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Article
Publication date: 13 February 2023

Sheraz Alam Malik and Rami Bustami

Integrating demand with supply has always been an evolving research area, which is affected by different factors including, but not limited to, sustainability, changing consumer…

Abstract

Purpose

Integrating demand with supply has always been an evolving research area, which is affected by different factors including, but not limited to, sustainability, changing consumer demands and emerging supply chain practices. However, most of the research targeted developed countries due to better data access and enhanced information visibility. The research on supply and demand integration in Saudi Arabia is still in its infancy. This study explores this gap by providing a comprehensive analysis of demand and supply chain integration in the context of sustainability. This is done by first creating a developing countries-based research framework and then validating it through surveying 162 Saudi companies operating in multiple sectors like food, fashion and retail. Results suggest that there is more emphasis on supply-side factors relative to demand-side factors in the context of integration. Demand side factors only marginally impact waste reduction efforts. Similarly, the food sector is most sensitive to integration efforts attaching high importance to sustainability and efficiency initiatives. These results can be a useful guide for managers and policymakers who are planning and executing at the interface of demand and supply chains in developing countries.

Design/methodology/approach

Cross-sector analysis by survey questionnaire of 162. Descriptive statistical analyses were performed on the data for the study participants. Continuous variables were summarised using mean and standard deviation (SD), median and IQR; and proportions were used for nominal and ordinal variables. A total score measuring perception of employees towards supply–demand integration was analysed and compared by company-related factors (sector/industry, length of service in firm (years) and the number of employees). Comparisons were made using the chi-square test or ANOVA. A linear regression model was utilised to examine the independent effect of supply and demand side factors on employees' perception of integration. The model controlled for the sector, length of service and number of employees. Statistical significance was considered at p < 0.05.

Findings

The linear regression results showed that supply items significantly predicted integration. That is, higher supply–demand integration scores were significantly related to indicators for using supply variables in supply chain management (SCM) improves operational efficiency (OE), integrating supply variables at the execution stage reduces overall waste and including at least one supply-side variable in supply planning (p < 0.05). The indicator for integrating demand variables at the execution stage reduces overall waste was only marginally related to an increased integration scores (p = 0.089). Lastly, a significantly better perception of supply–demand integration was reported by employees in the food sector compared to those in the fashion sector (p = 0.018). Length of service or number of employees in the firm was not related to perception towards supply–demand integration.

Research limitations/implications

Though accessing 162 companies in the Saudi market is a significant sample size given the fact that they are quite conservative in sharing supply and demand information. However, for better generalisation and richer insights, more sectors like manufacturing, oil and gas and hospitality should be added in future. Cross-country analysis from developing countries can be another interesting future direction.

Originality/value

This empirical paper draws its strength from the scale and depth of empirical data collected from Saudi companies belonging to multiple sectors to better understand demand and supply chain integration, especially from sustainability and waste reduction. This is true in the era of the pandemic and its associated risks for both upstream and downstream. The developing countries' perspective is important as not enough is written in the literature given the difficulties in accessing the information and subsequent analysis. The insights are bound to be unique as a consumer in these countries is undergoing significant socioeconomic changes affecting the supply chain of the companies.

Details

Management & Sustainability: An Arab Review, vol. 3 no. 1
Type: Research Article
ISSN: 2752-9819

Keywords

Article
Publication date: 11 May 2015

Hefu Liu, Qian Huang, Shaobo Wei and Liqiang Huang

The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will…

1473

Abstract

Purpose

The purpose of this paper is to derive a model to examine how Information Technology (IT) capability affects internet-enabled supply and demand process integration, which will eventually improve firm performance. In addition, the moderating effects of industry type in the research framework are explored.

Design/methodology/approach

Data were obtained from a survey administered to 261 firms in the manufacturing and services industry in China. The structural equation modeling approach is used to test the hypotheses. The study further applied the t-test to compare the path coefficiencies between manufacturing and service.

