Factors influencing demand forecasting and planning in the South African apparel industry : a case study

F. Katemauswa and M.J. Naude

Vol 16 | Issue 2 pp. 1-17

Abstract

The apparel industry has become highly competitive and complex as consumers’ demands vary, thus pressuring organisations in this sector to invest in better demand forecasting and planning tools. Apparel supply chains are affected by both external and internal factors which impact on the performance of organisations in the market. These dynamics have become challenges in the forecasting and planning of demand in apparel supply chains. This study explores demand forecasting and planning factors influencing the apparel industry. The significance of this study lies in the importance of identifying the factors that influence planning for future demand in order to accurately estimate supply quantities required to meet consumer needs. The study contributes to the existing body of knowledge as it provides insight into the various factors that influence demand planning for a prominent apparel retailer within the South African industry. The study is exploratory and descriptive. Thematic analysis was used to analyse the data. The findings reveal that there are factors that influence how demand forecasting and planning practices are conducted in the apparel industry. These include competition, economic issues, weather, system issues, poor internal collaboration, supplier issues and social media. It is important that organisations in the apparel industry should take these factors into consideration when planning for demand to ensure consumer needs can be met, thus improving the performance of the apparel industry.

Keywords:       apparel industry; demand planning; South African apparel industry

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