Demand Driven MRP Implementation

Major Drinks Manufacturer

Background & Brief

This major branded drinks manufacturer wished to achieve industry leading service levels but was struggling with over and under stocking issues and the constant need for re-prioritising production schedules. Following a Demand Driven Conference with SCALA and the Demand Driven Institute the client asked SCALA to assess their whole approach to inventory management

Project Approach

The SCALA methodology comprised :-
  • Understanding of Business and Initial Assessment of the applicability of Demand Driven MRP
  • Simulation and Quantification across an agreed representative number of SKUs over a one year period
  • Workshops with client to ensure full understanding of the system and adjustments to processes and organisation
  • Pilot scheme for six months
  • Full Roll Out of System
  • Benefits & Results

    The project delivered the following:
  • Alignment of Inventory with Demand
  • Significant Service level enhancement with a 40% reduction in Inventory levels
  • Avoidance of the need for continuous ‘Fire Fighting’ in production schedules
  • Final Outcome

    A delighted customer with further joint developments into shipping
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