Enhancement of the Demand Planning Accuracy in the Retail Industry in Sri Lanka

Abstract

PurposeThe purpose of this study is to analyze different aspects of demand planning processes in different retail sectors, in order to identify the features in different areas of the demand planning, which contributes to the accuracy of the demand planning.Design/ Methodology/ ApproachA descriptive analysis was done to identify demand and demand planning process characteristics in the retail industry. Weighted Index Method was used to develop a maturity index for demand planning processes. A relationship between the process maturity level and the accuracy level was found to develop a benchmark guideline.FindingsDifferent aspects of the demand planning process such as demand planning strategy, process, technology investment, HR involvement, frequency and performance evaluation contributes to the accuracy of the demand planning. The results further indicate the process attributes related to each of these areas that can enhance the process accuracy level.Originality/ ValueThis study provides a maturity index to assess the maturity level of demand planning processes of the seven retail sectors. Also, it provides a benchmark guideline which can be used to assess any demand planning process in the retail industry, using which organizations can assess the maturity level of their existing demand planning processes