Intuitively being demand driven indicates having a pull-based manufacturing system customer orders trigger sourcing and production activities. However – it is rarely the case, that this is possible – due to the long lead time this would cause. This article will point out the requirements to a market driven supply chain.
From the previous article in series “The market driven journey” on market driven forecasting, two things stood out regarding the role of the supply chain
- The supply chain should be responsive to true demand keeping a high customer service level.
- Possible demand scenarios must be evaluated and consequences to the supply chain identified – and the time to do so is very short.