Abstract

The caselet provides an insight into the concept of the bullwhip effect. It examines the reasons that led P&G to shelve its old supply chain model and revamp it to ensure supply chain efficiencies. The caselet describes the various initiatives undertaken by P&G to increase accuracy of demand forecasts. P&G also provided up-to-date information to suppliers so that they could plan their production and deliver materials on a just-in-time basis.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The Bullwhip Effect at Procter & Gamble
• Need to provide information on consumer demand and demand forecasts to all channel members Disadvantage of the old supply chain model at P&G
• and Obstacles faced by P&G in its supply chain coordination.

Keywords

Procter & Gamble, Wal-Mart, 3M, Demand, Logistics, Supply chain, Purchase rate, Distributors, Retailers, Channel members, Replenishment, Point-Of-Sale data, Vendor-Managed Inventory, Out-of-stock rate, Just-in-time, SAP system, Supplier portal, Promotional offer, Consumer demand, Demand signaling, Inventory level