Impact of demand management in the UK food delivery sector assignment 2020
The research mainly focuses on the importance of demand management in the business context of the UK food delivery sector.
As supply chain management has assisted the business process for maintaining simplified operations, demand management help to comply with the requirement and demand of customers.
The principles of demand management are also evaluated through establishing relationship between demand management and customer demand in the food delivery sector.
The inductive research approach has been adopted to provide justification on the specific data sourcing, collection and data interpretation methods to identify the significance of demand management and its alignment within the food delivery sector in the UK.
The exploratory research design is chosen to explore new insights on the demand management issue in the food delivery service sector.
The employees and managers of Deliveroo are asked about their opinions regarding the benefits of demand management.
Employing efficient demand management in companies reduce the missed delivery issues and assist in fulfilling the customer order to ensure their satisfaction and also to improve the operational costs.
The food delivery companies need to improve on management of their demand responsiveness and additional demands through demand sensing, planning, and forecasting strategies so that the customer demand and the companies supply chain capabilities are well matched and coordinated.
Thus, it can be deduced that following an appropriate demand management approach is important to ensure an efficient and effective supply chain management.
Demand management is defined as the approach of the supply chain which assists the business to maintain equilibrium between the demand and needs of customer with the capabilities of suppliers (Hayes, Melatti, Mancini, Prodanovic, & Tronci, 2016).
The managerial process is concerned with the synchronization and forecasting process of demand with the procurement, distribution and production capabilities.
Thus, the orientation of the customer demand with supply of the raw ingredients assist the firms to deliver quality product for retention of the customers.
Following a stable demand management approach enable the business to enhance their productivity through anticipating the needs and requirements of customer.
Unlike other trades, the food delivery business has also been flourished due to providing customer comfort and satisfaction.
The business range of restaurants has also been increased which provides them a field for enhancing quality to gain customer from diversified range.
As the businesses have shifted their medium through a digital medium, the span of reaching the customers has been enhanced by evaluating their demands and needs (Holguín-Veras, Sánchez-Díaz, & Browne, 2016).
The assessment of customer feedback and purchase pattern provides an opportunity for businesses to improve their product and service line-up which supports the principle of demand management.
In this research, the concept of demand management and importance of following the measures of demand management in diversified economy are described.
Moreover, the impact of following the principles of demand management in the UK food delivery sector is also described in the study.
Supply chain management has become a very crucial aspect of every business as it involves the importation of raw materials and delivery of the final product to end consumers with earning the profit.
The main aspects of supply chain management are considered as customer relationship management, customer service management, manufacturing flow management, order fulfillment, returns management, commercialization and product development, supplier relationship management, and demand management (Campbell, Kalahasthi, & Wojtowicz, 2018).
So, executing each and every stage helps to control the cost and quality of final product with maintaining customer satisfaction.
The important aspect of demand management is to execute and develop the contingency planning if the operational approaches are interrupted which help to meet the demand and requirement of customer.
Communication between suppliers is also maintained on a regular basis which helps to evaluate the quality and pricing of the product for delivery of quality products in reliable pricing.
The important aspect of demand management is demonstrated through the identifying approaches of improving the operational flexibility with the reduction in variability of demand.
The reduction in the demand variability assist the companies to reduce the operational cost and undertake suitable decision related to business functions.
Due to the emergence of digital medium, the pattern of customer preferences and demand have changed rapidly which has made the forecasting process complex for the companies (Heckmann, Comes, & Nickel, 2015).
The increased operational flexibility assists the business to implement any suitable strategy against the external threat which is identified through evaluating the customer demand and competitor analysis.
The main motive of demand management is to remove the managerial practices that enhance variability. In addition, the introduction of policies and procedure help to continue the business functions with aligning customer demands.
Food delivery businesses have rapidly enhanced due to diversified delivery options offered by the restaurants and the channels along with different food item and cuisine are offered by the restaurants which add value to consumers.
The business has become very much popular due to providing immense comfort to consumers by timely delivery of their intended product (Dablanc, Morganti, Browne, & Saidi, 2017).
From a recent report, it has been published that 60% of UK citizens had availed the service of digital food delivery and they ordered twice in a month on average which demonstrates its frequency and consistency in availing the service.
The marketers of business have focused on the diversified approaches of customer preferences for flourishing the business process.
The main reason for the growth of UK food delivery system includes the simple management of menu line-up, convenience, cost-effective and hassle-free which have enhanced the opportunity of progress in the particular field of business.
The food delivery sector of the UK has been enhanced by 3.5% which also raised the profitability of the restaurants and fast-food chains that are located in less-congested areas(Hayes, Melatti, Mancini, Prodanovic, & Tronci, 2016).
Mainly two types of food delivery applications are demonstrated which are aggregators and new systems.
Aggregators mainly took orders via phone and deliver to the consumers where the choice for the customer has become limited.
On the other hand, implementation of digital medium assists businesses to deliver the diversified product by maintaining equilibrium of customer demands and product line-up.
The research focuses on the influence of demand management in the UK food delivery sector which indicates that one particular aspect of supply chain managementis enforced in the study.
Due to the rising number of business, the unique product or service line-up along with quality delivery of product help to gain customer satisfaction.
Demand management is considered a very crucial function for every business process as the analysis of customer requirements provides an in-sight of the orientation of product line-up to gain competitive advantage (Caicedo, Lopez-Ospina, & Pablo-Malagrida, 2016).
Being a notable sector, the food delivery industry has approximately reached the revenue generation of $20 billion by the year 2025.
There isa wide range of research which focuses on the importance of supply chain management for regulating the business process.
But the detailed discussion related to demand management is limited which is demonstrated as the rationale of particular research. In addition, customer buying behavior towards the restaurants and fast-food chains are also enforced for aligning with customer demands and suppliers (Cambero & Sowlati, 2014).
The approach of managing customer demand and needs are also evaluated through the principles of demand management which makes the study relevant to the contemporary context.
The study focuses on the impact of following the principles of demand management for executing the continuous business process of the UK fast food delivery system. Demand management help to design the products and services for the customers effectively.
The enhanced quality of forecasting process helps the businesses to reduce the finished good inventory and reduce the quantity and price of raw ingredients for lessening in operational cost for business.
The smooth operation of corporate enables the business to restrict the costs associated with logistics and inventory along with developing the utilization of assets (Christopher, 2016).
All of the strategic processes of business such as marketing, production, finance, logistics, and purchasing are accomplished systematically though the demand management process.
The importance of maintaining regular communication between suppliers and the manufacturing team for executing the business goal of gaining customer satisfaction.
The business process has also been enhanced through interaction with suppliers and distributors as the demands and choice pattern of customers are accomplished systematically (Strengers, 2018).
Being an emergent industry, food delivery businesses have diversified their business operations by offering different types of food item in reliable pricing which make it attractive to the UK Citizens.
The research is considered as significant as it describes the important measures for the businesses to concentrate on the supply chain, logistics, and inventory along with demand management.
The pattern of evaluation of customer need and requirement also assist in improving the quality of the study.
