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Demand Management in Supply Chains

1) The document discusses the demand management process, which balances customer requirements with supply chain capabilities through forecasting, synchronizing supply and demand, increasing flexibility, and reducing variability. 2) A good demand management process enables a company to proactively anticipate demand and reactively respond to unanticipated demand. It aims to reduce demand variability and improve flexibility. 3) The chapter will describe the demand management process in detail and how it is implemented within companies and across supply chains. It examines the sub-processes, interfaces with other functions/processes/firms, and examples of successful implementation.

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fitrah ilman
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86 views1 page

Demand Management in Supply Chains

1) The document discusses the demand management process, which balances customer requirements with supply chain capabilities through forecasting, synchronizing supply and demand, increasing flexibility, and reducing variability. 2) A good demand management process enables a company to proactively anticipate demand and reactively respond to unanticipated demand. It aims to reduce demand variability and improve flexibility. 3) The chapter will describe the demand management process in detail and how it is implemented within companies and across supply chains. It examines the sub-processes, interfaces with other functions/processes/firms, and examples of successful implementation.

Uploaded by

fitrah ilman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

CHAPTER

The Demand Management


5 Process
Keely L. Croxton, Douglas M. Lambert, Sebastián J. García-Dastugue
and Dale S. Rogers

Overview
Demand management is the supply chain management process that balances
the customers’ requirements with the capabilities of the supply chain.1 With the
right process in place, management can match supply with demand proactively
and execute the plan with minimal disruptions. The process is not limited to
forecasting. It includes synchronizing supply and demand, increasing flexibility,
and reducing variability. In this chapter, we describe the demand management
process in detail to show how it can be implemented within a company and
managed across firms in the supply chain. We examine the activities of each sub-
process; evaluate the interfaces with corporate functions, processes and firms; and
provide examples of successful implementation.

Introduction
The demand management process is concerned with balancing the
customers’ requirements with the capabilities of the supply chain. This includes
forecasting demand and synchronizing it with production, procurement, and
A good demand distribution capabilities. A good demand management process can enable a
management process company to be more proactive to anticipated demand, and more reactive to
can enable a unanticipated demand. An important component of demand management is
company to be more finding ways to reduce demand variability and improve operational flexibility.
proactive to Reducing demand variability aids in consistent planning and reduces costs.
anticipated demand, Increasing flexibility helps the firm respond quickly to internal and external events.
and more reactive to Most customer-driven variability is unavoidable, but one of the goals of demand
unanticipated management is to eliminate management practices that increase variability, and to
demand.
introduce policies that foster smooth demand patterns. Another key part of
demand management is developing and executing contingency plans when there
are interruptions to the operational plans. The goal of demand management is to

1
This chapter is based on Keely L. Croxton, Douglas M. Lambert, Sebastián J. García-Dastugue and
Dale S. Rogers “The Demand Management Process,” The International Journal of Logistics
Management, Vol. 13, No. 2 (2002), pp. 51-66.

SUPPLY CHAIN MANAGEMENT 87

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