Demand driven supply chains spread beyond CPG

April 16, 2015 - Research P63

The practice of demand-driven supply chains is growing as evidenced by more companies using demand signals to drive inventory optimization (IO) and replenishment. Only a few years ago demand-driven supply chains were confined to consumer packaged goods (CPG) manufacturers that were seeking point-of-sale (POS) information from grocers and department stores to run their supply chains. Nucleus has learned that a number of companies outside the CPG sector have begun using demand signals to improve inventory management. The adoption of demand signals for inventory optimization means that more companies realize that their supply chains must be demand-driven to compete in today’s global, digital economy.