CHALLENGING BULLWHIP EFFECT DYNAMICS WITH ELECTRONICALLY ENABLED-SUPPLY CHAIN MANAGEMENT SYSTEMS

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Abstract

The bullwhip effect shows the dynamics of accumulating order rate that exceeds the tentatively stable actual demand rate. This paper aimed to assess the relative role of e-SCM systems as consumer demand orders cascading upstream supply chain network. The study’s population, consisting of the managers (senior and functional levels) including supervisory level (non-managerial) from retail sales, logistics, warehousing, marketing, manufacturing and IT hubs organisations, comprised of 460 respondents. In order to achieve the paper’s objective, the researcher developed and distributed a survey questionnaire and collected and analysed the data using Statistical Package for the Social Sciences (SPSS). The empirical results from the study reveal that business-to-business information technology (B2BIT) diffusion frequencies have an effect on supply chain performance and e-SCM implementation promotes connectivity among supply chain partners to entrench commitment of the exchanged demand order information to mitigate the bullwhip effect.

Keywords: Business-to-Business IT, Electronic Integrated Supply Chain Systems, FMCG Industry, Information Technology, Integrated Supply Chain

How to cite this paper: Mbhele, T., & Phiri, M. (2016). Challenging bullwhip effect dynamics with electronically enabled-supply chain management systems. Risk governance & control: financial markets & institutions, 6(4-2), 244-256. https://doi.org/10.22495/rgcv6i4c2art1