Findings

Results from the survey indicate that internet-enabled supply and demand process integration is affected by IT capability, and can directly impact firm performance. The results further indicate that manufacturing and services firms may benefit from IT capability in different ways.

Originality/value

The current paper contributes knowledge on the value-realizing mechanism of internet-enabled supply chain integration (SCI) from a resource-based view. It presents a multidimensional explanation of the relationships among IT capability, internet-enabled SCI, and firm performance.

Details

The International Journal of Logistics Management, vol. 26 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 25 November 2019

Marlos Rocha de Freitas, Márcio Lopes Pimenta, Per Hilletofth, Daniel Jugend and Pedro Carlos Oprime

The purpose of this study is to investigate how cross-functional integration supports the execution of the demand-side processes and its effects on both the demand and supply-side…

Abstract

Purpose

The purpose of this study is to investigate how cross-functional integration supports the execution of the demand-side processes and its effects on both the demand and supply-side processes.

Design/methodology/approach

A case study was conducted including a Brazilian multinational manufacturer in the automobile industry and some of its suppliers and dealers. 17 interviews were conducted. A theoretical framework is proposed containing five basic elements, they are: characteristics of the demand/supply processes; involved functions; integration factors; context influencers and impacts of integration on demand and supply processes.

Findings

The findings present three demand-side processes (Product Launch, Marketing and Sales and Demand Planning) that demonstrated a greater need for cross-functional integration in the studied case, mainly through informal integration factors.

Research limitations/implications

The empirical results of this study have methodological limitations due to the use of the case study method. Future research should analyze the effects of other context influencers (e.g. natural catastrophes, civil wars and low level of unemployment) on cross-functional integration.

Practical implications

The results highlight that joint planning, willingness to work together, team spirit, adequate communication and cross-functional meetings helped the studied organizations to achieve competitive advantages and improve their performance.

Originality/value

This study provides a theoretical framework that helped to improve the understanding of the interrelationships between demand management constructs and cross-functional integration factors. There are indications that a political–economic crisis has stimulated the existence of a willingness to work together and group spirit among employees who remain in the organization after mass dismissals. This climate of cooperation helped to increase the agility and resilience of the studied supply chain, which is currently affected by a changing market.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 32 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 31 March 2020

Cigdem Ataseven, Anand Nair and Mark Ferguson

This paper investigates the inter-relationships among supply integration, demand integration and internal integration in the context of food banking.

1273

Abstract

Purpose

This paper investigates the inter-relationships among supply integration, demand integration and internal integration in the context of food banking.

Design/methodology/approach

This study utilizes survey data from managers at 71 different food banks in the US combined with secondary data gathered from Feeding America's website to provide model controls and an objective measure of food bank performance. The performance metric is the amount of food distributed per food insecure individual in the food bank's service area. Theoretically developed hypotheses were tested using seemingly unrelated regression techniques and a Monte Carlo simulation-based mediation analysis.

Findings

While the previous research on integration relationships on for-profit supply chains has shown that managing internal integration forms the foundation for integrating with suppliers and customers, the findings indicate that, for not-for-profit food banks, external integration should precede internal integration and that demand integration has a stronger influence on performance than supply integration.

Research limitations/implications

The heavy reliance of food banks on external partners necessitates an internal integration structure that supplements and builds upon these external relationships. The basic programs thus developed have a direct impact on the amount of food distributed per food insecure individual.

Originality/value

This paper contributes to the humanitarian supply chain management literature by analyzing supply chain integration and its performance implications in a slow onset disaster setting.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 10 no. 2
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 25 January 2022

Rajesh Rajaguru, Margaret Jekanyika Matanda and Wenqing Zhang

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences business…

Abstract

Purpose

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences business performance in the presence of perceived opportunistic behavior. Therefore, the study aims to investigate the moderating role of perceived partner opportunism in the supply chain.

