Designing a demand chain management framework under dynamic uncertainty

Abstract

Purpose The purpose of this paper is to put forward a demand chain management (DCM) framework underpinned by the alignment theory and applies it to investigate the fashion apparel (FA) industry in China under the impacts of the latest economic transition. Design/methodology/approach An exploratory multiple case study methodology involving five Chinese FA firms, each with a different business model and ownership type, was employed. Semi-structured interviews, onsite observations and review of company documents were conducted to collect information for analysis. Findings Using a conceptual DCM framework as a guide for analysis, the study finds that companies with a higher level of alignment with the external market situation and among the three internal DCM dimensions, namely, market management, supply chain management (SCM), and organization management, appear to perform better under the rapidly changing economic conditions in China. Research limitations/implications This study contributes to knowledge by reviewing thoroughly the literature on SCM evolution and develops a DCM framework based on alignment theory that represents the state of the art in this area. By extending the administration-integration-production-development (A-I-P-D) logic set adopted in the alignment theory, this study has also equipped the proposed framework with an empirical tool to measure alignment. Practical implications By applying the framework to examine the Chinese apparel industry under the impacts of the latest economic transition, this study provides practitioners in the industry with a framework to help formulate strategies and a tool to measure alignment. The findings of the case study also offer insights to the industry to thrive in the rapidly changing businesses environment with dynamic uncertainties. Originality/value This study extends the application of the A-I-P-D logic set under the alignment theory to the SCM field. This endeavor successfully transforms the proposed DCM framework from a theoretical concept to a practical tool to help evaluate empirically the alignment and strategic fit of a firm and potential relationship with firm performance. As the Chinese FA market has increasingly evolved under the impact of the globalization, the findings of this study not only assist the local FA companies in coping with the dynamic uncertainties but also shed light on the future developments of the global FA industry. Besides, the alignment measurement tool embedded in the proposed DCM framework can help enhance the chances of business success during implementation.

Research on Optimal Design of Short-Life Cycle Product Logistics Supply Chain Based on Multicriteria Decision Model

“…e technology has accumulated for many years, and the business breaks the border and gradually merges. e multimedia products, services, and management also have spill-over effects [3][4][5]. By integrating big data of consumers, we continually improve marketing and payment experience, optimize product procurement and pricing, and activate online and offline trading.…”

Global Value Chains’ Disaggregation through Supply Chain Collaboration, Market Turbulence, and Performance Outcomes

“…This research provides important insights on successful buyer-supplier collaborative efforts to improve firm performance in global value chains of multinational organizations headquartered in developed countries and having long and complicated supply chains in emerging countries. As the Indian market is constantly evolving due to globalization, the findings of this study assist the US based global companies in doing business with emerging economies and coping with the dynamic uncertainties of the market demand [70]. Our research investigates the relationship between collaboration level, and relational and operational outcomes, along with the impact of market turbulence on the firm performance.…”

“…In turbulent market conditions, collaborating firms will try to operate more efficiently by reducing operating costs in GVCs and be more effective by providing better quality and improved value to their customers to retain their consumer base. This downstream, consumer-directed impact on a firm's operational performance strengthens global value chains through market uncertainties and turbulence in collaborative relationships [70].…”

“…Other literature suggests that performance advantages from relationships come from the comparative advantages enjoyed when a firm engages in their own core competency, while their partners engage in a separate core competency [67]. In this paradigm, the relationship provides access to operational advantage which then provides a performance advantage, rather than the relationship providing a direct, strategic performance advantage [39,[68][69][70].…”

Application of Fuzzy Analytical Network Process (ANP) and VIKOR for the Assessment of Green Agility Critical Success Factors in Dairy Companies

“…Very weak (0,0,1) Weak (0,1,3) Weak to moderate (1,3,5) Moderate (3,5,7) Almost good (5,7,9) Good (7,9,10) Very good (9,10,10) In this paper, the Fuzzy Analytical Network Process (ANP) and VIKOR methods are used to find and evaluate the green agile factors and sub-factors. The ANP is a generalization of the Analytic Hierarchy Process (AHP), popularly known as AHP.…”