Demand Management in Fresh Food Value Chains: A Framework for Analysis and Improvement

Purpose – The purpose of this paper is to highlight the problems with demand management in fresh food value chains and to propose a framework for demand analysis and improved demand management.

Design/methodology/approach – The paper draws on empirical evidence from multiple case studies undertaken in the UK food industry.

Findings – Evidence from the case studies indicates a consistent misalignment of demand and supply, due to demand amplification, poor production systems and inconsistencies with information and data handling procedures.

Research limitations/implications – The case study evidence is limited to the UK context and is therefore unlikely to be representative of the global situation in fresh food value chains. The proposed framework is based on the case study evidence but has not been formally tested.

Practical implications – More collaboration, information sharing and joint planning from primary production through to retailing is critical if fresh food value chains are to function efficiently and effectively in retail environments where promotional activity creates significant uncertainty.

Originality/value – Demand management has received little attention to date, outside the industry framework of ECR. This paper is the first to propose a framework for improvement based on greater collaboration and joint planning that extends beyond the retailer-manufacturer interface.