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THE SOURCE CODE BLOG
The American marketplace has its fair share of flag waving businesses that refuse to use foreign sourced products – they will only buy from US-based manufacturers and suppliers. We all know the school of thought behind this and the economic principles at work, but just how American are these US-based manufacturers? Do they really source everything from inside the good ol’ US of A? The bottom line is… probably not.
The bullwhip effect is most often applied in a purely manufacturing context – each level of the supply chain requiring sufficient amount of slack inventory in order to meet fluctuating demand. For companies purchasing locally, nationally or even internationally this process requires a lot of management and should not be done by the seat of your pants. Remember in a cost leadership industry, the better you manage the fluctuation, the better your competitive position will be.
There are two primary determinants of the bullwhip effect:
The title of this post is intended to get you to think about the credibility of the source and message you are reading. What you read from us at GCP is what we have personally experienced. When we write we do not have to satisfy any advertisers; editors; nor do we have any political affiliation that espouses a particular belief or position.
Well, we did it; GCP got a blog!!!! I know you’re all asking the same thing, a blog from GCP? Does the world really need another blog? Well, we certainty think so. Now let me explain why.
GCP has been working at the forefront of an exciting transformation in the world of industrial sourcing. Along with our customers we have been consistently pushing the boundaries of what’s considered to be risky and proving that it’s not a risk at all.