Demand Driven Supply Chain
We’ve already noted the various different approaches we take to get the best out of the logistics industry and provide optimal service, such as our Best Practice perspectives. The Demand Driven supply chain perspective is the latest evolution in end-to-end supply chain management and is rapidly emerging as ‘best practice’ across a range of industries.
SCALA is pioneering the introduction of the Demand Driven approach with a number of UK clients and is running training courses to deliver the Certified Demand Driven Planner (CDDP) program, a qualification provided by the Demand Driven Institute – you can read more about our recent CDDP event here!
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 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 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 the logistics industry.
Quantify the performance benefits that a Demand Driven supply chain approach could bring to your company by talking with a SCALA expert – call 01484 437486 to discover how your supply chain issues can be swiftly and easily addressed.