Proposed Demand Driven Supply Chain Model

Proposed Demand Driven Supply Chain Model 

Based on the three demand driven components (e.g., demand management, supply and operations management and product lifecycle management) and the categories within each component, identified in the previous chapter, five level maturity model was developed to be used as the basis to perform assessment of an organization current and desired future states. 

In this level, only some of the foundations of a good push operation are in place, but the organization does not have all of them well implemented or misses 

In this level, all foundations of a good push operatimi are in place and the organization captures benefits from the good execution of push principles. 

In this level, the organization starts to move from a pure Push system to a hybrid Push-Pull system, through implementation of some of the demand driven 

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Proposed Demand Driven Supply Chain Model... 

Evolution to a demand-driven supply chain will likely proceed in the order proposed above. Shortening the lead-time is fundamental to changing batch model economics. Basing decisions on demand comes after adopting the economics of the flow model. Along the path, there is feedback to earlier steps. For each phase in Fig. 2.6 above there are three to four methodologies to be applied towards a DDSC operation. 

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. 

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. 

The results and findings identified after performing the proposed DDSC assessment model provide relevant information on the key areas to focus in order to become a demand driven supply chain. The author s proposed assessment approach covers not only current state but also future state in 1 year horizon, which will allow identify the key areas to focus when developing the strategic plan. 

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