products suply chain management

Supply Chain Management Shifting to Become More Demand Driven

Traditional "push based" supply chains, driven by statistical forecasts, focused their supply chain management (SCM) initiatives on supply management. But increasing global competition and demand volatility are forcing manufacturers to transform their supply chain management (SCM) initiatives to become more demand driven. AMR Research declares this the Demand Driven Supply Chain.

As manufacturers seek to become more demand driven, they quickly realize that they can't plan the customer. Lacking the proper tools to cope with increasing demand volatility, most supply chain managers are forced to rely on "blood, sweat and Excel." The resulting customer satisfaction challenges threaten both top and bottom line operations performance.

Response Management solutions were designed for a demand driven world. Response Management transform supply chain management practices by empowering supply chain managers with tools for risk tradeoff and response to deal with daily changes inside the sales and operations planning (S&OP) horizon. To become more demand driven, Response Management enables manufacturers to improve demand management, enhance collaboration on demand and improve execution of the sales and operations plan by ensuring profitable responses to changing demand.

Response Management fosters collaboration directly with customers and between demand management and supply management organizations to achieve the best outcome for the company. Armed with visibility into extended fulfillment networks and supply chains and tools for risk tradeoff and response, front line decision makers are empowered to quickly determine the best action to resolve misalignments in demand and supply.