The impact of advanced planning systems on the design of central inventory planning teams in retail
Date
2021-03
Authors
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: The retail supply chain has evolved significantly over the last three decades, with retailers becoming the dominant partner in the overall supply chain. Retailers are no longer passive recipients of products at stores, but now often control inventory flow from factories all the way into end consumers’ homes. This also means that retailers control most of the costs within the end-to-end supply. Finding ways to plan the flow of inventory through the supply chain in ways which are both cost-effective and achieve the optimal levels of inventory has become of paramount importance to achieve maximum profitability and to grow retail market share.Since the turn of the century,new technologies such as advanced planning systems have revolutionised the way manufacturers plan and optimise their supply chains,but retailers have been slow to adopt these technologies. However, over the last15 years this has changed and retailers are now increasingly looking towards advanced planning systems to optimise the end-to-end supply chain. These systems require centralised control of inventory planning decisions, which is a new concept for many retailers. Establishing central inventory planning teams has thus become a critical part of this transformation and many retailers are looking for guidance to do this optimally.
This research set out to identify and explore the different factors that influence the organisational design of the central inventory planning team in large retailers where planning is supported by advanced planning systems. A case study methodology was chosen and three tier 1 retailers in Denmark, the UK and South Africa respectively, were recruited for the study. Semi-structured interviews were used as the primary data collection method and the Documentary Method along with Activity Theory were used to analyse the results.The cases were first analysed individually, followed by a cross-case analysis to identify similarities and differences between the cases.
The output of this study is a new conceptual framework of six closely connected components that should be considered in the design of a central inventory planning team in retail. The connections between each of the components were also analysed to produce a conceptual framework which can be applied at companies with different levels of centralised inventory planning maturity. The framework was further validated through semi-structured interviews with practitioners and domain experts to establish its validity and usefulness outside of the three cases.
This research study contributes to the body of knowledge related to centralised inventory planning in retail by identifying and exploring the different factors that influence the organisational design of the central inventory planning team in large retailers where planning is supported with advanced planning systems. It also contributes to the area of research methodology by combining Activity Theory and the Documentary Method from the psychology field and applying them to a new environment. Finally it contributes to practice by delivering a practical conceptual framework which can be used by retailers to design and shape their central inventory planning teams.
AFRIKAANSE OPSOMMING: Raadpleeg teks vir opsomming
AFRIKAANSE OPSOMMING: Raadpleeg teks vir opsomming
Description
Thesis (PhD)--Stellenbosch University, 2021.
Keywords
Inventory control, UCTD, Retailing -- Supply chain management, Inventories, Retail