In the consumer-driven business climate of today, the most successful organisations are those that can meet customer demand, as efficiently and profitably as possible. Even if you are one or more steps removed from the consumer, it is vital their needs and wants run through the bloodline of your entire supply chain.
In the consumer-driven business climate of today, the most successful organisations are those that can meet customer demand as efficiently and profitably as possible. Even if you are one or more steps removed from the consumer, it is vital their needs and wants run through the bloodline of your entire supply chain. At the same time, effective demand management and supply chain optimisation hinge on understanding where value is created from the customer’s perspective. By definition, this means demand management must be led and managed by those in your organisation who are closest to the customer and those who have the greatest understanding of what is happening at the point of consumption.
Depending on your position in the supply chain, this is typically sales for the former and marketing for the latter. It is critical they work in an integrated way and in every respect, demand management becomes a real sales and marketing process. Whilst the basic principles of demand planning remain unchanged today, the bar has been raised. Businesses need to respond to this and take their demand management to the next level, if they are to avoid being left behind by
the competition.
Not only does a consumption-driven demand management process remove unplanned issues, it improves the customer experience and optimises cost-to-serve, providing distinct competitive advantage. Without such a process, companies will find operating in the current business environment incredibly challenging.
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