Saturday, 21 June 2014

Comparison between Supply and Demand Chain

Supply Chain
Demand Chain
  • Cost is the key driver

  • Cash flow and profitability are the key drivers

  • Efficiency focus, cost per item

  • Effectiveness focus; customer-focused, product market fit

  • Focuses on immediate resource and capacity constraints

  • Focuses on long term capabilities, not short term constraints

  • Historical focus on operations planning, and controls

  • Historical focus on demand management and supply chain alignment

  • Processes are focused on execution

  • Processes are focused more on planning and delivering value

  • Short term oriented, within the immediate and controllable future

  • Long term oriented, within the next planning cycles

  • Typically the domain of tactical manufacturing and logistics personnel

  • Typically the domain of marketing, sales and strategic operations managers

Source: Langabeer and Rose, 2001, in Walters, 2006b

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