The idea you are referring to is known as demand-driven logistics or demand-driven distribution. This approach involves analyzing and responding to customer demand, rather than relying on static inventory or predetermined distribution plans. The goal is to ensure that products are available where and when customers need them, while minimizing waste, excess inventory, and poor customer service.
Demand-driven logistics requires a flexible and responsive supply chain that can anticipate and adapt to changes in demand patterns, customer preferences, and market conditions. It relies on real-time data, predictive analytics, and collaborative relationships with suppliers, distributors, and retailers. It emphasizes the importance of communication, visibility, and speed in the flow of materials, information, and cash.
By adopting a demand-driven logistics strategy, companies can improve their customer service levels, reduce lead times, increase inventory turns, and optimize their supply chain performance. They can also capture more market share, enhance their brand reputation, and reduce their environmental footprint. However, this approach requires significant investments in technology, process redesign, and organizational transformation, as well as a shift in mindset from a production-centric to a customer-centric focus.