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Article
Publication date: 26 March 2020

Artur Swierczek

The goal of the paper is twofold. First, it aims to empirically conceptualize whether a wide array of fragmented demand planning activities, performed in supply chains

Abstract

Purpose

The goal of the paper is twofold. First, it aims to empirically conceptualize whether a wide array of fragmented demand planning activities, performed in supply chains, can be logically categorized into actionable sets of practices, which then form a broader conceptualization of the demand planning process. Second, regarding certain contextual factors, our research seeks to investigate the contribution of demand planning, as a higher-order construct, to mitigating disruptions induced by operational risks in supply chains.

Design/methodology/approach

In this study, PLS-SEM was used to estimate the reflective-formative nature of the model. The results of PLS-SEM were additionally complemented by the assessment of the predictive power of our model. Finally, to reveal possible contingency effects, the multigroup analysis (MGA) was conducted.

Findings

The study suggests that demand planning process (DPP) is a second-order construct that is composed of four sets of practices, including goal setting, data gathering, demand forecasting, communicating the demand predictions and synchronizing supply with demand. The study also reveals that the demand planning practices, only when considered together, as a higher-order factor, significantly contribute to mitigating disruptions driven by operational risks. Finally, the research shows that the strength of the impact of demand planning on disruptions is contextually dependent.

Research limitations/implications

While the study makes some important contributions, the obtained findings ought to be considered within the context of limitations. First, the study only investigates disruptions driven by operational risks, ignoring the negative consequences of environmental risks (terrorist attacks, natural disasters, etc.), which may have a far more negative impact on supply chains. Second, the sample is mostly composed of medium and large companies, not necessarily representative of demand planning performed by the entire spectrum of companies operating in the market.

Practical implications

The study shows that to effectively mitigate disruptions induced by operational risks, the demand planning practices should be integrated into a higher-order construct. Likewise, our research demonstrates that the intensity of demand planning process is contingent upon a number of contextual factors, including firm size, demand variability and demand volume.

Social implications

The study indicates that to mitigate disruptions of operational risk, demand planning as a higher-order dynamic capability can be referred to the concept of organizational learning, which contributes to forming a critical common ground, ensuring the balance between formal and informal dynamic routines.

Originality/value

The paper depicts that to fully deal with disruptions, the demand planning practices need to be integrated and categorized into the dedicated higher-order. This may lead to forming demand planning as a higher-order dynamic capability that provides a more rapid and efficient rebuttal to any disruptions triggered by operational risks.

Details

The International Journal of Logistics Management, vol. 31 no. 3
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 30 January 2007

Riikka Kaipia and Jan Holmström

The purpose of this research paper is to offer a solution to differentiate supply chain planning for products with different demand features and in different life‐cycle phases.

Abstract

Purpose

The purpose of this research paper is to offer a solution to differentiate supply chain planning for products with different demand features and in different life‐cycle phases.

Design/methodology/approach

A normative framework for selecting a planning approach was developed based on a literature review of supply chain differentiation and supply chain planning. Explorative mini‐cases from three companies – Vaisala, Mattel, Inc. and Zara – were investigated to identify the features of their innovative planning solutions. The selection framework was applied to the case company's new business unit dealing with a product portfolio of highly innovative products as well as commodity items.

Findings

The need for planning differentiation is essential for companies with large product portfolios operating in volatile markets. The complexity of market, channel and supply networks makes supply chain planning more intricate. The case company provides an example of using the framework for rough segmentation to differentiate planning.

Research limitations/implications

The paper widens Fisher's supply chain selection framework to consider the aspects of planning.

Practical implications

Despite substantial resources being used, planning results are often not reliable or consistent enough to ensure cost efficiency and adequate customer service. Therefore there is a need for management to critically consider current planning solutions.

Originality/value

The procedure outlined in this paper is a first illustrative example of the type of processes needed to monitor and select the right planning approach.

Details

Supply Chain Management: An International Journal, vol. 12 no. 1
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 December 2002

Martin Rudberg, Niklas Klingenberg and Kristoffer Kronhamn

The purpose of this paper is to show how the functionality of electronic marketplaces can facilitate collaborative supply chain planning. Supply chain planning processes…

Abstract

The purpose of this paper is to show how the functionality of electronic marketplaces can facilitate collaborative supply chain planning. Supply chain planning processes are identified and analysed using a supply chain management focus. The paper also gives a brief introduction to a framework for supply chain management and to the typical structure of electronic marketplaces. Furthermore, three collaborative supply chain planning scenarios are defined, and it is shown how collaborative supply chain planning typically could be implemented on an electronic marketplace by the means of a Web‐based demonstration. As such, the paper shows how electronic marketplaces can be used to enable supply chain integration.

