MIT Sloan Management Review Article on Prepare for the Bullwhip's Sting

Nearly two years into the disruption caused by the COVID-19 pandemic, signs are pointing to the growing risk of a global economic recession. High consumer demand, product shortages, and transportation disruptions in the second half of 2021 triggered inflation and changes to manufacturers’ order patterns, setting up the bullwhip effect — a supply chain phenomenon that can have far-reaching consequences. The ups and downs of money flows, labor patterns, inventory management, and product demand are setting the stage for what happens next — and business leaders, particularly in supply chain roles, should prepare now for the greater challenges that may lie ahead.

About the Author

Yossi Sheffi (@yossisheffi) is the Elisha Gray II Professor of Engineering Systems at MIT, director of the MIT Center for Transportation and Logistics, and the author of The New (Ab)normal: Reshaping Business and Supply Chain Strategy Beyond COVID-19 (MIT CTL Media, 2020).