Technology has its place in the transformation of supply chains. But people and process are the true keys to bridging the gap between supply and demand.
Ever since access to ubiquitous real-time data emerged as a technological reality, businesses have been lured by the possibility of redirecting their supply chains toward a model driven by demand. Applying analytics software to make sense of big data could allow organizations to close the gap between demand and supply.
The implications of such a vision are many. It would enable retailers to reduce inventories to levels that would meet, but not exceed, their current requirements. It would allow retail suppliers to operate in a “sell one, make one” environment. In a demand-oriented environment, products coming off manufacturing assembly lines will have already been pre-allocated against customer orders.
It’s tempting to believe that implementing the right technologies will do the trick in the transition to a demand orientation. The experts at GEP, a provider of procurement and supply-chain strategy, software and managed services, take exception to that notion. Technology, they preach, must play a supporting role to the transformation of the interconnected relationships and processes that are the true keys to emerging as a demand-driven organization.
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