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UPS Supply Chain Solutions
Demand Responsive Model

We believe in two constants. First, there is nothing linear about the supply chain. Second, change is a given.

In the traditional supply chain model, supply drives demand. Simply stated, products are made and stored in anticipation of future demand. But when sudden demand shifts occur, the supply chain must scramble to adapt.

In the Demand-Responsive Supply Chain Model, demand drives supply. Processes are designed to anticipate changes and flex. Proper use of this model can empower an organization to plan and configure what it buys, makes, moves, sells, delivers, and increasingly returns in as close to real-time demand as possible.

The advantages of this methodology include:

  • A supply chain closer to independent demand
  • Shorter lead times through greater flexibility
  • Elimination of costs, not just shifting or absorbing them elsewhere

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