From what you wear to the activities you engage in, weather affects every facet of life. In fact, every year, about 30 percent of America’s GDP is impacted by weather. As you can see, the impact of weather on the supply chain and thus, the economy, is high. As a business owner, weather conditions are outside of your control. However, there are strategies and systems that you can implement in order to keep tabs on possible supply chain disruptions and implement tactics to address them. How does the weather impact the global supply chain? Let’s take a look…

Controlling inventory levels is critical for any business that sells goods to consumers. Inventory is the reason businesses exist and are able to make money. However, there can be a great deal of difficulty when it comes to managing inventory. Inventory costs money, therefore, if the inventory on hand is way more than customer demand, then there is a problem. Managing inventory is explained simply by having enough supply to meet the demand and perhaps a little bit more in order to keep up in periods when demand is high.

The Bullwhip effect is an industry term that you are bound to encounter in the supply chain business. Even if you have never heard the term before, you are likely to have seen its effects in practice. The bullwhip effect is easy to picture, and it hits the supply chain like a type of increasing chain reaction. Picture a bullwhip being struck forward or the increasing vibration on a plucked guitar string. For supply chain businesses, the bullwhip effect can have negative consequences that are felt in every department. Here’s how to recognize and combat the supply chain bullwhip effect.