Demand Management

Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain.  With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions.  The process is not limited to forecasting.  It includes synchronizing supply and demand, increasing flexibility, and reducing variability.  A good demand management system uses point-of-sale and "key" customer data to reduce uncertainty and provide efficient flows throughout the supply chain.  Marketing requirements and production plans should be coordinated on an enterprise-wide basis.  Thus, multiple sourcing and routing options are considered at the time of order receipt which allows market requirements and production plans to be coordinated on an organization-wide basis.  In advanced applications customer demand and production rates are synchronized to manage inventories globally.

cf. Douglas M. Lambert and Terrance L. Pohlen, "Supply Chain Metrics," The International Journal of Logistics Management, Vol. 12, No. 1, (2001), pp. 1-19.