhip is a residual effect of drastic demand swings in both directions — an inability to meet demand and then a delayed response time resulting in excess inventory. This IDC PeerScape aims to raise awareness of options to combat these end states and minimize their effect on retailers' margins and bottom line."When retailers see a demand surge all at once, they don't always have reaction times necessary to replenish at a rate in which customers can find what they want in stores or online. This leaves customers wanting and retailers losing sales," says Victoria Brown, senior research analyst, IDC Retail Insights.


IDC PeerScape Figure
IDC Opinion
In This Study
Situation Overview
Practice 1: Diversify Supplier Bases and Hold Them Accountable
Practice 2: Standardize Communication Between Retailers and Suppliers
Practice 3: Use Distributed Order Management to Reallocate Goods
Practice 4: Align Financial Planning with Physical Supply Chain Tracking
Practice 5: Analyze Live-Time Root Cause Failure Data
Future Outlook
Summary of Practices
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Related Research
Synopsis

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