The rise of resilient supply chain planning
Supply chain risk management re-enters the spotlight of managers’ attention. Is your supply chain resilient?
The concept of DDMRP (Demand-Driven Material Requirements Planning) is a game changer in Digital Supply Chain Management. Leading industry players – like BSH, a company of the Bosch Group – gain massive benefits by implementing the concept of Demand-Driven MRP within their SAP landscapes.
Demand-Driven Material Requirements Planning (DDMRP) is a powerful approach that focuses on the variability in today’s supply chains rather than forecasting. Until recently, it was a challenge for companies to integrate DDMRP into SAP systems. In 2017, Camelot ITLab developed DDMRP for SAP IBP, the worldwide first enhancement of SAP Integrated Business Planning. In 2019 the next step was taken: Camelot ITLab and SAP announced their strategic co-development partnership to integrate DDMRP in the core SAP IBP, which now is available as the native module SAP Integrated Business Planning for Demand-Driven Replenishment.
These developments have enabled enterprises around the globe to implement the DDMRP concept into their SAP landscapes. DDMRP is the heart and engine of the Demand-Driven Adaptive Enterprise (DDAE), the highest form of Demand-Driven. The DDAE is the way intelligent enterprises will operate in the 21st century. The disruptive character of the Demand-Driven Adaptive Enterprise requires companies to radically redefine their planning and execution processes. Companies will greatly benefit from that concept by significantly improving key performance indicators.
After implementing DDMRP, enterprises in average experience a service level increase up to 54%, a decrease of lead time up to 85%, and an inventory reduction up to 70%. The Demand-Driven Adaptive Enterprise significantly improves supply chain performance across industries. It is the future approach to control variability across value chains. In several industries, the Demand-Driven Adaptive Enterprise model already has been successfully employed to master complex and volatile environments.
Almost all ERP or SCM/APS systems today are still working with the material requirements planning (MRP) processing logic from the 1960s. But that only works with very accurate demand forecasts – an impossibility in today’s lightning-fast global economy. The Demand-Driven Adaptive Enterprise with DDMRP at its core is a strong approach to mastering the extensive variability in today’s digital supply chains of the VUCA world, where VUCA stands for volatility, uncertainty, complexity and ambiguity.
DDMRP is enterprise ready with several implementations at global players, one of them being BSH, a company of the Bosch group. BSH is improving customer service with integrated business planning and Demand-Driven MRP. To learn more, please have a look at the Business Transformation Study created by SAP.
For smarter Supply Chain Planning: Demand-Driven Replenishment is the newest module available within SAP Integrated Business Planning, co-developed by Camelot ITLab and SAP.
SAP Integrated Business Planning (SAP IBP) forms the state-of-the-art supply chain planning solution of SAP, driving key performance indicators for enterprise organizations like customer service, inventory, and cost.
The Camelot Demand-Driven LEAN Planning Suite offers next level production, supply, and inventory planning. It is an innovative planning solution which closes ‘white spots’ of standard planning systems.
Camelot ITLab is a pioneer for DDMRP in SAP, being SAP’s strategic development partner, provider of own Demand-Driven solutions and long-standing global partner of the Demand-Driven Institute. We guide companies worldwide on their journey to becoming a Demand-Driven Adaptive Enterprise – in a wide range of industries with a focus on Chemicals, Pharma, Life Sciences and Consumer Goods.
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