Benefits of DDMRP: The Softer Side

We recently shared a blog on some quantifiable results of implementing DDMRP. However, we should also talk about the qualitative benefits.

In practice, implementing DDMRP can significantly boost service while reducing inventory levels to as-needed, strategic amounts. This often results in many benefits that can be more difficult to measure:

  1. Upskilling of staff and improved staff motivation.

The journey towards becoming a Demand Driven Enterprise can contribute to a much improved company culture. Staff will learn and adapt to a new system and a new way of thinking – however, they also see real, tangible results, which can drive motivation.

As well, DDMRP eliminates wasted inventory, meaning staff will no longer have to deal with the impact of destroying unused product.

It also makes it easier for the company to scale and grow in a controlled manner by adding new product variations, limited editions, and more.

  1. Reduction of company-wide variability in demand, supply, operations, and management.

While DDMRP functions largely in the warehouse and production area of a business, the benefits extend to the whole company.

When inventory is optimized, it is easier to also optimize other variables, such as:

  • The whole supply chain – shipping costs, packaging, delivery times.
  • Reduction in quality issues especially those caused by expedited orders.
  • Some customers have found that service levels improved by 10% to 30%.
  • Improved cash flow.
  • And more!
  1. A visual management system that is easy to understand and is self-learning.

When DDMRP is combined with an existing ERP, such as Microsoft Dynamics 365, it is easy to see what’s going on. The system is designed to grow and learn on its own, based on the data and predictive modelling.

With the proper set up, you can tell at a glance what buffer zones you have set and your current inventory levels, now and in the future.

The longer you use a DDMRP system, the more accurate your predictive stock management will be.

  1. Better control.

Overall, DDMRP gives your whole business better control. You will know what inventory is required and when, so you are wasting fewer resources while driving better results.

With this control, your company could:

  • Introduce or test a new product variation.
  • Manufacture seasonal or limited-edition products.
  • Attract new market segments.
  • And more!

The benefits of DDMRP do not stop there. To truly experience the change it can bring, you need to try it for yourself. It’s easy to do with SHEA Global’s new DDMRP Pilot Program.

We’ll walk you through a DDMRP implementation and allow you to try it before committing. You’ll be able to see exactly what benefits and results DDMRP will drive for your business.

Interested in learning more about our DDMRP Pilot Program and how to make Business Better? Contact us to receive more information.