Demand Chain Design

Demand chain design for oatmeal company As China’s economy continues to develop, the fast pace of life makes cereal grain food more and more popular. At present, the annual growth rate is between 15%-18%, and the whole industry is in a relatively stable development. Thus, the oatmeal market became a broad sunny market
Health, fitness and convenience trends are offered by oatmeal. Oatmeal will continue to underpin good performance over the forecast period, along with higher health awareness among Chinese consumers. According to market research firm AC Nielsen statistics in China, from October 2008 to October 2009, the total consumption amount of breakfast cereal including oatmeal was 73,533 tons, and sales were 1.86 billion yuan of which the market price of oatmeal was 15%. Oatmeal sales were 10,000 tons in 1999, and reached 40,000 tons in 2007. At the end of 2009, there were more than 300 oatmeal manufacturers in China. Although the oatmeal product industry is developing rapidly in China, there are still some problems that need to be solved. Oatmeal impressions such as “coarse”, “healthy but not tasty” may still exist in the minds of many consumers. Overall, the Chinese consumer market still has to develop oatmeal; this can be started with the following points:•struggle for more consumption,•struggle for people to consume more. To achieve these two points, meeting consumer demands in terms of oatmeal has become a top priority for all companies.
DCM has evolved from the supply chain management literature that preceded it, and it has been argued that it is a broader concept than SCM because it emphasizes understanding customer demand and transforming that understanding into actionable strategies and plans for the entire group of companies involved in the chain (Langabeer & Rose, 2001). Then the development of market-oriented thinking made more and more scholars start to focus on DCM. Hilletofth and Ericsson (2007) define DCM as “the alignment of demand creation and demand fulfillment processes across functional, organizational and inter-organizational boundaries”. Jüttner, Christopher & Bake (2007) stated that DCM involves: managing the integration between demand and supply processes; managing structure between integrated processes and customer segments and managing the working relationship between marketing and supply chain management. Hence, success in forecasting consumer demand can create a substantial strategic advantage during settlement because DCM is primarily based on consumer demand. In recent years, domestic scholars have also started demand chain management research, but compared with research on foreign theory, domestic research is still in its infancy. Chai Yueting, Tan Wenan, Jia Yan and other scholars conducted a comparative study of demand chain and supply chain, and thought that supply chain and demand chain are driven by consumer demand and need to look at consumers as the center. Zhang Heping and Taiwanese scholar Shen Zhenru and other scholars have learned more about demand chain management, stand to understand the demand chain from retailers in the supply chain, which is dominated by the collapse of producer prices in the original logistics value chain fission.