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The concept covers progress on the key issues
of
- developing a clear strategy
- putting in place all the key supporting processes
- developing the appropriate measurement tools
into a full scorecard
- developing the supporting information technology
- clarifying how the organization will develop
trading relationships
- ensuring the company's organization
can cope with Demand Management
- The concept stresses the need to develop these
issues in parallel.
The concept can increase costs associated with
'Manage Product Categories' but these costs
are often offset by reduced costs in other sales
and marketing activities and the benefits from
increased demand.
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While the optimal organization structure will
vary depending on the company's strategic intent
and the specific category's role, a number of
principles hold generally true:
- internally, demand management requires true
cross-functional working, be it within manufacturers
or retailers;
- joint demand management requires a new type
of interface structure between manufacturers
and retailers; and
- personal and category performance measures
need to be re-aligned from narrow functional
criteria to measures which focus on the category's
profitability from an end-to-end supply chain
perspective.
The scorecard looks at the evolution
of internal and joint strategy development.
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