How does the Houlihan effect impact logistics?

The Houlihan effect refers to the phenomenon where warehouse or logistics personnel purposely withhold or hoard inventory to create an illusion of scarcity and drive up demand. This can have a significant impact on logistics as it disrupts the efficient flow of goods and can lead to supply chain inefficiencies. Withholding inventory can result in stock-outs, delays in delivery, increased transportation costs, and lost sales opportunities. Additionally, it creates uncertainty and mistrust among supply chain partners. To mitigate the impact of the Houlihan effect on logistics, organizations need to focus on improving visibility, communication, and collaboration throughout the supply chain to ensure accurate demand forecasting and inventory management.

This mind map was published on 15 November 2023 and has been viewed 50 times.