Using the concept of the bullwhip effect explore how Zara and H&M can tackle harmful effects during the pandemic and post-pandemic period

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18-02-2022
Business

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Using the concept of the bullwhip effect explore how Zara and H&M can tackle harmful effects during the pandemic and post-pandemic period

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Martebi Martebi · Answer 1 · 2022-02-25T12:00:09+01:00

The bullwhip effect is said to take place when retailers are said to be very reactive to demand, and as such increases expectations around it, which leads to a domino effect along the supply chain.

Zara and H&M can handle any harmful effects in course of the pandemic/after pandemic by making sure that retail and manufacturing work together and also avoid shortage.

Others are:

The use of Real-time data aggregation.
There should be Communication with vendors and suppliers
The Onboarding of new suppliers needs to be simple, and fast

The effect of Bullwhip ?

The Bullwhip effects can take place when retail and manufacturing are said to be not in good terms with one another and thus leads to unpredictable demand.

It has brought about Shortages in course of during the pandemic, such as retail flour shortages, etc.

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