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UNDERSTANDING CUSTOMERS AND DEMAND

The term demand chain rather than supply chain has often been used to emphasize that the focus must be on understanding customer needs. Customers pay for all our work. Real customer needs must be used to drive the supply chain objectives and processes; otherwise, we will continue to do a lot of work that is nonvalue adding, which is contrary to Lean principles. We may also lose customer business! Although it is a truism that the supply chains need to deliver what customers need, many departments work autonomously with too little real information about real requirements and changing priorities. The point of this section is to highlight that accurate customer requirements need to be reflected through the supply ...

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