Shaping, demand management

The New World of Demand Management Demand Sensing, Shaping, and Translation... 

Supply Chain Policy Demand Shaping Contract Management Corporate Social Responsibility Revenue Management Working Capital Management Contract Management... 

Market-driven demand management utilizes data from market and channel sources to sense, shape, and translate demand requirements into an actionable demand response bidirectionally from market to market. A true market-driven forecast is an unconstrained view, or a best estimate of market demand based on channel data. Demand shaping is based on campaigns to combine price, new product launches, trade and sales promotions and incentives, advertising, and marketing programs to impact what and how much customers will buy. 

Stage 4 The supply chain creates the adaptive enterprise. At this stage of development, the company develops mature processes for revenue management and makes trade-offs in chaimel strategies based on baseline lift factors. The focus is on sensing and shaping demand. This is often referred to as a demand-driven supply chain. 

Traditional view of supply chain excellence. For demand-driven initiatives to be successful, they must extend from the customers customer to the supplier s supplier. The concepts of demand latency, demand sensing, demand shaping, demand translation, and demand orchestration are not widely understood. As a result, they require education and a business champion. Organizations not familiar with the concepts will not understand why the demand management processes need to change. 

Using what-if analysis, demand forecasters can shape unconstrained demand based on current sales and marketing activities as well as external factors affecting demand. This includes weather, special events, and economic conditions to optimize volume and revenue while minimizing marketing investment. Figure 3.7 illustrates the four key steps in the market-driven demand management process. 

Leverage a demand management technology to automate forecasting workflow to create a more accurate unconstrained demand forecast. The enabling solution should provide a user-friendly interface that allows nonstatistical users (or planners) to systematically run what-if analyses to shape demand. 

Demand Management, which encompasses aU aspects related to reading, sensing, shaping and synchronizing customer demand. 

Demand shaping Contract management Flexibility, automation Tracking of orders in transit... 

Case A Laboratory workers discover that, inadvertently, they are not in compliance with several Good Laboratory Practices regulations. When they inform the manager, he calls a department meeting, scolds all of them, orders them to shape up or else, and demands a full report within 3 days. 

In the early stages of supply chain maturity, companies design programs based on historic information. The average time to measure effectiveness is six weeks. Despite these obstacles, trade promotion management remains the number one demand-shaping lever of consumer products and food and beverage companies. 

Analyze lift for demand shaping, includes promotion planning, price management, and contract compliance with key customers. Evaluate the what if demand shaping based on profitability, revenue, customer service, and working capital. 

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