ERP

projected inventory - man in hard hat and warehouse

When you learn the principles of MRP, you use a view like the one below. Periods   1 2 3 4 5 6 Forecast   40 50 40 40 70 20 Registered orders   80 45 30 50 50 5 Requirements   80 45 40 50 70 20 Projected Inventory 50 170 125 85 35 … Read more

intuitive supply chain: brain

What happens in our brain when we exercise our intuition?  A French scientific magazine recently devoted a fascinating dossier to intuition (Science & Vie, August 2021 https://www.science-et-vie.com/archives/n-1247 ). It appears in particular that intuition is the automatic implementation by our brain of knowledge accumulated in our long-term memory. Far from being a random and therefore unreliable process, … Read more

demand driven methodology - team

We are all different… The question is a recurring one. “We manufacture to order, is this relevant to us?” “For the automotive industry, yes, but we are in the aerospace industry, we have many more items!” “We have many constraints, is it compatible?” “It’s for large corporations, isn’t it? We are a SME!” “Okay for … Read more

Instead of Big Data, Why Don’t We Take Care of our Small Data First? Big data and advanced analytics are front page news in the supply chain and have been on the rise for years in the vocabulary of consulting firms and software vendors.  Accumulating masses of information, passing it through the mill of statistical … Read more

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

“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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Sales & Operations Planning is an important process in most companies. Yet, with the increased volatility in supply and demand, it’s easy to wonder, “What’s the point?”

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In my last post, I talked briefly about the benefits of being demand driven using Demand Driven Material Requirements Planning (DDMRP): lower inventory levels and increased service levels.

You may be thinking, “Yeah, Ivan, that all sounds good, but isn’t that what other methodologies like Lean Manufacturing were supposed to do? What’s the difference here?”

If so, you’d be right. DDMRP exploits some of the principles found in other methodologies, but it also modifies them and arranges them into a consistent, organized, and easily executable process. The first key principle, and the one that separates DDMRP from many other approaches, is that of decoupling stock buffers.

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As the DDMRP practice leader for PwC, I’ve had to do my fair share of explaining demand-driven concepts both internally and to customers. I want to thank Demand-Driven Technologies for giving me the opportunity to share my thoughts on their blog.

In this first post, I want to speak to the business leaders in the company about why they should be exploring the benefits of DDMRP. In a follow-up post, I’ll dig more into some key DDMRP concepts for the practitioners in the audience who are well-versed in traditional material requirements and supply chain planning.

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FORD T

What’s the greatest manufacturing innovation in history? I’ll bet a lot of you immediately thought, “the assembly line.” Introduced by Henry Ford in 1913, the assembly line revolutionized manufacturing, reducing the time it took to build a car from half a day to just over two hours.

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In the fourth episode of our podcast series “Pithy Conversations with CEOs,” Trusted Counsel’s Evelyn Ashley and John Monahon speak to Erik Bush, CEO and Founder of Demand Driven Technologies (DD Tech). Founded in 2011, DD Tech specializes in cloud-based supply chain software solutions. With over 80 enterprises, today DD Tech has a global presence … Read more

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