Demand management is the strategy used in controlling the production of supplies but at the same time arranging to meet consumer demands. This can also refer to the demands of consumers for natural resources, such as energy and water. The supply chain is composed of the people, equipment, activities and resources that are used in creating a product or a service. This includes everything from conceptualization to the end product.
A demand management and supply chain strategy deals with possible problems that a company may face regarding the supply and demand from consumers. There are several problems that a company may face from the moment of conceptualization up to the delivery of the end product to the consumers.
Here are some factors considered regarding demand management strategy:
- Research. Demand management deals with controlling the supply of goods and services. This can also mean the distribution of goods for consumers based on their needs. Before creating your strategy, you must first research the needs of potential customers. Research can include surveys or files that will aid you in controlling the demand for the goods without stopping service.
- Solutions. Think of the possible solutions for the demand problems that you may face. An example can be transportation. As the demand for vehicles increases, there is also a chance that there will be more traffic. The traffic is the outcome of the demand for more vehicles. A possible strategy to be used in this case is for people to use their vehicles for long trips. Alternative means can be used to travel short distances. Different strategies can be used for the demand for water and energy. Other effects of demand management solutions include taxes on services and goods or using meters for water and electricity. This is to control the usage of the natural resources.
Here are some factors considered in supply chain strategy:
- Distribution. Distribution of the supply to bring the goods to the customers. Some of the methods of distribution include distributors, manufacturing facilities and warehouses. The distribution also means how the goods are sent to the customers. Every aspect of bringing the goods to the customers must be considered. This includes the method of delivery and the means used to make the delivery.
- Research. In order to create a good supply chain strategy, demand forecasting must be done. This includes demand planning and taking into consideration the needs of the consumers. Knowing this information will help determine the correct supply chain strategy to use.
These are some of the things that must be considered in order to make a demand management and supply chain strategy. Take note of the problems that the company faces, research or develop ways to address these problems and apply the strategy that you created to know if it would solve the problems that the company initially faced. Using demand management and supply management software can help in managing the company's present problems.