Future Customer Demand on the Supply Chain and Contribution of the Milk Run Concept at Iggesund Paperboard AB
Abstract: Abstract Since there is an increased uncertainty of future customer demand industries and firms have to be more responsive meeting this volatile demand. Making the supply chain more efficient is one way of doing this. Iggesund Paperboard AB (IPAB) wants a greater consciousness about their future customer demand of the supply chain and therefore an investigation of the predicted future customer demand is made. This investigation included secondary data analysis and in-depth interviews with employees at IPAB. The secondary data analysis gives an indication of the predicted future customer demand and the in-depth interviews describes today’s situation. Together they give an indication of where IPAB stands today and where they are heading in terms of future demand. Also an analysis of how to get a more efficient supply chain is made. The milk run concept is applied to a selected number of German merchants where the selection is based on historical data from the years 2014-2015. If the milk run concept is implemented the authors predict IPAB to meet the future customer demand together with a reduction of 31 % of the overall transportation cost.
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