Supply chain operations are the system where companies make available their products and services through an interconnected network to end consumers. An effective supply chain has to be put in place in order to meet the demand of products by the end-users. Doulgi and Proth observed that a supply chain is a global network of organizations that cooperate to improve the flows of materials and information between suppliers and customers at the lowest cost and at the highest speed. Demand can be termed as the desire of a customer to own something. Demand is related to the supply chain as it creates the urge within customers to want something, and in return, companies have to produce and find methods of making the particular products and services available to them.
Outsourcing and offshoring manufacturing operations have an impact on demand as it can lead to an increase in business performances very significantly, improved utilization of working capital, and in some cases, a reduction in freight and logistical headaches to the company. This is because the higher the demand, the company does not incur too much cost in handling and shipping fewer products at a time. Demand and supply are linked in that one cannot function without the other.
High demands will benefit especially companies that take up outsourcing and offshoring strategies to maximize their business and productivity. This is because they are able to produce more and put in place an effective supply chain that makes available products to the end customer.