New Demand Control Process From Oliver Wight Takes the Chaos Out of Aligning Demand and Supply When Orders Exceed Product Availability

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Oliver Wight clients are implementing Demand Control to better align demand and supply when orders exceed product availability. The process is also effective in generating demand when order volume and mix are less than what is expected in the demand plan.

We should have implemented Demand Control at the launch of IBP, rather than 18 months later, says Kirsten Daihes of Mars.

The symptoms of these situations are frequently inventory problems – either excessive inventory or product shortages. The root causes of these situations are typically forecast accuracy issues or supply execution issues that can cause product availability issues or excess inventory.

Oliver Wight has been a process innovator for more than forty years and is widely respected for pioneering Integrated Business Planning, Sales and Operations Planning, and Manufacturing Resource Planning. Demand Control is one of Oliver Wight’s latest innovations.

Demand Control is based upon the reality that demand and supply plans are always wrong to some degree. Demand Control is triggered when demand materializes differently than planned within near-term time fences and when product availability issues occur. When demand is greater than supply, it frequently causes what Oliver Wight clients call “firefighting” and “crisis management.”

Demand Control involves a formal process of communication and decision making to keep demand and supply synchronized over the near term. An effective Demand Control process also involves mitigating risk and managing opportunity.

Oliver Wight has helped clients successfully implement the Demand Control process within a few months. Results are typically realized in less than six months.

Oliver Wight provides an education, process design, and implementation package. Implementation coaching after education and process design sessions involves guidance to help resolve issues that arise in operating the process during the first few months. The follow-on coaching is also intended to ensure that the process is sustained and becomes part of the culture of the business.

“We should have implemented Demand Control at the launch of IBP, rather than 18 months later,” says Kirsten Daihes of Mars.

Nick Roberts of Wrigley observes: “To me, Demand Control is a fundamental necessity in order to get Demand Planning away from the daily firefight and into planning future demand.”

Oliver Wight Demand Control clients report inventory reductions of as much as 25 percent and customer service improvements of a point or two, which result in increased sales revenue and reduced “emergency” costs to fulfill orders.

Learn more about Oliver Wight Demand Control by downloading this brochure.

About Oliver Wight Americas

Oliver Wight Americas’ principals have been both thought leaders and hands-on practitioners in manufacturing for more than 40 years. As a global business management consulting and education firm, the company specializes in helping organizations work smarter, faster, and better than their competitors. Our principals are seasoned professionals who have real-world manufacturing experience. They are able to transfer this knowledge to the people at all levels of an organization, providing tools to help organizations internalize that knowledge and achieve a competitive advantage in the marketplace. The largest worldwide consultancy of its type, Oliver Wight has offices throughout Europe, North and South America, and the Asia/Pacific Region.

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