Evidence of the bullwhip effect in Tanzanian Supply Chain – A case study of sugar industry

The study sought to examine the symptoms that represent the bullwhip effect (orders variation) along the supply chain. It was conducted using sugar suppliers in Morogoro and Dodoma using a descriptive survey design. A total of 50 respondents constituted the study sample and they were all members of sugar supply chain including the manufacturer, agents, wholesalers and retailers. The study found out that, the order variations do exist and are signified by the longer lead times, high stock shortages or many order cancellations, poor quality of customer service, uncertain production or purchase planning, and high overtime expenses. In other words, the study confirms presence of the bullwhip effect within the chain. The study recommends that the supply chain operators need to be aware of the early warning signs of the bullwhip effect and supply chain managers should use more effective inventory policies, sophisticated forecasting techniques, and effective information systems to counteract the effect at its earliest stages.