The Influence Internal and External Customers have on a Successful Demand Driven Supply Network (DDSN)
Date
2008-12
Authors
Fernando, Erandi
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Abstract
In an ideal world, the instant a consumer picks up a product from a store shelf, another would immediately replace it, and so on back up the supply chain. The result would be that nothing would ever be grown, manufactured, or distributed for which there was no actual demand. While this can never happen, companies in all industries today, including consumer packaged goods (CPG), are trying to move their supply processes closer to this perfect vision. By encouraging the development of close relationships between partners, a supply network makes sure that only products and services corresponding to customers' demands will be produced. This concept is known as a demand driven approach. A demand driven supply network strategy is all about focusing on customers' needs and demands to make sure that, the information required for manufacturing and assembly reaches all the departments of the firm, and is accessible to suppliers involved in designing, producing, and delivering a part or component and the activities in each of the firms involved in the network are aligned to respond adequately to the demand. The objective of this research is to understand the previous research carried out on the concept demand driven supply network and to develop a framework to organize the literature for better analysis. In addition, the research attempts to identify and analyze the impact and relationship internal and external customers have on a successful demand driven supply network. The responses from the interviewees reinforce that customers both internal and external have considerable influence in shaping a demand driven supply network. The findings further accentuates that people, processes and technology along with collaboration and sharing of information becomes imperative for the success of a demand driven supply network and hence become critical success factors.
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Keywords
demand, business logistics, production, supply and demand, consumers, economic theory
Citation
Fernando, E. (2008). The influence internal and external customers have on a successful demand driven supply network (DDSN) (Unpublished thesis). Texas State University-San Marcos, San Marcos, Texas.