Supply Chain demand orchestration

Consider supply chains that face significant short-term changes events that require rapid adjustment and adaptation of flows. In a book titled Orchestrating Supply Chain Opportunities, Iyer and Zelikovsky [63] focus on the information system as one tool to manage events that include weather-related disruptions (like Hurricane Katrina), product failures that require rapid redesign (Uke the Kryptonite bicycle lock), demand surges (such as those faced by Amazon.com), among others. 

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. 

Supply chain excellence has evolved. The definition has morphed from the efficient supply chain to a market-driven value network. Today, the concept of a market-driven value network is largely aspirational. It is a new goal. As supply risks and costs have grown, companies realize that a demand-driven approach is not sufficient. The focus needs to be about more than the channel, instead, the supply chain needs to be driven through strong horizontal processes bidirectionally from market to market. Accomplishing the goal requires a redefinition of both buy-side and sell-side processes, and the use of new forms of analytics to sense, shape, and orchestrate bidirectionally market to market. 

Because the achievement of higher levels of adaptability generally requires inputs from a variety of other entities in the wider supply/demand network, the need for co-ordination across the network arises. As supply chains become more virtual than vertical there is a growing requirement for orchestration. Whether that orchestration task is performed by fhe firm itself or by a specialist external logistics service provider or 4PL , the ability to structure appropriate networks and to synchronise activities across the nodes and links of those networks is paramount. 

Direct integration to supply Design of the value chain to optimize tradeoffs, minimize risk, balance cycles, and orchestrate demand... 

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