Six Measures to Adopt in your Demand-Driven Journey
March 30, 2009 - It is no secret that success in the consumer products (CP) industry hinges on having highly relevant products supported by targeted marketing and merchandising in the right stores at the right time. Understanding this is one thing; doing it is another. Adopting a demand-driven operating model is a major factor in realizing this vision. New research from Accenture identified six measures companies should adopt in their journey to become demand driven:
1. Becoming demand driven is not a "one size fits all" proposition. A targeted supply chain strategy is needed, where multiple supply chains are established to support varying consumer needs and channels.
2. Thoroughly understand cost-to-serve or the total end-to-end costs associated with serving customers. Any demand-driven operating model must be optimized to balance cost to serve with the upside opportunity for specific customers and customer segments.
3. Increased market demand for specialized products makes the transition to a demand-driven model important. Manufacturers should more actively collaborate with customers and suppliers to determine the relevance of new product innovations before development.
4. Learning and reacting to demand signals requires a focused approach. Manufacturers must collaborate with retailers to actively manage issues in areas where demand-driven efforts are most likely to achieve the best results.
5. Effectively communicating demand information simultaneously within a manufacturer and outside suppliers is also critical. Establish a demand-driven command center to understand and deliver against consumer demand.
6. Enable a consumer-centric, cross-process organization to reduce barriers between functions that can inhibit information exchange and conflicting metrics that can sub-optimize results. Assemble cross-functional management teams that typically meet at the retailer's site to share information and collaborate on plans.
Click here to read this article in its entirety and learn more about how these six measures can help companies move toward a more demand-driven organization that is connected from suppliers and distributors to retailers, and revolves around consumers.
1. Becoming demand driven is not a "one size fits all" proposition. A targeted supply chain strategy is needed, where multiple supply chains are established to support varying consumer needs and channels.
2. Thoroughly understand cost-to-serve or the total end-to-end costs associated with serving customers. Any demand-driven operating model must be optimized to balance cost to serve with the upside opportunity for specific customers and customer segments.
3. Increased market demand for specialized products makes the transition to a demand-driven model important. Manufacturers should more actively collaborate with customers and suppliers to determine the relevance of new product innovations before development.
4. Learning and reacting to demand signals requires a focused approach. Manufacturers must collaborate with retailers to actively manage issues in areas where demand-driven efforts are most likely to achieve the best results.
5. Effectively communicating demand information simultaneously within a manufacturer and outside suppliers is also critical. Establish a demand-driven command center to understand and deliver against consumer demand.
6. Enable a consumer-centric, cross-process organization to reduce barriers between functions that can inhibit information exchange and conflicting metrics that can sub-optimize results. Assemble cross-functional management teams that typically meet at the retailer's site to share information and collaborate on plans.
Click here to read this article in its entirety and learn more about how these six measures can help companies move toward a more demand-driven organization that is connected from suppliers and distributors to retailers, and revolves around consumers.