The impact of bullwhip effect on the supply chain performance with the mediating effect of information sharing among an enterprise and suppliers

Abstract

This research aims to find out the impact of bullwhip effect on the supply chain performance, the research is focused on how the bullwhip effect distorts the information sharing and to what extent that distortion effects the supply chain performance of a firm. The research also explains that the quality and quantity of information sharing deeply effects the supply chain performance. It tries to establish the fact that if the information is accurate and is shared timely, this can lead to increased performance, it also emphasizes on the importance of the supply chain integration and partner’s relationship in mitigating the bullwhip effect. The research explains that if there is coordination and reciprocity among the suppliers and the enterprise, and that there is bonding and integration then the quality of the information flow from an enterprise to the supplier is increased and hence it mitigates the bullwhip effect resulting in increased supply chain performance. This research study is an important contribution to the supply chain literature, as such type of research has not been conducted earlier by keeping the Pakistani firms as the unit of analysis. The study reveals that through proper, timely and accurate exchange of information between an enterprise and its supplier the firm can lessen uncertainty, order fulfillment rate is improved, costs is reduced and can ultimately increase the performance. It also concludes that when there is trust among an enterprise and its suppliers, and they work in coordination, then the increase in performance is also witnessed. Information sharing can also help in controlling the inventory levels further concretes the bond between an enterprise and suppliers. The study reveals that bullwhip effect strongly effects the information and its flow, but if the information is managed properly and its quality is increased then it results in strong partner relations which leads to supply chain integration. It has been found out the supply chain integration strongly effects the supply chain performance of a firm, better the supply chain integration the better would be the performance of the overall supply chain