October 2017

Supply Chain Response to Demand Surge

Many different factors trigger variations in demand. Poor forecasting, change in demand of substitute products, expectation of customers (shift in customers’ preference), price at global level, increase in number of customers, change in government regulations, technology improvements are some among them. OEM's strive hard to react to unprecedented growth in demand and try to reduce the gap in demand and supply. Demand variability could be radical, it is interesting to see how the supply chains reacts when there is an upsurge. This will help the entire supply chain (OEM’s, suppliers) to reduce cost and increase revenues, hold the market share and customer satisfaction.