Some of the world’s biggest retailers and their partners are once again feeling the sting of “the bullwhip effect” – a term of art amongst supply chain professionals that describes how changes in demand at the retail level can reverberate and amplify issues throughout the supply chain. For months, retailers have been stockpiling massive amounts […]
Is the recently stated supply glut at retailers such as Target and Walmart due to the Bullwhip Effect? What goods are experiencing less demand than ancticipated? What effect is this having on retailers’ business? And why factors caused this seemingly sudden inventory glut in a period of supply shortages? Finally, what does this indicate for inflation and future demand?
Supply shortages resulting in empty shelves or parking lots of WIP inventory represent a spectre causing supply chain leaders to reconsider supply chain inventory practices. Opinion of just-in-time (JIT) as a practice has taken a battering and inventory is rising. Calls are increasing for a return to just-in-case (JIC) policies, with some citing this trend […]
The current elevated inflation pressures will likely deter companies from engaging in higher cost supply chain resiliency efforts such as commissioning new warehouse locations. Instead, they are likely to carry higher levels of inventory as a lower cost alternative to minimizing disruptions. Increased inventory in Inflationary environments can serve as a risk mitigation strategy while also subsidizing inventory managements costs as well as […]
Anyone else fascinated by the TV show, “Formula 1: Drive to Survive” on Netflix? I am. And it’s not because I’m a race fan (I’m not). I am drawn to the scale of the Formula 1 racing circuit. It’s amazing. The drivers’ skills are unworldly. They are all best in class with some better than […]
Last year, I wanted to be a grateful child and buy a sweater for my father. It was father’s day, so I logged on to one of the prevalent e-commerce sites. I browsed and eventually found quite a few sweaters in green, my father’s favorite color. To my delight, I found one that was on […]
The exponential growth of e-commerce in 2020 has brought peak-like levels of order volume for many retailers since as early as March. Looking to the quickly approaching actual peak season, volumes are predicted to hit unprecedented levels, and carriers have been warning shippers for months to expect capacity crunches, increased surcharges/fees and other challenges. Shippers must […]