To Whom Should Demand Planning Role Report: The Sales or Marketing Organization (And Why)? (A PI Q&A)

Posted on July 18, 2008


Network Member Question:

We recently had a Supply Chain group meeting that was attended by Supply Managers from various companies.  There was a hot debate and each one had a justification for their respective positions.  Looking for an expert opinion.

Ashish Mendiratta, Director Supply Chain, Philips Electronics India Ltd, India

My Answer:

Your question would appear to inadvertantly create the hierarchical elements of a vertically-aligned organization and therefore build rather than remove the partitions that impede collaborative communication. The result, as demonstrated by the continuing high rate of supply chain/e-procurement initiative failures (approximately 85% of all programs fail to achieve the expected returns), is a disconnect between critical stakeholders both within and external to the organization.

As a means of expanding on this important concept, I would like to direct you to Part 4 of my 7 Part Dangerous Supply Chain Myths Series.  (See the direct link under Additional Resources.)

In particular, note the results of a 2007 Aberdeen survey of CFO’s, and you will begin to understand why the “chain” of command relative to reporting is largely a moot point in the absence of a collaborative environment in which a “collective” best result outcome is identified and achieved.

NOTE: You will probably find the other parts of the series to be usefull as well, so I have included the main access link for your convenience.

Additional Resources:

Dangerous Supply Chain Myths (Part 4) Revisited

Dangerous Supply Chain Myths Series

To learn more about the Dangerous Supply Chain Myths Seminar Series as well as our other Seminars, simply use the following URL Link: