We’ve written recently about what demand-driven material requirements planning (DDMRP) is and why companies should care about it, but as with many decisions in business, results are what matter.
DDMRP is not just a cool new acronym. It is providing real results for real businesses.
Let’s look at the results being achieved by companies that have implemented DDMRP. Some of the findings are staggering.
Companies that implemented DDMRP achieved:
- 10% to 30% improvement in service levels.
- 25% to 60% reduction in inventory.
- 40% to 70% reduction in work in progress.
- Over 50% compression of lead time through manufacturing.
- Zero change to the production schedule.
By adopting DDMRP, companies are able to reduce inventory without impacting service while reducing lead times. This has tons of potential for businesses, such as creating limited-edition products, seasonal merchandise, or simply eliminating wasted inventory.
The components of DDMRP allow production planners to use ERP systems, such as Microsoft Dynamics 365, more effectively to manage demand, rather than respond to speculative requirements. This gives planners more control over the supply chain and allows for greater business agility, as well as eliminating the risk of supply shortages.
Production planners that want to manage, and not be managed by, market volatility and customer demand should check out DDMRP and experience the difference!
SHEA Global helps businesses learn about and implement DDMRP. Our innovative approach allows companies to find the best solution for them. We work with you to achieve operational excellence and make sure your entire organization is aligned to make Business Better.
Interested in learning more about DDMRP? Contact us for a consultation.