Demand-Driven Supply Chain

At P&G, we decided to stop being so company-centric, and start being cus-tomer-centric and demand-driven. We found when you do that, some amazing things happen (Ralph Drayer, former Chief Logistics Officer at P&G).

Information about Demand-Driven Supply Chain

In a traditional supply chain producers and manufacturers were forecast-based and sales-driven and the products were pushed downstream towards end customers. In other words, products were 'driven' to markets (de Argaez, 2011).

The concept of the demand-driven supply network (DDSN) was introduced in 2003 by AMR Research (Barrett, 2007). Contrary to the transitional approach, DDSN is driven from the 'front' by customer demand. Instead of being 'driven' to markets, products are 'pulled' to market by customers. This does not apply that DDSN removes or limits the abilities of a company, but merely defines that companies in a supply chain work more closely to shape market demand by sharing and collaborating information. By doing so, they achieve greater and more timely visibility into demand (de Argaez, 2011).

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