The Powerful Potential of Demand Management

The ability to see customer demand and align it with your supply chain—what’s called demand management—has become a truly crucial capability. But many supply chain managers still struggle with building this capability in their organizations. A new survey uncovers the challenges they typically face and points to opportunities for successfully overcoming them.
image

May 02, 2011 - SCMR Editorial
Download Article PDF

How well does your organization do at demand management, and in particular demand forecasting?  The answer to this question is central to supply chain and business success. Proficiency in demand management is absolutely critical in developing the right relationships with suppliers, producing the right amount of product at the right time, and forging a mutually beneficial and profitable relationship with customers. For this article and related survey, we see demand management as the process of assessing customer demand and matching that demand with the supply chain capability to deliver against it in a cost effective manner.  For the most part, we exclude demand management processes focused on influencing demand.

Griffin Strategic Advisors recently conducted a survey among supply chain professionals to determine the challenges and success they have experienced with demand management activities. (For more details on the survey, see accompanying sidebar.)  Based on the respondents’ collective experiences, we hoped to identify the state of demand management today, the recurring challenges that need to be overcome, and the best practices. From the findings, we also developed what we hope are useful insights for taking demand management activities to a higher level.  Importantly, in developing the survey we sought the input of the supply chain professionals themselves. The idea was to ensure that we had a “real-world” orientation.

Our survey focused on these key areas of inquiry:  (1) most important demand-management challenges facing companies; (2) demand management integration with other related business systems; (3) best practices in demand management; and (4) key issues around demand forecast accuracy. We discuss each in turn.

SUBSCRIBERS: Click here to download PDF of the full article.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Pacific Maritime Association (PMA), representing employers at 29 ports, and the International Longshore and Warehouse Union (ILWU), which represents 20,000 dockworkers, have come to a tentative agreement on a key issue in ongoing contract negotiations.

Diesel prices continued their ongoing decline, with the average price per gallon falling 6.7 cents to $2.866 per gallon, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

Unlike other shipping companies, the Postal Service is not implementing any new dimensional weight charges with this pricing proposal

Drewry is expecting the recent spate of freight rate volatility to continue.

For November, which is the most recent month for which data is available, the SCI came in at -3.2. While this is still entrenched in negative territory, it represents an improvement over October and September, which were -5.5 and -6.6, respectively.

Comments

Post a comment
Commenting is not available in this channel entry.