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Supply Chain Coordination and Bullwhip Effect, TAN XIU YUAN F20A0720, FSE…
Supply Chain Coordination and Bullwhip Effect
Supply chain coordination involves all stages in the supply chain taking actions together, usually resulting in greater total supply chain profits. It requires each stage to consider the effects of its actions on the other stages
bullwhip effect refers to the increasing fluctuations in orders as they move up the supply chain, distorting demand information and leading to a loss of supply chain coordination.
reduces supply chain profitability by making it more expensive to provide a given level of product availability
Obstacles to Coordination
Lack of information sharing
Incentive obstacles
Information processing obstacles
Operational obstacles
Pricing obstacles
Behavioral obstacles
Managerial Levers for Coordination
Aligning goals and incentives
Improving information accuracy
Improving operational performance
Designing pricing strategies
Building strategic partnerships and trust
Building Trust in Supply Chain Relationships
Trust-based relationship
Disadvantages of power-based relationship
Deterrence-based view vs. process-based view
Assessing the value of the relationship
Identifying operational roles and decision rights
Creating effective contracts
Designing effective conflict resolution mechanisms
Managing supply chain relationships for cooperation and trust
Achieving Coordination in Practice
Quantifying the bullwhip effect
Top management commitment
Devoting resources to coordination
Focus on communication
Using technology
Sharing benefits equitably
TAN XIU YUAN F20A0720
FSE 40103 FOOD SUPLLY CHAIN MANAGEMENT
