Factors Affecting Demand Planning in the South African Clothing Industry

Matsoma Nj and Ambe Im

Journal of Economics and Behavioral Studies, 2016, vol. 8, issue 5, 194-210

Abstract: The 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.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arjebs:v:8:y:2016:i:5:p:194-210

DOI: 10.22610/jebs.v8i5(J).1443

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