As supply chain professionals, we’re trained to anticipate our company’s needs. That’s a good thing. Unfortunately, our training can also lead to some unfortunate habits.
Niche providers are having a significantly greater impact on the Food and Beverage industry than they were just ten years ago. Providers of craft beers and craft soft drinks have experienced substantial growth of market share in their respective segments by providing unique flavors and greater variety to the market.
For example, craft beers now represent roughly 24% of the US Beer market. The [...]
In recent weeks we have seen in France two rather virulent online publications against DDMRP, one stating that "DDMRP is egocentric and short-sighted", and the other giving a "numerical point of view" on DDMRP, to conclude in short that the methodology was too simplistic.
Sales & Operations Planning is an important process in most companies. Yet, with the increased volatility in supply and demand, it’s easy to wonder, “What’s the point?”
This period of health crisis has paradoxical effects on the progress of DDMRP implementation projects. Some corporations are putting all improvement / transformation projects on hold: expenses must be cut.
You have implemented all or part of the Demand Driven operating model to drive your operations, so you should be prepared to deal with situations of uncertainty.
However, the current period presents an unprecedented level of disruption.
In my previous blog, I described how the outbreak of the Coronavirus was an illustration of the Volatile, Unpredictable, Complex and Ambiguous (VUCA) conditions supply chains are encountering. Given that VUCA conditions are unpredictable, it’s imperative that supply chain leaders evaluate the actions they can take to improve the overall agility of their operations. The more agile your supply [...]
In recent weeks, the news media has been flooded with reports on the growing spread of the novel Coronavirus (COVID-19) across the globe. This highly contagious disease has shut down travel to and from China and several other regions of the world as governments implement aggressive measures to control the spread of the virus. At the time of this writing, there are nearly 130,000 documented [...]
Demand Driven Material Requirements Planning (DDMRP) is compatible with, and even supportive of, many other manufacturing philosophies: Lean, TOC, Flow, Pull, etc. However, since some of these ideas have been around for decades, most notably Lean Manufacturing, it can seem like DDMRP is an old idea given new life under a different name.
In my last post, I talked briefly about the benefits of being demand driven using Demand Driven Material Requirements Planning (DDMRP): lower inventory levels and increased service levels.
You may be thinking, “Yeah, Ivan, that all sounds good, but isn’t that what other methodologies like Lean Manufacturing were supposed to do? What’s the difference here?”
If so, you’d be right. DDMRP [...]