The impact of electronic data interchange on reducing bullwhip effect and supply chain inventory costs

Author(s):  
José A.D Machuca ◽  
Rafael P Barajas
2021 ◽  
Vol 17 (23) ◽  
pp. 163
Author(s):  
Bahija Jardini

The bullwhip effect is a phenomenon of curious amplification of variations in demand as one moves away from the final customer. Popularized by Lee and al., (1997), the bullwhip effect has negative consequences on all actors in the supply chain because it generates considerable loss of profits: Too much stock, loss of sales, poor customer service, insufficient quality and multiple disruptions of flow and organization. To prevent and reduce the bullwhip effect, various tools are recommended. The Electronic Data Interchange (EDI) is among the most important given its impact on accelerating information sharing throughout the supply chain. This paper aims to shed light on the role of EDI, VMI (Vendor-managed inventory) and CPFR (collaborative planning forecasting and replenishment) in the prevention and reduction of the bullwhip effect in the supply chain.


Author(s):  
Seng Kwong Gwee ◽  
Albert Wee Kwan Tan

This chapter provides an overview on the use of business-to-business (B2B) eCommerce by Singapore companies as a means of streamlining their procurement and transportation activities. Specifically, it addresses how Electronic Data Interchange (EDI) and Internet have proliferated in Singapore from 1990 to the present, and the efforts needed to sustain its growth. Challenges in implementing B2B eCommerce in procurement and transportation are also discussed, so that companies can avoid similar pitfalls when planning to implement these technologies with their business partners.


2017 ◽  
Vol 18 (2) ◽  
pp. 138
Author(s):  
Ilyas Masudin ◽  
Mohammed Sheikh Kamara

Customer service is a very important aspect within the supply chain. Through collaboration, the goal of each party within the supply chain is to add value to a product, in order to accelerate good customer service.  Good customer service leads to customer satisfaction and most importantly it developed customer loyalty. These are the main goal of ever firm in the supply chain, starting from raw material, production, distribution and down to the final consumer. This work is developed to investigate the impact of supply chain management collaboration activities on customer service in an inter-organizational context. This is done by examining how effective collaboration in supply chain management creating confidence and trust between vendor-customer relationships that provides benefit to both organizations; one of such benefit is improved customer service. This can be obtained through the use of Electronic Data Interchange (EDI), which ensures that products are delivered to customers faster with great accuracy, and demand forecasting and inventory management, which ensures that vendors maintain optimal inventory level so that they always have what customers want in stock. The method used in this work is by gathering information from several articles, journals and text books relating to this research work. There is a total of 49 including journals, books and articles used in this work, all of which are related to this study.


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