How do you make sure you have the right type and amount of materials on hand to manufacture products to meet customer demand – without overspending or leaving components on the shelf? Effective demand driven MRP (DDMRP) can make the difference between profit or loss in any manufacturing organization.
If you’re still executing Material Requirements Planning (MRP) tasks such as capacity planning, forecasting, scheduling and purchasing manually on spreadsheets, or otherwise using disparate tools, there’s a better way.
- Read the Leveraging A Demand-Driven Manufacturing Model to Enhance Profitability white paper.
- Get demand driven MRP tips and tricks from our blog, or read the Leveraging Your ERP System to Manage Materials, Costs and Cash post.
Demand Driven Supply Chain
What is DDMRP?
Demand Driven Material Requirements Planning (DDMRP) represents the missing link between MRP and Lean manufacturing. Many organizations have adopted modern DDMRP software solutions to streamline and automate processes involved in strategically planning for production needs while keeping inventory costs down.
DDMRP takes much of the manual work out of planning and execution, using advanced supply chain management software to compress lead times and enhance visibility. It takes Lean’s focus on waste reduction and pull vs. push processes, and combines it with a new set of demand-driven planning tactics to enable smarter decision-making across an enterprise and supply chain.
Demand Driven MRP helps you bring order to the most intricate part of daily manufacturing operations – supply chain management. It helps you avoid production errors, delivery delays and cost overruns in labor and transportation, all of which can damage your reputation and bottom line.
The 5 Elements of DDMRP Software
Here’s how you can use DDMRP software to solve today’s supply chain process challenges and help optimize your supply chain strategy:
Strategic Inventory Positioning
Identify the position in the supply chain where you should hold inventory to provide the maximum performance.
Buffer Profiles and Levels
Set your inventory levels by establishing profiles for the buffer stock based on their variability and volume.
Buffers that respond to variations in the initial buffers, such as demand patterns or variables, including seasonality.
Demand Driven Planning
Include a sales order-driven planning method that creates resupply signals based on the available stock status of each buffer and gives prioritized sequence based on actual need.
Execution and DDMRP Benefits
Use supply chain management software to gain easy, real-time access to your inventory levels and position – in the shop, in the warehouse or in transit. With greater visibility you can improve customer service, reduce lead times and costs, and eliminate bottlenecks.
Enterprise Resource Planning (ERP) systems built for manufacturers, like SYSPRO ERP, incorporate DDMRP methodology to help you better plan for and meet customer expectations.
Discover SYSPRO ERP enables you to leverage DDMRP to:
- Reduce reliance on forecasts
- Minimize shortages
- Solve availability problems with Lean implementations
- Work with complex Bills of Materials
- Reduce inventories while improving customer service
- Compress lead times
- Establish a collaborative path with traditional master planning and sales and operations planning processes
Learn about SYSPRO’s MRP solution and read some of our customer success stories to find out more.
Customer Success Story
“We still have a huge degree of flexibility; however, because SYSPRO provides us with a much clearer view of future requirements, we can be less conservative. It has resulted in greatly improved capacity utilization.”
—IT Manager, New Zealand Pharmaceuticals