DEMAND Chain Management
Demand Chain Management
From Supply To Demand
Question: why should we change or why Not?
Introduction
Supply Chain Management (SCM) is almost second nature in many organizations operation system. All systems are not perfect, neither is SCM. It is a matter of listening to our customers, listing pros and cons, cost of delivery by the system, efficiency, effectiveness, optimal space utilization, attrition rate and more importantly, just in time delivery I.e. We only deliver the latest, in time of need as per the strategic plan, segmental objectives, and individual key performance areas. Not before the timing of the key events schedule and not a day after but delivered by date agreed time and date as reflected by the last quarterly report, in line with strategic plans.
SCM
Records of delivery as per current SCM model has gaps. Most systems are still manual, depending on delivery and signing of thick, long, hard to file documents. All documents can have templates, signed in a verifiable manner online, signed off by different officials on the line of execution, with time and date, the system can highlight missing documents in red before the next step and at the end of each day, present the status reports as completed, 50% complete, rejected, applications for final assessment etc. we can easily compile daily, weekly, monthly and quarterly reports with action plans to reach our quarterly objectives and % load outstanding by date.
We can also attach relevant regulations and requirements for compliance.
Procurement, may also be tightened in terms of service delivery, timing of delivery, cost of delivery and more importantly the Quality of the service or product delivered with immediate feedback to the supplier, online within 24 hours. We can add features like taking selfies of the product and size with visible delivery codes, addresses and relevant signatures. In this way we can see collections and delivery of parcels exceeding their weight range as in RT8 contracts for example.
We won't need space for filing contracts anymore nor space for storing procurement items. As items come in, they get delivered directly to the user, who sign them off as correct, or return them for better service.
All officials would need training for the new system, list their requirements as per individual quarterly strategic targets, product line, standard specifications and Quality.
The difference between Standard and Quality service is that Standards will conform to the design, physical dimensions and their specifications, while Quality will cover individual dynamic preferences of the time, flexibility, negotiable, cost effective and delivery wise and must there need to be a continuous improvement allowance within the system.
Mandate
All industries/organizations or government departments make choices in terms of selecting optimal chain management models. Regulations stipulate the scope, and logistics in terms of effective management systems. All members of the departments need to comply to this mandate.
A Demand Supply Chain management model requires the management to demand the required services and products, at the time of need in line with Strategic plans and targets as agreed in their respective Key Performance objectives/Area(KPA).
A clear list of required items by objective needs to be drawn in line with Strategic plans and KPAs.
Service Level Agreements(SLA) between the Demand Administrator and the Customer needs to be signed off within sufficient period of supply. Final sign off will confirm the Standard and Quality of the service and or product.
Legal imperatives
Current Legislation
Treasury requirements:
Different governments have an overriding department that gives directives on the national mandate in executing treasury resources.