Factors Affecting Demand Planning in the South African Clothing Industry
AbstractThe decline in the number of clothing manufacturers and the effect of globalisation have contributed to complexities in estimations and the scheduling of demand, as well as lead time management in the South African clothing industry. This article explores demand planning factors affecting the South African clothing industry, with specific reference to Gauteng. The study was necessitated due to demand planning challenges facing the South African clothing industry as well as economic factors which contribute to inaccuracies in clothing demand planning. The study makes an impact in the garment production factories of Gauteng in South Africa and adds to the philosophy of demand planning practices. It uncovers key factors affecting demand planning practices in the Gauteng clothing industry, South Africa. The study is explorative and descriptive in nature and it uses SPSS to analyse data. The findings revealed that there were factors affecting how demand planning practices were conducted in the clothing industry. The factors that have a significant influence on clothing demand planning include the scheduling of the manufacturing of customers’ orders, planning for fashion clothes, the use of the POS system, clothing imports, estimating future clothing requirements, recession and the effect of the late arrival of clothes. Therefore, clothing industry stakeholders should take these factors into consideration when planning for their demand to ensure customer needs can be fully met, thus improving the performance of the clothing industry.
Annadurai, K. & Uthayakumar, R. (2010). Reducing lost-sales rate in (T, R, L) inventory model with controllable lead time. Applied Mathematical Modelling, 34(11), 3465-3477.
Barnes, L. & Lea-Greenwood, G. (2010). Fast fashion in the retail store environment. International Journal of Retail & Distribution Management, 38(10), 760-772.
Bhardwaj, V. & Fairhurst, A. (2010). Fast fashion: response to changes in the fashion industry. The International Review of Retail, Distribution and Consumer Research, 20(1), 165-173.
Castelli, C. M. & Brun, A. (2010). Alignment of retail channels in the fashion supply chain: An empirical study of Italian fashion retailers. International Journal of Retail & Distribution Management, 38(1), 24-44.
Chaudhary, A. (2011). Changing structure of Indian textile industry after MFA (Multi Fiber Agreement) phase out: A global perspective. Far East Journal of Psychology and Business, 2(2), 1–23.
Chaudhry, H. & Hodge, G. (2012). Postponement and supply chain structure: Case from the textile and apparel industry. Journal of Fashion Marketing and Management, 16(1), 64–80.
De Villiers, G., Nieman, G. & Niemann, W. (2011). Strategic logistics management: A supply chain management approach. Van Schaik.
Folk, A. B., Bohen, D. C., Sanders, W. T. & Johnson, S. A. (2011). U.S. Patent No. 7,900,829. Washington, DC: U.S. Patent and Trademark Office.
Gereffi, G. & Frederick, S. (2010). The global apparel value chain, trade and the crisis: challenges and opportunities for developing countries. World Bank Policy Research Working Paper Series.
Gereffi, G. & Lee, J. (2012). Why the world suddenly cares about global supply chains. Journal of Supply Chain Management, 48(3), 24-32.
GGDA (Gauteng Growth and Development Agency). (2014).Business Intelligence. Sector fact sheet: textile, clothing, leather and footwear. Retrieved from http://www.lemmasijura.co.za/ggdasite/index.php/knowledgecentre/publicataions/category/28-sector-reports.
Hamister, J. W. (2012). Supply chain management practices in small retailers. International Journal of Retail & Distribution Management, 40(6), 427-450.
IQ Business. (2014). Clothing, textile, footwear and leather sector: A profile of the clothing, textile, footwear and leather sub-sectors. Fibre Processing & Manufacturing Sector Education and Training Authority.
Jonson, A. & Tolstoy, D. (2012). A thematic analysis of research on global sourcing and international purchasing in retail and firms. International Journal of Retail & Distribution Management, 42(1), 56–83.
Karnin, E. D. & Walach, E. (2015). U.S. Patent No. 8,818,875. Washington, DC: U.S. Patent and Trademark Office.
Kim, K. (2012). Demand analysis of clothing and footwear: The effects of price, total consumption expenditures and economic crisis. Journal of the Korean Society of Clothing and Textiles, 36(12), 1285-1296.
Larsson, J., Peterson, J. & Mattila, H. (2012). The knit on demand supply chain. Autex Research Journal, 12(3), 67-75.
Laudal, T. (2010).An attempt to determine the CSR potential of the international clothing business. Journal of Business Ethics, 96(1), 63-77.
Leedy, P. D. & Ormrod, J. E. (2014). Practical research: Planning and design. Tenth edition. United States of America: Pearson Education.
Maravelias, C. T. (2012). General framework and modelling approach classification for chemical production scheduling. AIChE Journal, 58(6), 1812-1828.
