Abstract
This chapter focuses on collaborative demand planning particularly when information is shared in the downstream supply chain between manufacturer and retailer. The use of collaborative practices is transforming traditional supply chain models toward demand-driven supply chains but implies deep organisational changes to prompt vertical alignment. The analysis of practices that permit efficient collaboration between manufacturers and retailers shows that information sharing on demand signals in supply chains is one of the keys to responding to retail demand with greater agility. This chapter aims to show how a manufacturing supply chain needs to be aligned with the retail supply chain in order to create value for the trading partners and for the final consumer. Through the analysis of three case studies, it is attempted to identify which practices allow efficient collaborative demand planning. Regarding the findings, different types of demand signals are identified through the planning process and allow one to highlight some breaking points that prevent the alignment and the optimisation of the retail chain. Research implications are the identification of four steps in the demand planning process that will help managers to better understand which actions should be taken to improve their collaboration practices. The originality of this chapter lies in the fact that it goes beyond historical demand figures analysis and focuses, rather, on information sharing concerning demand signals within supply chains as one of the keys to responding to retail demand with greater agility.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Baird, N., Leaver, S., Bradner, L., Overby, C.S., Stromberg, C. and Gaynor, E., 2006, “The state of manufacturer and retailer collaboration,” Forrester Research, available at http://www.forrester.com/Research/Document/Excerpt/0,7211,40694,00.html.
Crum, C. and Palmatier, G.E., 2003, Demand Management Best Practices: Process, Principles and Collaboration, J. Ross Publishing, Inc., Boca Raton, FL.
Whipple, J.M. and Russell, D., 2007, “Building supply chain collaboration: a typology of collaborative approaches,” International Journal of Logistics Management, 18(2), pp. 174–196.
Simatupang, T.M. and Sridharan, R., 2005, “An integrative framework for supply chain collaboration,” International Journal of Logistics Management, 16(2), pp. 257–274.
Min, S., Roath, A.S., Daugherty, P.J., Genchev, S.E., Chen, H., Arndt, A.D. and Richey, R.G., 2005, “Supply chain collaboration: what’s happening?” International Journal of Logistics Management, 16(2), pp. 237–256.
Boulding, K., 1956, The Image, University of Michigan, Ann Arbor, MI.
Wiener, N., 1961, Cybernetics: Or Control and Communication in the Animal and the Machine (2nd edn.), MIT Press, Cambridge, MA.
Barr, A. and Feigenbaum, E. (eds.), 1981, The Handbook of Artificial Intelligence (Vol. 1), William Kaufmann, Los Altos, CA.
Hewitt, C., 1986, “Offices as open systems,” ACM Transactions on Office Systems, 4(3), pp. 271–278.
Miller, M. and Drexler, K., 1988, “Market and computation: agoric open systems,” The Ecology of Computation, North-Holland, Amsterdam, pp. 133–176.
Huberman, B., 1988, The Ecology of Computation, North-Holland, Amsterdam.
Fayol, H., 1949, General Industrial Management, Pitman, London.
Gulick, L. and Urwick, L. (eds.), 1937, Papers on the Science of Organizations, Institute of Public Administration, Columbia University, New York.
Thompson, J., 1967, Organizations in Action: Social Science Bases of Administrative Theory, McGraw Hill, New York.
Tushman, M. and Nadler, D., 1978, “Information processing as an integrating concept in organization design,” Academy of Management Review, (3), pp. 613–624.
Radner, R., 1992, “Hierarchy: the economics of managing,” Journal of Economic Literature, 30(3), pp. 1382–1415.
Williamson, O.E., 1985, The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting, Free Press, New York.
Crum, C. and Palmatier, G.E., 2004, “Demand collaboration: what’s holding back?” Supply Chain Management Review, January/February, pp. 54–61.
Hau, L.L., 2004, “The triple-A supply chain,” Harvard Business Review, October, pp. 102–112.
