Executive Briefings

What Happened to the Concept of 'Demand Driven'?

Demand-driven value networks grow from, and are a more refined state of, supply chains. Orchestrating demand at the mature stage of the demand-driven transformation, allows companies to better balance growth and efficiency, cost and customer service, and demand fluctuations.  When demand-driven maturity is achieved, not only is there better balance, but greater agility. Based on research in the recession of 2010, demand-driven companies sense market changes 5 times faster and align their value networks 3 times quicker to changes in demand.  This quicker alignment enables better customer service with substantially less inventory, waste and working capital.  So, you might say, "Why are more companies not demand driven?" 

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Demand-driven value networks grow from, and are a more refined state of, supply chains. Orchestrating demand at the mature stage of the demand-driven transformation, allows companies to better balance growth and efficiency, cost and customer service, and demand fluctuations.  When demand-driven maturity is achieved, not only is there better balance, but greater agility. Based on research in the recession of 2010, demand-driven companies sense market changes 5 times faster and align their value networks 3 times quicker to changes in demand.  This quicker alignment enables better customer service with substantially less inventory, waste and working capital.  So, you might say, "Why are more companies not demand driven?" 

Read Full Article