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Large Food Company

Large Food Manufacturing Company

Large Consumer Products Company

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Large Apparel Company

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Large Chemical Company

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Discrete Manufacturer

Large Food Manufacturer

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As-Is

To-Be

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Storyboard_June 2023

Map the River of Demand. Use this activity to manage flows bi-directionally market-to-market using outside-in processes based on flow using new forms of analytics and machine learning. Focus from the customer back and design supply flows based on forecastability. Actively design the supply chain to maximize insights and drive opportunity. Use market data to reduce demand latency (time to convert shelf takeaway to an order) and actively sense changes at the shelf in baseline lift. Focus on in-stock performance and market sensing to drive the supply chain response and drive growth.

Homework:

River-of-Demand Hands-on Activity

Suggested Time : 60 minutes

Demand Latency

Demand latency is the time from channel purchase to demand translation of channel replenishment to drive order to an upstream trading partner.

Demand Latency

While most companies believe that an order is a good predictor of demand, the increase in the supply chain's long-tail increases demand latency. With product proliferation, globalization, and micro-segmentation, demand latency dramatically increased over the past decade.

For a turn item at a mass retailer, like Wal-Mart, the demand latency is twenty days, while for a long-tail product, the demand latency can be over one hundred days.

As a result, the order is not as good a predictor of demand as ten years ago. As a result, increasingly, the order is out of sync with the market.

River-of-Demand Hands-on Activity

Make notes, so that you can present your River-of-Demand to the workshop audience ● What did you learn? ● What is the opportunity? ● Prepare a short presentation for Day 2.

On Day 2, present your work of creative art to the team and be ready to discuss how to overcome the challenges you noted.

What are the challenges to moving from “ Inside-Out ” to thinking “ Outside-In ”?

Thank You…

LORA CECERE, FOUNDER | lora.cecere@supplychaininsights.com

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