E-commerce is an online platform that enables people to buy or sell products on online services over the internet. The e-commerce retailers will try their best to meet customer demand while reducing costs with proper demand planning. But forecasting demand isn’t easy. A forecasting error might result to a phenomenon called the bullwhip effect, which can have a negative impact on the e-commerce supply chain. One of the most recent and significant real-world examples of the bullwhip effect could be seen during the COVID-19 pandemic. The toilet paper demand went up a staggering 700%. This is due to panic buying because of the lockdown which leads to supply shortages. Since the stores increase their orders in order to keep their shelves stocked, the manufacturers also increased their production to meet the excessive spike in demand. However, the toilet paper shortage was temporary which subsequently resulted in a bullwhip effect.

By using this real-world example during the COVID-19 pandemic, describe the FIVE best ways to soften the bullwhip effect and prevent small issues from snowballing into larger problems throughout the supply chain.