Article | Journal of Operations Management | January 2004

From Supply Chain to Demand Chain: The Role of Lead Time Reduction in Improving Demand Chain Performance

by Suzanne de Treville, Roy D. Shapiro and Ari-Pekka Hameri

Keywords: Supply Chain; Performance; Distribution;

Format: Print

15 pages

Citation:

de Treville, Suzanne, Roy D. Shapiro, and Ari-Pekka Hameri. "From Supply Chain to Demand Chain: The Role of Lead Time Reduction in Improving Demand Chain Performance." Journal of Operations Management 21, no. 6 (January 2004): 613–627.

Delwarca Software provides business software to large corporate clients around the world. The firm serves customers who prefer to assemble corporate solutions using a combination of software programs from various suppliers rather than implementing a single enterprise resource planning system. Consequently, Delwarca must provide telephone support services for complex software-hardware interaction and performance problems in addition to the typical software support issues around software installation and upgrades, malware attacks, and processing failures. The manager of the remote support unit implemented a new triage program for customer calls hoping to reduce customer wait time, improve customer satisfaction, and reduce costs. After one year, customer dissatisfaction is at an all-time high and he must perform a quantitative analysis of the current process, considering wait times for customers as well as cost per call, before making a final recommendation. This case can be used in a first-year MBA course in Service Management or Operations Management or a course in industrial engineering. It can also be used to introduce simple queuing theory.

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From Supply Chain to Demand Chain: The Role of Lead Time Reduction in Improving Demand Chain Performance

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