Demand Driven Supply Chain
The Demand Driven supply chain (DDMRP) is the latest evolution in end-to-end supply chain management and is often emerging as ‘best practice’ for a range of companies.
SCALA Consultants have pioneered the introduction of the Demand Driven approach with a number of UK clients and has taken companies through stages of Evaluations and then Piloting through to Roll Out Implementation.
The key difference with the Demand Driven approach is that it uses inventory buffers positioned throughout the extended supply chain to react to actual demand – reducing the reliance on forecasts, and the impact of forecast errors on service performance.
Implementing the Demand Driven approach typically delivers the following supply chain performance improvements:
- Customer Service Levels above 99%
- Inventory reductions of 30-50%
- Obsolescent inventory reduced by up to 90%
- Lead-time reductions of up to 85%
- Cost reductions of approximately 20%
The Demand Driven approach provides an alternative to the traditional ‘forecast push’ Material Requirements Planning (MRP) methodology and can now be implemented quickly and easily across complex networks thanks to cloud computing and software as a service (SaaS) technology.
SCALA Consulting works with a technology partner to deliver a complete demand driven solution for companies covering assessment, business case, pilot, set-up, training, change management and replenishment execution, imperative to supply chain success.
To quantify the performance benefits that a Demand Driven supply chain approach could bring to your company talk with an expert SCALA Consultant – call 01484 437486 to discover how your supply chain issues can be improved with this innovative approach.