Analysis of Supply Chain Management Strategies as a Response to Bull Whip Effect: From the Perspective of Indian Retailers

Bullwhip Effect concept (called by Lee et al., 1997) was published by Forrester (1961), who is the pioneer of modern Supply Chain Management (SCM) and remains to be a critical issue in supply chain of products in global market. A small variance in the demands of the downstream end-customers may cause dramatic variance in the procurement volumes of upstream suppliers via the Bullwhip Effect under the condition that the distortions of demand-related information exist among the members of a supply chain (Lee et al., 1997; Metters, 1997). There are various causes for bull whip effect. The prominent ones include lack of forecast updating, poor level of order batching, frequent price fluctuations and shortage a result there is a chance of excess inventory, poor level of customer service and improper sales management, imprudent capacity panning, high cost of transportation and longer production lead times. (Lee et al., 1997; Metters, 1997; Fransoo & Wouters, 2000; Towill, 2005). There are large numbers of retailers in India as Indian retailing is unorganized and small shops are around every corner of the country. This research is the end result of a survey conducted among Indian retailers on their supply chain management practices in counter handling bull whip effect. Application of supply chain management practices in these small, unorganized retail stores will increase profitability by lowering inventory carrying cost and increase their efficiency. In this research the researchers have compared the differences in perception of rural versus urban retailers. The findings clearly show that the smalltime retailers don’t give attention to supply chain management practices and risk of vulnerability of their business operations increases. The urban retailers have some level of reluctance to follow modern IT enabled practices and integrate their supply chain management processes with large manufacturers and vendors. Reluctance to use transparent systems for billing and taxation is also another reason for non-adherence to modern supply chain management practices.

Dr. Tapan Panda
Professor of Marketing and Director, Kotler Srinivasan Center for Research in Marketing,
Great Lakes Institute of Management Chennai

Prof P K Mohanty,
Dean, School of Management,
Centurion University, Bhubaneswar

Student Achievements

War of Bands – The Campus Maverick, Deloitte

Rahul Patankar, Animesh Saraf, Rahul Batta, Raghupati Jha, TanmoyMitra, Ashish Vashisth Students PGPM (2013 - 2014)

"Marketing: A Tool to refurbish the Education Sector", article published in Samvad, Official Student Magazine of WeSchool, Mumbai

Astha Pandey of PGPM (2013 - 2014)

Swati Kaul, PGPM, 2013-14 won the Article writing competition

Swati Kaul, PGPM, 2013-14 won the Article writing competition on the theme “GENDER EQUALITY-Are Mars and Venus treated equally in the corporate universe?” conducted at SWIM 2013, Great Lakes Institute of Management, Chennai

‘The Changing Face of Finance Consultancy: Boutique Investment Banks’ has been published in the May, 2013 edition of IIM- Shillong Conquest Magazine (Consulting Club) as ‘featured article’

Ankur Baj of PGDM (2012 - 2014)

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Pulkit Kohli and Ankur Baj of PGDM (2012 - 2014)

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Lathish Venugopal and Viral Patel.

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