Responsive demand management in the era of digitization

Abstract

Being responsive to customer demand is key to business success in supply chains, due to intensive competition between companies and uncertainty of dynamic market conditions. Rapid changes in manufacturing and information technology enable companies to serve customers better, while forcing them to be more responsive and precise in demand management. This chapter focuses on understanding, forecasting, and managing customer demand as a competitive edge in business life. Traditional forecasting techniques such as moving averages, exponential smoothing, or trend projection are moved to a next level by gathering as much customer data as possible. By analyzing this big data with the help of advanced techniques such as machine learning and data mining, it may be possible to turn signals from customers expressing their needs, expectations, and complaints into an accurate and precise forecast of future demand.