SCM 2017: One on One with Sujit Singh of Arkieva

  • by Gary Byrne, Managing Editor, Financials Expert and SCM Expert
  • December 21, 2017
Sujit Singh is chief operating officer at Arkieva, which made its debut as an exhibitor at SCM 2017. Singh also spoke for the first time at this event. I asked Singh a few questions about key points in his session on implementing demand sensing for upstream manufacturers.

Your session was on implementing demand sensing for upstream manufacturers. In this session, you refer to the bullwhip effect. Could you explain what this means and why a business should be aware of it?

The bullwhip effect literally comes from the bullwhip. If you have seen one, the idea is that if you move the bullwhip from its handle the end closest to the handle moves just a little bit, but by the time you reach the end of the whip, it moves quite a bit. In the supply chain concept, the idea is that the consumer (the people who exercise true demand on the supply chain), their demand fluctuates just a little bit, but then every step of the supply chain adds a little bit more variability to guard against. By the time you reach four, five, six, or seven steps upstream in the supply chain, you see that the amount of inventory that manufacturers and suppliers are carrying to deal with all the downstream fluctuation is huge. This is the idea of the bullwhip: a little perturbation at the front end causes big trouble on the back end.

Note
For more information and tips on demand planning, especially with SAP Integrated Business Planning, attend the SAPinsider IBP Bootcamp on February 27–March 1, 2018, in Las Vegas. For more information on this event click here.

Gary Byrne

Gary is the managing editor of Financials Expert and SCM Expert. Before joining WIS in March 2011, Gary was an editor at Elsevier. In this role he managed the development of manuscripts for Elsevier’s imprint responsible for books on computer security. Gary also has held positions as a copy editor at Aberdeen Group, a Boston-based IT market research company, and as an editor at Internet.com, a publisher of content for the IT community. He also gleaned experience working as a copy editor for International Data Corp., a Framingham, MA-based IT market research company. He earned a bachelor of science degree in journalism from Suffolk University in Boston. He enjoys traveling, sailing as a passenger onboard schooners, and helping his wife, Valerie, with gardening during summer weekends. He’s a fan of all the Boston sports teams and once stood behind Robert Parish in a line at BayBank. He felt small and didn’t ask for an autograph. You can follow him on Twitter at @FI_SCM_Expert. His online footsteps can also be found in the SAP Experts group on LinkedIn.

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