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Busting the myth of the bullwhip effect


It is a widespread misconception that the bullwhip effect is caused by irrational behaviour. In fact, it also occurs when planners react completely rationally. To prevent the bullwhip effect, you first need to understand what causes it. It is such a shame that the bullwhip effect is blamed on irrational behaviour. Moreover, it is not…

S&OP/IBP and the role of serious gaming


Implementing S&OP is simple but not easy; balancing supply and demand in the short and medium term should not be too difficult, although practice often shows otherwise. The biggest challenge in most cases is to create a process that adds so much value for the business that lasting buy-in is created from all stakeholders. The…

Demand Driven: DDMRP or DDSCM?


The term DDMRP has been around since 2011 and has received much attention in recent years. The promises are big: improved service levels, inventory reductions of 30-40%, shorter delivery times (up to 80% reduction!) and minimal costs. Are the windows in your Supply Chain department already fogging up? DDMRP is based on the fact that…

The colours of customer service


In my previous blog I talked about the colours of yellow and blue: two behavioural styles from the DISC personality profile. A keen eye for detail, accuracy and caution are typical of blue behaviour, while yellow behaviour is characterized by taking the initiative, a short attention span, creativity and a high degree of interaction with…

Planning in the twilight


Numerous articles have been published recently on the topics of no-touch planning and lights-out planning. The first thought that comes to my mind is whether planning requiring no intervention at all is indeed possible... and my second thought is whether that is desirable.   Possible? Personally, I don’t think it’s possible to fully automate the planning process. The brilliant 2018 book…

When blue meets yellow


I recently spoke to a supply chain manager who was a little frustrated because he didn’t feel appreciated by the rest of his organization, despite working tremendously hard. His team of supply planners comprises extremely professional and highly qualified people. As planning experts, they get the absolute most out of the resources and capacity available…

Challenges for S&OP and IBP in chemical industry


      In the chemical industry, the average S&OP process has a relatively high degree of maturity compared with other sectors. Nevertheless, chemical companies still face certain challenges when progressing from S&OP to IBP. We distinguish between the two as follows: S&OP is the decision-making process for ensuring the feasibility of the commercial plan,…

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It is very difficult to predict, especially the future
Niels Bohr