The subject matter of the present contribution is the process of the flow of information and the phenomenon of bullwhip effect that accompanies this process. The latter consists in the increase in the variableness of orders lodged by the firms with their direct suppliers. This is the effect that systematicaly increases its intensity as the supply chain moves upwards. The authors of the present contribution make up a synthesis of the research that has hitherto been made with respect to the bullwhip effect. Likewise, they discus the causes of the occurance of this effect and the measures (including the methods of information management) which raise the effectiveness of information processes