Understanding demand management challenges in intermediary food trading: a case study

Dotun Adebanjo

50 citations0/0 files storedSupply Chain Management An International Journal

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Supply Chain and Inventory Management Quality and Supply Management Forecasting Techniques and Applications

Abstract

Purpose The purpose of this paper is to present the findings of a study into demand management practices in a trading organisation. It aims to bring together a number of key principles, including forecasting, promotions management and power, and examine how they impact the operations of the organisation. On the basis of its findings, the paper also aims to propose a framework for efficient use of forecasting resources. Design/methodology/approach A single case study approach was used. Iteratively designed semi‐structured interviews with different departments were used to identify the key challenges facing the organisation. Data analysis was then used to confirm some of the issues and identify emerging issues in the industry. Findings Intermediary trading organisations in the UK food industry occupy a vulnerable position in their supply chains. For promotional products, in particular, the supply chains are characterised by unmatchable upstream‐downstream lead times and little flexibility in demand and supply requirements. Furthermore, consumers may be getting used to buying certain products only when they are on promotion. Practical implications Trading organisations suffer disproportionately from the inefficiencies of their supply chain and, consequently, need to take a leading role in co‐ordinating and synchronising supply chain activities. They also need to understand their supply chain positioning, relative power and the factors that are beyond their control. Originality/value The demand management operations and challenges of intermediary food traders have not previously been studied in great depth. The paper provides new knowledge and further contributes to academic thinking by proposing a forecasting framework.

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References

2004Case Study Research 2007Case study research: principles and practices 1987How to use qualitative methods in evaluation 1997What is the Right Supply Chain for Your Product 2004Understanding the meaning of collaboration in the supply chain 2006Case Study Research 2002The Collaborative Supply Chain 2007Flexibility from a supply chain perspective: definition and review

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