Leveraging a Demand-Driven Manufacturing Model To Enhance Profitability

Today, the more successful manufacturers are those which have adopted effective and effi cient fulfi llment strategies. In fact, many have chosen to become demand-driven rather than supply-driven, meeting the needs of a dynamic marketplace by building products to order rather than investing in large inventories, building products to stock and attempting to create customer demand. Demand-driven manufacturing, however, by its very nature, necessitates rethinking traditional manufacturing methods in favor of “lean” manufacturing principles, a highly effi cient and collaborative supply chain, rapid order turnaround, the effi cient deployment of resources, profi table contracts and, last but not least, sustained customer satisfaction. In many ways, a demand-driven manufacturing model cedes control to the marketplace. In other words, it relies on a “pull-through” rather than “push-through” scenario.

This paper discusses the fundamentals for successful demanddriven fulfillment manufacturing, including optimal channel and customer relationships, informed online buying and selling, flexible product confi guration and order fulfillment and integrated operational infrastructures. It details the challenges that manufacturers face today, the most effi cient infrastructures to accommodate the demand-driven model and the value concepts that are emerging in the demand-driven environment.