Demand and supply integration a conceptual framew

Authors: Terry L Esper Alexander E Ellinger Theodore P Stank Daniel J Flint Mark Moon

Publish Date: 2009/02/26

Volume: 38, Issue: 1, Pages: 5-18

PDF Link

Abstract

Strategy identifies two primary sets of processes through which the firm creates value for its customers by moving goods and information through marketing channels demandfocused and supplyfocused processes Historically firms have invested resources to develop a core differential advantage in one or other of these areas—but rarely in both—often resulting in mismatches between demand what customers want and supply what is available in the marketplace This paper suggests that successfully managing the supply chain to create customer value requires extensive integration between demandfocused processes and supplyfocused processes that is based on a foundation of value creation through intraorganizational knowledge management Integrating demand and supply processes helps firms prioritize and ensure fulfillment based upon the shared generation dissemination interpretation and application of realtime customer demand as well as ongoing supply capacity constraints We draw upon literature in marketing logistics supply chain management and strategy to introduce a conceptual framework of demand and supply integration DSI We also offer insights for managerial practice and an agenda for future research in the relatively underresearched but strategically important area of demand and supply integration

Keywords: