How can you implement a demand-driven supply chain model?

Implementing a demand-driven supply chain model begins with a thorough assessment of your current state. Measure key metrics like fill rate, inventory turnover, lead time, and customer satisfaction to understand how well you’re meeting customer needs. It’s crucial to benchmark these against industry standards and competitors for a clearer perspective. This analysis will reveal gaps and opportunities, setting the stage for a more responsive and efficient supply chain tailored to real-time demand. ?? #SupplyChainOptimization #DemandDriven #BusinessEfficiency ??

Ditch forecasting fatigue. Unleash the power of Demand-Driven Supply Chains. Ditch guessing demand and react in real-time with these 3 steps: Visibility is key: Get granular. Connect to point-of-sale systems, social media, and real-time market data. See what customers crave, not just what they bought yesterday. Flow, don't push: Ditch batch production. Set agile buffers at key points to respond to demand surges instantly. Collaborate like crazy: Share demand data with suppliers, distributors, everyone. Transparency builds trust, leading to faster adjustments and happier customers. Ready to transform your supply chain? Join the Demand-Driven revolution! #ddscm #supplychaintransformation

In-order to implement a demand driven supply chain model we will need to assess the Supply Chain model first whether it is Make to Order or Make to Stock. While designing a Demand Driven Make to Order supply chain model , Demand Seasonality and Seasonal Variations , Average Annual Consumption needs to be accounted for. While designing a Demand Driven Make to Stock supply chain model, we need to account for Average Monthly consumption so as to cover the needed raw materials and formulate the monthly production plan well in advance by reserving certain proportion of the manufacturing capacity.

Segmenting your demand is crucial in evolving towards a demand-driven supply chain. Analyze your customer base and products, categorizing them by volume, variability, profitability, and service demands. This approach allows you to identify distinct needs: stable supply chains for high-volume, low-variability products, and more agile, responsive systems for low-volume, high-variability items. Tailored strategies for each segment can significantly boost efficiency and customer satisfaction. #DemandSegmentation #SupplyChainInnovation #CustomerFocused ????

In order to fulfill Customer demand on a timely basis, we need to understand if the product is a Repeater , Runner or Stranger SKU. For Repeater SKU’s we can stock the raw material , and packing material well in advance equivalent to a quarter ( 3 months ) capacity so as to ensure continued supply to the Customers and business continuity. For Runner SKU’s, raw material and packing material can be covered equivalent to a months capacity so as to ensure continued supply to the Customers . For Stranger SKU’s last minute sourcing of raw materials and packing materials can be done subject to Available capacity so that Repeater and Runner SKU’s are not impacted.

The A.I or machine learning have still not been resilient to absorb shocks from 'black swan' events like COVID, where the customer's behaviour to a product has seen significant changes. Innovating technology to build additional mechanisms towards increasing resilience to quickly react and absorb any shocks to supply chain as well as adapting to change of customer's behaviour are important keys for a successful demand-driven supply chain model.

Technology is indeed the driving force for a demand driven supply chai model. Implementing the right Enterprise Management systems like SAP helps us to contemplate the overall MRP in any given month so as to fulfil all Customer Orders on-time. Moreover, Advanced Supply Chain Planning tools like SAP-IBP need to be implemented to get a holistic purview of Available Production Capacity, Raw Material and Finished Goods stock and hand to drive supply plan and demand plan decisions by reserving the production slots well in advance based on our confidence on demand allocation from the customer for a given product at any given point in time.

One thing to note is about cannibalisation of your product. Whether the introduced product will create its own demand or will just replace the existing product. Product cannibalisation can impact in varying degrees to the existing and new product.