AF15 SCM DEMAND MANAGEMENT

AFMI -SCM -BL01M03-Day08-27Nov20 SC08-BL01M03




Agenda

Unit 2 Demand Management and Customer Service,Outbound to customer logistics systems – Demand Management – Traditional Forecasting – CPFRP


1. What is the demand management process?

Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. The process is not limited to forecasting.

Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain. ... It includes synchronizing supply and demand, increasing flexibility, and reducing variability.


2. What are the functions of demand management?

Demand Management: The function of recognizing all demands for goods and services to support the market place. It involves prioritizing demand when supply is lacking. Proper demand management facilitates the planning and use of resources for profitable business result


3. What is CPFR in supply chain?

Supply Chain Planning. CPFR stands for collaborative planning, forecasting, and replenishmen


Why is Cpfr important?

CPFR enables trading partners to improve operational efficiency through a systematic process of sharing and utilizing information across firm level boundaries. ... As a result demand forecasting and replenishment has become a vital issue for manufacturers, professionals and researchers.


What are the key features of CPFR?

  1. CPFR Model Stages

  2. Business agreement.

  3. Developing business plan.

  4. Developing sales forecast.

  5. Exceptions identifying for sales forecast.

  6. Collaboration on exceptions.

  7. Order forecast creation.

  8. Exceptions identifying for order forecast.

  9. Collaboration on order forecast exceptions.


List down the order management functions

  1. - receive order

  2. - enter order- manual/electronic

  3. - Verify and check the order for accuracy

  4. - check the credit

  5. - check inventory availability

  6. - process back order

  7. - acknowledge order

  8. - modify order

  9. - suspend order

  10. - check pricing and promotion

  11. - identify shipping point

  12. - generate picking documents

  13. - originate shipment

  14. - inquire order status

  15. - Deliver order

  16. - measure service level

  17. - measure quality of servie

  18. - identify taxes to be levied and paid

  19. - check insurance FOB details



Customer Service

Levels of Product

- Core Benefit

- Tangible Product

- Augmented Product


Various forms of Customer Service

- billing support

- credit terms adjustments

- delivery guarantee/ earlier delivery

- prompt support/ congenial support

- data on product

- installation and service support

- availability of spare parts and maintain registeray


Levels of Customer Service

- CS as activity

- CS and performance measure

- CA as philosophy


Performance measures of CS


  1. Stockout and Effects of Stockout

  2. Back Order and cost of Back order


Demand-chain management (DCM) is the management of relationships between suppliers and customers to deliver the best value to the customer at the least cost to the demand chain as a whole. Demand-chain management is similar to supply-chain management but with special regard to the customers.


What is the demand management process?

Demand management is the supply chain management process that balances the customers' requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. The process is not limited to forecasting.


Why is demand management an essential component of supply chain management?

Demand management helps companies improve inventory levels, enhance customer service, optimize trade and promotion planning, and enhance inventory planning. Demand Management is far more robust than developing a demand forecast or sales forecast.


What are the benefits of demand management?

Advantages Of Demand Planning

  1. Improves Product Forecast Accuracy. Effective demand planning can assist supply chain managers by accurately forecasting product production and expected company's revenue.

  2. Increases Supply Chain Scheduling. ...

  3. Optimize Labor Management. ...

  4. Create Efficient Cash Flow Management


A significant demand management problem relates to the inability of the organisation to access (and analyse) accurate demand information. Poor demand information leads to supply chain players keeping high levels of inventory as insurance, which is against the principles of lean supply.


What are the roles in demand management?

The Demand Manager is responsible for understanding, anticipating and influencing customer demand for services. The Demand Manager works with capacity management to ensure that the service provider has sufficient capacity to meet the required demand.


How do you control demand?

  1. Maintain transparent, proactive relationships with your suppliers. ...

  2. Activate alternate sources of supply. ...

  3. Reduce lead times. ...

  4. Update inventory policy and planning. ...

  5. Align supply and demand management.


Supply demand misalignment

traditional forecasting

how will you integrate the forecasting and production

Collaborative Planning, forecasting and Replenishment

EDI - electronic data interchange

VMI - Vendor managed inventory

ECR - Efficient Customer response

IOT- Internet of things- Real time

Walmart developed, specific line items, out-of-Stock occurances,

CPFR- emphasises on sharing of customer purchasing data between trading partners - thus ensuring customer to SCM direct link. periodical review,

Order fulfilment and order management

Collaborative Planning -collaborative demand planning/joint capacity planning/syncronised order fulfilment




Lakshminarasimman V Rao | SCM| Class notes | Study Material | AFMI | Corporate Neeti Consulting | Mysuru

corporateneeti.com

All data above is a combination of data from Internet, purpose of this doc is for research and education only and responses received from Class students and interaction.

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