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Impacts of adaptive collaboration on demand forecasting accuracy of different product categories throughout the product life cycle

Masayasu Nagashima (Graduate School of Entrepreneur Engineering, Kouchi Unviversity of Technology, Kochi, Japan)
Frederick T. Wehrle (Laboratory for Applied Research, ICD Business School, Paris, France, AND, Department of Operations Management and Information Technology, University of Paris, Paris, France)
Laoucine Kerbache (Department of Operations Management and Information Technology, HEC Paris in Qatar, Doha, Qatar)
Marc Lassagne (Arts et Métiers ParisTech, Paris, France)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 8 June 2015

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Abstract

Purpose

This paper aims to empirically analyze how adaptive collaboration in supply chain management impacts demand forecast accuracy in short life-cycle products, depending on collaboration intensity, product life-cycle stage, retailer type and product category.

Design/methodology/approach

The authors assembled a data set of forecasts and sales of 169 still-camera models, made by the same manufacturer and sold by three different retailers in France over five years. Collaboration intensity, coded by collaborative planning forecasting and replenishment level, was used to analyze the main effects and specific interaction effects of all variables using ANOVA and ordered feature evaluation analysis (OFEA).

Findings

The findings lend empirical support to the long-standing assumption that supply chain collaboration intensity increases demand forecast accuracy and that product maturation also increases forecast accuracy even in short life-cycle products. Furthermore, the findings show that it is particularly the lack of collaboration that causes negative effects on forecast accuracy, while positive interaction effects are only found for life cycle stage and product category.

Practical implications

Investment in adaptive supply chain collaboration is shown to increase demand forecast accuracy. However, the choice of collaboration intensity should account for life cycle stage, retailer type and product category.

Originality/value

This paper provides empirical support for the adaptive collaboration concept, exploring not only the actual benefits but also the way it is achieved in the context of innovative products with short life cycles. The authors used a real-world data set and pushed its statistical analysis to a new level of detail using OFEA.

Keywords

Acknowledgements

The authors would like to thank Marko Robnik-Sikonja for his support with OFEA and three anonymous reviewers as well as the editor for their comments and advice on previous drafts of this paper.

Citation

Nagashima, M., Wehrle, F.T., Kerbache, L. and Lassagne, M. (2015), "Impacts of adaptive collaboration on demand forecasting accuracy of different product categories throughout the product life cycle", Supply Chain Management, Vol. 20 No. 4, pp. 415-433. https://doi.org/10.1108/SCM-03-2014-0088

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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