Demand-driven material requirement planning

Organisations need an optimised material requirement planning (MRP) process to maximise profitability and service levels across the value chain, but often lack the necessary tools and processes.

Your challenges

Effective forecasting is essential to get the right products to the right places at the right time, yet it’s often done using ad-hoc tools or spreadsheets, creating volumes of time-consuming, manual work.

Additionally, planning using poor forecast accuracy and approximate lead times can lead to outdated and/or inaccurate inventory parameters.

These challenges, combined with the high degree of variability in a complex supply chain network, can result in large variations in demand and supply issues such as insufficient high-running stock or too much low-running stock.

A demand-driven MRP approach can overcome all these challenges, drastically improving your bottom line.

What’s DDMRP?

Demand-driven MRP is a comprehensive method for the optimisation of your supply chain planning and its execution. It replaces the traditional forecast-driven MRP and only considers the actual sales orders. DDMRP provides end-to-end, operational solutions to industries characterised by significant demand volatility and long lead times. The proven method helps you better manage your supply and improve your customer service, treasury and inventory levels to help you stay a step ahead of your competitors.

DDMRP characteristics and benefits

Characteristics
  • Agile method: Combines best-in-class practices in an adaptive way

  • End-to-end operational solution: Defines strategic decoupling points that provide a holistic supply chain solution

  • Decoupling buffers: Protect and promote the flow of relevant information and materials

  • Results-oriented: DDMRP models, plans and manages supply chain

Benefits (*)
  • Improved customer service: Users consistently achieve 90-100% on-time fill-rate performance

  • Lead time compression: Lead time reductions in excess of 20-40% have been achieved in several industry segments

  • Ideal inventory levels: Typical inventory reductions of 10-30% are achieved while improving customer service

  • Lowest total supply chain cost: Costs related to false signals are largely eliminated (fast freight, partial ships, cross-ships, schedule break-ins)

  • Easy and intuitive: Planners see priorities instead of constantly fighting the conflicting messages of MRP


(*) Source: Demand Driven Institute website

How we can help

With a focus on business value, our PwC operations specialists work closely with you to achieve long-lasting improvements by helping you implement an effective DDMRP. We’ll tailor the method to your specific business needs, to provide you with a complete solution for the effective modeling, planning and management of your supply chain.

Contact us

Matthias Reyntjens

Partner, PwC Belgium

Tel: +32 047 644 5392

Tom De Visscher

Director, PwC Belgium

Tel: +32 47 674 9651

François Grisay

Manager, PwC Belgium

Tel: +32 (0)4 981 357 93

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