Supply chain market-driven

The market-driven supply chain is the future state aspiration for the supply chain leader. The concepts are based on building advanced processes to test and learn. These advanced analytics can power learning systems that continnally sense, learn, and adapt. 

Social media should not be social for the sake of being social, ft is not just about the number of fans. The data should not be relegated to the marketing department. The process should not be outsourced to a public-relations firm. Instead, it should be seen as a way to have a new form of relationship with the customer. Leaders recognize it as a new demand signal, realizing that it is a new and valnable input into the market-driven supply chain. 

Hornihrook, S. and A. Fearne, 2005. Demand driven supply chains Contractual relationships and the management of perceived risk. Paper presented at 2 European Forum on Market-Driven Supply Chains. Politecnico di Milano, April 5-6,2005. 

Figure 2,6 suggests an appropriate sequence of actions to create a market-driven supply chain,... 

Chakravarty, A. (2010). Market driven supply chains. Boston NOW Publishers. 

It is significant to note that each of these three companies pioneered both product and process innovation over the course of the history of supply chain management. They spawned new business models. For Apple to be successful, it required the definition of ilUnes. Dell defined a make-to-order online business model. P G s work on customer-driven supply chains drove market share. 

The company has championed process innovation. In 2003, P G introduced the term customer-driven supply chain to the market. It also pioneered top-to-top meetings with retailers, championed barcode product adoption, and automated store checkout in the late 1980s. In 2002, it built one of the first demand signal repositories to use channel data to sense demand. 

Over time, organizations realize that supply excellence needs to be defined by trade-offs in source, make, and deliver. The answer lies in aligning these functions to actualize the business strategy. This realization typically happens in stage 3 of the market-driven value chain maturity model (see Figure 1.3) stimulating the development of S OP processes. 

Verdouw et al. (2010) analyzed the European fruit market and identified that fruit supply does not sufficiently meet demand requirements. They proposed that the fruit supply chains needed to become demand driven, that is, being able to continuously match supply capabilities to changing demand requirements. In a demand driven supply chain, all actors involved are sensitive and responsive to demand information of the ultimate consumer and meet those varied and variable demands in a timely and cost-effective manner. As a consequence, information must be shared timely throughout the supply chain and the early alerted firms have to respond quickly to changes in demand or supply, which imposes stringent demands on the interoperability and flexibility of the enabling information systems. 

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. 

In this book, it is reviewed the current market and business environment and highlighted the importance of companies become demand driven instead of production driven based on the contingency approach. In a demand driven supply chain, customers activate the replenishment flow and the organization is structured and prepared to sense and respond to real time demand across the supply chain, which should include customers and suppliers. 

Establishing demand-driven supply chains with short cycle times able to respond rapidly to market changes... 

P D ratio According to the APICS Dictionary, lOtb edition, P is the manufacturing lead-time. D is the customer required delivery time. If the ratio exceeds 1.0, the customer order will be delayed or production will start as a result of a forecast (make-to-stock). The demand-driven supply chain approach argues that different segments of the supply chain can be driven by either forecasts or actual demand. In general, actual demand is more desirable than forecasts. In this book, we use cycle time to refer to processes for manufacture and distribution and lead-time as a market-driven requirement for delivery. 

From supplier-centric to customer-centric The design of customer-driven supply chains Market understanding customer insight... 

Steering the portfolio for the future. Anticipating new markets, driven by societal and customer desires for a cleaner, safer more sustainable world, can give strategic direction to the evolution of product portfolios and supply chain relationships to match. 

While companies attempted to implement best practices over the last 30 years, they are now grappling with the fact that many Y2K projects built an efficient supply chain without resiliency. These investments made the supply chain strong, but not agile. Today, most companies have processes that can respond, but cannot adapt. They are too rigid. They cannot sense and adapt to market shifts. This is the basis of the drive to create market-driven value networks. 

While the primary impetus for global supply chains was the penetration of new markets, the second thrust to be global was driven by the lower cost of labor. For laggards, it was a pure labor arbitrage strategy. 

Fifth Shift in the Supply Chain Process Align the Supply Chain Market to Market. Become Market Driven... 

With greater maturity, the company aligns the supply chain market to market to become market driven. In this stage, the supply chain senses buy- and sell-side market shifts and orchestrates tradeoffs horizontally in a bidirectionally coordinated response. This represents less than 1 percent of companies interviewed. 

These supply chains are heavily driven by commodity markets and product handling considerations. The supply chain response will be driven by the input costs and the market opportunity. For example, a short life cycle supply chain with high volumes will need to be responsive whereas a product with a long shelf life supply chain and high volume can be designed for an efficient response. 

The most pervasive power shifts are driven by technology. The changes in media—the shift from advertising on national television to micro-marketing—has transferred power in the consumer supply chain from manufacturer to retailer. The use of social technologies has shifted power from the retailer to the shopper. Apple s invention... 

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