Demand-Based Management is critical to an enterprise in managing its supply chain, product development, technology strategy, service support, and organization design. Managing to demand involves carefully selecting marketing instruments and working closely with customers so that the overall incoming demand for the enterprise and the supply chain will give rise to maximum values for all parties. Ideally, all these instruments will eventually lead to higher consumer satisfaction. While supply chain management deals with the buy-side of the enterprise, demand based management addresses the sell-side of the enterprise. Tackling one independently of the other leads to suboptimal solutions.
