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L2 Demand Management

This document discusses demand management. It defines demand as the total number of requests for a resource, and notes that demand management involves making choices. It describes traditional demand management as integrating customer information into manufacturing planning to determine future production levels. Demand management is based on forecasts and plans to synchronize market demand with a company's capabilities. It aims to fulfill demand that adds value, prioritize when supply is limited, and improve efficiency. Key components include forecasting, customer service levels, and inventory targets. The benefits of demand management are control over availability, confidence for sales, and alignment of IT priorities with business objectives.

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Ema
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83 views

L2 Demand Management

This document discusses demand management. It defines demand as the total number of requests for a resource, and notes that demand management involves making choices. It describes traditional demand management as integrating customer information into manufacturing planning to determine future production levels. Demand management is based on forecasts and plans to synchronize market demand with a company's capabilities. It aims to fulfill demand that adds value, prioritize when supply is limited, and improve efficiency. Key components include forecasting, customer service levels, and inventory targets. The benefits of demand management are control over availability, confidence for sales, and alignment of IT priorities with business objectives.

Uploaded by

Ema
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Demand

Management
What do we mean by
demand?
 Demand is the total number of requests for a resource.
 Demand management is all about making choices.

Request: an act of asking politely or formally for something


Demand Management
Traditional Demand
Management…
 Covers how a firm integrates information from and
about its customers, internal and external to the
firm, into the manufacturing planning and control
systems.
 How a firm integrates information from its customers
with information about the firms goals and
capabilities, to determine what should be produced in
the future.
Demand Management

 Demand Management is based on “forecast” and plans.


 In DM, forecasts of the quantities and timing of
customer demand are developed. What do we actually
plan to deliver to customers each period is the output
of the process.
Demand management is

 The process of ensuring that market demand and the


company’s capabilities are in synchronization
 Recognizing all demands for products and services to support
the marketplace.
 Doing what is required to help make the demand happen
 Prioritizing demand when supply is lacking.
 Planning and using resources for profitable business results
Optimize business processes for
demand fulfillment and improve
efficiency of services delivered…

 Complete projects
on time
 Reduce costs
 Increase client
satisfaction
 Assess the
availability and skill
sets of resources
Supply and Demand Through an
Integrated Solution

 Manage business demand and customer


satisfaction using a defined and
repeatable approach.
 Collaborate with business counterparts
using a transparent decision-making
process.
Demand management components

 Goal customer service levels


 New product introductions
 Distribution resource planning
 Customer order entry and promising
 Sales and marketing plans
 Inventory targets
 Product commitments
 Interplant shipments
 Demand forecasting at item and aggregate levels
Components Of Demand

 Demand that adds value is desirable and met


 Demand that adds value, is desirable, but cannot be met
 Demand that does not add value, undesirable, and should not be met.
Important Issues

 Market segmentation
 Customer classification
 Product ranking
Market segmentation
 Growth
 Commonality of offering needs
 Response to brands
 Strategic importance
 Financial attractiveness
Customer classification

 Customer size
 Customer technology
 Company sale/ company share
 Business quality
 Importance to the value chain
 Opportunities for survival
 Willingness for alliance
Product ranking

 Profitability
 Customer’s value for product
 Competitive offerings
 Patent position
 Asset capability
Why Forecast And Plans Are Important
 A manufacturing manager cannot be held responsible for not getting a
forecast right.
 A manufacturing manager can and should be held responsible for
making their plans.
 Typical demand management phases are create, select, plan, and
manage.
 Demand management is a concept that integrates project proposals,
portfolio analysis, and project management through workflows.
Four Stages of Demand
Benefits Of Demand
Management…
 Control over product availability
 Confidence of sales force in ability to deliver product
 Smoother product introductions
 Improved ability to respond to change
 A single game plan, based on the same set of numbers
Benefits Of Demand
Management…
 With the Demand Management, organizations can
streamline approval processes, while ensuring that
Information Technologies (IT) priorities are aligned
with the broader business objectives and that
approved initiatives will deliver maximum business
value.
Thank you.

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