Dynamic Response Network : read the signals
LOGISTICS
“Demand Response Networks are all about being able to harvest and read demand signals ”
MARIA REY-MARSTON GLOBAL SUPPLY CHAIN INNOVATION , ACCENTURE
Dynamic Response Network : read the signals
Maria Rey-Marston , Global Supply Chain Innovation at Accenture , says that businesses looking to transition from old-school chain-like supply models to a Demand Response Network ( DRN ) must master one thing above all else : demand signals .
“ DRN is all about being able to harvest demand signals , about what consumers want , where they ' re located , what they ' re doing ,” she says . “ And just as importantly is knowing the context of those signals . She continues : “ The key thing is to identify which signals to harvest , because otherwise you get swamped in data .” The first step , she says , is to understand what signals are relevant for the business , “ and what actions need to be taken to reduce the latency of the signal ”.
By latency , she means how much time has elapsed between the signal being created and someone in the business taking a decision based on that data . “ DRN data can tell companies in real time if an out-of-stock item at a particular outlet or point is impacting negatively .” demand , which we ' ve not had before in modern times . This prompted companies to start bringing sources of supply closer to the points of consumption , and manage demand at those points so that it matches available inventory .
This , she says , means that inventory availability has become a powerful tool , because it ’ s now capable of shaping demand .
She explains : “ There ' s so much scarcity in some things that having a product available can make people decide to substitute things that in the past they would never have