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Transform consumer goods S&OP with next-level demand shaping

Published by RELEX

Demand shaping refers to a company’s collective attempts to influence customer demand for specific products. Companies use demand shaping to balance inequities in supply or demand. Surplus inventory of a product may lead a business to offer a promotion to incentivize turnover. Businesses could also use temporary pricing discounts to increase demand for a more abundantly available product when supply chain disruptions or shortages affect the customer’s initial preference.  

Demand shaping requires close collaboration between marketing, sales, and operations teams to achieve success. A company’s decision to deploy a promotion or discontinue a product can stem solely from a need to improve profit margins. But demand shaping presents companies with an opportunity to also use these tactics to address supply and demand issues on the way to boosting revenue.

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