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

Anticipating demand means estimating demand that is created by marketing campaign. Methods of anticipating demand such as looking at past sales data and looking at the past market research’s result that has been conducted. It is a traditional method but it is relevant for some companies now as well.

Shaping demand means influencing customers to demand to match planned supply of the company. It is an operational supply chain management strategy. In this company use techniques to influence customers to purchase specific items by giving them price incentives, cost modifications and product substitutions. It is modern strategy. It helps in generating more profit and revenue for the business.

Anticipating demand is traditional method now companies using shaping demand strategy.

Company’s management shapes demand with the help of supply chain management. It can be accomplished by influencing customers for specific items by providing them some benefits with the product like price incentives or discounts, substitute product with main product and can do modification in the cost. Companies are giving some economic benefits to customer to increase demand and sale of a particular product.