This approach encourages holistic design of all supply processes and information flows, in order to take care of end consumer demand rather than only the upstream requirements of factories or distribution systems.
Instead of asset-focused supply chains, the demand-focused approach fosters constant communication and correction of deviations between demand, supply, and product processes.
It requires change management and significant rethinking of the way process execution happens, in order to address continuous improvement of business-critical objectives like perfect order rates, operational efficiencies, and overall cost control. Table 1 depicts the differences between the two approaches.
| Traditional | Demand-focused |
| Excessive focus on cost | Balanced multiple objectives |
Continuous replenishment | As-needed on-time replenishment |
| Big batch, high-volume manufacturing | Flexible shorter batches in tune with demand |
| Information gaps or segmented processes | Fully integrated for complete demand visibility |
Table 1. Traditional versus demand-focused approach within linear supply chains.
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