Login



For PLUS+ subscription assistance, contact customer service.

Not a PLUS+ Subscriber?

Become a PLUS+ Subscriber today and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access
  • 7 Magazine Issues per Year
  • Companion Digital Editions
  • Digital Edition Archives
  • Bonus Email Newsletters

Subscribe Today!

Premium access to exclusive online content, companion digital editions, magazine issues and email newsletters.

Subscribe Now.


Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2009.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $109/year*. Begin yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

For assistance with your PLUS+ subscription, contact customer service.

* Prices higher for subscriptions outside the USA.

PLUS+ Customer Service Support


Customer service for all PLUS+ subscribers is available Mon-Fri, 9am-5pm Eastern time.

Email: [email protected]
Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)
Mail: PO Box 1496, Framingham MA 01701-1496, USA



You have been logged out of PLUS+


For PLUS+ subscription assistance, contact customer service.

Need to access our premium PLUS+ Content?
Upgrade your subscription now.


Our records show that you are currently receiving a free subscription to Supply Chain Management Review magazine, or your subscription has expired. To access our premium content, you need to upgrade your subscription to our PLUS+ status.

To upgrade your subscription account, please contact customer service at:

Email: [email protected] Phone: 1-800-598-6067 (1-508-663-1500 x294 outside USA)

Become a PLUS+ subscriber and you'll get access to all Supply Chain Management Review premium content including:

  • Full Web Access. All feature articles, bonus reports and industry research through scmr.com.

  • 7 Magazine Issues per year of Supply Chain Management Review magazine.

  • Companion Digital Editions. Searchable replicas of each magazine issue. Read them in any web browser. Delivered by email faster than printed issues.

  • Digital Editions Archives. Every article, every chart and every table as it appeared in the magazine for all archive issues back to 2010.

  • Bonus email newsletters. Add convenient weekly and monthly email newsletters to your subscription to keep your finger on the pulse of the industry.

PLUS+ subscriptions start as low as $129/year*. Start yours now.
That's less than $0.36 per day for access to information that you can use year-round to better manage your entire global supply chain.

This content is available for PLUS+ subscribers.


Already a PLUS+ subscriber?


To begin or upgrade your subscription, Become a PLUS+ subscriber now.

For assistance with your PLUS+ subscription, contact customer service.

Sorry, but your login to PLUS+ has failed.


Please recheck your login information and resubmit below.



For PLUS+ subscription assistance, contact customer service.

The Common Pitfalls of Demand Planning

Effective demand management is critical to the financial performance and health of an organization. However, to be successful companies must overcome the common pitfalls that have evolved from decades of insufficient demand planning and management.

By ·

Effective demand management is critical to the financial performance and health of an organization. Demand management is boundary spanning and, as such, needs to be independent of the functional management organization. When we refer to demand management, we are referring to every functional group within the organization contributing to and relying on managing demand. Digitization and digitalization offer the promise of digital collaboration across functional silos and organizational boundaries without significant manual interaction. However, to be successful companies must overcome the common pitfalls and archetypes that have evolved from decades of insufficient and siloed enterprise demand planning and management. Let’s take a look at the four most common pitfalls of demand planning.

The Problem: The traditional supply chain view is linear and disconnected Pitfall No. 1: Lack of an organizational commitment to improved demand planning
• Organizational culture has been conditioned to the “forecast is always wrong.”
• Lack of executive commitment to integrated demand/supply planning:
– demand planning resides in functional silos with a bias to functional metrics; and
– demand planning led by middle managers supported by junior analysts.
• Operational demand planning is supply chain focused and forecast oriented.

We traditionally view the supply chain as a chain of sequential links each with behavioral attributes that act separately and together to cause demand variation from historical performance. This has been widely characterized as the bullwhip effect. As demand variations are communicated sequentially through the supply chain there are time delays and amplification of the signal variations that cause error to propagate the network (see Figure 1).

Effective demand management is critical to the financial performance and health of an organization. Demand management is boundary spanning and, as such, needs to be independent of the functional management organization. When we refer to demand management, we are referring to every functional group within the organization contributing to and relying on managing demand. Digitization and digitalization offer the promise of digital collaboration across functional silos and organizational boundaries without significant manual interaction. However, to be successful companies must overcome the common pitfalls and archetypes that have evolved from decades of insufficient and siloed enterprise demand planning and management. Let’s take a look at the four most common pitfalls of demand planning.

