Demand management constitutes the prime engine driving the supply chain. Classically, the role of demand management is to plan, execute, and control the design, pricing, promotion, sale, and distribution of the business’s products and services to meet the goals of the corporate strategy and fulfill the needs of the marketplace. In this effort, the firm’s demand management team is responsible for the development of the inventory and branding strategies, the marketing plan, the sales plan, and the demand forecast that defines the nature of the marketplace and the objectives of each customer-support department within the organization. Collectively, these plans constitute the business’s demand strategy.
- 1.All definitions from the APICS Dictionary used in this chapter are from the 14th edition, 2013.Google Scholar
- 2.This definition can be found at www.cscmp.org/resources-research/glossary-terms.
- 3.These points can be found in Langabeer, James R. 2000. Aligning demand management with business strategy. Supply Chain Management Review 4(2): 68.Google Scholar
- 4.These four processes also constitute the core of analysis of Crum, Colleen. 2003. Demand management best practices: Process, principles, and collaboration, 25–96. Boca Raton: J. Ross Publishing.Google Scholar
- 5.Ibid., 76.Google Scholar
- 6.This figure has been adapted from Sheldon, Donald H. 2006. World class sales & operations planning, 68. Ft. Lauderdale: J. Ross Publishing.Google Scholar
- 7.For additional discussion reference Ballou, Ronald H. 1999. Business logistics management: Planning and control, 4th ed, 54–56. Englewood Cliffs: Prentice-Hall; and Kotler, Philip, and Kevin Lane Keller. 2006. Marketing management, 12th ed, 372–381. Englewood Cliffs: Prentice-Hall.Google Scholar
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- 9.This definition is found on the American Marketing Association website (www.marketingpower.com/resourcelibrary).
- 10.Kotler and Keller, 275–276.Google Scholar
- 11.Seldin, Larry, and Geoffrey Covin in their book. 2003. Angel customers and demon customers: Discover which is which and turbo-charge your stock, 118–138. New York: Portfolio.Google Scholar
- 12.This paragraph is based on Kotler and Keller, 617.Google Scholar
- 13.The basic structure of S&OP grids have been long established and appear in Wallace, Thomas F., and Robert A. Stahl. 2008. Sales and operations planning, 3rd ed. T. F. Wallace & Co.Google Scholar
- 14.This figure is adapted from Ibid., 54.Google Scholar
- 15.Iyengar, Charanyan, and Sandeep Gupta. 2013. Building blocks for successful S&OP. Supply Chain Management Review 17(6): 17.Google Scholar