// ROBOTICS AND SMART FACTORIES TERM
Demand-Driven
A demand-driven approach means that production and supply chain activities are initiated and controlled by actual customer demand, rather than by forecasts or predetermined schedules. It's a 'pull' system.
TECHNICAL DEFINITION
Demand-Driven refers to a supply chain and production strategy where activities are initiated and synchronized by actual customer demand signals, rather than speculative forecasts, employing 'pull' systems (e.g., JIT, Kanban) to minimize inventory, reduce lead times, and enhance responsiveness.
BACKGROUND
The Fourth Industrial Revolution, also known as 4IR, Industry 4.0 or the Intelligence Age, is a neologism describing rapid technological advancement in the 21st century. It follows the Third Industrial Revolution. The term was popularized in 2016 by Klaus Schwab, the World Economic Forum founder and former executive chairman, who asserts that these developments represent a significant shift in industrial capitalism.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Pull system
- Customer-driven
- Make-to-order (often)
- Responsive supply chain
USAGE NOTE
Being demand-driven helps companies avoid overproduction and align production more closely with market needs.
DEVELOPERS
Organizations developing technology related to Demand-Driven.
Specializes in supply chain planning software. Its core product, RapidResponse, uses a concurrent planning engine that allows companies to model various demand scenarios in real-time, enabling them to align their supply chain and manufacturing operations with actual demand signals.
Offers the SAP Integrated Business Planning (IBP) suite, which includes capabilities for demand sensing, response, and supply planning. The platform uses machine learning and real-time data to help businesses transition from forecast-based to demand-driven supply chain models.
Provides a digital fulfillment platform that uses AI and machine learning to analyze demand signals across multiple channels. Their Luminate Planning solutions help businesses create predictive and agile plans to respond quickly to changes in customer demand and market conditions.
Develops Opcenter Advanced Planning and Scheduling (APS), software that enables manufacturers to create production schedules based on real-time demand, capacity constraints, and material availability. This facilitates a highly responsive, demand-driven production environment.
Oracle's Fusion Cloud SCM includes Demand Management and Supply Planning solutions. These tools leverage data science and embedded machine learning to improve demand forecasting accuracy and enable companies to dynamically plan their supply and production based on real-time demand information.
A software company focused on service-driven supply chain planning and inventory optimization. Their technology uses probabilistic forecasting and machine learning to help companies model demand uncertainty and position inventory strategically to meet customer demand without overstocking.
Through its DELMIA brand, Dassault Systèmes provides advanced planning and scheduling solutions like DELMIA Ortems. This software helps manufacturers synchronize production flow with customer orders and respond effectively to short-term demand changes and disruptions.
Offers a cloud-based Smart Manufacturing Platform that connects the top floor to the shop floor. Its Manufacturing Execution System (MES) and ERP capabilities provide the real-time visibility needed to adjust production schedules instantly based on incoming orders and demand changes.