Mercado - What I Learned in Supply Chain This Week

Insight – Thinking Ahead (Part Two)

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Insights: What I Learned In Supply Chain This Week Series
Thinking Ahead Part II: The Global Bullwhip
Tags: Coronavirus, COVID-19, Crisis, First Mile, Global Supply Chain, Import, Technology
Dallas-based startup empowers businesses to optimize international trade.
The bullwhip effect in supply chain is when surprises in a forecast yield supply chain inefficiency.

We saw it recently with toilet paper where demand surged, leaving shelves empty. It can also occur in reverse when a surprise drop in demand means too much toilet paper is ordered in response, leaving a glut.

In the international supply chain, it takes (on average) 120 days before a snap of the wrist of the bullwhip here, produces the desired outcome in supply to meet sales.

It’s always been tricky to plan that far ahead, and COVID-19 makes it even more so. This high-level calendar shows how in some cases it may already be too late for companies to meet 'normal' seasonal demand.

As the China factories do come back online, it may take longer than usual to get orders produced. This is due a combination of backlog, normal production cycles, your supplier’s supplier’s situation, and a lack of systems. In some cases they are also dealing with cancellations.

With all of this unpredictability, communication is king with suppliers, providers, and customers.

Does anyone have any International ‘best practices in International forecasting' tools to share?
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ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
GT Nexus founder and supply chain industry veteran, John Urban, has joined the Mercado board of directors.
The bullwhip effect in supply chain is when surprises in a forecast yield supply chain inefficiency.

We saw it recently with toilet paper where demand surged, leaving shelves empty. It can also occur in reverse when a surprise drop in demand means too much toilet paper is ordered in response, leaving a glut.

In the international supply chain, it takes (on average) 120 days before a snap of the wrist of the bullwhip here, produces the desired outcome in supply to meet sales.

It’s always been tricky to plan that far ahead, and COVID-19 makes it even more so. This high-level calendar shows how in some cases it may already be too late for companies to meet 'normal' seasonal demand.

As the China factories do come back online, it may take longer than usual to get orders produced. This is due a combination of backlog, normal production cycles, your supplier’s supplier’s situation, and a lack of systems. In some cases they are also dealing with cancellations.

With all of this unpredictability, communication is king with suppliers, providers, and customers.

Does anyone have any International ‘best practices in International forecasting' tools to share?
Image
ABOUT THE SERIES

Each week, Mercado CEO Rob Garrison pens his latest learnings from the supply chain industry as part of a series run for his LinkedIn followers. Each article aims to share a little insight into what's going on that week and to help foster discussion amongst industry professionals across levels, geographies, and companies.

You can connect with Rob on Linkedin by following this link.
                       

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Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
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Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency