The automotive industry has developed sophisticated techniques for dealing with its deep, global network of suppliers and manufacturers.
Yet these traditional concepts were built on the assumption of a stability that no longer exists. Longer lead times, volatile customer demand, and new innovations, variations, and options have all led to increased disruption and volatility.
The challenge for organizations across the automotive industry supply chain is that the replenishment of materials and subcomponents is almost always forecast driven. This process works well for some components, but not for those with a high degree of volatility in demand or supply—especially if their availability is critical to meeting the production schedule.
Demand Driven Material Requirements Planning (DDMRP) aligns replenishment to true market demand by establishing inventory buffers of key materials, enabling constant availability without misaligning materials from actual production requirements. The result: lower inventory levels and expedited freight expenses while maintaining or even increasing on-time, in-full delivery performance.
By aligning inventory to sales-order driven demand, DDMRP can help you:
“The bimodal inventory distribution model disappeared very quickly and the plant planners have an easier way of working.”
Thibaut d’Herouville, VP Supply Chain
“Our Demand Driven MRP processes have significantly improved flow management. Intuiflow is easy to use.”
Xabier Tudanca, Purchase & Logistics Director
“All complex questions have simple answers. And the DDMRP methodology is understandable for both managers and planners.”
Dmitry Vasilyev, CFO
From pilot to implementing in over 100 plants. Eric Lindstrom, Global Director of Production Control and Logistics, talks about the implementation of Intuiflow.
