Do you know the Gartner Hype Cycle?
The Gartner Hype Cycle is a widely recognized concept that describes the panorama of technology and IT innovations in a field. It takes into account the hype generated by these technologies and their effectiveness and results for companies that adopt them. This curve, quite similar to the Kubler-Ross change curve or grief curve, serves as a compass for large companies to feed the roadmap of techniques, methodologies, and innovations to consider. It also allows a company to position itself to adopt emerging technologies neither too early because they lack maturity nor too late because the company will then be left behind by faster competitors.
In 2020, Gartner published a “Hype Cycle” of Supply Chain Planning technologies, and on this curve, listed DDMRP as a technology that is “obsolete before plateau.” In other words, move along, there’s nothing to see, and other technologies, especially “optimization” technologies – AI/ML, advanced analytics – are much more efficient. This label of obsolescence and moderate efficiency has turned some companies away from Demand Driven approaches.
However, not everyone is susceptible to hype cycles, and a growing number of companies have trusted Intuiflow to drive their supply chains. The results they have achieved are far from moderate. Their user conferences and the large-scale deployment plans that are multiplying are proof of this.
One point made by the Gartner analyst in this 2020 study is that adopting a pull-flow model requires a paradigm shift in most companies. That’s true. In fact, that’s the essence of what Intuiflow is doing: converting the industry to pull flow.
Is it obsolete? Absolutely not! In the recent industrial era, Toyota developed much of the pull techniques in the mid-20th century, when there weren’t even computers or MRP. The Drum-Buffer-Rope of Theory of Constraints originated in the 1980s. Are the results “moderate”? Why don’t you ask Google “Who is the world’s largest car manufacturer?”
Gartner’s analysis in 2020 rightly pointed out some shortcomings of DDMRP, including the fact that pull flow techniques should be complemented with optimization tools. The implementation of AI/ML to facilitate model configuration, finite capacity planning, relevant forecasting approaches, S&OP, business intelligence, and process mining…are required.
Fortunately, all these tools are in Intuiflow. Thus, it is wrong to say that Demand Driven techniques are simplistic or obsolete. Anyone who thinks so can come and see Intuiflow, and they will be amazed by the obsolescence before plateau.
Intuiflow is a software by Demand Driven Technologies that has created the world’s first Demand Driven Supply Planning software. It is designed to help companies move away from the traditional push model and adopt a pull model that is more responsive to customer demand. The software takes a holistic view of the entire supply chain, from raw materials to finished products, and provides real-time visibility the supply chain.
Intuiflow is built on the principles of Demand Driven Material Requirements Planning (DDMRP). This approach is a new way of thinking about supply chain planning that is based on a pull-flow model. The pull model is different from the traditional push model in that it is driven by actual customer demand rather than sales forecasts.
The DDMRP approach is a powerful tool for companies that want to optimize their supply chain and improve their responsiveness to customer demand. However, it is not a silver bullet, and it does require some changes to the way that companies think about supply chain planning.
We would love to show this to you in person. We have two User Conferences coming up, starting with our North American User Conference in May (in Atlanta, GA) followed by the European User Conference in June (in Bordeaux). Consider registering to explore the Intuiflow suite, network with fellow supply chain professionals, and learn best practices to achieve agility and visibility in your business’s supply chain.