If you're in the supply chain business, right up there with Newton's law of gravity stands Murphy's other law stipulating that demand and supply, if left to their own tendencies, will always tend to diverge and get you in trouble. Welcome to the world of predictive demand and supply planning whose mission is to predict imbalances as far in advance as possible, in order to provide ample time and opportunity to design and implement corrective sales and operations solutions. So how do we design a system for identifying potential issues and expressing them via a commonly understood key process indicator (KPI) where the cause and effect of our actions can be readily measured? Read this article by the former director of Dell's operations and demand management.
it established demand generation
learned to predict what it personally means to us (jump out of a tree and down you go!), and so we readily know how to avoid its negative effects (don''t jump!). With demand and supply (D/S) imbalances, while we all recognize the symptoms (backorders, extended lead times, irate customers, etc.), Murphy, unlike Newton, never seems to give us advance warning or enlighten us on how to avoid falling into their trap. Further adding to the D/S fulfillment dilemma, sales and operations do not inherently share a