By Derrick Moreira
Most supply management organizations recognize the value of demand management in theory as a key lever for driving efficiency and reducing total costs. But they also know that realizing the value of demand management in reality is hard work. It requires patience and a willingness on the part of internal customers to change.
Too often, demand management strategies falter or fail — or are never pursued to begin with — even though the payoff can be substantial. Companies can reduce spend by 10-20 percent through demand management. But realizing those savings can be daunting indeed.
1. Zero in on demand management opportunities.
2. Identify the stakeholders — all of them — and their concerns regarding the changes.
3. Communicate with stakeholders to get "buy in" from the beginning.
4. Adapt policies and processes to realize demand-driven efficiencies.
5. Instill demand management in the culture so it becomes self-sustaining and automatic over time.
About the Author www.censeoconsulting.com