Dag Ericsson

Demand chain management: a Swedish industrial case study

Purpose – The purpose of this paper is to increase the understanding of demand chain management (DCM) by investigating how it has been structured and executed in an international manufacturing company.Design/methodology/approach – The main emphasis has been on producing descriptive results and the applied research strategy has been an embedded single case study. The case organization originates from Sweden, but it has significant international presence. Empirical data have been collected mainly from in‐depth interviews with key persons representing senior management in the case company.Findings – This research shows that DCM is about developing synergies between the demand creation and the demand fulfillment processes. A completely implemented DCM approach should incorporate all the major demand creation and fulfillment processes. This kind of fully implemented approach probably does not exist in real life today but some companies have started to develop versions including some of the major processes, and...

Coordinating new product development and supply chain management

Effective implementation of the new product development (NPD) process not only enables management to coordinate the efficient flow of new products, but will also assist to support ramp-up of various supply chain activities and other related activities supporting the commercialisation of the product. Thus, companies need to address all these issues in parallel to be successful and this requires some kind of integrative product development approach. The purpose of this research is to increase the understanding of how NPD is connected to supply chain management (SCM) by investigating how the NPD process is structured and executed in two international manufacturing companies seeking to realise an innovative, predictable and efficient product development. Several essential linkages between NPD and SCM have been derived from case study findings concerning important issues for successful product development.

Demand Chain Management : The implementation

Most current supply chain models were developed during a period of relative stability. Today, the environment is discontinuous, volatile and unpredictable. This requires a major rethinking and revitalisation of existing supply chain models. Supply chains are much more than warehouses, transportation and technology, they are people powered and have to be treated as social and political as well as economic and technical systems. The most difficult yet challenging and rewarding factor is the change of mindset from approaches based on the old industrial paradigm to the new knowledge oriented paradigm. From “one size fits all” to customisation and buyer behaviour oriented segmentation based on structural flexibility. The new approach requires a change of processes and management systems, but most of all, a change of mindset, organisation structure and behaviour. This may create internal resistance that has to be overcome to reach the desired future state. This future state is highly dependent on cooperation and consensus with external companies, and the next step is therefore to extend the alignment approach to the chosen partners in the demand chain. The development towards channel rather than company competition requires an interorganisational approach to channel design. Internal alignment and cooperation is necessary but not sufficient, which means that an agile and dynamically aligned demand chain has to be created. All this is well known and documented in both research and theory. However, the challenge is to implement these theories, models and behaviour in practice. This paper presents one practical approach to implementation of the theories put forth by Ericsson [Ericsson D, 2011, Demand chain management — The evolution, ORiON, 27(1), pp. 45–81.]. Key words: Change management, demand chain management, structural flexibility, dynamic alignment.