Reducing the impact of demand fluctuations through supply chain collaboration in the Finnish retail grocery sector

Grant, David; Rantanen, Jonatan

Abstract

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: The purpose of the paper is to explore how a collaborative approach to supply chain management can be used to enhance supply chain performance when demand is fluctuating and uncertain. Enablers and barriers of collaboration will be assessed to provide insights into optimal methods of collaborating between supply chain partners. Research Approach: The study is a qualitative two-echelon case study of a grocery retail supply chain, focussing on a retail grocery wholesaler in Finland and its tier 1 small retail customers. An a priori conceptual framework for collaboration implementation that also details its impact on supply chain performance during periods of fluctuating and uncertain demand is developed through insights from the literature. The validity of the framework is explored through interviews conducted with key respondents at both echelon levels, which were analysed to evaluate and refine this framework. Findings and Originality: The paper demonstrates that collaboration can be a useful and successful technique to reduce costs and improve performance across the supply chain, particularly when demand is volatile and uncertain. This paper also provides insight into one alternative for implementing supply chain integration across several echelons and improving performance in the whole supply chain as a result. Research Impact: The paper provides a list of enablers and barriers for supply chain collaboration, discusses the importance of several key factors, and offers suggestions and guidelines for further research to generalise the findings. Practical Impact: The paper provides insight into the challenges and benefits of increased collaboration for grocery retail supply chain actors. It will be especially useful for those firms in the retail sector and other industries where demand is characterized by demand uncertainty and volatility.

Citation

Grant, D., & Rantanen, J. Reducing the impact of demand fluctuations through supply chain collaboration in the Finnish retail grocery sector

• Deposit Date: Nov 24, 2016
• Journal: Proceedings of the 21st logistics research network annual conference 2016
• Peer Reviewed: Not Peer Reviewed
• ISBN: 9781904564522
• Keywords: Supply chain management, Supply chain collaboration, Supply chain integration, Retail, Grocery
• Public URL: https://hull-repository.worktribe.com/output/445692
• Publisher URL: The Chartered Institute of Logistics and Transport website is available at https://www.ciltuk.org.uk.
• Contract Date: Nov 24, 2016