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Additionally, planning using poor forecast accuracy and approximate lead times can lead to outdated and/or inaccurate inventory parameters.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