The research aims to evaluate the influence of demand management in the business processes of food delivery companies in the context of the UK.
The objective of the research is as follows.
- To determine the concept of demand management
- To evaluate the importance of demand management in an economy
- To assess the impact of demand management in the food delivery sector of the UK
The research questions for the study are as follows.
- What is the concept of demand management?
- How demand management has affected the industries and economy of country?
- What are the impacts of demand management in the field of UK food delivery sector?
The research on the demand management of UK food delivery sector has been categorized into seven chapters which are listed as follows.
Chapter 1: Introduction
In this chapter, the overview and background of the topic are clearly described which helps the reader to understand the progress of research. The aim, objective and research questions are demonstrated clearly and the structure of research is also demonstrated in the section.
Chapter 2: Literature review
The background information related to demand management is described in the chapter for demonstrating its importance for UK food delivery businesses. Extracting authentic and relevant data from secondary sources help to construct the literature review section accurate with the main topic content.
Chapter 3: Research methodology
The process or strategy for progressing the research is mentioned in this section which provides a clear justification for collecting relevant data and interpret them to conclude the topic.
Chapter 4: Survey or experiment
The process of collecting factual details under primary data analysisis demonstrated in the section and the details related to the participants and survey process are included in the section.
Chapter 5: Results and analysis
The interpretation of gathered data has been represented in this section which provides an in-sight related to the organization of demand management for expanding the business process.
Chapter 6: Discussion
Comparison of the secondary data in the literature review and the analysis of data help to reflect the important aspects related to the topic.
Chapter 7: Conclusions and recommendations
In this section, the summary of the overall topic is included and possible future solutions are also recommended for enhancing the quality of the study.
Demand management is an important factor for managing the internal business functions for adding value to the stakeholders such as suppliers, consumers, shareholders, and distributors.
The logistics and inventory are properly maintained through negotiating with demand management which helps to deliver quality products in affordable pricing. The demand management importance is also associated in areas of capacity development and demand planning.
The business range of restaurants has also been increased which provides them a field for enhancing quality to gain customer from diversified range.
The restaurants have established a partnership with the food delivery companies for increasing their customer range which provides the business an opportunity to increase their customer base. Regular communication with restaurants assists the business to deliver quality and fresh products to the consumers which are the main advantage of demand management. In this research, the concept of demand management and importance of following the measures of demand management in diversified economy are described. Moreover, the impact of following the principles of demand management in the UK food delivery sector is also described in the study.
The demand management is a methodology of planning which also includes prioritization of demands in time when supply is not sufficient to meet the demands. The concept of demand management has gained relevance since the last decade due to increased need for streamlining the supply chain process and in times when the companies are engaging more in lean manufacturing capabilities. According to Campbell, et al., (2018), demand management is considered a crucial component of supply chain management which has established a stable connection between customer demands and supply chain for progressing in the business process. In the process of supply chain management, the demand management is analyzed by F. Bustinza et al. (2013) to assist in gaining stability among the supply chain capabilities and the requirement of the customers. It can be understood that the demand management process works towards matching the demand with the supply to make sure that there are minimal disruptions occurs in supply chain function. In the views of Hung Lau (2012), demand management is considered as a process to gather new ideas and needs for the development of a product/ service portfolio. The book of Chase (2013) explains the concepts of demand management in relation to supply chain and value network under demand-sensing capabilities, demand-shaping processes,demand translation, and orchestration.
The demand sensing is to judge the market to comprehend the change in the market in response to demands, demand shaping process is required to shape the market by stimulating demands which can be done through launch of new products or new merchandising ways or introduction of new marketing program or sales incentives. The demand translation is to convert the demand from outside to inside for manufacturing and distribution into appropriate channels such as web, retail, and the demand orchestration to make market trade-off based on the demand opportunity and risks (Chase, 2013).The book of Swink et al. (2017) explains the demand management process and activities as a means to manage customer demand and to deliver them with right quantity of the products at right time. It elaborated that the demand-driven approach of forecasting integrated the supply channels online and offline retails and their partners to generate a forecast and make adjustment on the forecast as the demand or market condition changes for better responsiveness and reducing the pressure on the supply chain function. From this, it can be realized that demand management takes part to optimize the production planning, inventory management, and logistics function and also encourage the internal members to collaborate with external supply chain partners in the process of managing customer demands.
Due to the rising number of businesses, the aspect of demand management has become very important for fulfilling the demand and needs of the customer. The food delivery business has got immense popularity among UK citizens due to the delivery of customer comfort and satisfaction (Hu, Chiu, & Zhu, 2015). Communication between suppliers and distributors helps to control the useful resource and budget allocation for the particular product and services which assist them to execute the business goal. The reduction in the demand variability assist the companies to reduce the operational cost and undertake suitable decision related to business functions. According to Hayes, et al., (2016), demand management depends on the synchronization and forecasting process which creates the connectivity between customer demand and supplier. The communication between suppliers and manufacturers helps to execute the quality final product which is able to attract most of the customers. The strategic process of demand management comprises the sub-processes for effective design of operational system which matches the principles of demand and supply. The sub-processes are determination of forecasting process, goals of demand management, flow of plan information, identifying synchronization approach, development of contingency management system and framework metrics expansion (Jia, Gong, & Brown, 2018). In the sub-process of determination of forecasting process, the strategies of the business are reviewed and wide range of supply chain networks with bottlenecks are described. On the other hand, the focus and goal of demand management are also executed effectively for aligning the business functions with the strategic principles.
According to Strengers, (2018), the forecasting process is very crucial in terms of inclining the product quality and price for adding value to the consumer. The level of forecasting process and determining the data sources according to the range of customers is accomplished through different techniques. Selection of the most suitable and appropriate process help to reduce the wasted and over-demand product or services (Dablanc, et al., 2017). Recent trends and festivals may increase the demand associated with a particular product which is analyzed in a preliminary stage for meeting the demands. Under the sub-process of plan data flow, the sources of information and data requirements are properly analyzed which helps to share the forecasted data. The business strategy is shaped through the input and output of business which helps to demonstrate the productivity of business.
In the synchronization process, the requirement for long-term planning is evaluated and the capabilities of manufacturing and supplying are evaluated for identifying the potential field of improvement which helps the business to progress. According to Caicedo, et al., (2016), the allocation approaches of work process are also included under synchronization procedure for maintaining the relationship between suppliers and consumers. The potential interruptions for supplying the raw ingredients help to implement the contingency management system for commercializing the business process. The procedures of event response for the possible event are accomplished through the system which has created an alignment between company performance and demand management. The business objectives are also accomplished systematically through following the principles of supply chain.
The strategies related to demand forecasting are demonstrated through decreasing lead times, application of data-driven value chain, use of a buffer, focusing on visibility of supply chain, gaining experience, action plan for organizing volatility and maintaining the supply chain demands and needs. According to Holguín-Veras, et al., (2016), the availability of the product or service in the market and the forecasting of the supply chain process are executed by following the principles of demand management. The variability of demand and needs of customers are also prioritized which helps the businesses to transform their product or service line-up with that of consumers (Caicedo, Lopez-Ospina, & Pablo-Malagrida, 2016). The approaches of reducing the lead time for supply chain help to respond the queries and demands of customer which supports the principle of business growth. On the other hand, longer lead times raise the chance of bullwhip effect which restricts the accomplishment of business growth. The business has become very much popular due to providing immense comfort to consumers by timely delivery of their intended product which demonstrates the fulfillment of demand management systematically.
