Supply Chain & Warehousing

Bullwhip Effect

Supply Chain & Logistics Glossary — South Africa

Definition

The tendency of small changes in consumer demand to become wildly amplified as orders travel up the supply chain, because each link adds its own buffer when forecasting. A 5% sales dip at retail can become a 40% order cut at the factory. Long lead times make it worse — which is why South African importers buying from Asia on 30 to 45 day ocean transits are especially exposed — and the cure is sharing real demand data instead of just orders.

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