Details

Integrated Manufacturing Systems, vol. 13 no. 8
Type: Research Article
ISSN: 0957-6061

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Article
Publication date: 29 August 2019

Artur Swierczek and Natalia Szozda

The purpose of this paper is to explore the effects of demand planning practices on the disruptions induced by operational risk. The study reveals whether the negative…

Abstract

Purpose

The purpose of this paper is to explore the effects of demand planning practices on the disruptions induced by operational risk. The study reveals whether the negative consequences of operational risk factors (covering demand, supply, control and process risks) can be absorbed or amplified through the application of specific demand planning practices in supply chains.

Design/methodology/approach

The study involves the partial least squares path model procedure. Likewise, the items of the constructs in the outer model were subjected to a purification process by principal component analysis with the orthogonal (varimax) and oblique (Promax) methods of rotation.

Findings

The findings suggest that although one may not observe uniformity and standardization in the role of demand planning in alleviating the negative effects of operational risks, still some regularities can be obtained. Having said that some demand planning practices tend to mitigate or reinforce disruptions driven by operational risk, whereas the other practices simultaneously absorb and amplify disruptions driven by operational risk.

Practical implications

The study shows that different managerial instruments, which are not inherently dedicated to risk management, when appropriately applied, may have an indirect impact on the mitigation of supply chain risk. In particular, the concept of demand planning might be very helpful for managers when dealing with demand and control risks.

Originality/value

The study simultaneously examines a more detailed bundle of practices forming the demand planning process. The research attempts to investigate the link between the demand planning process and operational risk consequences, derived from all sources (supply, demand, process and control). The paper shows that risk management is not a sole tool to mitigate disruptions. Among the concepts, which contribute to decrease risks is the demand planning process. The study demonstrates that the demand planning process when applied as a component of supply chain management, may contribute to mitigate certain operational risks.

Details

Supply Chain Management: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 February 2005

Premaratne Samaranayake

The main purpose of this paper is to document the research on development of a conceptual framework for the supply chain. The aims of the research were to develop an…

Abstract

Purpose

The main purpose of this paper is to document the research on development of a conceptual framework for the supply chain. The aims of the research were to develop an integrated framework, and to provide a methodology for planning of many components in the supply chain such as suppliers, materials, resources, warehouses, activities and customers. The proposed framework is based on the unitary structuring technique where bills of materials, bills of warehouses, project networks and operations routings, in both manufacturing and distribution networks, are combined into a single structure.

Design/methodology/approach

The framework is described along with illustrated numerical examples in the manufacturing and distribution environments.

Findings

The numerical testing has shown that each network in the supply chain provides an integrated approach to planning and execution of many components, and is capable of providing visibility, flexibility and maintainability for further improvement in the supply chain environment.

Originality/value

The framework and planning approach developed in this research are new in the area of supply chain management and provide a foundation for planning, control and execution in supply chain in various industries.

Details

Supply Chain Management: An International Journal, vol. 10 no. 1
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 22 May 2009

Riikka Kaipia

The purpose of this paper is to study how companies can select a supply chain planning (SCP) mechanism to improve the balance between material flow and information flow.

Abstract

Purpose

The purpose of this paper is to study how companies can select a supply chain planning (SCP) mechanism to improve the balance between material flow and information flow.

Design/methodology/approach

The methodology of the paper is an inductive case study approach. Coordination theory is used as a background for the paper. Based on a literature survey, determinants of the selection of a SCP approach are defined. Cases of SCP are used to validate the framework presented.

Findings

The paper suggests that specific supply chain characteristics need to be balanced by selecting a coordination mechanism that uses information optimally to support the material flow. Flexible material flow needs frequent updates of the plan based on accurate information. If frequent information sharing and planning practices are used to support inflexible material flow, the result may be volatility in plans, and planning resources are wasted. If a flexible material flow is supported by inadequate information, waste may be produced in the material flow, in the form of excess inventories or capacity.

Research limitations/implications

The paper presents a framework for finding the balance between information flows and material flows and for applying a coordination mechanism.

Practical implications

Companies can use the framework to analyse the management of their material flow and their use of information. In future research the framework could be developed to give more support for situations with different levels and sources of uncertainty.

Originality/value

The framework provides a new perspective on the discussion how information should be used to improve supply chain performance.

Details

The International Journal of Logistics Management, vol. 20 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 10 August 2012

Martin Steinrücke and Michael Jahr

The purpose of this paper is to focus on the medium‐term planning problem in supply chain networks. Based on a literature review, a comprehensive analytical planning model…

Abstract

Purpose

The purpose of this paper is to focus on the medium‐term planning problem in supply chain networks. Based on a literature review, a comprehensive analytical planning model for the three echelon tactical planning problem in supply chain networks is developed which is applicable in a hierarchical planning frame.