In the era of business via a digital medium, the rating and comments to the particular product of other customer matter a lot for choosing particular brand. Proactive adjustment and timely review of the buffer parameters such as time, inventory and capacity help to assure the better handling of demand variation (Holguín-Veras, Sánchez-Díaz, & Browne, 2016). The visibility of the supply chain is also accomplished through organizing demand management which enables the business for managing the signal demand in an accurate fashion. The value to the consumers is accomplished through interacting with the customers for responding the queries or problems of customer in quick succession (Christopher, 2016). The demand variation and change in shopping patterns of customers based on the demographics, festivals and decision making are accomplished through the previous operational experience of employees which assist them to earn competitive advantage.
According to Hu, et al., (2015), the volatility of the business is also maintained in a structured format which helps to provide the capability and capacity for responding the diversified customer behavior. Wide range of product or service line-up generally assists the business to concentrate on the demand and needs of customer which assist the business to establish a particular pattern for customer preferences. The alignment of supply and demand management help to uphold the balance between delivering products with market availability. Due to globalization and rapid application of information technology, the operations of business have been boosted which also enhances the competition in particular market (Dablanc, et al., 2017). Controlled resource usage and budget allocation also help in disrupting the unexpected supply. In the food delivery sector, the availability of the products matters a lot at all the time of operation which adds value to consumers. The operational efficiency of the business has also been flourished through the application of demand management which provides the businesses competitive advantage.
The importance of pursuing demand management has been associated with business planning, investment analysis and supply chain process management. The significance of tagging along the demand management activities is also pointed in the study of Sheu (2010) stated that demand management is related to the customer, their demands and about the market which is helpful in managing and lowering the variability in customer demand for a product or service and also play a role in improving the operational flexibility in supply chain management. According to Taylor and Fearne (2009), the practice of demand management is important for posing control over the availability of product and also for smooth introduction of the products in the market. The significance of following demand management is also considered by Wynn and Olubanjo (2012) to develop ability of business to respond to changes and also to develop ability to deliver the product by boosting the sales team confidence. Also, the research work of Esper et al. (2010) mentioned that demand management holds importance in streamlining the process of product approval and initiatives that maximise the value for the business. Thus, it can be understood that following demand management makes an organisation more efficient by adoption of working methods for their product delivery and market introduction that are effective.
For any business operation, demand management plays a key role in monitoring and reporting the business pattern activities of customers and their user profiles. In support of this, the study of Alonso et al. (2013) stated that the activities of demand management take account of the business activities in relation to the customers/ suppliers along with the supervision and administration. Similarly, the study of F. Bustinza et al. (2013) pointed out the relevance of demand management in relation to reshaping the relationship among the partners of the supply chain for achieving precision in the demand forecasts for an effective process of demand management. Thus, it can be said that there have been improvements in the relations of the supply chain partners as they execute a closed-loop process to gather and share information to analyze and predict the demand. Here, the demand management process is seen to integrate the participants of the supply chain for gaining right information about the product quantities, rights kind of products based on the market conditions and customer requirements/ demands.
The demand management importance is also associated in areas of capacity development and demand planning. Jack and Powers (2009) state that demand management work in close association with capacity management in order to manage the ability to meet customer demand. Jacobs et al. (2011) viewed that the demand management working closely with the demand planning in supply chain processes to meet the future business needs and anticipated demands for products and services. Thus, it can be said that demand management and demand planning together can help in improving the forecast accuracy for a product or service, improve the scheduling of supply chain process and can be used to optimize the management of labor to meet the demands. The relevance of following demand management can be understood in reducing demand risk and variability which is required for effective planning in responding to internal and external changes and in lowering the costs due to improved asset utilization.
It can be understood from the study of Lee et al. (2011) that following demand management plays a role in managing the demand with supply in relation to a business opportunity arising from increased customer demands and ensure that there is no loss in the business capacity in managing the demand variations. The study of Gligor (2014) mentioned the demand management relevance in three areas in the supply chain operations and management. It stated that demand management activities relate the product forecast based on economic indicators and sales order and activities. The demand management also associates the supply chain capabilities with the increase or decrease in customer demand to optimize use of resources, labor, stocks and service level and lastly it plays a part to make adjustments to prices in relation to the change in market conditions.
On the other side, the study of Heikkilä (2002) argued that pursuing of demand management by companies is important to improve customer service and protect their profit margin by gaining accuracy in their product offering. This means demand management offers a way to meet customer demands in an efficient way by giving the right product to right customer at right time. Thus, the review of above studies highlight the significance associated with the pursue of demand management is necessary for companies in various spheres such as to manage demand risk and demand variability, optimize the labor-management and processes of supply chain management, in managing the balance of demand and supply of a product/ service, control of product availability, cost reductions, revenue protection, and improvement, customer service improvement, streamline of business operations, respond to business needs and changes.
Few studies have also linked the importance of pursuing demand management in supporting the business strategy. The study of Jüttner et al. (2010)stated that the use of demand management is to maintain the growth strategy as the demand management provides an analysis of the industry volume to estimate products/ services to gain market share. It is also stated by Jüttner et al. (2010) that positioning strategy is also supported by the use of demand management as it assists in managing the sales of products/ services and positioning finished goods at centre for distribution to trim down working capital based on the demand economics. Similarly, the study of Nooraie and Parast (2015) found that demand management is central a company’s investment strategy as the activities of demand management helps in management of marketing expenditure, capital investments and improve budgeting on the research and development projects based on the demand forecasting activities for maturity of existing product portfolio and also for new products.
A recent study byDeshmukh and Mohan (2016) also analyzed that practice of demand management is essential for an efficient and effective supply chain processes management. The study stated that strategies such as modeling, forecasting demand, and supply planning impact the process of demand management. It can be added that demand management provides precise information so that the demand and supply for a product can be aligned as per the customer demands and the market changes which provides a good stock rotation and leads to efficient customer service. Mahmood and Kess (2016) further elaborated that employing efficient demand management in companies reduce the missed delivery issues and assist in fulfilling/ completing the customer order to ensure their satisfaction and also to improve the operational costs. Thus, it can be deduced that following an appropriate demand management approach is important to ensure an efficient and effective supply chain management. On the other hand, Lambert and Enz (2017) analysed that the issues and relevance of following demand management importance in supply chain area and argued that demand management importance is not fully recognised and it is also not widespread towards the area of supply chain management and in achievement of an effective and efficient supply chain coordination which is possible through pursue of demand management skills and capabilities.
