Linking operations to demand management
Retailers deploy demand management mechanisms not only to provide personalized shopping experiences and individually customized products but also to segment customers according to their needs, preferences, and willingness-to-pay. Well-known examples for these mechanisms are exclusive store brands, and both money-back and price-matching guarantees. In order to extract profits in today’s competitive market with widely varying and quickly changing consumer tastes, these mechanisms become so sophisticated that they are, by construct, contingent on operational factors.
In this webinar Arcan presents his insights as to how manufacturing and retail firms should integrate their operational strategies with the demand management mechanisms in a competitive environment.
Key insights and takeaways of this webinar include:
- Appreciate that the profitability of the demand management mechanisms are interdependent on the operational decisions
- Acknowledge that a demand management mechanism that is profitable when adopted by one retailer may have detrimental consequences when retailers collectively adopt
- Account for the sophistication of supply chain, by recognizing that manufacturers foresee the ramifications of retailer’s demand management mechanisms and adjust their decisions accordingly