Overview

Successful demand management is dependent on the human quotient. Think about the four elements of demand management planning demand, communicating, influencing demand, and prioritizing and managing demand. People drive these activities.

To plan demand, someone must decide on the plan. Even if only a statistical forecast is used, someone decides whether to use the forecast without alteration or whether there are reasons to change the numbers. When multiple views are used as input into the demand plan, people communicate each view, and someone must assimilate those views into a single proposed plan. When a demand consensus review meeting is conducted, a group of people work collaboratively to reach consensus on the plan.

People are the drivers in influencing, prioritizing, and managing demand as well. People determine the marketing, brand, product, and sales strategies to create value and generate demand. People execute those strategies and tactics. Salespeople sell to people. Even in e-sales, people decide the products and price to offer and how to present the products in a way that will make people want to buy the merchandise. And when it comes to prioritizing and managing demand, this is a pure judgment call. Someone must determine which customers get priority for product when demand outstrips supply. Someone also must decide whether to build inventory or influence customers to buy early when demand does not materialize as planned.

All too often the people factor in demand management is either undervalued or ignored altogether. Companies that recognize the importance of...