There is narrow literature on the influence of maintaining the demand management practices in the context of the food delivery sector in the United Kingdom. The existing studies highlight varying influences in the food delivery service market which points towards the pressure on keeping the demand management strategies/ practices. There is a need in the food delivery sector for a proper demand management strategy as it was imperative towards balancing the needs/ demands of the customers, for continuous demand planning and to align with the supply chain management capabilities. According to Fernie (2014), the United Kingdom food delivery market is changing which requires an appropriate balancing of customer demands to lower the demand variability and reduction of supply chain operational costs.
It is stated in the study of Yeo et al. (2017) that the business of food delivery had undergone rapid changes in the past few years owing to the high degree of competitiveness and popularity of online platforms in the UK which is driven by customer demands. The study of Taylor and Fearne (2009) found that there is a continuous poor alignment of supply and demand in fresh foods sector which results in an inefficient supply chain processes and management in the context of UK. It is also stated that this non-alignment between demand and supply is due to additional increase in demands, lack of precise information, poor system of production and poor practices of data handling. Thus, it can be said that there is high pressure to keep up the practices of demand management in the food delivery to achieve a proper arrangement between the demand and supply for improving the value chain processes.
The study of Datta and Christopher (2011) pointed out that there is inconsistency related to demand information due to lack of information on the market dynamics in food delivery sector, less real information on the growth potential and the customer requirements or behavior pattern. It can be stated that insufficient information can lead to increase the wrong kind of service capacity which can be avoided through precise demand-based information which can be used for operational purpose and market tactics development. Akhtar et al. (2012) further elaborated that there is difficulty in matching the supply and demand in the foodservice industry in the UK which affects the food delivery players’ ability to respond to the market’s primary demands. It can be added that this puts pressure on the use of demand management strategy in the food delivery sector to anticipate market dynamics and become responsive to customer demands. On the different side, it is also analyzed from the study of Bajželj et al. (2014), the demand management in the food sector is required to meet the growing food demands and also for climate mitigation.
The authors consider the demand-driven approach of demand management in achieving global food security as demand-based information can be assistive in decreasing the food wastes, lower carbon footprint and can provide information on the projected demand that will be useful in planning and steering the agricultural expansion. In the views of Shokri et al. (2010), the food delivery companies need to improve on management of their demand responsiveness and additional demands through demand sensing, planning, and forecasting strategies so that the customer demand and the companies supply chain capabilities are well matched and coordinated.
According to Fernie et al. (2010), there is an ongoing need in the food delivery market to improve in the skills and capabilities in managing demand to lessen the demand volatility and at the same time, improve on their food delivery demand visibility. It can be understood that the food delivery companies can improve on their ability to quickly take action towards the increasing demands by strengthening the ability of their demand management. In addition, the study of Dani (2015) pointed that demand management is required in food delivery service sectors for the innovation and their business growth which is dependent on the company’s ability to act in response to market changes and customer demands. Thus, there are different levels of pressure pointed towards the maintaining demand management for the food delivery sector ranging from synchronizing the demand with the companies capabilities in supply chain management to aligning demand and supply to improve market responsiveness to sustainability by achieving the food security through improving the demand management capabilities in the sector.
Based on the above literature review, it has been summarised that demand management activities relate the product forecast based on economic indicators and sales order and activities. The demand management also associates the supply chain capabilities with the increase or decrease in customer demand to optimize use of resources, labor, stocks, and service level and lastly it plays a part to make adjustments to prices in relation to the change in market conditions.The food delivery businesses have been enhanced due to technical improvement. The business has become very much popular due to providing immense comfort to consumers by timely delivery of their intended product which demonstrates the fulfillment of demand management systematically.
The research focuses on the impact of demand management in the field of executing the regular business process for UK food delivery companies. Planned research processes are followed for executing the goal of research in a stepwise manner. Following proper research approach and design provides an important field for the researcher to progress into an in-depth analysis of the different aspects of demand management. The perspective of UK food delivery businesses is also included in a systematic way through following pre-planned and justified research methodology. The suitable research strategy for evaluating the topic critically is reflected in this section which is followed by the ethical considerations and indicating the reliability and validity of the study. The principles of research methodologies are categorized through research onion proposed by Saunders where all the suitable types of methods are represented with the help of onion structure.
Research purpose is characterized as the reason and justification for progressing the research into defensible manner. In the planning stage, the aim and objective of the study are discussed where the main goal of the study is determined. The research aims to evaluate the influence of demand management in the business processes of food delivery companies in the context of the UK. It is very crucial for the researcher to identify the answer to the research question and identifying the response of ‘why’ and ‘how’ related to the study. The personalized view and opinion of the researcher are excluded and the authenticity of the research is maintained.
The main purpose of the study is to assess the impact of demand management in the business courses of food delivery companies in the UK. The research is progressed through implementing a proper research approach, philosophy, and design which helps to meet the goal of the study. The quality of research has been enhanced by adding quality data from primary and secondary sources with the following ethical considerations. Following the principles of research onion help to execute the research purpose effectively which is followed in the study.
Research philosophy is coined as the informant of the researcher’s observation towards the progression of research by executing the stages of data collection and analysis (Flick, 2015). The authentic source of information and the knowledge type required for the study are aligned with the principles of topic for completing the research effectively. Mainly, four types of research philosophies are applied for executing research goal which comprises positivism, realism, Interpretivism, and pragmatism. Among them, positivism research philosophy describes application of factual details related to the topic of supporting the argument of the study which is gathered from primary sources. Positivism research philosophy assists the researcher to meet the objectives by establishing relation between data from secondary sources and factual details related to the content.
For conducting the research, positivism research philosophy is taken into consideration which helps to demonstrate the influence of demand management in the business context and its alignment with UK food delivery industry. The main motive of demand management is to remove the managerial practices that enhance the variability which helps to prioritize the customer shopping pattern in the food delivery sector. The factual data gathered from the experienced managers and employees for reflecting the approach of managing the supply chain. The observation of the supply chain management technique also provides a field for understanding its importance in maintaining equilibrium between customer demand and supplier aspect.
The research approach is defined as the progression of research which assists the researcher to follow a stepwise manner for executing the goal of the study. The formulation of research approach assists the researcher to undertake the progress pattern of the study (Fletcher, 2017). There are three types of research approaches which are inductive, deductive and abductive approach which help to implement any particular strategy related to the topic. The inductive approach of research focuses on the derivation of the content from the explanation and observation which deals with both primary and secondary data analysis for concluding any particular aspect related to the topic (Kumar, 2019). The independency of research towards collecting data and interpreting it is accomplished through inductive research approach. On the contrary, deductive approach focuses on the development of a hypothesis for evaluating a study systematically.
The research focuses on the impact of demand management in the field of executing the regular business process for UK food delivery companies. An inductive research approach assists the researcher to identify the importance of demand management effectively and the relationship among the variables of study is also achieved through following the approach. The aspects of demand management and UK food delivery sector are established which help to identify all the crucial aspects of the study.An inductive research approach also supports the principle of interpreting factual details to conclude the research argument effectively.
