Making use of technology such as software applications and databases with business processes, DDSN needs a system architecture to scale without compromising flexibility.
The three strategic business domains of a DDSN are demand management, supply management, and product management (Figure 2).
In a DDSN, these groups collaborate to manage demand: Sales' forecast is a trusted input to operations whose capacity constraints are transparent; marketing collaborates with supply chain for promotions and new launches; sales and service rely on logistics for order status.
Within a DDSN framework, supply management has two levels of activity:
Far from hoping that R&D will come up with the next great product, DDSN requires that product portfolios control customer loyalty, reuse proven technologies, materials, and suppliers, and then lock out the competition.
Building a DDSN is a transformational journey, so a roadmap is essential.
S&OP, a cornerstone for Demand Drive Supply Network (DDSN
) leader change management efforts, offers the greatest financial impact when it is implemented with other DDSN
best practices to improve channel and supply network transparency," said Lora Cecere, Research Director, Supply Chain Planning & Execution, AMR Research.