Design/methodology/approach

Drawing on the dynamic capability theory (DCT), this study investigates how perceived supply chain partner opportunism moderates the mediating role of supply- and demand-oriented performances on the link between SCF and business performance, from the retail industry perspective. Data was collected from Australian retailing firms. In all, 293 completed surveys were received. Moderated mediation analysis was conducted.

Findings

The results of this study indicate that supply- and demand-oriented performances serially mediate the relationship between SCF and business performance. The study also found that the effect of SCF on performance was higher when perceived partner opportunism was lower.

Practical implications

To respond to changes in consumer preferences and demand effectively, supply chain and marketing managers need to understand the complex interaction between supply- and demand-oriented performances and the key role of SCF in developing such capabilities.

Originality/value

The current study theorizes and demonstrates the effects of supply- and demand-oriented performances that can facilitate the effects of SCF on business performance. Also, the study reveals the effect of each dimension of SCF (accounts payable, accounts receivable and inventory finance) on supply- and demand-oriented performances. Additionally, the study shows the key role of perceived partner opportunism in supply chain management.

Open Access
Article
Publication date: 10 March 2023

Sini Laari, Harri Lorentz, Patrik Jonsson and Roger Lindau

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is…

2600

Abstract

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 March 2004

A. Seetharaman, A. Ali Khatibi and Wu Swee Ting

Explains the linkage of vendor development and control as an integral factor of value on demand chain logistics. Presents a comparison of the traditional purchasing function with…

4626

Abstract

Explains the linkage of vendor development and control as an integral factor of value on demand chain logistics. Presents a comparison of the traditional purchasing function with vendor development in. Provides the missing link of value chain by demand chain. Describes the supplier integration approach as a competitive corporate strategy in a conceptual synthesis by linking demand chain with order management, marketing, sales, channel management, pricing, service, etc. Analyses the vendor development strategy from three key dimensions. Further discusses the advantages of vendor development in the short run, bottom line performance increase, and long run revenue enhancing the value of an organisation. Also discusses the impact on demand chain from the costing point of view with elaboration on cost and pricing activities involving total cost of ownership, understanding supplier costs and target costing with target pricing commensurate with expectations of customers. Concludes with an emphasis on the importance of providing e‐learning and upgrading the skills of staff in order to expedite the adoption of vendor integration strategy in its demand chain logistics management.

Details

International Journal of Physical Distribution & Logistics Management, vol. 34 no. 3/4
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 2 September 2014

David M. Gligor

The purpose of this paper is to explore the role of demand management in achieving supply chain agility (SCA) through a multi-disciplinary review of the relevant research. The…

7101

Abstract

Purpose

The purpose of this paper is to explore the role of demand management in achieving supply chain agility (SCA) through a multi-disciplinary review of the relevant research. The systematic literature review provides the basis for formulating a conceptual framework of the relationship.

Design/methodology/approach

A systematic, comprehensive review of the literature on manufacturing, marketing organizational and SCA from 1991 through 2013 was conducted. The literature on demand management is also examined to identify the various elements that contribute to SCA.

Findings

Most agility frameworks take a supply-side perspective and assume that demand is known. Those that do acknowledge the role of demand fall short of offering a holistic framework that acknowledges the role of both. This paper suggests that it is simply not enough to have flexible manufacturing, distribution and procurement systems to achieve SCA. Flexibility in managing demand is also needed. Furthermore, it is the premise of this paper that demand and supply integration (DSI) inside the firm is critical to achieving SCA.

Research limitations/implications

This research is a systematic, integrative review of the existing literature on the concept of agility. As such, the next phase of research needed for theory building will be the operationalization of constructs and testing of the hypothesized relationships proposed by the conceptual framework.

Practical implications

The paper has several managerial implications as well. It illustrates how firms can create and sustain competitive advantages in turbulent environments. Managers can use the framework developed here to assess what structures and decision-making processes they can use to increase the firm’s SCA. Practitioners can use this model as a checklist to identify candidate areas for improving agility. The section illustrating the use of knowledge management to increase DSI should be of particular interest to managers, considering that a great deal of firms experience a disconnect between demand creation and supply fulfillment.