The research design provides a comprehensive plan to investigate the research question with the use of a specific methodology for the data collection and subsequent analysis. There is three commonly used research design; casual, descriptive and exploratory. Casual research design helps in identification of co-variation among variables and casual relationship that exists among variables during experimental research designs (Sreejesh et al., 2014). The descriptive design is used to describe a phenomenon such as traits of particular groups, predict size of particular population subgroup, for particular prediction and to describe the covariance among variables (Sreejesh et al., 2014). The exploratory design is used for investigating an issue that is not properly defined thus, focuses on finding insights for the research problem (Sekaran and Bougie, 2016). For conducting the research, the exploratory research design is taken into consideration for exploring new elements and discovery of insights for defining and evaluating the impact of demand management in the UK service sector. This research design is suitable as it provides flexibility in discovering new elements which are not possible in descriptive or causal which have a rigid and highly structured approach respectively. Thus, this research design provides a better understanding of the demand management problem and helps the researcher to gain answer to what, why and how in the relation to food delivery services sector.
The research method takes consideration of the theoretical assumptions to identify the method for collection and analysis often research data. The main research methodologies are qualitative, quantitative and mixed methods. The quantitative method is depends on statistical method for the analysis of data analysis as it is based on scientific approach while qualitative methods depend on the descriptive narrative for analysing the research data. The mixed research method makes use of both qualitative and quantitative methods thus; this combination helps in eliminating the weakness associated with the use of single method. The mixed research method is taken into consideration for this research to attain the objectives and outcomes in a systematic and effective manner. Under the mixed research method, the research strategy of survey is considered in the form of quantitative data analysis from employees working in the service sector and interview responses to be collected from managers in UK food delivery sector. The survey research strategy is suited as it direct towards research task to obtain answer to research questions in employing quantitative technique to meet data requirements (Kriauciunas et al., 2011) and interview is suitable considering resource availability and to generate detailed responses for in-depth understanding of the research problem.
The research requires collection of data from various sources as per the research nature to fulfil the data requirements to realise the aim and objectives. The main data collection methods are primary (to obtain first time data) and secondary (to collect already published data). Considering the resources availability, research nature and time factor the consideration is given to both the methods of data collection i.e. primary methods and secondary methods of data collection. Under the primary data collection, the interview (using open ended questions) and survey methods (to collect measurable data) are taken into account to obtain the research primary data which is fresh and new data. Thus, the collection of primary research data is from the survey of employees working in the UK food delivery service sectors and the managers of a chosen food delivery company in the UK where the data will be recorded for the interview responses of the managers. On the other side, under the secondary data collection method, the data is collected that is already exiting in published form through journals, books, news articles, company website and market research reports. The secondary data provides comparable data to correlate with the primary data thus, provides support to the new observations by comparing findings (Goodwin, 2012).
The consideration to research ethics formed an important part in the conduct of the overall research process. The ethical consideration has been important to achieve research outcomes in an efficient manner without any ethical dilemma and also by reducing the possibilities of error or data misrepresentation (Ponterotto, 2013). The ethical practices were followed in different stages in the conduct of the research process like in undertaking review of literature, in collection of primary and secondary data and also in the analysis of the collected research data. The researcher has considered university guidelines and the plagiarism policy to avoid ethical dilemma from arising. To remove ethical issue in literature review and collection of secondary data, the researcher has followed method of referencing and in-text citation for other research works, findings, views and arguments and also taken account of the copyright issue and the access of data and information from reliable and valid sources (Ritchie et al., 2013). The consideration to ethics has allowed development of knowledge in an ethical way. Also, to avoid the ethical issue in primary data collection, the researcher has given consideration to maintain the privacy and confidentiality aspects of research respondents of the survey and the interview. The ethical considerations of the employees have been maintained s the researcher has not asked the participants any personal questions that might hurt their emotions and the participants were not under any kind of pressure or stress to participant in the research process. The purpose of the research was informed and was also informed to the participants that they are free to leave the research process whenever they want. This has allowed the researcher to give respect to study participants and ensure fairness during the conduct of the research.
The areas of validity and reliability form an important aspect in the research process. The validity and reliability in a research is interrelated to the research methodologies thus hold high relevance in the investigation procedure. The reliability in a research is related to the level to which the research results can be created when conducted again using the same tools and instruments of research keeping the conditions of the investigation similar (Ihantola and Kihn, 2011). On the other hand, the validity in research is associated with the extent to which the methods of the research are followed in a systematic way to obtain results from the process of research (Drost, 2011). The validity and reliability of this research relies on the correctness of the selected research methods that have been serving the purpose of collection of research data and also methods for the analysis of the collected data. To ensure the reliability and validity of this research, the researcher has taken care in the selection of an apt methodology by taking into account the nature and characteristics of research, the variables of the study, time factor, and availability of the resources and also considered the skills level of the researcher. The researcher has also considered the validity of the content to be used to generate the research outcomes which can be repeated under same set of research conditions (Drost, 2011). The researcher has been caution in various areas to ensure that the reliability and validity of the research is maintained. This includes ensuring objectivity in the selecting the sources and analysing them and reporting and representing the findings, also in selecting the research methods and techniques and involving reliable analysis methods to generate similar outcomes in using same research methods when repeated.
In order to answer the research question in an effective manner and to realize the aim and objectives of the research, the development of an appropriate research methodology is required. Thus, for successful conduct and completion of the research, the research onion framework was referred to develop and design an apt research methodology. For this research, positivism research philosophy is preferred to develop contextual knowledge and to provide guidance to the research in forming decision for the research approach, strategy and methods based on positivist philosophical values to guide the collection and analysis of the research data for specific research objectives. The inductive research approach has been adopted to provide justification on the specific data sourcing, collection and data interpretation methods to identify the significance of demand management and its alignment within the food delivery sector in the UK. The exploratory research design is chosen to explore new insights on the demand management issue in the food delivery service sector. The mixed method research approach is chosen to eliminate the weakness associated with use of qualitative or quantitative approach alone. The survey strategy is chosen to meet the data requirement by the use of quantitative approach. At the same time, both primary and secondary data collection methods have been considered to obtain new data through survey and interview process and to obtain existing data through books journals, company website and reports and news articles. The chosen sampling method is random probability sampling. The data analysis methods chosen are through thematic analysis and MS excel tool. The research validity, reliability and the research ethics have been given high consideration by the researcher in the conduct of the research process.
In survey, the sampling method forms an important part of the research to select an appropriate subset/ sample from the population of interest for participation in the survey so that results can be generalised for the entire population. The popular sampling methods are probability and non-probability. The probability sampling method offers an equal chance to each unit in the population to get selected which is not provided in non-probability sampling method. For conducting the survey, the probability sampling method is taken into consideration under which the preferred method is random sampling. The random sampling procedure allow the researcher to obtain sample in a random manner without involving any kind of selection bias as the remaining participating member is given an equal chances of getting selected thus, provides an impartial selection of the research participants.
The population sample for the survey forms the participants includes the UK food delivery sector. The sample size for this research is 50 for the survey that are existing employee working in the UK food delivery sector and 5 managers (for interview process) of Deliveroocompany as study participants. The sample size selection for interview process is limited to only one company employees so that they can be easily contacted in less time with the help of one of the friend working in Deliveroo.
