Demand chain alignment competence -: delivering value through product life cycle management

This paper endorses demand chain alignment as a competence that supports effective product life cycle (PLC) management. Demand chain alignment integrates the demand creation (historic domain of marketing) and demand fulfilment processes (domain of supply chain management), to develop and to deliver products that convey superior customer value while deploying resources efficiently. So far, the relationship between demand chain alignment and PLC management has only been addressed from an operations and demand/supply chain perspective, but not from a marketing perspective. Three research propositions, on the relationship between both concepts, are derived from a literature review and applied to a case study from a global player in the tobacco industry. The findings do not support the current view that the product life cycle is a market-oriented classification variable for demand chain strategies. Instead, demand chain alignment needs to link customer needs-based segments with the supply chain. Moreover, PLC management and demand chain alignment have a mutually reinforcing relationship, in which PLC management can facilitate the competence development, ensures a dynamic perspective and, at the same time, benefits from aligned demand creation and fulfilment processes. Based on the findings, a model integrating demand chain alignment and PLC management is proposed. (c) 2006 Elsevier Inc. All rights reserved.