Demand for Improvements Drives British Businesses to Make Savings

Demand Driven Supply Chain Management

Carol Ptak, co-founder of the US Demand Driven Institute, will address Supply Chain Directors from some of the top UK companies at the forthcoming SCALA Directors’ Briefing: Demand Driven Supply Chain Management. (5 October 2016, Argyll Room, No. 4 Hamilton Place, London W1J 7BQ).

The event will introduce Directors to the benefits of Demand Driven Supply Chain Management. John Perry, Managing Director of SCALA Supply Chain and Logistics Consulting, said: “Companies recognise the need to be more competitive and efficient in all aspects of their business. One area where improvements can be made is by taking a different approach to the supply chain”.

“Currently the majority of FMCG companies forecast their future demands, telling suppliers and factories what to supply, when and the quantities they need.  The one thing we know is that forecasts are inaccurate and this method of replenishment is costing businesses significant sums in cost, inventory and reputation.”

Demand Driven Supply Chain Management replaces the forecast model by positioning the right quantities of stock where needed within the supply chain, and topping them up in a predictable and repetitive sequence. Manufacturers ‘make to replace’ and suppliers ‘ship to replace’ in line with actual demand, resulting in stable production, maximised revenue, lower but right sized stocks and improved customer relations.

Technological advances such as Cloud IT systems are able to manage the complexities of today’s businesses and will enable companies to implement and manage a Demand Driven Supply Chain.

Demand Driven Supply Chain Management is being adopted by leading companies worldwide such as Boots, Michelin, PZ Cussons, Shell Lubricants and Burberry to name but a few.