How to Best Understand the Forgotten Supply Driven Supply Chain
… techniques differ from those of demand driven chains.”
An excellent example of a supply driven supply chain is oil production. Oil is often, in the short term, at least, pulled from the ground at a constant rate. Demand does fluctuate, and much of the supply and demand matching is performed through changes in the price.
Demand side supply chains are very much focused on the benefits of supplier collaboration. However, this may not always be the case with supply side supply chains.
“For demand driven supply chains, sharing information among the partners of the chain dampens the bullwhip effect. However,