Demand Management

Demand Management

Demand management is the proactive process of coordinating and aligning an organization’s demand for products and services with its supply capabilities. The goal of demand management is to ensure that an organization can meet its desired levels of customer service while maximizing operational efficiency and profitability.

To effectively manage demand, organizations must first have a clear understanding of their overall supply and demand picture. This includes having visibility into current and future customer demands, as well as an understanding of the organization’s own production capabilities. With this information in hand, organizations can then develop strategies for managing demand that take into account both the organizational objectives and the needs of customers.

There are a number of different approaches that organizations can take to managing demand. Some common methods include creating forecasting models, utilizing inventory management techniques, and establishing buffer stocks. By taking a proactive approach to managing demand, organizations can ensure that they are able to meet customer needs while also minimizing the impact on their bottom line.