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.