Traditional material requirements planning has been largely forecast-driven, using formulas to reduce risk by staging emergency inventory throughout the supply chain. However, as the recent pandemic has shown, an unexpected event can dismantle even the best-laid plans. Fortunately, demand-driven material requirements planning (DDMRP) offers industries a modern, more sophisticated inventory control.
What is DDMRP?
Structured around a “position, protect, and pull” approach, DDMRP takes forecasting out of the equation.
Instead, DDMRP tracks real-time fluctuations and “positions” key materials or components at critical points in the supply chain.
These items are “protected” using inventory as a buffer. This is different than traditional MRP because this buffer inventory is deployed dynamically as opposed to being forecasted at the beginning of the planning.
Finally, buffer inventory is “pulled” using visual cues to maintain stock within a certain range. These cycles are constantly tracked, and the data is used to collaborate with supply chain partners to continue to optimize operations.
Best-in-Class Inventory Control
Our DDMRP solution offers out-of-the-box integration with Microsoft Dynamics AX2012 and 365 and SYSPRO, which will support both on-premises and cloud installations. It is a seamless replacement for the standard generation of a master plan.
And if you need further training to implement DDMRP, we can help! As a proud member of Canada’s Advanced Manufacturing Supercluster, we provide virtual training at your convenience. NGen members get training for half-price—membership is free, so take advantage of these easy savings.
Click here to learn more about this training program.