What Is Demand Management

For high-tech and electronics companies, the real challenge that you find is the reliability of forecasts. It is the number one issue that they face. 

This journey starts with outside-in thinking and focuses on identifying the market signals and translating them into the drivers of demand. Market-driven forecasts focus on accurately predicting what customers will buy. This is in sharp contrast with the traditional demand processes that determine what companies will manufacture or ship. The input signals are from the market. There are many possible inputs weather, events, seasonal response, social sentiment, or competitive pressures. 

LEARNING A NEW LANGUAGE TO BUILD MARKET-DRIVEN DEMAND MANAGEMENT PROCESSES 

The first step in building market-driven demand capabilities is getting clear on the definitions of a new set of process terms. Although the definitions are simple, the process implications are not. These demand 

Demand translation The translation of demand outside-in from the market to each role within the organization. The design of this system recognizes that the requirements for demand visibility for each supply chain leader—distribution, manufacturing, and procurement—are different. 

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