Orchestrating the launch of new products is one of the processes you need to define when designing your Demand Driven model. It uses special techniques for several reasons: Since this is a new product, you have no historical demand The uncertainty on the demand profile is greater than for a mature product There can be … Read more
Every time I visit a factory, I ask myself the following questions: Do we see the flows? Does material visibly flow? What are the process steps that set the tempo? Do we see this tempo? Are we early or late? How do we see it? What should be manufactured after the current batch? What are … Read more
If you live in an industrial or distribution environment, chances are that your product portfolios have multiplied over the last ten or twenty years. Marketing differentiation, personalization, configured items, depth of distribution networks: these are possibly tens or hundreds of thousands of references to manage. In other words, there are tens or hundreds of thousands of references … Read more
Have you ever watched a relay race? Each runner gives the best of his performance for his portion of the race, and passes the baton to the next runner in a predefined area. In a 4x100m relay, to pass the baton there is a 20m transmission zone: 10m before the 100m, and 10m after. This … Read more
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
“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.
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.
The bullwhip effect: Supply Chain Practitioners know this phenomenon quite well – a slight change in demand downstream may create big swings upstream, and reversely small delays upstream may create a catastrophe to downstream supply chain partners.
