Supply And Demand Management Definition
Supply and demand management (SDM) is a process for ensuring that an organization can meet its customer’s needs while maximizing operational efficiency. SDM includes both supply chain management (SCM) and demand management (DM).
The goal of SCM is to ensure that an organization has the right supplies on hand when they are needed. This includes planning and forecasting, procurement, inventory management, and transportation. DM, on the other hand, focuses on understanding and managing customer demand. This includes marketing, sales, and service.
SDM is a critical function in any organization because it ensures that customers are satisfied while also minimizing costs. By managing both the supply side and the demand side of the equation, organizations can optimize their operations and improve their bottom line.
