The primary objective of the demand management process is to provide the business with a reasonable demand plan with which to drive the business planning processes. This will assist the company to better plan investment strategy, plan new resources and plant into the future and plan the procurement for long lead-time materials, timeously.
These three demand plans need to be derived from the same data, support each other and be a consensus of those with insight into the business. These plans can’t be developed independently by different people or teams in the organisation or be one persons or groups thoughts on what is going to happen into the future. When the demand plan is proved to be wrong, which it will be, we don’t want to blame a person or group. Instead, we ask the question “why?” and file the answer away in our ‘knowledge bank’ and change the process to improve the accuracy of the output.
The Demand Management Process
Demand management is the process of gaining a reasonable grasp of all the demands on the business. This process needs to be the responsibility of the demand team which should consist of at least the following functions: