This IDC study is designed to help readers understand strategies that retailers have used to combat different aspects of bullwhip effect. Bullwhip is a residual effect of drastic demand swings in both directions — an inability to meet demand and then a delayed response time resulting in excess inventory. This IDC PeerScape aims to raise awareness of options to combat these end states and minimize their effect on retailers' margins and bottom line.
"When retailers see a demand surge all at once, they don't always have reaction times necessary to replenish at a rate in which customers can find what they want in stores or online. This leaves customers wanting and retailers losing sales," says Victoria Brown, senior research analyst, IDC Retail Insights.