The demand chain and response management: New directions for operations management?

Abstract

Supply chain management would appear to be at the end of its lifecycle. Customers of all types are expressing preferences based upon some degree of product-service differentiation and not simply on cost. The growing interest in mass customisation and product platforms is evidence of these developments. Supply chain devotees argue that it (the supply chain) is capable of adequate response to these changes while others suggest the demand chain better serves the current market place. This article suggests that while the supply chain is by no means obsolete it can be argued that it is obsolescent and should be replaced by a more proactive response system. We explore demand chain analysis and demand chain management and show how “response management” is a worthy successor to the supply chain and a possible way to integrate the facilitating technology now available with a dynamic marketplace.