ERP Product Solution
Pattern
Pattern
Cut inventory by 35% while achieving 99.5% availability.
To be successful in today's "instant gratification" marketplace, it's crucial to always have the right products and materials on hand to fulfill customer demand. Demand Driven Material Requirements Planning (DDMRP) is an innovative production planning and inventory control system that unites the best of Lean Manufacturing, Theory of Constraints (TOC), and Six Sigma principles to ensure you’ll always have optimal inventory levels — never carry too much and never run out. This eliminates the cost of excess inventory and lost sales due to out-of-stocks.
Never make too much of anything again!
DDMRP's re-supply recommendations are based on actual consumption — you only make what customers are buying. This ensures that you won't have a surplus of products and that your supply won't run out.
End expedited shipping and overtime.
Costly overtime and expedited shipments are eliminated with DDMRP because what is needed to meet customer demand is always available. This also provides you with a lead-time edge that enables you to beat out competitors.
Deliver on time.
Having what customers want on hand significantly improves on-time delivery, which helps create loyal customers while reducing time-pressure related workplace tension.
Reacting to changing customer demand in real time is the new way to manufacture.
Carry Less Inventory and Never Run Out
No one is in the business of carrying too much inventory. It's requires costly space, handling, and can go obsolete quickly. DDMRP allows you to reduce inventory, yet always meet your customer or production commitments.
Free Up Money
As DDMRP aligns your production and purchasing with the real needs of your customers, you will end the common practice of overstocking. Less goods in inventory means more money available for strategic initiatives.
Build Customer Trust
At the heart of DDMRP is its constant look at what and when the customer is buying. You no longer need to guess at this and try to forecast what will happen. Using DDMRP will increase your fill rates, which in turn increases customer satisfaction and loyalty.
Strengthen Your Supply Chain
Your relationships with your vendors and customers will be stronger when you are providing accurate information that can be trusted. You will no longer be placing orders only to have to come back and change them up or down.
Synchronize Your Sub Assemblies
You can't finish a product unless all the parts are there. DDMRP ensures that all parts are completed when needed. Using "Elastic Due Dates", DDMRP continually adjusts interrelated work order due dates as manufacturing or customer conditions change.
Stay in Front of Production Problems
Production stops when material shortages occur. Just like a customer, the production floor demands that material be available on time. DDMRP, balances both customer and production demand in real time and ensures that material is stocked for both.
We deliver results that drive business.
99.5%
fill Rate accuracy that can be achieved
with DDMRP
with DDMRP
20%
overstock and obsolete eliminated by DDMRP
15%
reduction in raw material and in process
stock required for production
stock required for production
Consumption Based Ordering
Manufacturers traditionally try to forecast what future consumption will be. Inaccurate forecasting can therefore instruct manufacturing plants to over or under produce what is really needed. DDMRP dynamically looks at the changes in demand and adjusts the supply orders accordingly. This results in just the right amount of inventory for both product items and customer end items.
Buffers Inventory Levels Up & Down the Supply Chain
DDMRP understands the dependencies of inventory at every level of manufacturing. Raw materials supply material to sub assemblies. Sub assemblies are needed for higher assemblies and customer end items. The levels of stock from raw material through upper level assemblies and finished goods need to be optimized so that no stockouts occur. Today’s MRP systems address this by creating static material plans and then issuing “exceptions” to planners who have to manually make adjustments. DDMRP makes these adjustments automatically as consumption conditions change.
Improved On-Time Delivery
The only way to deliver on time is to make sure that you have all of the material to make your product. Stockouts at any level of the supply chain or manufacturing process can leave you with no time to make the product for delivery. By monitoring all material demand and supply in real time, DDMRP anticipates potential material problems and adjusts inventory before problems arise.
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Related Resources
Brochures
Protected Flow Manufacturing with DDMRP
Adding DDMRP to PFM ensures that you always have enough inventory - finished goods, subassemblies, and purchased items – but never too much. Download Brochure
Brochures
Keep Supply and Demand in Sync
Adding DDMRP to the power of PFM brings unique benefits to companies that manufacture finished products, subassemblies, or components to stock. Download Brochure