NEW B.WORKSHOP OFFER: THE DDMRP
- By Régis
- 09/07/2020
How to solve Supply Chain recurring problems with known symptoms
The Supply Chain is subjected to face strong constraints, because of the flows growing complexity:
- Shorter product life cycle
- More pressure on deadlines and diversity in demand
- Larger networks of actors covering wider geographical areas
There’s an immediate impact on :
- Stock out
- Delays
- Changing and contradictory decisions
One solution exists: Demand Driven Material Requirements Planning (DDMRP)
DDMRP is a multi-level monitoring method, pull-flow planning and implementation aimed to protect and promote flows.
It enables the optimization of inventory levels to best satisfy market demand, by relying on stock buffers at strategic points in the BOMs through the distribution network.
DDMRP relies on firm demand rather than forecasts to generate and manage replenishment orders, whether for manufacturing, transfers or external purchases.
A Smart Combination
The method adds its innovations on recognized concepts elements :
- Material Requirements Planning (MRP)
- Distribution Requirements Planning (DRP)
- Lean Manufacturing
- Theory of Constraints
- Six Sigma
The 5 components of the DDMRP
Here are the 5 steps of a DDMRP implementation :
1.Position strategic decoupling points
2. Sizing the buffers
3. Dynamically adjust buffers
4. Planning by actual demand
5. Execute planned orders collaboratively and visually
Convincing results
The first results of the DDMRP show a refocusing of stock levels closed to optimal levels :
The smart management of these inventory levels induces important benefits on the whole Supply Chain, translated by an improvement of the key indicators (source: Demand Driven Institute):
Improvement of the service rate
97% – 100%
Time compression
80%
Inventory reduction
30% – 45%
Lower overall costs
Easy and intuitive to use
The DDMRP in JD Edwards
Our solution is natively integrated with JD Edwards and does not require any interfaces.
It allows you to quickly integrate DDMRP logic into your environment, with a reduced IT effort, in a logic of deployment per site.
Figure 1 – Article Profile
Figure 2 – Planning Priorities
Figure 3 – Stock Projection
Figure 4 – Buffer History