The aim of Demand Control and Execution: Ensuring on-time delivery of customer orders
Demand Control and Execution is doing what is required to help make the demand plan happen.
When companies perform Demand Control and Execution well, they review the status of expected orders daily. They prioritize demand when supply is lacking. They also provide input on the levels of inventory needed to manage routine fluctuations in the volume and timing of demand.
To do Demand Control and Execution well requires proficiency in these areas:
Cross-functional communications between customer service, demand planning, supply planning, and sales management
Well-defined decision-making boundaries and authority
Judgment on how best to balance customer interest and profitability goals
Problems That Effective Demand Control and Execution Help Solve
When companies decide to improve Demand Control and Execution, they typically focus on solving these types of chronic issues:
Being surprised when customer orders do not materialize as planned
Making unilateral decisions on how to prioritize orders when demand exceeds supply
Engaging sales management in determining which customers should receive product when demand is more than supply
Providing feedback to the sales teams when customers are not ordering as planned
Ways to Improve Your Company’s Demand Control and Execution
Oliver Wight has been helping companies to develop excellence in Demand Control and Execution for more than 30 years in the following ways:
Contact us to discuss ways to improve your company’s Demand Management.
Insights on Demand Management:
- Demand Control: An Often Missing Link in a Demand Management Process
- Demand Sensing and Execution: Staying Ahead of the Consumer Revolution
- Effective Execution of S&OP/IBP Plans through Integrated Tactical Planning