Selecting the right planning approach for a product

The purpose of this research paper is to offer a solution to differentiate supply chain planning for products with different demand features and in different life‐cycle phases.

A normative framework for selecting a planning approach was developed based on a literature review of supply chain differentiation and supply chain planning. Explorative mini‐cases from three companies – Vaisala, Mattel, Inc. and Zara – were investigated to identify the features of their innovative planning solutions. The selection framework was applied to the case company's new business unit dealing with a product portfolio of highly innovative products as well as commodity items.

The need for planning differentiation is essential for companies with large product portfolios operating in volatile markets. The complexity of market, channel and supply networks makes supply chain planning more intricate. The case company provides an example of using the framework for rough segmentation to differentiate planning.

The paper widens Fisher's supply chain selection framework to consider the aspects of planning.

Despite substantial resources being used, planning results are often not reliable or consistent enough to ensure cost efficiency and adequate customer service. Therefore there is a need for management to critically consider current planning solutions.

The procedure outlined in this paper is a first illustrative example of the type of processes needed to monitor and select the right planning approach.