Demand management
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Demand management aims to balance customer requirements with supply chain capabilities. It reduces demand variability and improves flexibility. Key aspects of demand management include forecasting demand accurately to have the right inventory, developing contingency plans for disruptions, and smoothing operations to lower costs. Demand management also involves sensing true market shifts, stimulating demand through marketing, translating external demand internally, and making trade-offs between risk and opportunity across markets. The overall goal is meeting customer needs while maintaining efficient operations.
Demand management
- 2. SCM: Eight key processes, by Global Supply Chain Forum, https://fisher.osu.edu/centers-partnerships/gscf
- 3. Demand Management Provides the structure for balancing the customers requirements with supply chain capabilities
- 6. DEMAND MANAGEMENT PROCESS Balancing the customers requirements with the capabilities of the supply chain Reduce demand variability and improve operational flexibility customer-driven variability is unavoidable eliminate management (R&D) practices that increase variability introduce policies that foster smooth demand patterns Developing and executing contingency plans when there are interruptions to the operational plans.
- 7. DEMAND MANAGEMENT PROCESS Having the right product on the shelves sales and customer loyalty Improved forecasting reduced raw materials and finished goods inventories Smoother operational execution reduced logistics costs, improved asset utilization improvements not only within the firm, but also in entire supply chain
- 9. Concepts of Demand Management Lora Cecere, "Supply Chain Insights Demand Sensing: sense true market data to understand true market shifts Demand Shaping: Applying techniques to stimulate market demand (sales incentives, marketing programs, ) Demand Translation: Translating demand outside-in from the market to each role within the organization. Demand Orchestration: Making trade-offs market-to-market based on the right balance of demand risk and opportunity.
- 14. References: The Demand Management Process, Keely L. Croxton, Douglas M. Lambert and Sebasti叩n J. Garc鱈a-Dastugue, The Ohio State University and Dale S. Rogers, University of Nevada, Reno, https://fisher.osu.edu/supplements/10/1418/demand_5.pdf http://www.supplychain247.com/article/concepts_of_demand_management, Lora Cecere, "Supply Chain Insights, http://supplychaininsights.com/ Optimally Bridging Supply and Demand, Larry Lapide, Supply Chain Management Review, May/June 2007