- May 28, 2014
- 10:25 am
- John Caltagirone
- no comments
A Demand Driven Supply Chain
The terms supply and demand have gone hand in hand for as long as we can remember; both terms are independent of each other. The problem is that demand evolves much faster than supply trends and is almost not controlled. In today’s world, customers have increasing demand power and a louder voice, competition is increasing and fighting to deliver this demand has become more challenging.
On the other hand, managing the supply chain and adapting solutions, such as six sigma, lean management, finding new ways to process an order, to package it and to deliver it etc, are easier to implement. Although these solutions are very important, not considering demand as a main factor in supply chain management may hurt your business. This goes beyond appropriate demand planning. It involves taking a deep dive into the depths of the market and trying to understand the market trends, anticipating future demands and customer behavior that drives or creates demand.
There is a lot of opportunity for growth and development in the supply chain through bringing demand and supply management closer to each other. This also means that marketing, sales and operations have to work even closer together.
Read the article below to learn about new market/demand driven terms, such as demand sensing, demand shifting and harmonization.
http://www.supplychain247.com/article/learning_the_language_of_market_driven_demand/logility