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Forrester effect

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I Would like some imput on what a supply chain company would do. When they provide a seasonal product A and during the switch over of providing a different product B the demand for the product A becomes a stock out. During the switch out of production of product B, it becomes an issue. What should the supply chains do to keep from running into the Forrester effect?

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Solution Summary

Some of the strategies that supply chains can pursue to avoid Forrester effect are:

1) Information integration - Real time exchange of information among users of the supply chain in an organization.

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Some of the strategies that supply chains can pursue to avoid Forrester effect are:

1) Information integration - Real time exchange of information among users of the supply chain in an organization.

2) Planning synchronization - The design, execution and implementation of plans and scheme of things for new product introduction, forecasting and replenishment should be jointly conducted by the users of the supply chain.

3) Workflow coordination - the streamlined and automated workflow activities between supply chain partners

4) New business models - Allows partners to redefine logistics flow so to improve overall supply chain efficiency

Essential to minimizing the "Bullwhip Effect" is to first, specifically understand ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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