Demand and Supply Integration: A Key to Improved Firm Performance


By Dr. Theodore P. Stank and Dr. John T. Mentzer, University of Tenessee

Dec. 17, 2007 — Historically, companies have separated the processes used to plan for and manage demand and then supply of the resources and labor needed to meet that demand. The problem with this business model is that the companies using it are often unable to consistently ensure that supply meets demand. Too often, the right-hand (demand) and left-hand (supply) functions are not synchronized, resulting in a shortage of the products that customers actually want, and a surplus of products that are not wanted.


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