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Introduction to DDMRP
It stands to reason that most companies are experiencing problems with historical Material Requirements Planning (MRP) systems. How could a planning system designed in the 1960’s be in anyway adequate for the ‘New Normal’ VUCA World we find ourselves in – our environment has become more volatile, uncertain, complex and ambiguous . Throw COVID-19 into the mix and it borders on bizarre.
Demand driven materials requirements planning (DDMRP) methodology is a complete supply chain planning and execution system for the modern VUCA world. Much of the variability in our supply chains is being generated by the bullwhip effect rippling up and down the supply chain from demand and supply variability as well as internal nervousness in our MRP systems caused by management and operational variations. In addition, many companies have found that stock balances tend to be bimodal, in other words they either have too little or too much, rarely do we have just the right amount.
Over the last few years many companies have adopted this DDMRP methodology with exceptional results of reducing lead-times, improving customer service levels, right sizing their inventories and reducing their Return on Capital Employed (ROCE). This methodology moves us from the traditional ‘Push and Promote” scenario, to a ‘Position and Pull’ environment.
Attend the webinar to learn more. Find out how the DDMRP buffers provide the answers we have been looking for and how you can, relatively easily, start your demand driven journey, today.