Demand planning practices in the Gauteng clothing industry

Abstract

The clothing industry is multifaceted and is characterised by garments with a short life cycle, unstable customer needs and varying fashion styles. This affects the accuracy of demand planning. In SA, the clothing industry has experienced a decline in the number of clothing manufacturers and manufacturing outputs as well as fluctuations in employment. This study investigates demand planning practices in the Gauteng clothing industry. A descriptive and exploratory study was conducted based on a semi-structured questionnaire. The structured data was descriptively analysed using SPSS and inferentially analysed using the Kruskal‒Wallis test as well as content analysis for the unstructured questions. The findings revealed that demand planning practices in the Gauteng clothing industry are conducted using the hierarchical and optimal demand planning approaches. The results also revealed that there are certain factors which affect the way demand planning is conducted in the clothing industry in Gauteng. These factors includes: scheduling, fashion clothes, point of sale system, imports, estimation, recession and lead time. Furthermore, the study revealed that there are differences in the factors affecting demand planning regarding the three key clothing stakeholders (fabric suppliers, clothing manufacturers and fashion designers). The study revealed that key demand planning practices employed in the Gauteng clothing industry are production planning, uncertainty prevention, forecasting and production machine capabilities. These practices are important attributes of the hierarchical and optimal demand planning approaches. The study recommends that the hierarchical demand planning approach is more effective when planning for basic clothes (which involved planning horizon of twelve months), while the optimal demand planning approach is effective when planning for fashion clothes (which involved planning horizon of six months). The study recommends that the Gauteng clothing industry should consider factors which affect demand planning when planning for customers' needs as they affect the level of productivity in the organisation.