Demand driven supply chain maturity model

2 Demand Driven Supply Chain Maturity Model 

The detailed Demand Driven Maturity Model is presented below  

No statistical forecast methods or only very basic models (e.g., moving average) are used to plan business volume. 

Forecast is usually generated based on management experience and/or annual volume target growth. 

No formal demand planning organizational stmcture in place or planners are only part time assigned to the forecast function. 

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The first phase is called the Construction Phase and aims to identify the DDSC components and develop the Demand Driven Supply Chain Maturity Model, and comprehends three major steps, as described below ... 

In this book, it is proposed to apply the AHP method to identify the weights for each component of the Demand Driven Supply Chain, and also for each category within each component, in order to ensure a consistent comparison, and a reliable overall score performance in the demand driven supply chain maturity model. 

Four different countries were preselected to review the proposed maturity model and answer the assessment to identify current and future states based on demand driven supply chain concepts. In this way, it wiU be possible to validate the proposed maturity model at the same time that companies current and future states are identified. The main criteria to select the countries were their market maturity, interviewees supply chain practical experience, and author s knowledge of their operations. 

After applying the framework in practice and based on the feedback received from supply chain directors, the maturity model and the proposed approach will be reviewed if needed, to make any necessary adjustment or changes, in order to better reflect the concepts of demand driven supply chain. 

Ayers and Malmberg (2002) touch very briefly DDSC concepts, providing a four stage maturity model to show how enablers of supply chain improvement support the introduction of information technology to the supply chain, and one of these elements is the demand-driven as illustrated in Fig. 2.8 below. However, they did not provide a detail maturity model and a robust methodology to assess a supply chain, in order to determine its current state in terms of the demand driven concepts. 

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