The domestic consumer goods value chain, except for some integrated manufacturing and retail businesses, typically operates in a tiered structure consisting of manufacturing, wholesale/distribution, and retail. Each layer has historically developed its own optimal supply chain. However, the inherent contradiction of "ensuring reliable supply while minimizing costs" has nearly reached its limit when managed within these individually optimized frameworks. Even with improved accuracy in demand forecasting at each level, it remains challenging to fully mitigate demand fluctuations due to the bullwhip effect, leading to limited resolution of issues like excess procurement, overproduction, excessive inventory, and over-extended logistics.

To fundamentally address these issues and establish a truly competitive value chain, a flexible, high-responsiveness supply chain across the manufacturing, distribution, and retail layers?referred to as a "Demand Supply Chain"?is required. Realizing this demands an alliance and business model transformation aimed at achieving overall optimization based on a unified demand forecast. Additionally, this requires robust operational processes and collaboration platforms that support the execution, and a framework for distributing outcomes across the entire value chain proportionally to contributions. Consultants with extensive experience in cross-value chain restructuring will provide comprehensive support from conception through to implementation.

• Supply Chain Analysis: Identify key reform points within both the planning and execution phases of the supply chain.
• Demand Supply Chain Strategy Development: Formulate strategies that align demand forecasting with supply chain responsiveness and efficiency.
• Business Model Transformation and Operational Process & Collaboration Platform Planning: Design changes to business models along with plans for operational processes and collaboration platforms that facilitate these transformations.
• Cross-Layer Alliance Construction: Establish alliances that span different layers of the supply chain to ensure coherence and unified strategy implementation.
• Proof of Concept (PoC) for Validation of Effectiveness and Feasibility: Conduct PoCs to test the practicality and effectiveness of proposed strategies and processes.
• Implementation Support: Provide ongoing support to ensure successful strategy execution and operationalization.

• Manufacturing: Optimization of procurement, production, and logistics processes to minimize costs and losses.
• Distribution: Optimization of inventory and logistics management.
• Sales: Minimization of waste and opportunity losses.