Category Archives: Demand chains

The term “Demand chain” emerges from the old supply chain terminology, but recognises that the customer is king. In every chain, an end customer needs to buy something, the rest of the chain is just about sharing the outcome of that transaction, the whole thing is driven by “Demand”. This category recognises the primacy of demand in the marketing and strategic thinking of sccessful businesses.

Value chain sustainability.

The word sustainable holds connotations of farming practices, and environmental sensitivity, all true, but only half the story. A sustainable chain must also be commercially sustainable, and one without the other is by definition, unsustainable. The characteristic that drive both … Continue reading

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Reference class forecasting

People routinely forecast optimistically, they under-forecast costs, and over-forecast outcomes. We have all seen it happen repeatedly in businesses and the public sector, most of us have seen it on  personal level. Demand planning is the core of effective operational … Continue reading

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Organic opportunities abound

On Friday I made a very modest contribution to the proceedings of the Organic and Green trade show in Sydney. A bunch of committed, passionate people, working their collective butts off to build businesses that deliver on the organic promise … Continue reading

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Lean operations undermine “offshoring?”.

Some time ago I mused that perhaps the worm was slowing if not turning, in relation to local manufacturing, rather than buying in from China as the default option. The crisis in the US, far worse than anything in this … Continue reading

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Marketing & Demand Chain Transparency

The retailer Patagonia has as a part of its corporate values a reverence for the environment, it is a core part of their corporate values, and highly relevant to their target market. They wear their hearts on their electronic sleeves … Continue reading

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Commercial sustainability needs people.

  The next time you hear an argument that justifies moving Australian manufacturing to a low  cost country in order to compete, refer to this post on the Evolving Excellence blog describing the work practices in a Toyota’s Kyushu plant. … Continue reading

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Lean lessons from the pub

Last Friday night I was in a small local club with a client, co-incidentally as they had the weekly member  “badge-draw” which had jackpotted to $19,000. As you can imagine the joint was packed, it took 20 minutes lining up  … Continue reading

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Manufacturing capability shortcomings

A while ago I wrote that there seemed to be the beginnings of some thinking amongst the smaller manufacturing operations I interact with about the relative value of manufacturing in high cost Australia, and retaining control of, and having the … Continue reading

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Lean manufacturing and Demand chains.

Two differing approaches to management improvement you may think? Not so. Both require extensive: * Collaboration, * Transparency, * Robust processes, * A set of values imbued through an individual organisation, and group of  organisations in a demand chain,  * Respect … Continue reading

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The Newtonian paradox of groups.

Successful groups have great power, power to identify, understand the causes and implications of problems and opportunities, and come up with creative responses, and once moving can gather great momentum. Most workplaces are now actively seeking to harness the intellect … Continue reading

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Successful chains are communities

When people are tied together, when they are in “communities” they tend to develop shared values, aspirations, and courses of action. The incidence of double dealing, dishonesty, personal gain at the expense of the community gain, are reduced. An efficient … Continue reading

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“Democtratising knowledge” in demand chains

Democratising  knowledge, isn’t this a lovely term! I have heard it used on a number of occasions recently, and it came up again in an extraordinary TED presentation by Stephen Wolfram . In just two words it nails the complex … Continue reading

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Transactions and obligations in a demand chain

Isn’t it interesting, when we pay for something, we have an expectation of what that transaction will deliver to us, but there is little sense of lingering obligation. However, if we just do something for someone, any small piece of … Continue reading

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Customers drive chains

Integrated value chains are nothing new. IBM had one before it started “outsourcing” what turned out to be the future to Microsoft and Intel, Ford had one at  centered around the Dearborn factory, from where the company controlled by owning … Continue reading

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Transparency effect

Can you imagine the changes that would have occurred in the behavior of the tobacco industry in the 70′s and 80′s had there been the “net-enabled” communication tools available then, when the big tobacco companies were conducting a rear guard … Continue reading

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Forecasting and demand planning.

Developing a forecast of what you need to make to sell is a different proposition to doing a demand forecast, it is much more than a semantic difference. A forecast is usually an extrapolation, sometimes very sophisticated, but an extrapolation … Continue reading

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To collaborate or not to collaborate

It seems that everywhere there is a drive to collaborate, without any real regard to the challenges of collaboration, the behavioral and cultural changes necessary for success. Collaboration has become an end in itself, rather than a strategy that has … Continue reading

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Successful alliances manage the dissimilarities.

Alliances form because organizations have similarities, and commonalities that promise synergy. However, most alliances fail because they fail to manage the areas if dissimilarity. Leo Tolstoy  remarked that happy marriages were the result of the manner in which partners dealt … Continue reading

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Resilience is a requirement for demand chains.

  Evolving a demand chain requires great resilience from all parties involved, it is new territory every time it is addressed because all situations are different, and developing a set of rules for implementation has not yet been done well, … Continue reading

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Demand chain innovation pay-off

  Turning a supply chain 180 degrees to become a demand chain is an inordinately difficult organizational challenge, not because it does not make sense, but because it requires organizations and the people in them to be able to see … Continue reading

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