COMPLEXI T Y AND THE SUPPLY C H AIN
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8 Information complexity
Today’s supply chains are underpinned by the exchange of information between
all the entities and levels that comprise the complete end-to-end network. The
volume of data that flows in all directions is immense and not always accurate and
can be prone to misinterpretation. Visibility of actual demand and supply condi-
tions can be obscured through the way that information is filtered and modified
as it passes from one entity or level to another. The so-called ‘bullwhip’ effect is
a manifestation of the way that demand signals can be considerably distorted as
a result of multiple steps in the chain. As a result of this distortion, the data that is
used as input to planning ...