Abstract
M.Comm.
As part of supply chain management, the handling of market demand information
forms one of the most important concepts in any supply chain. One of the specific
goals of supply chain management is to manage and co-ordinate the flow of
information from the original source to the final customer. If consumer demand forms
the activating element in the supply chain, it becomes clear that the process of demand
planning can play an active role in improving the effectiveness of a supply chain. The
correct management of information can thus greatly influence the level of integration,
the responsiveness, level of customer service and value added to the end product.
This is however not a one-sided approach where demand planning can be used as the
tool to facilitate supply chain synchronization. The opposite effect can also be found
that certain efforts to synchronize the supply chain can greatly improve the demand
planning process.
The fast moving consumer goods (FMCG) industry relies heavily on forecasted
demand figures due to the structure of this industry 5. Developing demand forecasts
forms a great part of the demand planning process and the accuracy, timely flow,
interpretation and final format of the information is of the utmost importance. A well
controlled forecasting process can form a solid foundation to address supply chain
problems, reduce the level of wastage, increase the product value to the customer and
improve the level of supply chain agility.
With this background, the aim of this study will be: To explore the subject of Demand Planning in the synchronization of a FMCG
supply chain. It will aim to show how an effective demand planning process
can positively influence the supply chain management process and form an
active element in supply chain synchronization.
To investigate certain supply chain strategies on demand planning to indicate
the level of integration between these two processes. In order to do this, a
theoretical study needs to be done on Demand Planning and into the elements
thereof.
Within this structure it will be possible to formulate a structure to evaluate the concept
of Demand Planning.