Demand chain management : Next generation of logistics management

Abstract

In the literature several authors argue that there is a need for a new generation of logistics management since the business environment has changed. This new management philosophy identifies consumers and their requirements as starting point for all supply chain activities and has more properly been termed Demand Chain Management (DCM). The purpose of this paper is to analyze if DCM should be regarded as the next generation of logistics management and furthermore to illustrate its usefulness in practice through case study of Swedish appliance manufacturer. Literature review and case study findings show that DCM is not merely a development of the logistics principles, but rather an integration of marketing and supply chain operations. It is needed in volatile and consumer-oriented environments, which require higher levels of customized products, faster product development and commercialization together with supply, manufacturing and distribution on demand.

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