Demand-Driven Supply Chain

A demand-driven supply chain is a system where production and distribution are guided primarily by consumer demand rather than predictions or forecasts. This approach involves closely monitoring customer preferences and buying patterns to ensure that products are made and delivered when needed. By responding quickly to changes in demand, companies can reduce excess inventory, minimize waste, and enhance customer satisfaction. Essentially, it aligns the supply of goods with actual market needs, making the process more efficient and responsive to consumer behavior.