Supplier consequences of variation in demand planning information: An automotive industry case study

Actions made in one part of a supply chain affect other parts of the chain. Therefore, it is important for companies to consider the entire supply chain when planning their processes. Variations in demand planning information can lead to several negative consequences for the supplier. The purpose of this paper is to investigate potential consequences of variations in demand planning information. Furthermore, the purpose is to find related problem areas that could benefit from further studies. The study is based on a theoretical framework and empirical data from one case study in the automotive industry. The study has a dyadic approach and includes one focal company and their relationship to three suppliers. The major finding of the study is that variations in demand planning information can have a negative impact on both suppliers and on the OEM. In the study, several problem areas have been identified in the information sharing, demand planning and order handling processes. Even though variations in demand planning information may lead to different consequences in different supply chains, the potential problems are general. For that reason this study can also be valuable for companies in other industries