O’Marah, K. and Souza, J., 2004, 21st Century Supply Chain: The Demand-Driven Supply Network, http://www.amrresearch.com/Content/View.aspx?compURI=tcm:7-17058.
Ireland, R. and Bruce, R., 2000, “CPFR: only the beginning of collaboration,” Supply Chain Management Review, September/October, pp. 80–88.
Aviv, Y., 2007, “On the benefits of collaborative forecasting partnerships between retailers and manufacturers,” Management Science, 53(5), pp. 777–794.
Harrington, L., 2003, “9 Steps to success with CPFR”, Transportation and Distribution, April, pp. 50–52.
Barrat, M. and Oliveira, A., 2001, “Exploring the experiences of collaborative planning initiatives,” International Journal of Logistics Management, 31(4), pp. 266–289.
VICS CPFR Committee, CPFR Guidelines, http://www.vics.org/.
Attaran, M. and Attaran, S., 2007, “Collaborative supply chain management: the most promising practice for building efficient and sustainable supply chains,” Business Process Management Journal, 13(3), pp. 390–404.
Samuel, K.E. and Spalanzani, A., 2006, “Developing collaborative competencies within supply chains,” In Proceedings of the 4th International Conference on Supply Chain Management and Information Systems, Taichung, Taiwan, July 5–7.
Skjoett-Larsen, T., Thernoe, C. and Andersen, C., 2003, “Supply chain collaboration,” International Journal of Physical Distribution & Logistics Management, 33(6), pp. 531–549.
Danese, P., 2006, “Collaboration forms, information and communication technologies and coordination mechanisms in CPFR,” International Journal of Production Research, 44(16), pp. 3207–3226.
Mintzberg, H., 1979, The Structuring of Organizations, Prentice Hall, New York.
Cederlund, J.P., Kohli, R., Sherer, S.A. and Yuliang, Y., 2007, “How Motorola put CPFR into action,” Supply Chain Management Review, 11(7), pp. 28–35.
Hadaya, P. and Cassivi, L., 2007, “The role of joint collaboration planning actions in a demand-driven supply chain,” Industrial Management and Data Systems, 107(7), pp. 954–978.
Mishra, B., Raghunathan, S. and Yue, X., 2006, “Demand forecast sharing in supply chains,” Working Paper, University of Texas at Dallas, Richardson, TX.
Kaipia, R. and Hartiala, H., 2006, “Information sharing in supply chains: five proposals on how to proceed,” International Journal of Logistics Management, 17(3), pp. 377–393.
Simchi-Levi, D. and Zhao, Y., 2003, “The value of information sharing in a two-stage supply chain with production capacity constraints,” Naval Research Logistics, 50, pp. 888–916.
Institute of Grocery Distribution (IGD), 1999, Category Management in Action, IGD Business Publications, London.
Free, C., 2007, “Accounting practices in the UK retail sector: enabling or coercing collaboration?” Contemporary Accounting Research, 24(3), pp. 897–933.
Martin, A., Doherty, M. and Harrop, J., 2007, Flowcasting, the Retail Supply Chain, Factory 2 Shelf Inc, http://www.flowcastingbook.com.
Hillman, M. and Hochman, S., 2007, Supply Chain Technology Landscape Has Radically Changed for Everyone, http://www.supplychainbrain.com/content/nc/world-regions/canada/single-article-page/article/supply-chain-technology-landscapehas-radically-changed-for-everyone/, January.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag London Limited
About this chapter
Cite this chapter
Samuel, K. (2010). Collaborative Demand Planning: Creating Value Through Demand Signals. In: Wang, L., Koh, S. (eds) Enterprise Networks and Logistics for Agile Manufacturing. Springer, London. https://doi.org/10.1007/978-1-84996-244-5_6
Download citation
DOI: https://doi.org/10.1007/978-1-84996-244-5_6
Publisher Name: Springer, London
Print ISBN: 978-1-84996-243-8
Online ISBN: 978-1-84996-244-5
eBook Packages: EngineeringEngineering (R0)