A road map to demand-driven material requirements planning
January 15, 2019
January 15, 2019
Across global supply chains, the move is well underway. Supply chain leaders are pivoting from their traditional focus on cost, cash and service to a new paradigm based on speed of material flow and real-time information visibility.
Fast material flow through the supply network will ensure inventory reduction, optimal asset utilization and increased customer service while maximizing return on investment. An intelligent supply chain, enabled by real-time material tracking and the Internet of Things, supports this new approach.
The Demand Driven Operating Model, combined with Demand Driven Sales & Operations planning and the Demand Driven MRP (DDMRP) process from the Demand Driven Institute, is the new standard for establishing and managing the supply chain amid volatile and difficult-to-predict global markets.
Through DDMRP’s breakthrough methodology, combined with the power of SAP S/4HANA, we’ve seen clients achieve tangible supply-chain improvement that benefitted the broader business.
Supply chain leaders need to shift from cost and service-focused supply chain management to material flow speed and real-time information visibility.
-60%
Inventory reduction
+45%
Service level improvement
-85%
Lead time reduction
Our experience with clients also shows that DDMRP produces quantifiable benefits. For example, for aircraft manufacturer, we delivered a proof of concept for a new visual ordering methodology based on DDMRP.
We helped the client to deploy DDMRP and drive the organizational change. A new end-to-end ordering process, supported by visual tools, can lead to up to 40% inventory reduction and a significant reduction in missing parts.
The traditional MRP engine is no longer suitable to deliver an optimized supply chain in a world with increasing volatility, uncertainty and complexity.
As an end-to-end methodology, DDMRP requires a profound supply chain management transformation, including a new approach to planning and execution that covers:
How can Accenture help? We apply a unified approach and tested, holistic methodology to enable and implement the DDMRP operating model by coordinating the key elements for success:
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