Identification and reduction of the major factors of demand uncertainty on supply chain network

Abstract

Nowadays rapid change in business process, the availability of internet facilities, and e-commerce have made supply chain management (SCM) a burning issue for a consumer product manufacturing industry. Supply Chain Management has become a solution in improving competitiveness as well as reducing uncertainties. In a complex hierarchical network, SCM links upstream to downstream firms. In this research, demand uncertainties that influence supply chain performance have been identified and effective supply chain network works in an uncertain environment has been developed. This would help an organization to face the competitive business environment offering reduced demand fluctuation rate. A survey research has been conducted in a leading conglomerate in Bangladesh. Data have been collected by formal and informal interviews & fill up survey questionnaire. It is found that there are three major factors for demand uncertainties-availability of the Product in market, affordability of the customers, seasonal Effect. These factors affect business performance significantly. These also seriously affect the successful meet to demand. The study suggests that the studied company needs to apply Sell product in due payment method, creating new volume pack with reducing price, giving discount on off peak season for reducing demand fluctuation. The new framework of business process developed by this research will be helpful for similar organization in consumer product manufacturing industry.