The Problem: The traditional supply chain view is linear and disconnected Pitfall No. 1: Lack of an organizational commitment to improved demand planning

  • Organizational culture has been conditioned to the “forecast is always wrong.”
  • Lack of executive commitment to integrated demand/supply planning: -demand planning resides in functional silos with a bias to functional metrics; and -demand planning led by middle managers supported by junior analysts.
  • Operational demand planning is supply chain focused and forecast oriented.

We traditionally view the supply chain as a chain of sequential links each with behavioral attributes that act separately and together to cause demand variation from historical performance. This has been widely characterized as the bullwhip effect. As demand variations are communicated sequentially through the supply chain there are time delays and amplification of the signal variations that cause error to propagate the network.

This complete article is available to subscribers only. Log in now for full access or start your PLUS+ subscription for instant access.

 

By ·

Effective demand management is critical to the financial performance and health of an organization. Demand management is boundary spanning and, as such, needs to be independent of the functional management organization. When we refer to demand management, we are referring to every functional group within the organization contributing to and relying on managing demand. Digitization and digitalization offer the promise of digital collaboration across functional silos and organizational boundaries without significant manual interaction. However, to be successful companies must overcome the common pitfalls and archetypes that have evolved from decades of insufficient and siloed enterprise demand planning and management. Let’s take a look at the four most common pitfalls of demand planning.

The Problem: The traditional supply chain view is linear and disconnected Pitfall No. 1: Lack of an organizational commitment to improved demand planning

  • Organizational culture has been conditioned to the “forecast is always wrong.”
  • Lack of executive commitment to integrated demand/supply planning: – demand planning resides in functional silos with a bias to functional metrics; and – demand planning led by middle managers supported by junior analysts.
  • Operational demand planning is supply chain focused and forecast oriented.

We traditionally view the supply chain as a chain of sequential links each with behavioral attributes that act separately and together to cause demand variation from historical performance. This has been widely characterized as the bullwhip effect. As demand variations are communicated sequentially through the supply chain there are time delays and amplification of the signal variations that cause error to propagate the network (see Figure 1).

Effective demand management is critical to the financial performance and health of an organization. Demand management is boundary spanning and, as such, needs to be independent of the functional management organization. When we refer to demand management, we are referring to every functional group within the organization contributing to and relying on managing demand. Digitization and digitalization offer the promise of digital collaboration across functional silos and organizational boundaries without significant manual interaction. However, to be successful companies must overcome the common pitfalls and archetypes that have evolved from decades of insufficient and siloed enterprise demand planning and management. Let’s take a look at the four most common pitfalls of demand planning.

The Problem: The traditional supply chain view is linear and disconnected Pitfall No. 1: Lack of an organizational commitment to improved demand planning

  • Organizational culture has been conditioned to the “forecast is always wrong.”
  • Lack of executive commitment to integrated demand/supply planning: -demand planning resides in functional silos with a bias to functional metrics; and -demand planning led by middle managers supported by junior analysts.
  • Operational demand planning is supply chain focused and forecast oriented.

We traditionally view the supply chain as a chain of sequential links each with behavioral attributes that act separately and together to cause demand variation from historical performance. This has been widely characterized as the bullwhip effect. As demand variations are communicated sequentially through the supply chain there are time delays and amplification of the signal variations that cause error to propagate the network.

 


Subscribe to Supply Chain Management Review Magazine!

Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!

Article Topics

Demand Planning · Forecasting · All Topics
Latest Whitepaper
The Digital Supply Network: The Era of Supply Chain Visibility and Tracking
Supply chain innovation will determine which companies succeed as traditional practices are disrupted.
Download Today!
From the December 2018
This is a comprehensive guide to services, products and educational opportunities targeted specifically to supply chain professionals.
The Common Pitfalls of Demand Planning
Storm Clouds on the Horizon for Supply Chain Operations?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!


Latest Webcast
Leveraging the Internet of Things (IoT) in Manufacturing
Is Digital Transformation a risk or an opportunity? This webinar will detail Manufacturing industry challenges and how using IoT can address these challenges through optimizing logistics, improving processes and gaining meaningful insights.
Register Today!
EDITORS' PICKS
Global Kuehne + Nagel Indicators Signal Global Supply Chain Resilience
So far this year, international merchandise trade has risen by 10.6%. Emerging markets and North...
A.T. Kearney’s Global Business Policy Council Predictions Released
GBPC’s 10 major predictions, fleshed out in the study, are based on continuous scanning of the...

New Research Indicates Greener Supply Chains Mean More Profit
Transparency is key when selecting new suppliers as 85% of businesses want to achieve a...
New Survey Measures Potential Impact of Tariffs on U.S. Supply Chains
The proportion of total output produced abroad is meanwhile expected to rise very marginally.