Without these, there is a great risk of creating the bullwhip effect. Bullwhip can be defined as the amplification of demand order variability in the supply chain. The bullwhip effect begins at the retail level, when demand for products changes slightly. To ensure that each party along the supply chain has enough inventory to match demand, orders are slightly exaggerated so as to have "stock just in case". Larger orders are placed as we move further from the retailer. Once demand drops again, all upstream suppliers have overproduced because they have safety stocks. This causes them to reduce their orders and this effect has repercussions throughout the supply chain. The bullwhip effect leads to unnecessary cost increases, potential waste and inconsistent orders, creating a supply chain that is difficult to manage. To minimize the consequences caused by the bullwhip effect, members of the supply chain need open connections and communications, and each party must create strategies that benefit not only themselves but also those up and down the supply chain.