Information technology and the phenomenon of leather whipping effect

In the 1990s, many industries realized that the only way to stay in the market was to improve internal processes and be flexible in their capabilities. It is not enough for the company, but the suppliers of parts and materials must also produce materials with the best quality and the lowest cost, and the distributors must distribute them. Have a close relationship with the market development policies. One of the most important problems in the supply chain is the effect of leather whipping This is due to the increase in demand fluctuations along the supply chain. Effective use of information technology leads to the coordination and integration of the supply chain, facilitates the flow of information and its accurate management. It reduces the whipping effect.