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Do You Really Want to Do a DDMRP Software Pilot?

You’ve heard about DDMRP, you’ve browsed the web, you’ve read testimonials, maybe you’ve taken a training course, and you tell yourself that it can make sense in your business. So, why don’t we experiment live to see what happens? One advantage of DDMRP is its simplicity: the calculation formulas are simple, you select a few … Read more

Pull Flow Systems for All

Pull Flow, an Old Story… 

In 1987, as a young engineer at Philips, I had the chance to take part in a study trip to Japan and visit about ten companies there. In most of them you could see in each workshop card boards. In one of the factories I asked our guide what it was. He was astonished that I asked the question – it was so obvious: it is a Kanban board, to replenish supplies. That is normal. It was a non-event, a practice that was not questionedhad been in place for decades… but almost absent at the time from our western factories. Kanban dates to the ’50s. Drum-buffer-rope dates back to the ’80s. These are old concepts. Are they adapted to our modern, technological age?  

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Developing Supply Chain Agility

When I was a kid I learned to play ping-pong on a homemade table. The boards were not made from one piece, but were made from planks that had been assembled. With time and playing in the garden, the wood had worked, the boards had spread, bent, deformed – it never stopped us from playing hard games, but the bounces were quite unpredictable!  

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Buffers for Dummies: How Buffers Can Improve Supply Chain Flow

A Demand Driven Buffer, what’s that? In the Demand Driven jargon we talk about “buffers” of different types. What are they used for? How do they work? This post introduces some basic concepts, which are explored in detail in the Demand Driven Institute’s training courses. Buffers and variability. If you have any experience in supply chain you … Read more

DDMRP vs MRP: Long Live Independence

In one of my previous lives, I was responsible for a supply chain where most of the suppliers were in Asia, supplying our European factories and distribution centres by sea. Historically our service was poor and our inventory was overflowing everywhere. Our Chinese or Thai suppliers only accepted monthly orders, and imposed at least 2 months of firm orders on their production plan … Read more

DDMRP for the Automotive Supply Chain: Beyond Kanban Techniques

Since the 1990s, the Western automotive industry has widely adopted the practices derived from the Toyota production system. 5S, continuous improvement is the daily life of automotive suppliers.Pull flow – formerly known as Just in Time – is at the heart of these practices. It is facilitated by the fact that the automotive upstream supply … Read more

How to Use DDMRP in Retail for a Promotional Campaign

“I understand that we should replenish our points of sale with DDMRP for permanent products, but can you also do it for promotional products?” Our client asked us.

“Uh yeah, well,  it should probably work, but lets think about it a little bit…”

A year later, after multiple simulations based on sales history, and the implementation of a dozen promotional campaigns, the demonstration is there: it works very well, but the model needs to be adapted.

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DDMRP and Human Driven Supply Chains

Long Live Technology!

Over the decades we have developed more and more technology for our supply chains, invented sophisticated algorithms, interconnected remote sites around the world, traced in real time the slightest event. This debauchery of means, computing power, software and complicated acronyms would tend to make us think that it’s all scientific, mathematical, electronic and fantastic!

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Would You Make This Bet?

If you flip a coin, you have a 50/50 chance of winning. As long as the coin is evenly weighted and the coin flipper isn’t playing a trick on you, it’s going to come up heads or tails a roughly even number of times. There may be situations where it comes up one or the other more frequently, but those are outliers that even out the more times you flip the coin.

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Let’s Simplify the Management of our Supply Chains

“Simplicity is the ultimate sophistication” Leonardo da Vinci

Over the last few decades, manufacturers and distributors have made huge technological investments in their supply chains. At the same time, we’ve invested heavily in developing sophisticated supply chain management processes. Too often, however, any similarity between our technologies (ERP, DRP, APS, etc.) and our processes is a matter of luck more than design.

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