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To mitigate the 'Butterfly Effect' in supply chain management, an adequate information system should be employed and given periodical feedback back by employees to make the system effectively functioning and useful. to avoid any time delay of purchasing extra materials which are available in stock.
In simple terms, “butterfly effect” is if you make a small mistake in supply chain management today, it will come as big blow or big problem soon or in near future. Examples: If you make small mistake in preparing specifications, the whole tending process will become wrong and probably, you shall have to re-tender again, which will delay the procurement process.
Mitigating measures:
1. Make the procurement process transparent in every stages of procurement Follow the approved procurement process and established guidelines.
2. Do not divulge strategic or secret information to the suppliers in advance.
3. Do not allow supplier to enter the procurement office. Meeting with suppliers in conference room, close to the procurement office
4. Bids are to be received in the designated bid box and bids should be opened at specific time in presence of the bidders and announced aloud.
5. Bid evaluation shall be rechecked by a2nd person and award of contract shall be made to the lowest technically responsive bidder
