Enhancing Competitiveness: Moving from Supply Chain to Demand Chain Management

TLDR: In this article, the authors explain how firms build competitive advantages by moving from supply chain to demand chain management approach and how to find out what the customer perceives as valuable, and how this customer perceived value can be translated into customer value propositions.

Abstract: SCM refers to all of the processes, technologies, and strategies that together form the basis for working with internal as well as external sources of supply. As SCM focuses on the efficient matching of supply with demand it does not help the firm to find out what the customer perceives as valuable, and how this customer-perceived value can be translated into customer value propositions. Hence, supply chain efficiency by itself will not increase customer value and satisfaction as firms also require market orientation to enhance their market responsiveness capabilities. This research works in this direction and explains how firms build competitive advantages by moving from supply chain to demand chain management approach.