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"DCL beyond SCM"
Demand Chain Leadership® (DCL) is a revolutionary development encompassing and superseding Supply Chain Management. Put simple, DCL, is about beginning at the front end of the Supply Chain. Finding out what the end customer values, wants and needs most. Though this sounds obvious, it isn’t. All of us working with Supply Chain Management know that the toughest aspect is to understand clearly, in detail, what motivates customers to choose one product or solution over another. Obviously, the reason for this is that individual customers’ needs and desires differ widely. Capturing all these differences, and drawing the correct conclusions, is the major challenge of DCL.
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Among the companies we consider fine role models are IKEA and Toyota. By thinking and doing differently, they have changed entire industries. Join us as we describe the reasoning and methods behind Demand Chain Leadership®. Demand Chain Leadership® is a status that world-class enterprises like BMW, GE, IKEA, Toyota, and few others have achieved. These legendary companies have mastered the vision, strategy and practical details of DCL to become market leaders. By implementing unique total offerings of products and Supply Chain services, they enable a broad array of customers to meet their own objectives. As they’ve grown to become the preferred supplier in their market space, the competitive gap has continued to widen year after year. Making customers’ needs the driver is key to DCL leaders’ successes.
These leaders look beyond conventional solutions and stated requirements, developing a total offering specifi cally tailored to customers’ lifecycle requirements and objectives. This obsessive focus on value creation for customers is the crucial element that sets them apart. As Figure 1 shows, DCL leaders create value through a combination of customer focus, lifecycle leverage, disciplined innovation, and lean. Mastering each element of DCL magnifi es the effectiveness of every other element. Effectively delivering DCL across a complex portfolio of products and services provides greatly enhanced opportunities for revenue and increased margins...
- This is an excerpt of a full article from Establish yearbook "Everyday is a Logistics Day".
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