The survey makes use of quantitative techniques i.e. questionnaires which include specific investigative close ended questions to collect measurable data and Likert type questions. The survey questionnaire takes place via email so that responses can be recorded electronically and can be collected in less time and with ease. The survey allows the researcher to collect information on demand management and its impact on the food delivery service sectors from employees by their response to the survey questions. The survey and interview data analysis method taken into consideration the MS excel spreadsheet software and thematic analysis of the interview responses.
The information gathered from the employees of Deliveroo are demonstrated in a structured format which provides the aspects related to demand management and its influence in UK food delivery sector. The improved opportunities of information technology had established a virtual relationship between the customer and restaurant which has changed the demand and needs of customer. The qualitative data from managers also demonstrate the influence of demand management for the delivery sector and the approaches of maintaining stable communication between the suppliers and company authority are described. The restaurants which are not located in the prime location will also get advantages for expanding their business by delivering quality product.
The extraction of the authentic and reliable data from the secondary sources also help to analyse the topic more critically and derive the in-depth knowledge about the demand management. Comparing the data of primary and secondary sources provides a clear and structured research where the research goals are executed effectively. The change in customer buying decoration are also reflected and the strategies for developing the service pattern has also been analysed through the collected data. In this chapter, the quantitative data analysis from the feedback of the employees of Deliveroo and the qualitative information from managers are interpreted to meet the goal of the research.
- Please mention your age group.
- Above 35
The employees of Deliveroo were asked about basic demographics which help the researcher to identify their experience and capability for maintaining the principles of demand management. Based on the feedback, most of the employees have belonged to the age group 20-25 and 26% of them are below 30 years old which indicates the energetic and strong workforce for the firm to deliver quality solutions. 33% of the employees are above 30 years old who have enough experience for guiding the team to accomplish customer satisfaction and fulfill the requirement of demand management.
- What is your gender?
The employees were asked about their gender for demonstrating the balance between the workplace for executing diversified range of functions. 56% of the respondents are male who ismainly involved in the delivery operation of the business and the other administrative jobs are also accomplished for fulfilling the business goal. On the other hand, 42% of the respondents are female who is involved in the supervision, maintaining communication and IT team which directly deals with customer interaction for executing the business goal.
- How long have you been working with Deliveroo?
- 0-1 year
- 1-2 Year
- 2-3 Year
- above 3 years
The main motive of including this question in questionnaire is to reflect the experience of the employee for demonstrating the changed demand of customer in terms of customer preference and choice for availing the service of business. 14 Out of 50 employees have experience of above 3 years which assists the business to improve their functions according to the trend and demand. 10 respondents have minimum experience which indicates the requirement of training for delivering a quality product to consumers. The changing customer demand in past two or three years had been observed by most of the employees which provide the firm an opportunity for the improvement of business process.
- Which position in the firm do you belong?
- Delivery executive
- Hub maintenance officer
- IT team
The employees are asked about their position or job role in the firm which provides the field for connecting the principles of demand management with different business functions. 50% of the employees have been working as the delivery executives of business who have received the order from the restaurant and deliver to the location of customers. Among 50 participants, 10 of them works as supervisor whose responsibility includes supervision of the business process for maintaining quality and customer satisfaction. 10% of the participants work as hub maintenance officer who has organized the order and delivery process by allocating each delivery to the selected delivery partner. In addition, 20% of the respondents have operated IT team which is utilized by the business to provide comfort for accessing the application of the business.
- How frequently do you communicate with the restaurants which are affiliated with Deliveroo?
- Once in a day
- Once in a week
- Once in a month
- Whenever complaint arises
The alignment of customer demand and need with that of the suppliers are accomplished through identifying the feedback of customers related to the frequency of communication with restaurants. From the above graph, it has been stated that most of the employees have interacted with the executives of restaurant as most of the employees have belonged to the delivery section. It helps the business to identify the demands and needs of customer which help to incline the service dimension in that range. 16% of the employees have communicated with the restaurants once a month which is to be improved for maintaining the aspects of supply chain.
- Are all the restaurants that have collaborated with Deliveroo stay active?
The justification for adding the question in survey questionnaire reflects the choice available for customers which is an important function for the food delivery business. 38% of the staff have provided positive feedback as a wide range of restaurants has remained active which helps to increase the choice range of customers. On the other hand, approximately 16 out of 50 participants have stated that the customers do not have many options for opt from the local fast food chain. So, regular communication between suppliers and management help to demonstrate the principles of demand management.
- Are all the menu items provided on the app remain available always?
Based on the above graph, it has been seen that 36 % of the participants have strongly agreed that all the food menus remain available always on the app. Furthermore, 28 % of the participants have also confirmed that food menus remain always available in Deliveroo’s app. 18 % of the respondents remained neutral, followed by 18 % of the respondents who did not agree with the fact that food menus remain available on the company’s app.
- Does the demand and needs of the customer change while ordering food items?
The above graph indicates that 28 % of the participants strongly agreed on the demands and needs while ordering food items. On the other hand, 22 % of the participants agreed that they also focus on demands and needs while ordering food items. 20 % of the participants stayed neutral to the demands and needs while ordering food items as they might consider staying loyal to their regular restaurant. On the other hand, 30 % of the participants suggested that the consumers’ demands and needs do not change while ordering food items.
- Proper assistance to the consumers is provided starting from placing the order to deliver it to the consumer.
According to the above graph, it has been noticed that more than one-third of the participants i.e. 36 % agreed with the fact that proper assistance to the consumers is provided starting from placing order to deliver it to the consumer. Moreover, 24 % of the participants have suggested that proper assistance while starting from placing the order to deliver it to the consumers have been the key factor while maintaining high consumer retention rate. A significant portion i.e. 22 % of the participants stayed neutral to the fact that proper assistance to the consumers are provided starting from placing the order to deliver it to the consumer. 18 % of the participants did not agree with the statement that proper assistance to the consumers is provided starting from placing the order to deliver it to the consumer.
- What are the types of changes in customer preference identified?
- Inclination towards cost-effective restaurants
- Faster delivery
- Applying discount coupons
- Frequent in order from selected restaurants
From the above graph, it can be said that more than one-third of the respondents i.e. 36 % have selected discount codes and coupons as the changes which push the consumers to opt for certain menus. It is being followed by consumer’s reservation towards selected restaurants or frequent in order from selected restaurants with 28 %. Faster delivery services with 22 % also have been outlined as the key reason for the consumers while selecting food menus. Cost-effective approach while selecting food menus from the restaurants have got a minimal response from the participants as only 14 % of them believed that the other factors played major roles than the cost-effective approach implemented by restaurants.
- How are the feedbacks of customers collected?
