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DMK Strategies for Demand Driven Success

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This document discusses strategies for improving demand management performance. It identifies three key areas of focus: benchmarking performance, conducting a competitive maturity assessment, and identifying actions for improvement. Top performers excel at strategic alignment, collaboration, and responsiveness. The document provides a framework to analyze pressures, actions, capabilities and enablers. It also outlines steps that poor, average and top performers can take to enhance demand management.

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Demand Management Keys Strategies to Become More Demand Driven
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],Pressures Strategic Actions Meeting Customer Service Expectations Improve Internal Collaboration (Forecasting, Pricing, Promotions) Rising Costs (Transit, Logistics, Inv. Carrying Costs, etc. Customer Level Forecasting for Key B2B Customers High Uncertainty in Demand Create Tighter Feedback From POS to Demand Plans Maximize Mfg. Efficiency Improve External Collaboration by Including Inventories & Capacities Product Lifecycle Management Focus on Statistical Forecasting (Starting Point)
Demand Management Keys Part 1: D. M. Performance Benchmarking Source: Aberdeen Group – Process Industries Maturity Class F/G Inv. Turns Customer Service Gross Profit Forecast Accuracy Top Performers 17 96% 35% 81% Average Performers 7 85% 20% 69% Poor Performers 3 65% 5% 45%
Demand Management Keys Part 1: D. M. Performance Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 1: D. M. Performance Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 1: D. M. Performance Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 1: D. M. Performance Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 1: D. M. Performance Benchmarking ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments Process Performance Level Single Demand Forecast w/Inputs from Multiple Roles in Org. Segment on Key Product-Customer Links Rapid Product Intro. Decisions Convert Forecasts from Product Family to SKU Level Top 40% 36% 36% 46% Average 23% 22% 15% 25% Poor 10% 21% 6% 20%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],Performance Level Forecast Based on Attributes (volume, quantity) Collaborate with External Trading Partners Collaborate with Internal Stakeholders Top 50% 33% 37% Average 28% 13% 23% Poor 9% 11% 10%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],Performance Level Sales Organization Involved in Forecasting Clear Owner for Consensus Forecast Top 37% 32% Average 23% 29% Poor 20% 21%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],Performance Level RFID Technology Currently in Use Top 77% Average 58% Poor 44%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],Performance Level Statistical Demand Forecasting Forecast Collaboration Alert Management Demand Analytics and Reporting Top 82% 73% 50% 59% Average 53% 33% 24% 28% Poor 42% 10% 8% 18%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],Performance Level Ability to Measure End to End Planning Lead Times Ability to Measure Forecast Accuracy at the SKU Level Ability to Measure End to End Order to Delivery Lead Times Top 37% 50% 41% Average 12% 23% 22% Poor 10% 21% 19%
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 3: Required Actions to Improve Performance ,[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 3: Required Actions to Improve Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys Part 3: Required Actions to Improve Performance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Demand Management Keys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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DMK Strategies for Demand Driven Success

  • 1. Demand Management Keys Strategies to Become More Demand Driven
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  • 7. Demand Management Keys Part 1: D. M. Performance Benchmarking Source: Aberdeen Group – Process Industries Maturity Class F/G Inv. Turns Customer Service Gross Profit Forecast Accuracy Top Performers 17 96% 35% 81% Average Performers 7 85% 20% 69% Poor Performers 3 65% 5% 45%
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  • 14. Demand Management Keys Part 2: D. M. Competitive (Maturity) Assessments Process Performance Level Single Demand Forecast w/Inputs from Multiple Roles in Org. Segment on Key Product-Customer Links Rapid Product Intro. Decisions Convert Forecasts from Product Family to SKU Level Top 40% 36% 36% 46% Average 23% 22% 15% 25% Poor 10% 21% 6% 20%
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