Leaving aside the politics of this issue and viewing it as strictly a supply chain issue I thought about the bullwhip effect this has on the supply chain.
It's also interesting to note that Wal-Mart has taken strong actions to level demand (through their "every day low prices" for one) to capture the resulting supply chain savings that this yields. Here the timing of the government aid distribution is counteracting their efforts and even making Wal-Mart change their stocking patterns.
Perhaps distributing these funds weekly rather than monthly would aid everyone involved - recipients would be able to hold less inventory (anyone with kids would understand the advantage of this - kids frequently 'burn out" on certain foods), Wal-Mart would have a more level demand pattern and resulting lower inventory, etc.
Let me know of other examples where government action (or inaction) is negatively impacting the effectiveness of an organization's supply chain.
Let me know of other examples where government action (or inaction) is negatively impacting the effectiveness of an organization's supply chain.
No comments:
Post a Comment