- Rating and comments
- Purchase history
- Communicating with the delivery executives
- social media
As suggested by the above graph, it has been observed that 36 % of the participants suggested that the feedbacks were collected through communicating with delivery executives. Maximum feedbacks collected by the employees of Deliveroo was through directly communicating with the consumers so that they can have a better understanding of their demands. On the other hand, employees can have the feedbacks through the purchase history of the consumers and it has been considered as the major source of the feedbacks collection with 28 %. Rating and comments have been also seen as the way through which feedbacks and demands of the consumers can be monitored and it has been given 22 % vote by the participants. Social media got the least percentage as the participants got fewer feedbacks from the consumers through social media platforms. Only 20 % of the participants agreed to have feedbacks from consumers through social media platforms.
Five managers of Deliveroo are asked five questions on the relationship between the demand management factor and food delivery businesses and their opinions are summarised in the section.
- How the principles of demand management are evaluated?
According to the first manager, the process of organizing the requirement of customer with maintaining the aspect of suppliers are known as demand management. The rating and purchase history of the customers has provided an opportunity for business to concentrate on the improvement of the food quality of the particular restaurant which is communicated by the staff on regular basis. The other managers had also provided a similar opinion where the quantity, quality, and price of food item has matter a lot for targeting most of the customers. The principles of demand management are also evaluated by establishing the relationship between demand management and customer demand in the food delivery sector. So, the aspects of demand management and UK food delivery sector are established which help to identify all the crucial aspects of study. One of the managers had also mentioned an important aspect which is availability of the off item at late night and the festive occasions as the price of the products have risen in different festivals such as Christmas or new years’ eve.
- What are the main aspects that a customer looks for while choosing the brand Deliveroo?
According to the manager, quick delivery and diversified options for customers are considered as the factors which have affected the brand in terms of gaining competitive advantage. The management of business has also provided different types of promotional discounts and coups which automatically reduce the price of the final product. On the other hand, second manager had stated that the events of event response for the possible occurrence are proficient through the system which have create an alignment between company performance and sales figure. Customer assistance in all the business stages helps to add value to consumers for selecting the brand. The conflict and queries of the customers are solved which also enhances the service quality of business. According to the third manager, the level of forecasting process and determining the data sources according to the range of customers is accomplished through different techniques. Moreover, the technical infrastructure for operating the application and availability of the restaurant of all category help to attract most of them from diversified range.The improved opportunities for information technology should establish virtual relationship between the customer and restaurant which has changed the demands and needs of customer.
- What are the types of changes in customer buying pattern reflected?
According to the first manager, types of changes that have been observed in the customer buying pattern are their more inclination towards discount codes and coupons, quality of the food menus and efficient management of their needs and demands. Based on the opinion of the second manager, the customer buying pattern has changed over the years as they have more focused on getting quality food at an affordable price. According to the third manager, customer buying pattern has evolved with respect to their demands and needs of the food menus. Restaurants and food delivery services have also changed their approach as the fierce competition in the restaurant sector has pushed them to maintain quality and ensure that the demands of the consumers have been met. The fourth and fifth manager has also suggested that customer buying pattern has transformed and the consumers are more focused on getting better quality food items at the right price. They also look for heavy discounts at the food menus.
- What are the strategies implemented by Deliveroo to meet the demand of customers and suppliers?
The first and second managers have suggested that the company has a feedback system where the consumers can directly share their opinion about the food items and the service provided to them. Deliveroo also has a customer care service which ensures that the complaints of the consumers are heard and sorted out as soon as possible(Deliveroo.co.uk, 2019).The rating systems on the Delivery app also helps the company to improve the operation of Deliveroo and can be seen as the well-executed strategy to cater to the demands of the consumers, as stated by the third manager. Fourth and fifth manager has also suggested that delivery time, discounts and effective customer services are the strategies that have led Deliveroo to meet the demands and standards required by the consumers.
- How is organizational communication maintained?
All the managers have suggested that the organisational communication with the consumers is maintained through the app, website and customer care service. Deliveroo app works on every smartphone’s operating system so it can be easily downloaded and the app provides chat options with the customer care executive. On the other hand, the website of Deliveroo is quite user-friendly and each option has been clearly laid out which makes the entire process of selecting the food menus from their preferred restaurant quite easy and convenient(Deliveroo.co.uk, 2019).The website also offers the contact details of the customer care executives. In case of any issues with food menus, customer care executives can be contacted and they are always eager to help the consumers in matters like refund, order cancellation etc.
This chapter exemplifies the results of the questionnaire surveys of the employees and the interview process of the managers of Deliveroo. Majority of the employees working in Deliveroo are below 25 years and have working experience of below 3 years. The majority of the employees who participated in the questionnaire survey belong to the delivery executive group. The results of the questionnaire survey also explained that the majority of the employees are likely to communicate with the restaurants every day and once a week. Majority of the restaurants that have collaborated with Deliveroo remain active and even the food items remain available in most of the restaurants. The needs and demands of the consumers have changed over time and the reason behind these changes depends on the food menus they are looking for, quality, discounts etc. Majority of the employees have suggested that proper assistance has been given to the consumers’pre and post-selection of food menus. Changes in the consumers’ preference are mainly observed due to the discounts offered by different restaurants. Feedbacks of the consumers are observed through communication with the executives.
The managers also have suggested that the changes in consumer buying pattern have been observed and these changes can be seen because of the quality of the food menus, discounts offered by different restaurants etc. The restaurants have ensured that they can meet the demands of the consumers by facilitating quality food menus at the right price and on the other hand, Deliveroo has ensured that the consumers get good discounts on their menus and the food menus are being delivered within the stipulated time. Communication with consumers has been established with the help of the company’s app, website and customer care services.
From the secondary data analysis, it has been stated that the demand management principles help to change the product or service dimensionfor the benefit of the business by attracting most of the customers. The restaurants which are not located in the prime location will also get advantages for expanding their business by delivering quality product. Thus, the buying pattern of customers has shifted towards a particular restaurant. On the other hand, the analysis of primary data has indicated that the restaurants with higher reputation do not reduce their prices which generally enhances the cost associated with ordering. Customer satisfaction and comfort has been accomplished through delivery of fresh food item which also helps to enhance the business of the restaurants. The customer buying pattern and the supply or demand of the product must be aligned for expanding the range of business for the UK food delivery sector.
Based on the primary data, it has been discussed that the availability of the restaurants in the office hours and night times also helps to grab the attention of most of the customers. The main principle of demand management is demonstrated through the communication between demands and needs of the customer which depends on the operations of supplier (Caicedo, Lopez-Ospina, & Pablo-Malagrida, 2016). The execution of business goal is accomplished through improving all the sector of business such as IT infrastructure, quick delivery and controlled supervision or monitoring of the suppliers. Application of fresh raw ingredients also helps to maintain the quality of the final product which supports the argument of demand management. Wide range of restaurants had been affiliated by the authority of the food delivery applications for opening the choice of the citizens who belong to any economic class.
From the secondary data analysis, it has been interpreted that the customer buying behavior has changed due to the factors of quick delivery, timing of opening the restaurant and the number of restaurants associated with business process. Demand management provides an analysis of the industry volume to estimate products or services which assist them to follow the forecasting process effectively. As the degree of competitiveness has been increased rapidly, identification of unique and suitable strategy help to gain attention of most of the citizens for flourishing the business process(Holguín-Veras, Sánchez-Díaz, & Browne, 2016). On the other hand, the analysis of primary data has demonstrated that the purchase history and the rating of the restaurant are the main factors for choosing any particular brand and the assistance by the customer executive also adds value to the customers for removing the conflict.
