Spot Demand

Posted in Marketing and Strategy Terms, Total Reads: 55
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Definition: Spot Demand

Spot demand is the demand which usually has a very low lead time and needs to be fulfilled instantly. There are many products or companies which might order from a company but demand that the order is fulfilled instantly as they require it urgently. This kind of a demand for a company is called a Spot Demand.


These orders do not allow the company to function in the regular way of shipping the products as the time frame does not allow the regular procedural methodology. This short time frame requires the company to be extremely fast with all the process also keeping in mind that no steps are omitted which would later create a problem. These kinds of orders are undertaken by companies only if the relationship between the buyer and seller is good and there is a long mutual partnership or if the company which has placed the order is ready to pay extra money for the order. These provide incentives to the company executing the order and they then process the order.


For example: If we go to a courier company and say that we want to send a document home urgently from Bangalore to Delhi, the usual time the courier takes to reach Delhi is 3 days, but since the document is urgent, we request them to ensure that it reaches within a day itself. The courier company says that it is possible but for that it would require us to use their premium service which would ensure delivery within a day but charge a premium hefty amount. The demand we created for the courier company is a Spot Demand.

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