|
Demand
Strategy & Capabilities
The concept
covers progress on the key issues of
-
developing a clear strategy
-
putting in place all the key supporting processes
-
developing the appropriate measurement tools into a full
scorecard
-
developing the supporting information technology
-
clarifying how the organization will develop
trading relationships
-
ensuring the company's organization can cope with Demand
Management
The concept
stresses the need to develop these issues in parallel.
The concept
can increase costs associated with 'Manage Product
Categories' but these costs are often offset by reduced
costs in other sales and marketing activities and the
benefits from increased demand. |
While the
optimal organization structure will vary depending on the
company's strategic intent and the specific category's role,
a number of principles hold generally true:
-
internally, demand management requires true
cross-functional working, be it within manufacturers or
retailers;
- joint
demand management requires a new type of interface
structure between manufacturers and retailers; and
-
personal and category performance measures need to be
re-aligned from narrow functional criteria to measures
which focus on the category's profitability from an
end-to-end supply chain perspective.
The
scorecard looks at the evolution of internal and joint
strategy development. |
