Implementing Point-of-Sale (POS) data sharing allows every member of the supply chain to see actual consumer demand in real-time.
The is a supply chain phenomenon where small fluctuations in demand at the retail level cause progressively larger fluctuations at the wholesale, distributor, manufacturer, and raw material supplier levels. Much like the crack of a whip, a slight flick of the wrist (the consumer) creates a massive, volatile swing at the end of the cord (the supplier). What is it? The bullwhip effect: What, why and how?
The Bullwhip Effect: Understanding the Ripple in the Supply Chain What is it
In an ideal world, supply exactly matches demand. However, because each stage of the supply chain has its own forecasting, inventory limits, and lead times, information becomes distorted as it moves upstream. By shortening the time it takes to produce
By shortening the time it takes to produce and ship goods, companies can react more quickly to real demand shifts rather than relying on long-term guesses.