Role of Fourth Party Logistics in Minimizing the "Bullwhip Effect"

The system which connects all the elements between the producer and the consumer is called the supply chain. This definition of the supply chain shows its complexity, dynamics and uncertainty. Successful operation of supply chains requires the best possible coordination of its elements, which obviously shows that the information flow along the supply chains is of utmost importance. The work analyses the processes within the supply chains and the occurrence of the bullwhip effect. The main causes of the bullwhip effect, that we encounter daily in the supply chains, have been clearly defined. The paper also presents the main negative consequences of such a disturbance within the supply chains, as well as the possible solutions to avoid the bullwhip effect, in the development of 4PL operators.