Design/methodology/approach

The approach used was mathematical mixed integer programming to model three echelon production‐distribution networks embedded in the supply chain planning matrix frame. Application of the model in a multi‐site planning process based on a case study from the industrial transformer supply chain was also undertaken.

Findings

Integrated multi‐period medium‐term planning with customer oriented single sourcing is an efficient method to implement mathematical optimal solutions in practice as it provides comprehensive tactical plans and network designs. These can be used for scenario analysis in a coordination process with independent supply chain partners.

Research limitations/implications

The implementation of a mathematical optimal plan in a complex business network structure requires a big‐bucket model solution to grant the plan's stability via sufficient time buffers.

Originality/value

The paper displays development of a multi‐period three echelon tactical production‐distribution‐transportation model with different capacities, transportation modes, product types and single sourcing decisions.

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Article
Publication date: 1 July 2006

Jari Collin and Dennis Lorenzin

The purpose of this paper is to describe how demand planning can increase agility in supply chains. The paper builds on a case study from mobile infrastructure industry…

Abstract

Purpose

The purpose of this paper is to describe how demand planning can increase agility in supply chains. The paper builds on a case study from mobile infrastructure industry with explicit focus on project business environment.

Design/methodology/approach

The paper contains a short theoretical review on supply chain agility, different planning and forecasting concepts and explores the linkages between them. Empiric evidence is collected from Nokia Networks as a case study. Main lessons are primarily taken from integrated project management program that is to implement a truly customer‐focused delivery process in the case company.

Findings

Suppliers should pay more attention on effectively utilizing customer's project plans for aligning their supply chain. Supply chain agility does not just happen but requires continuous planning.

Practical implications

Common project planning is the most natural way for customers to share future demand information between the supply chain players. Instead separate and often laborious demand forecasting process, suppliers should utilize customer's project plans in building agility in their supply chains.

Originality/value

Focuses on the importance of the ability to adapt to rapid and unexpected changes and asserts that a continuous, customer driven planning process is a pre‐requirement for being agile in supply chains.

Details

International Journal of Physical Distribution & Logistics Management, vol. 36 no. 6
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 24 April 2013

Patrik Jonsson, Martin Rudberg and Stefan Holmberg

The purpose of this paper is to analyse the prerequisites and effects of centralised supply chain planning at IKEA, and to explore how the planning process, planning

Abstract

Purpose

The purpose of this paper is to analyse the prerequisites and effects of centralised supply chain planning at IKEA, and to explore how the planning process, planning system, and planning organization make up a centralised planning approach.

Design/methodology/approach

The paper is based on a longitudinal case study of IKEA's implementation of global supply chain planning. The literature review generated a framework which identifies prerequisites for, approaches to, and the effects of and obstacles to centralised supply chain planning. This framework was used to analyse IKEA's supply chain planning before and after the implementation. Finally, the authors reflected upon the learning from IKEA and refined the framework.

Findings

A number of prerequisites for centralised supply chain planning were identified: functional products, vertical integration, a dominating organization possessing the power and competence to enforce the implementation, and the use of one planning domain possessing all critical planning information. The direct effects of centralised supply chain planning were related to supply chain integration, standardisation, specialisation, and learning effects. Implementing centralised supply chain planning in an appropriate planning context led to several operational performance improvements. Obstacles were mainly related to human and organizational, as well as to software and data issues.

Research limitations/implications

This is a first approach towards development of a framework of how to design, use and benefit from centralised supply chain planning. The developed conceptual model, which is refined through the case study, offers some generalizability in researching centralised supply chain planning.

Practical implications

The findings show that centralised supply chain planning is a necessity for a large and growing, global supply chain striving for low‐cost production and efficiency.

Originality/value

IKEA is a unique case with its supply chain characteristics and recently implemented planning concept.

Details

Supply Chain Management: An International Journal, vol. 18 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 1 October 2002

Ian Sadler and Peter Hines

Planning processes for the operations of entire supply chains require examination because business competition demands coherent strategies from them. Research into…

Abstract

Planning processes for the operations of entire supply chains require examination because business competition demands coherent strategies from them. Research into processes for strategic operations planning has defined the steps and procedures required. Some research has partially addressed planning processes for integrated supply chains. The present research begins to specify a process and investigate how a team of managers from the companies in a supply chain can be helped to formulate strategic plans for operating the whole chain, to benefit each company and to benefit the whole chain. Building on previous research, this theoretically‐based paper proposes a framework to enable such a process. This chain‐wide planning process is illustrated in an Australian meat processing supply chain, with encouraging results.

Details

Supply Chain Management: An International Journal, vol. 7 no. 4
Type: Research Article
ISSN: 1359-8546

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