Some additional barriers to change are the factors represented by the bullwhip

Some additional barriers to change are the factors

This preview shows page 15 - 17 out of 19 pages.

Some additional barriers to change are the factors represented by the bullwhip cliche Âs in Table I. The transference cliche  is particularly Figure 6 Company A's supply chain's US sales and UK production of product 1 Figure 7 The three-dimensional nature of bullwhip in the global supply chain: a potentially major source of instability in international operations 177 Diagnosis and reduction of bullwhip in supply chains Peter McCullen and Denis Towill Supply Chain Management: An International Journal Volume 7 . Number 3 . 2002 . 164±179 Downloaded by IQRA UNIVERSITY At 04:10 20 September 2015 (PT)
Image of page 15
prevalent, since there is a tendency just to pass the problems as well as the orders) upstream, rather than re-engineering the business interfaces between the echelons. As Harland 1995) has shown, it is not only orders that are subject to the bullwhip effect. She found that misperceptions between supply chain actors were amplified at interfaces located upstream from the marketplace. And the further upstream the interface, the greater was the misperception. Is it possible that players of the MIT beer game, having learned the benefits of partnering, then regress to adversarial behaviour as a result of the structural conditions that frame their relationships? Finally, change management programmes must be properly designed, implemented and supervised during start-up. Not only did company A understand the principles of material flow control, but they implemented them via their RRP and carefully monitored the results. It is interesting to note that the time dimension also applies to improvements, and that inventory performance was still improving four years after the initial implementation of RRP. Conclusions Bullwhip is alive and travels well over long distances and sometimes takes a long time to be identified. It has three dimensions, involving replenishment how magnification is observed); time how long to amplify?); and geography how far it travels?). The globalisation of supply chains leads to an increase in the time delays and the distances involved, and may therefore both exacerbate bullwhip and obscure its causes. However, bullwhip is increasingly being quantified and acknowledged, as we have shown above. Hines and Rich 1997), for example, identify ``demand amplification mapping'' as one of seven value stream mapping tools that can be used to understand the sources of waste within a value stream. Further help is at hand in the guise of new information systems. The widespread diffusion of enterprise resource planning ERP) means that the vertically integrated enterprise is now, for the first time ever perhaps, able to collect the time-series data necessary to quantify bullwhip. The further diffusion of Internet-based information systems means that time-series data may be readily available even within the multiple-enterprise supply chain. The obstacles to bullwhip acknowledgement are slowly being eliminated. Indeed, it is possible that the first two bullwhip cliche Âs may disappear in the not too distant future.
Image of page 16
Image of page 17

You've reached the end of your free preview.

Want to read all 19 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes