7 Reasons Demand Driven Is More Than a Buzz Word

What Do You Really Know about Demand Driven

Demand Driven sounds impressive doesn’t it? Sales and marketing people keep saying you need to be ‘Demand Driven’ and let’s be honest, most marketing and sales folks are like politicians, they can say a lot that sounds amazing but do very little to support their message or meaning. To understand the importance of Demand Driven, you need to identify what is true and what is false about Demand Driven concepts, otherwise the Buzz Term Demand Driven just becomes a Buzz Kill.

True or False: What Do You Know About Demand Driven Concepts?

Demand Driven is an essential link in the supply chain for Omni-channel retailers and wholesalers. It may surprise you how much you do not know about demand driven and the value it offers your company. We have prepped seven questions that highlight key aspects or concepts for a demand driven supply chain.

Considering more ideas for your business using demand driven concepts? Gain insight into methods that just work in today’s modern supply chain.

Read: Demand Driven Do’s and Don’ts: 3 Keys to Retail Success

Take the Demand Driven Test

Ready to test your knowledge, let’s head back to school for a true/false test, as we look at what we Really Know about demand driven concepts. Relax, unlike school tests, this test is not scored for a grade.

Select either True or False for each of the following 7 test questions:

True or False? Demand driven supply chains have been helping companies for over a decade; it is nothing close to new.
True or False? With the rapidly changing consumer habits which create shorter response times for retailers coupled with the changing retail marketplace, the importance of the demand driven model will continue to grow.
True or False? Demand driven initiatives help company’s track customer responses to a retailer’s efforts to curve demand in patterns that deliver higher ROI to the retailer.
True or False? Demand Driven concepts focus less on what the past sales have been and promote understanding the patterns and thoughts of your customers to determine their future demand and your corresponding future inventory needs to meet that demand.
True or False? These techniques are relevant for all businesses to utilize.
True or False? Agile business concepts are forward-thinking and provide new insights into how your customers are thinking when it comes to your business.
True or False? Demand Driven is more than accurate forecasting.

Results and Mileage may Vary

This may surprise you, but the answer to all 7 of those true or false questions is true.

Demand driven concepts can provide a level of forecast accuracy that you have never experienced. As our Forecast Accuracy ROI blog shared, increased demand forecast accuracy delivers significant profit gains by enabling you to better supply the right products at the right time for your customers. It will prevent you from having too much product on your shelves as well as too little. Both you and your customers will be happier with the way you do business.

Your Next Steps

To talk more about how Demand Driven concepts can grow profits in your company or discuss how our True or False? have raised questions in your supply chain; please Contact Us. We look forward to answering the questions that help you engage in Demand Driven concepts to grow your profits.
Copyright © Data Profits, Inc. 2014 All Rights Reserved.

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Stuart D

Stuart Dunkin is a strategic visionary who leads by calling on his broad range of experience as a former retail executive as well as a consultant for top retailers and for the E3/JDA software company. He founded Data Profits to solve a real-world problem plaguing retailers today – the disjointed relationship between supply chain data, people and business goals. He has experienced first-hand the challenges and frustrations that occur when decisions are made based on wrong data, which often leads to the wrong actions being taken with crippling results like overstock, out-of-stock, and increased working capital.
Stuart graduated from Auburn University, with bachelor of science in business administration.