Author: Xabier Basañez, Managing Director LATAM, Alcott Global
Demand Management is the key supply chain process that balances the customers’ requirements with the capabilities of the supply chain in your organization and suppliers. If you have the right process in place and the full commitment of management supporting and sponsoring it, the process can match supply with demand proactively and execute the plan with minimal disruptions.
The process is not only forecasting. It includes synchronizing supply and demand, increasing flexibility in the operations, and reducing variability, and most importantly, educate and train all participants on the benefits of it. And for implementing it in the right way, you need to put in place the Sales & Operations Planning Process, the heart of the Demand Management.
I like to use the model from the Supply Chain Management Institute which divides the Process into two sub-processes: Strategic and Operational, showing the interconnections between them and the other Supply Chain Processes.
This model explain also the key activities at each step that have to be developed.
In this model, you can conclude the relevance of having a well Sales & Operations Planning process in place, sponsored by the Top Management showing a commitment for it, and leading the final meetings through the rest of the team members, asking for full accountability.
So, start your implementation!!
Source: The Demand Management and the Sales & Operations Planning process (S&OP) by Xabier Basañez | LinkedIn