Question

GLOBAL MACROTRENDS AND THEIR IMPACT ON SUPPLY CHAIN MANAGEMENT

How does shaping demand differ from anticipating demand? Who can shape demand, and how is it accomplished?

(3-4 paragraphs please) (4-5 sentences each)

Answer 1

Shaping demand is a supply chain management (operational) strategy where a company uses techniques such as giving price incentives, modification of cost according to customers and offer product substitutions to attract customers to purchase specific items or create demand for specific product. While anticipating demand means estimating demand that may be created by marketing campaign. Anticipating demand includes analyzing past sales data to forecast future sales. Shaping demand is generally designed to help the company to influence demand of customers related to certain product in order to match company’s projected supply.

Top level management shapes demand with the help of supply chain management or department. Top level management is responsible for making all kinds of business strategies for an organizational growth, development and for gaining competitive advantage. A supply chain department oversees each step from initial creation of product to the product reach to customer’s hand.

When this strategy will result into increase in company’s revenue, profitability and market share. Customer’s satisfaction and company’s sales increases with this strategy successfully implemented. It aligns process with customer demand at strategic and tactical level. Shaping demand strategy accomplished when shaping techniques help to meet product development projections.