Effective demand management strategies look outside the walls of the enterprise to collaborate with suppliers to manage downstream customer opportunities and risks. The ability to do this requires a manufacturer to become proficient in three key areas:
DEMAND SENSING: The organizational capability to sense and use demand information from the channel, removing demand latency. Demand latency is the time it takes to sense demand triggers or levers and then translate that information into a product or plan.
Examples of how to sense demand: