DDMRP – Demand Driven MRP
If you’re not getting inventory performance that compares well with these results, you need to be asking WHY.
Because this is the new standard.
Interested? Download the detailed case study.
Now … a different company, in an entirely different industry, applied DDMRP into a make-to-stock Division and a make-to-order Division. This is Oregon Freeze Dry, the world’s largest custom freeze drier.
- Mountain House Division increased sales 20% and improved their customer fill rate from 79% to 99.6% while reducing inventory by 60%.
- Their Industrial Ingredient Division recorded a 60% reduction in make-t0-order lead time, with 100% on-time delivery while inventory dropped 20%.
(You can find these results and more by checking out our case studies.)
In both cases, the factor that made the difference is a technology
called Demand Driven MRP (DDMRP).
To use the current buzz-words, Demand Driven Material Requirements Planning is an innovative, multi-echelon Pull methodology to plan inventories and materials.
To speak more plainly, it’s a technology that sits alongside existing ERP systems and enables a company to build more closely to actual market requirements, promoting better and quicker decisions and actions at the planning and execution level, such that:
- Reliance on forecasts is greatly diminished.
- Chronic materials and parts shortages are largely eliminated, even in the face of significant volatility and variability.
- Lean implementations being crippled by availability problems find their Pull systems become supported by consistent parts availability, even in the face of high variability in supply and high volatility in demands, even in plants with VERY complex Bills of Material and manufacturing processes.
- ERP-based companies with complex Bill of Material Structures find that for the first time their ERP implementations are producing the type of business performance improvement that had been expected all along, but had never materialized … again, this is true even in environments where supply and demand variability is not trivial.
- Companies looking to reduce inventories while improving customer service can achieve a scale of results beyond anything in their or their competitors’ experience … once again, even in the face of high levels of variability. This technology continually right-sizes inventories as circumstances change!
- Companies looking to compress lead times, especially those with deep Bills of Material, and lots of component parts used on many different products, are often able to strip days and weeks out of the lead time.
- Companies wanting to make “Supply Chain management” and “Supply Chain integration” more than just words now have a real mechanism to work with.
The technology works with existing ERP systems, and is “agnostic” – you do not have to have drunk any flavor of kool-aid to be qualified to use it, and it won’t send mixed messages to your people if you’re a long way down the road with a particular management philosophy.
Demand Driven MRP builds on what you already have so it’s not “project of the month.”
It makes managers look good, it’s welcomed by your people, and it helps companies boost competitive and profit performance beyond most expectations – again, see the case studies to see the proof of this.
If you want to know more, I suggest:
- Browse this site, including the case studies, then
- Watch these short videos of customers talking about their experiences, then
- Watch the Introduction to DDMRP Video at the Demand Driven World website.
The presentations provide a solid, no-words-wasted explanation of the problem being solved, the cause of the problem, and how Demand Driven MRP provides a solution that has been proven in some extremely challenging environments.
There are many other options for you to pursue this in increasing depth… including company-dedicated webinars, or workshops, for example.
