Strategic Demand Management for Capacity-Driven Companies
Good demand management looks different depending on how much a company can flex its capacity. The paper sets out four capacity structures and the demand management emphasis that fits each one, drawing on a demand management assessment we led for a U.S. retail pharmaceutical client.
Match the emphasis to your capacity
Semiconductor-style economics: capacity is costly and slow to add, so long-horizon demand planning comes first.
E-commerce-style peaks: real-time communication with customers and partners lets capacity scale up and down.
Beverage-style seasonality: promotions and order windows smooth demand so production stays steady.
Lean-manufacturing style: allocate constrained output to the orders and products that matter most.
Set forecast accuracy targets by product type
Aligning these practices to capacity type avoids reactive adjustments, reduces expediting and lost sales, and builds a more resilient supply chain. We benchmark demand management processes and forecast accuracy against industry peers, then set the S&OP governance and business rules across demand, supply and finance.
Thirty minutes with Mohannad Gomaa, Founder & Managing Director.
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