Mason-Jones, R., Naylor, B. & Towill, D. R. (2000).Lean, agile or leagile? Matching your supply chain to the marketplace. International Journal of Production Research, 38(17), 4061-4070.
Media Club South Africa. (2015). South Africa’s economy: Key sectors. Retrieved from: http://www.mediaclubsouthafrica.com/africa/37-economy/economy-bg/111-sa-economy-key-sectors.
Nattrass, N. & Seekings, J. (2012). Differentiation within the South African Clothing Industry: Implications for Wage Setting and Employment. Centre for Social Science Research.
Nenni, M. E., Giustiniano, L. & Pirolo, L. (2013). Demand forecasting in the fashion industry: a review. International Journal of Engineering Business Management, 5(37), 1-6.
Ni, Y. & Fan, F. (2011). A two-stage dynamic sales forecasting model for the fashion retail. Expert Systems with Applications, 38(3), 1529-1536.
Nordås, H. K. (2004). The global textile and clothing industry post the agreement on textiles and clothing. World, 7(1,000).
Oberhofer, M. A. (2012). Fashioning African Cities: The Case of Johannesburg, Lagos and Douala. Streetnotes, 20(01), 65-89.
Powell, D. & Steytler, N. (2010).The impact of the global financial crisis on decentralized government in South Africa. In Federalism and the Global Financial Crisis: Impacts and Responses’ conference, Philadelphia, PA and Rutgers University, Camden, NJ.
Priem, R. L. & Swink, M. (2012).A demand‐side perspective on supply chain management. Journal of Supply Chain Management, 48(2), 7-13.
Priest, A. (2005). Uniformity and differentiation in fashion. International Journal of Clothing Science and Technology, 17(3/4), 253-263.
Ramdass, M. K. (2007). An engineering management framework for the SA clothing industry with a focus on Kwa-Zulu Natal (Doctoral dissertation, University of Johannesburg).
Rexhausen, D., Pibernik, R. & Kaiser, G. (2012). Customer-facing supply chain practices—The impact of demand and distribution management on supply chain success. Journal of Operations Management, 30(4), 269-281.
Rotunno, L., Vézina, P. L. & Wang, Z. (2013). The rise and fall of (Chinese) African apparel exports. Journal of development Economics, 105, 152-163.
SACTWU (South African Clothing and Textile Workers Union). (2012). Manufacturing address list for sale.NBC (Northern) FMR064G. Johannesburg: SACTWU.
Salm, A. (2002). South African garment industry subsector study. South Africa: The ComMark Trust.
Schreiber, G. (2013). South African fashion handbook. Cape Town: Schreiber Media.
Sekerden, F. (2011).Status of Textile and Clothing Imports and Exports in Turkey. Fibres & Textiles in Eastern Europe, 3(86), 7-9.
Şen, A. (2008). The US fashion industry: a supply chain review. International Journal of Production Economics, 114(2), 571-593.
Shen, B., Choi, T. M., Wang, Y. & Lo, C. K. (2013). The coordination of fashion supply chains with a risk-averse supplier under the markdown money policy. IEEE Transactions on Systems, Man, and Cybernetics: Systems, 43(2), 266-276.
Staritz, C. & Morris, M. (2013). Local embeddedness, upgrading and skill development: global value chains and foreign direct investment in Lesotho's apparel industry.
Surchi, M. (2011). The temporary store: a new marketing tool for fashion brands. Journal of Fashion Marketing and Management: An International Journal, 15(2), 257-270.
Thomassey, S. (2010). Sales forecasts in clothing industry: The key success factor of the supply chain management. International Journal of Production Economics, 128(2), 470-483.
Vlok, E. (2006). The future of the textile and clothing industry in sub-Saharan Africa: The Textile and clothing industry in South Africa. Bonn: Friedrich-Ebert-Stiftung, 229, 227-236.
Wang, K., Gou, Q., Sun, J. & Yue, X. (2012). Coordination of a fashion and textile supply chain with demand variations. Journal of Systems Science and Systems Engineering, 21(4), 461-479.
Wark, M. (2006). Fashion the future: Fashion, clothing, and manufacturing of post-Fordist culture. Cultural Studies, 5(1), 61–76.
Pretorius, G. (2013). Improving planning at L’Oréal South Africa: A case study. Paper presented at the SAPICS 35th Annual Conference and Exhibition, Sun City, 2-4 June.
Wong, W. K. & Guo, Z. X. (2010). A hybrid intelligent model for medium-term sales forecasting in fashion retail supply chains using extreme learning machine and harmony search algorithm. International Journal of Production Economics, 128(2), 614–624.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers editorial team at IFRD edits and formats manuscripts to bring uniformity and standardization in published material.
Moreover, this work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work.