Demand-driven and lean production allows manufacturers to be more responsive to consumer needs while increasing their own profitability, It also reduces the reliance on forecasts by linking demand signals and providing real-time data directly to suppliers.
August 12, 2016
Enterprise executives and Supply Chain Managers are confident that demand-driven manufacturing is achieving the promised results. It can mark a sea change in their culture, demanding unprecedented transparency along each point of the supply chain and a focus on the customer that results in a real competitive advantage, so they are striving to implement it in their organizations around the world.
In this series of four educational papers, we lay the foundation for why Pullbased manufacturing supports “lean” thinking and outline the principles driving operations to succeed. The first two papers, Gaining Control: Exploring Push v Pull Manufacturing and Gaining Clarity: Drive Productivity, Flow and Profit with Data that Matters, introduce the essential operational building blocks and transition points of Pull-based manufacturing. In this third paper, we will discuss how demand-driven concepts take “lean” outside the four walls of the manufacturing operation to bring a forward-looking perspective.
We discuss the confidence gained by the customer and supplier when Pullbased manufacturing principles are present; creating a new vision that reaches beyond today’s deliverables in order to reduce a heavy reliance on forecasting.
- The link between supply and demand can be complex and confusing
- Reducing reliability on costly and faulty forecasting
- Customer service and delivery problems