Patrik Appelqvist, Flora Babongo, Valérie Chavez-Demoulin, Ari-Pekka Hameri and Tapio Niemi
The purpose of this paper is to study how variations in weather affect demand and supply chain performance in sport goods. The study includes several brands differing in supply…
Abstract
Purpose
The purpose of this paper is to study how variations in weather affect demand and supply chain performance in sport goods. The study includes several brands differing in supply chain structure, product variety and seasonality.
Design/methodology/approach
Longitudinal data on supply chain transactions and customer weather conditions are analysed. The underlying hypothesis is that changes in weather affect demand, which in turn impacts supply chain performance.
Findings
In general, an increase in temperature in winter and spring decreases order volumes in resorts, while for larger customers in urban locations order volumes increase. Further, an increase in volumes of non-seasonal products reduces delays in deliveries, but for seasonal products the effect is opposite. In all, weather affects demand, lower volumes do not generally improve supply chain performance, but larger volumes can make it worse. The analysis shows that the dependence structure between demand and delay is time varying and is affected by weather conditions.
Research limitations/implications
The study concerns one country and leisure goods, which can limit its generalizability.
Practical/implications
Well-managed supply chains should prepare for demand fluctuations caused by weather changes. Weekly weather forecasts could be used when planning operations for product families to improve supply chain performance.
Originality/value
The study focuses on supply chain vulnerability in normal weather conditions while most of the existing research studies major events or catastrophes. The results open new opportunities for supply chain managers to reduce weather dependence and improve profitability.
Details
Keywords
Patrik Appelqvist, Valérie Chavez‐Demoulin, Ari‐Pekka Hameri, Jussi Heikkilä and Vincent Wauters
The purpose of this paper is to document the outcome of a global three‐year long supply chain improvement initiative at a multi‐national producer of branded sporting goods that is…
Abstract
Purpose
The purpose of this paper is to document the outcome of a global three‐year long supply chain improvement initiative at a multi‐national producer of branded sporting goods that is transforming from a holding structure to an integrated company. The case company is comprised of seven internationally well‐known sport brands, which form a diverse set of independent sub‐cases, on which the same supply chain metrics and change project approach was applied to improve supply chain performance.
Design/methodology/approach
By using in‐depth case study and statistical analysis the paper analyzes across the brands how supply chain complexity (SKU count), supply chain type (make or buy) and seasonality affect completeness and punctuality of deliveries, and inventory as the change project progresses.
Findings
Results show that reduction in supply chain complexity improves delivery performance, but has no impact on inventory. Supply chain type has no impact on service level, but brands with in‐house production are better in improving inventory than those with outsourced production. Non‐seasonal business units improve service faster than seasonal ones, yet there is no impact on inventory.
Research limitations/implications
The longitudinal data used for the analysis is biased with the general business trend, yet the rich data from different cases and three‐years of data collection enables generalizations to a certain level.
Practical implications
The in‐depth case study serves as an example for other companies on how to initiate a supply chain improvement project across business units with tangible results.
Originality/value
The seven sub‐cases with their different characteristics on which the same improvement initiative was applied sets a unique ground for longitudinal analysis to study supply chain complexity, type and seasonality.