STUDENTS' CORNER - 128
Demand-driven planning is the first strategy in effective supply chain
Effective and efficient sale of a product characterizes the spirit of
successful marketing. It means you should have almost a correct estimate of
demand for your product. Your supply-chain management therefore critically
depends on right assessment of demand for your product and monitoring the
entire process upto the right distribution of the product to your valued
customer. This underscores the point that your planning first of all must be
demand-driven which consequently takes you on to the right plan of action, that
is, your business operating model or style.
Of course, there are ways and means of assessing the demand in the
market and in fact you must be familiar with all those measures. In the process
of assessing the demand, another integral and important fact plays a vital role
in the process: knowledge of possible threats to the market that end up in
disruption of the normal activities. You must take into account the challenging
events that do happen beyond your control such as enormously shaking political
scenario that includes unexpected turn of events, say civil war or even the
change of government with radically different policies, such as natural
calamities in the form of fire, earthquakes and floods. All these incidences do
affect market dynamics pulling down the demand of a product or pushing up the
demand of a product. This sensitive understanding of the market must be the
underlying principle governing the process of the demand assessment.
Indeed, Himalayan development in technology must be exploited to the
full so that there is no lack of vital information required for
decision-making. You can have exact
information about your inventory, your products can be tracked in transit and
even you can manage to get feedback on your product and service. With digitalization, the business operations
can be efficiently managed. When all is said and done, you need to have
business insights. Again, it only
implies you must be alert to the vibrant market dynamics. That is you should be
able to know when your product reaches the decline stage and you should be
ready with an alternative to be in the market to sustain yourself.
The first strategy in your supply-chain management is meticulously
planned demand- based marketing engagement.
In our next
session, we shall see some other strategy.