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Supply Chain

Bullwhip Effect

What is the bullwhip effect in supply chain?

The bullwhip effect describes how small demand fluctuations at the retail level amplify into larger swings at each upstream stage of the supply chain. In African FMCG, the bullwhip effect is amplified by long lead times, information delays in informal distribution, and the tendency for distributors to over-order during perceived shortages. Better demand visibility across the chain is the primary remedy.

How iQStep handles this

Demand Planning with multi-echelon visibility

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