The Demand Management Process

TLDR

Demand management balances customer requirements with supply chain capabilities, synchronizing supply and demand, increasing flexibility, reducing variability, and enabling proactive matching of supply to demand to minimize disruptions. The paper details how to implement the demand management process within a company and manage it across firms in the supply chain. The authors examine each sub‑process activity, evaluate interfaces with corporate functions, processes, and firms, and provide examples of successful implementation.

Abstract

Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain. 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 paper, 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.