Analysis and design of focused demand chains

The paper describes the evolution of focused demand chains over an extended period of time as a major UK lighting manufacturer has sought to remain an international player in a fast changing business environment. Analysis and design procedures make use of the concepts of Wickham Skinner and Marshall Fisher to answer the strategic questions “what facilities are required and how should they be laid out to enable the necessary focused demand chains?” and to answer the tactical question “which focused demand chain is appropriate for this product?” The case study then details how the company has been transformed from operating within a traditional supply chain to driving change via the engineering of four focused demand chains. The paper concludes with a comparison of operations enablers, customer choice, and business performance metrics covering the transition period culminating in the current focused demand chain scenario. By matching products to the appropriate value stream there is a consequential reduction in product development time of 75%; manufacturing costs reduction of up to 27%; and up to 95% reduction in delivery lead times. © 2002 Elsevier Science B.V. All rights reserved. JEL classification: L22; L23; L64