Balancing Demand and Supply Planning in the Food Supply Chain : Insights from a Dairy Industry Case Study

Abstract: Globalization and increasing demand for a variety of food products have contributed to challenges within the food industry (Zhu et al, 2018). The Food Supply Chain, FSC, involves several processes from production to distribution, involving actors from all the different steps in the network (Rohmer et al., 2018). The study qualitatively investigates a case within a large dairy company in Sweden. The study reveals that imbalance within the demand and supply planning-related practices of the supply chain contributes to overproduction and overestimation of demand, resulting in unsold or un-saleable products that lead to waste costs. The study also identified specific challenges faced by food supply chain organizations in managing demand, including insufficient communication, transparency, and the absence of leadership. The study further identified potential propositions for addressing these challenges, including implementing proper management over studied areas, improving data sharing and transparency, providing training and support, and fostering collaboration and communication within the supply chain. The unique findings of this study include the lack of proper steering and management in the field studied, which contributes to imbalances, as well as the impact of frequent employee turnover in demand and supply planning roles on forecasting demand and accountability. The study also suggests that implementing clear roles and responsibilities and providing education and training can be crucial for improving demand planning accuracy and reducing imbalances. These insights can be useful for organizations looking to optimize their supply chains through improving demand management practices and understanding the importance of leadership, communication, transparency, and knowledge sharing. This can lead to improved efficiency, cost savings, and overall performance.