Organizational Strategy

The following topics are discussed under this section: Goals of Organizational Strategy Whatever strategy the corporation adopts to satisfy customers, grow, compete, organize itself and make money the supply chain has to operate in a manner that furthers those goals. Four types of organizational strategy: Customer focus and alignment Forecast driven enterprise Demand driven enterprise Read More

Demand Management Functional Responsibilities and Interfaces

Demand management has functional responsibilities and interfaces that include: Product Development and brand management Marketing Sales Operations Demand management serves as an intermediary between product development and brand management, marketing, sales, and operations so that all of these functions plans, communications, influences, and priorities are coordinated to maximize and satisfy demand. Demand management interfaces with Read More

Collaborative Planning, Forecasting and Replenishment (CPFR)

Collaborative planning, forecasting and replenishment (CPFR®) is a way to integrate the elements of demand management among supply chain partners. CPFR is: A collaborative process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration Read More

Linkages to Match Organizational Strategy

Planning Demand (fixed high capacity strategy) The organizational strategy is to meet demand to the maximum extent possible by providing the necessary capacity to meet peak demand at any time. Ensuring that capacity will be available requires a focus on planning demand, especially in terms of long-term planning. Such a strategy could be pursued if Read More

Managing and Prioritizing Demand

Managing and prioritizing demand requires an organization or supply chain wide view of demand. It involves optimizing demand across the system as measured by optimum organizational profit, demand volume, sales revenue, and customer service, including customer retention. This is a management activity because it involves setting and enforcing policies to promote this optimization process. It Read More

Influencing Demand

Influencing demand describes the activities of product and brand management, marketing, and sales to convince customers to purchase the organizations products and services so that the organizations business objectives are met or exceeded. Another aspect of influencing demand is the requirement for the demand side of the organization to influence the product development and supply Read More

Communicating Demand

Communicating demand rests on several principles of effective communication: Communicate soon to minimize surprises Communicating soon to minimize surprises is the principle that information communicated promptly is of far greater value than delayed communications for any reason. This is true for both good news as well as for information that is still uncertain. Developing a Read More

Planning Demand

Planning demand is one element of demand management and is not to be confused with demand planning, which is the larger process of forecasting and demand management that is the subject of this entire section. A key output of the demand planning process should be regular updates to the demand plan. The Demand Plan The Read More

Elements of the Demand Management Process

The Demand Management Process is a process that weighs both customer demand and firms output capabilities, and tries to balance the two. Demand management is made up of planning demand, communicating demand, influencing demand and prioritizing demand. Demand management seeks a balance between the extremes of trying to satisfy every demand and satisfying only demands Read More

Demand Management

      Demand management is a key part of the sales and operations planning (S&OP) process and the integrated business planning functions at an organization because it results in a demand plan that is used in and modified by these integration processes. The S&OP is a disciplined monthly review process by management to evaluate Read More