The requirement of fresh and quality raw ingredients and food items by the restaurant must be assured for meeting the dimension of customers. Based on the secondary data, it has been identified that the health perspective of the customers is prioritized where the UK customers do not compromise with quality of food item. Identifying location of the delivery address at once also adds value to consumers which are accomplished by the delivery executives as they are proficient with using the technical system. Moreover, the assistance to the customers is also provided through introduction of user-friendly business application. Demand management helps in the administration of marketing expenditure, capital investments and improves budgeting on the research which assists the business to accomplish competitive advantage. The business process has also been enhanced through interaction with suppliers and distributors as the demands and choice pattern of customers are accomplished systematically.
From the primary data analysis, it has been analyzed that the designing of the new products must be inclined with the customer preference for executing the goal of demand management. Being a component of supply chain management, the business activities are connected and assessing customer feedback help to identify the pattern of customer choice in the particular sector. The development projects based on the demand forecasting activities for the maturity of existing product portfolio and also for new products are also demonstrated through the principles of demand management(Dablanc, Morganti, Browne, & Saidi, 2017). On the other hand, demand management plays a role in managing the demand with supply in relation to business opportunity arising from increased customer demands and ensure that there is no loss in the business capacity in managing the demand variations. Moreover, the price of the competitors are also evaluated for inclining the product dimension to execute the business goal.
Based on the analysis of the questionnaire survey of the employees, it can be said that Deliveroo has been focusing on meeting the needs of the consumers through faster delivery services, discounts and quality customer care services. The analysis of the interview of the managers have also explained that Deliveroo has always prioritised the demands and needs of the consumers. In order to do so, the food delivery company has used their communication medium such as app and website. Customer care service of Deliveroo has been helping the consumers so that their demands and needs can be met.
From the above study, it has been concluded that one of the crucial components of supply chain management is called demand management which has become very crucial for contemporary businesses to gain competitive advantage. As the number of business operations has been increased for a particular industry, maintaining the aspects of demand management helps to identify the potential field of improvement. It provides an opportunity for the business to concentrate on regular functions with aligning the demand, need and requirement of customers.
The research has been progressed through the following mixed research approach of primary and secondary data which involves collecting data from secondary sources like journal articles, books and primary sources like the feedback of the employees and management. The in-depth analysis related to the topic is represented for comparing the data with that of primary sources. The factual information related to the topic help to support the argument of demand management for completing the business stages. The study mainly focuses on the goals of the research which is mentioned earlier. In this section, the alignment of the study with the research objective is interpreted for demonstrating the aspects of demand management in a critical manner.
- To determine the concept of demand management
Based on the above study, it has been characterized as demand management is coined as the equilibrium between customer demand and supplier activities for executing the business goal systematically. Supply chain management involves the business process starting from the import of raw ingredients and delivery the final product to consumers by following the principles of logistics and inventory for executing the business goal systematically. The alignment of customer changing preferences and needs are needed to be identified by involving them with the brand to evaluate their opinions. Purchase history and pattern of shopping demonstrates the crucial need of customers which help the business to deliver the product according to that direction.
Demand management also supports the argument of market availability for the products and regular communication with the suppliers help to derive quality raw ingredients which supports the argument of attracting customers. Demand management plays a role in managing the demand with supply in relation to business opportunity arising from increased customer demands and ensure that there is no loss in the business capacity in managing the demand variations. On the other hand, information associated with the customers is also interpreted for inclining the product or service line-up in that direction.
- To evaluate the importance of demand management in an economy
The importance of demand management is also reflected from contributing a significant amount in the financial aspect of the country. The sales figure for business has been improved for the businesses which support the principle of increasing economic stability. As the disposable income of UK citizens is very high, the maintenance of demand management help to accumulate the required resources for accomplishing customer satisfaction. The volatility of the business is also maintained in a structured format which helps to provide the capability and capacity for responding the diversified customer behavior. The monitoring and surveillance process of business stages has been accomplished which creates a path for successful execution of business goal. From the financial point of view, delivery of raw and fresh ingredients assist both the business and supplier to earn huge amount of profit.
Due to globalization, the business opportunities have been increased rapidly which also creates the path for the customers for availing a wide range of options to choose. The business commitment to the consumers has been accomplished by delivery of quality solution which is acceptable by overall citizens. The price of the products must be justified with the quality and quantity of the product or services which is able to attract wide range of citizens. The business processes of suppliers have also been increased which supports the principle of earning economic stability of business.
- To assess the impact of demand management in the food delivery sector of the UK
From the above study, it has been concluded that the food delivery sector has been the emergent sector due to adding comfort to the customers in the field of food delivery from the restaurant at reliable costing. It provides the business and restaurant an opportunity to enhance their profit margin as the scope of the restaurants has been demonstrated. Maintaining the principles of demand management also assists the food delivery sectors to identify important aspects of the customer buying pattern for choosing a particular restaurant. For solving the queries of customers, the customer relationship management process has been boosted which is the benefit of the process.
The food delivery businesses have improved their technical infrastructure for providing a user-friendly environment to operate their choice related to food items. The assurance of applying quality and fresh raw ingredients enable the business to grab attention of most of the citizens. The execution of business goal are accomplished through improving all the sector of business such as IT infrastructure, quick delivery and controlled supervision or monitoring of the suppliers. There is an ongoing need in the food delivery market to improve in the skills and capabilities in managing demand to lessen the demand volatility and at the same time, improve on their food delivery demand visibility. So, the importance of maintaining demand management principles help to execute the business goal in a systematic way.
The fast food delivery businesses are recommended to concentrate on demand management in a concentrated manner. The demand goals and objectives should be set at the preliminary stage for directing the team into structured direction for completing the goal of business. Regular and frequent interaction with customers should be maintained which provides the business an important field for collecting data related top business operation. On the other hand, stable relationship with more than one supplies also provides an opportunity for business to deliver the final product in cost-efficient approach. The process of demand management should also become successful by maintaining stepwise process of customer service management, supplier relationship management and return management.
The feedback and rating or comments of the user should also been prioritised for inclining the product or service dimension to the trending approach. The simple management of menu line-up, convenience, cost-effective and hassle-free should need to be introduced for adding value to consumers. Implementation of artificial intelligence should also assist the food delivery businesses to provide value to the consumers which are included under recommendations. The food delivery companies need to improve on management of their demand responsiveness and additional demands through demand sensing, planning, and forecasting strategies so that the customer demand and the companies supply chain capabilities are well matched and coordinated.
The research focuses on the importance of maintaining the principles of demand management in the context of UK food delivery sector. Due to the improvement of business technology and availability of smartphone, the food delivery sector has emerged which must reflect the requirement of maintaining supply chain for delivering customer value. The research on the challenges of implementing effective demand management in the business context is not included in the section as it only focuses on the principles of accomplishing business goal which is the scope of further research.
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