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Demand management is the function of recognizing and managing all organizational demand for products or services. Developing a demand management strategy optimizes the organization’s ability to make the SCM process more effective and efficient and is intended to bring demand and supply into convergence. The level of strategy and its complexity will vary depending on the purchase, but should reflect the determination of whether existing assets within the Postal Service will meet the identified need. CMCs must continually work with their clients to reduce both the types and quantities of goods and services that they purchase to reduce costs on existing and future contracts. Excess is the first source of supply.
When developing a demand management strategy, the preliminary focus must be on cost reduction, revenue enhancement, and streamlining operations. Once these issues are addressed, a demand management strategy can be developed by examining the following topics:
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