Demand factors are the No. 1 contribution fueling the bullwhip effect. In the supply chain, orders sent to manufacturers and suppliers create larger variance than the sales to the end customer .These irregular orders in the lower part of the supply chain develop to be more distinct higher up in the supply chain. This variance disrupts the smoothness of the supply chain process, as each link in the supply chain will exceed or underestimate the product demand resulting in exaggerated fluctuations.
How can manufacturers manage the difficult balancing act of adopting environmental management practices and controlling the subsequent bullwhip effect?
The solution is to adopt a circular production model that ensures sustainability and reduces the risk of the supply chain being whipped by the green bullwhip. The cycle model focuses on designing products for reuse, re-manufacturing, and recycling. The material stays in this cycle for as long as possible. The idea is to OEM and EMS to embrace the circular economy and recycling, rather than putting components into landfills. Putting systems in place to dispose of excess & obsolete inventory in a sustainable manner to sell your products through a platform marketplace that ensures electronic components are kept in the cycle for as long as possible, which is the best way to the recycle concept of the circular economy. A platform marketplace like Excess Electronic creates a market for obsolete & surplus components by ensuring parts maintain their value longer through reselling and recycling.
Excess Electronic is a transaction platform for buying and selling electronic components at competitive prices to minimize waste. The platform brings together manufacturers, vendors, and buyers to collaborate, share information and work towards a circular economy by identifying obsolete and surplus components within their supply chain and creating a market for that stock. This not only generates revenue and margins for our members but also open new opportunities for OEMs and EMS to promote the resell of their parts. Try the Excess Electronic platform today.