Originality/value

Through a systematic, comprehensive review of multi-disciplinary literature, the paper explores the role of demand management in achieving SCA.

Details

Supply Chain Management: An International Journal, vol. 19 no. 5/6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 9 August 2011

Jon F. Kirchoff, Chris Koch and Bridget Satinover Nichols

The purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility and…

5952

Abstract

Purpose

The purpose of this paper is to extend the stream of thought regarding the concept of demand and supply integration (DSI) within the domain of environmental responsibility and green marketing.

Design/methodology/approach

Conceptual application of theory to strategic‐level concepts is used to develop propositions representing a theoretical approach to the integration of green marketing and green supply chain management (SCM).

Findings

Based on stakeholder theory, the authors propose that greater value will be perceived by customer stakeholders when the firm is able to successfully manage and coordinate demand (marketing) and supply (SCM) functions, ensuring that customer stakeholders receive what they are promised in regard to environmental products and services. For this relationship to offer competitive advantage and higher firm performance, the authors contend that it is necessary to better understand how customer stakeholders perceive firms' environmental initiatives, and to investigate if the degree to which a firm's demand and supply functions are integrated influences these perceptions.

Research limitations/implications

Scholars will benefit from ideas and questions put forth in this paper as it suggests specific avenues to pursue empirically in order to understand stakeholder perceptions of a firm's environmental responsibility activities.

Practical implications

Managers will benefit from the results of this paper by better understanding the benefits of DSI in creating marketing campaigns for environmental products and services that stakeholders perceive as legitimate.

Originality/value

The authors introduce the concept of DSI to the green marketing and green SCM literature and position DSI within the broader rubric of environmental commitment in the firm.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 28 June 2022

Emilio Ruzo-Sanmartín, Alaa Abdelaziz Abousamra, Carmen Otero-Neira and Göran Svensson

This study aims to show how to improve supply chain performance through the relationship between firms and their customers. In doing so, this study examines the impact of a firm’s…

Abstract

Purpose

This study aims to show how to improve supply chain performance through the relationship between firms and their customers. In doing so, this study examines the impact of a firm’s relationship commitment and customer integration on supply chain performance. The aim is to detail a way to increase supply chain performance through the relationship between companies and their customers.

Design/methodology/approach

The empirical analysis was based on a survey on 205 corporate-Egypt multi-industry businesses including manufacturing, retailing, wholesaling and shipping services firms. Data collection was through a questionnaire survey distributed to 1,264 senior managers with responsibilities in the field of supply chain, logistics, purchasing, marketing and operations and with a 16% response rate. A conceptual model was designed, and hypotheses were analysed with covariance-based structural equation modelling.

Findings

This study makes a significant contribution to the supply chain management (SCM) literature by examining the influence of firms’ relationship commitment on supply chain performance in the supply chain management context by means of the disaggregation of customer integration into two dimensions: integration with customer (IWC) and integration by customer (IBC). The findings indicate that firms’ relationship commitment does not relate directly to supply chain performance, but rather indirectly through integration both with and by customers.

Research limitations/implications

This paper outlines a conceptual model in which firms’ relationship commitment relates indirectly to supply chain performance. The model also sheds light on the fact that IWCs precedes IBCs in supply chains. This finding suggests that firms should focus on customer integration to improve supply chain performance.

Practical implications

This study offers a particularly refined understanding of the reasons behind and situations in which supply chain integration (SCI) enables firms to gain superior supply chain performance. In fact, firms focusing on customer integration may improve their supply chain performance, thus enhancing the value of the supply chain.

Originality/value

This study contributes to the literature by considering a relational view of the SCI-Performance path. In particular, by disaggregating customer integration into IWCs and IBCs, this paper verifies customer integration acting as a mediator between relationship commitment and supply chain performance in supply chains.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

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