Supply And Demand Driven Business Essay

712 Words Dec 5th, 2014 3 Pages
In today’s demand driven business, it’s quintessential to know the buying patterns of your customers. Due to the increasingly global economy, shorter product cycles fueled by instantaneous information, and increasing specialized needs of global markets, the common views about supply and demand are no longer adequate. The industry leaders today seek real time information. Hence companies are finding ways to differentiate based on latent demand, unmet demand, and even emerging demand. 1.Why customers buy is more important than who they are or what they buy. The new demand-driven process, referred to by Gartner as the “Demand Driven Value Network” is based on a single sales forecast that drives the entire supply chain – from ‘suppliers’ suppliers to ‘customers’ customers. This means that all the trading partners in the supply chain are operating with one single “consensus” sales forecast for the product group in question. Most companies, in order to become demand-driven in the new ways, require a transformation. Operations strategies must align well with the business strategies. Supply chains exists not just to flow products; but also to leverage for demand creation.1 Top industry leaders including IBM, Intel, Dell have changed their operations strategies to focus heavily on demand-driven opportunities and have transformed their processes, people, and technologies to execute in superior ways. Thus, DDSC begins with the formulation of operating strategies that focus their…

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