This paper endorses demand chain management as a new business model aimed at
creating value in today’s marketplace, and combining the strengths of marketing and supply
chain competencies. Demand chain design is based on a thorough market understanding
and has to be managed in such a way as to effectively meet differing customer needs. Based
on a literature review as well as the findings from a co-development workshop with marketing
and supply chain professionals, a conceptual foundation for demand chain management is
proposed. Demand chain management involves (1) integrating the demand and supply
processes; (2) managing the digital integration (3) configuring the value system and (4)
managing the cross-functional working relationships between marketing and supply
functions. Propositions for the role of marketing within demand chain management and
implications for further research in marketing are derived.