Demand chain management-integrating marketing and supply chain management

Abstract

This paper endorses demand chain management as a new business model aimed at creating value in today's marketplace, and combining the strengths of marketing and supply chain competencies. Demand chain design is based on a thorough market understanding and has to be managed in such a way as to effectively meet differing customer needs. Based on a literature review as well as the findings from a co-development workshop and focus group discussions with marketing and supply chain professionals, a conceptual foundation for demand chain management is proposed. Demand chain management involves (1) managing the integration between demand and supply processes; (2) managing the structure between the integrated processes and customer segments and (3) managing the working relationships between marketing and supply chain management. Propositions for the role of marketing within demand chain management and implications for further research in marketing are derived.