Riikka Kaipia, Hille Korhonen and Helena Hartiala
Planning processes along a demand supply network in an environment characterized by rapid market fluctuations and product changes are studied. The relationship between demand…
Abstract
Purpose
Planning processes along a demand supply network in an environment characterized by rapid market fluctuations and product changes are studied. The relationship between demand planning and the bullwhip effect is investigated by comparing planning accuracy in different demand supply network echelons and locating where there is most nervousness.
Design/methodology/approach
The current demand supply planning process flow was described based on interviews with key decision‐makers throughout the demand‐supply network from retailers to second tier suppliers. A data analysis of the quality of plans for demand and supply was generated in each decision‐making point by collecting planning and actual data of two products.
Findings
The results show that planning accuracy varies between the parties in the supply chain. The connection between planning nervousness and the bullwhip was investigated in detail through a vendor‐managed inventory (VMI) model in the chain. Planning nervousness causes bullwhip, as the changes in demand were amplified in the used information sharing process in VMI. In product introduction phase, the phenomenon was emphasized.
Practical implications
To stabilize and simplify planning the process should be differentiated according to product life‐cycle phases. One proposal is to improve communication practices with suppliers, especially to stabilize demand information sharing with VMI‐suppliers.
Originality/value
The structure of the electronics supply chain makes planning processes challenging. In this research we were able to follow the data flow and planning process throughout the supply chain, which is not often the case.
Details
Keywords
Riikka Kaipia and Helena Hartiala
This paper aims to focus on supply chain visibility in practice and to suggest ways to improve the supply chain performance through information sharing.
Abstract
Purpose
This paper aims to focus on supply chain visibility in practice and to suggest ways to improve the supply chain performance through information sharing.
Design/methodology/approach
A case study exploring the current state of visibility in the demand‐supply network of an original equipment manufacturing company was carried out. The goal was to understand how a manufacturing company and its suppliers can benefit from incremental demand information sources. Data were collected through interviews and data analyses and focused on an end‐to‐end view of demand information. The most relevant information uses were tested in pilot projects. A literature review on demand information sources and benefits of visibility was conducted.
Findings
On the basis of the case results and a literature survey, five proposals on how to improve visibility are presented. They suggest that only information that improves supply chain performance should be shared, demand‐supply planning processes be stabilized and synchronized, different demand data sources should be used in parallel, customer collaboration offers a wider view to demand, and that suppliers' need for demand information differs from those of downstream actors.
Practical implications
The paper proposes solutions to managers on how they can benefit from improved access to demand information.
Originality/value
The paper shows, via case study and literature review, how information sharing can improve supply chain performance.
Details
Keywords
Jan Holmström, Hille Korhonen, Aki Laiho and Helena Hartiala
The purpose of this article is to propose a planning process that takes into account that manufacturers of original equipment have products at different stages of the product‐life…
Abstract
Purpose
The purpose of this article is to propose a planning process that takes into account that manufacturers of original equipment have products at different stages of the product‐life cycle, and utilizes sales and inventory information collected from distributors and retailers.
Design/methodology/approach
The research paper describes the construction and testing of a planning process.
Findings
Trials in a case company indicate that supply chain responsiveness can be improved in product launches using the proposed process. Supply chain efficiency in the maturity phase can also be improved.
Research limitations/implications
The usefulness and effectiveness of the proposed process depend on the assumption that product mix changes can be modeled and point‐of‐sales and channel sell‐through data are available regularly and reliably.
Practical implications
Modeling and monitoring the variant mix on the total market level can be used to improve supply chain responsiveness to mix changes in product launches. The introduction of this planning process reduces the need for planning in the sales units.
Originality/value
The paper shows how the quality of variant forecasting for an original equipment manufacturer can be improved with access to channel visibility in the market introduction phase.
Details
Keywords
C. Clifford Defee, Brent Williams, Wesley S. Randall and Rodney Thomas
Theory is needed for a discipline to mature. This research aims to provide a summary analysis of the theories being used in contemporary logistics and supply chain management…
Abstract
Purpose
Theory is needed for a discipline to mature. This research aims to provide a summary analysis of the theories being used in contemporary logistics and supply chain management (SCM) studies.
Design/methodology/approach
A comprehensive literature review of articles appearing in five top tier logistics and SCM journals is conducted in order to identify how often theory is used and to classify the specific theories used. An analysis of the theoretical categories is presented to explain the type and frequency of theory usage.
Findings
Over 180 specific theories were found within the sampled articles. Theories grouped under the competitive and microeconomics categories made up over 40 per cent of the theoretical incidences. This does not imply all articles utilize theory. The research found that theory was explicitly used in approximately 53 per cent of the sampled articles.
Practical implications
Two implications are central. First, in the minds of editors, reviewers and authors is approximately 53 per cent theory use enough? Literature suggests there continues to be a need for theory‐based research in the discipline. A first step may be to increase our theory use, and to clearly describe the theory being used. Second, the vast majority of theories used in recent logistics and SCM research originated in other disciplines. Growth in the discipline dictates the need for greater internal theory development.
Originality/value
Despite multiple calls for the use of theory in logistics and SCM, little formal research has been produced examining the actual theories being used. This research provides an in‐depth review and analysis of the use of theory in logistics and SCM research during the period 2004‐2009.