Q1: Select an industry of your choice from markets, and list some specific programs that
you believe represent their attempt to implement their chosen demand management
strategies. Is demand management more closely associated with marketing or operations?
Why? (Answer your above question from “Supply Chain Management”
perspective/domain).
Answer:
Supply Chain Management is the process which is associated with the manufacturing of
products until they are utilized. Demand Management process in a supply chain can be
stated as the process to stabilise all the requirements of the customers with the abilities of
the supply chain. Management can easily balance the supply and demand process with the
right approach to implement any plan. In the past few years, the Pakistani market had an
increasing demand to apply software applications which can the value chain process more
efficient. Also, the companies in Pakistan have been outsourcing their product distribution
activities to keep a check on updated sales record and maintain their revenues. Many
companies have good value chain process but they do not have good visibility into their
demand chain management.
The industry I will discuss regarding the demand management process is the Automotive
Industry of Pakistan. The supply chain management for such industry requires organizing,
scheduling, controlling and monitoring of all the process side-by-side. The Automotive
Industry is the most profitable in Pakistan with a great contribution to the country’s GPD.
The Automotive Industry do not only participate in vehicle supply and transport sector but it
has a great impact on employment in other sectors as well (steel and petroleum). The
demand for vehicles such as bikes and car has continuous upsurge in the local market. The
increasing demand in the industry is encouraged to be met competently to uphold the
market share. The high demand for vehicles has made the industry reply on the suppliers to
manage the demand management efficiently. The Equipment Manufacturers has to
maintain the production of adequate parts for assembling vehicles. The production process
is dependent on the capacity of suppliers. There are many technological barriers due to
which the manufacturers decide to produce limited vehicle parts locally. The products are of
good durability so, the global car manufacturers like German Car Industry prefer to use
products manufactured in Pakistan. The three foremost players in the Pakistani market are
, Pak Suzuki Limited, Indus Toyota Motors and Honda Atlas. Due to high complexity in the
Supply chain process of this industry, companies have to implement effective demand
management strategies to survive the market. The current pandemic has led to economic
slowdown due to which companies have a lack of visibility to forecast an efficient way of
managing market demand. For successful demand management, correct forecasting is still
the central method. The demand management in the automotive industry is facing many
challenges in Pakistan including commitments and lack of communications. The Automotive
industry is implementing effective demand management strategies in the following ways:
Facility Assortment: The major decision the industry can take to manage all demand is the
sourcing decision which is essential to be encountered. The industry is facing a challenge by
locating many off-shore and near-shore issues and implementing appropriate strategies.
With the help of advanced technology, the Industry can take good decisions related to the
suppliers which will enhance the demand management process. Many important decisions
related to low-cost and local products help the industry to survive well.
Transport Path Optimization: The Automotive industry is using the latest algorithm
techniques to decide the transport routes for their consignments. This helps in maximizing
the value chain process. The cost and other arrangements are managed properly along with
deciding the accurate routes to make product availability better.
Manufacturing: The demand and cost of vehicles in Pakistan changes with time to time.
Also, there are diverse numbers of vendors in the Automotive industry. The production
process and stock-level have to be maintained to earn the market share.
Centre assortment and exploration: A consolidation centre Is used by many manufacturers
in the industry to maintain the delivery process and reduce excessive transport cost. The
industry the products with their suppliers to manage the network between the value chain.
Inventory Optimisation: Stock maintenance in the automotive industry assures that the
demand management process is consistency. When there is impulsive demand for vehicles
in Pakistan, they are always met by managing stocks in the market. Inventory management
authorises the maintenance of end-to-end stocks which help is fulfilling customer demands
for the vehicles.
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