Demand Driven Material Requirement Planning

What is DDMRP?

Demand Driven Material Requirements Planning is a formal supply chain planning method of executing a multi-echelon planning and chain management that ensures and facilitates the flow of relevant information by creating inventory management at strategically located split points to enhance chain performance and optimise production planning. DDMRP is a planning methodology that combines some of the still-related aspects of Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP), emphasising the appeal and visibility of Lean and Theory of Constraints, and an emphasis on reducing Six Sigma variability. These elements are successfully combined with key innovations in the DDMRP approach. The DDMRP methodology is a supply order generation and management engine of a Demand Driven Operating Model (DDOM).

Why is it called DDMRP?

It is evident that DDMRP is the short abbreviation for Demand Driven Material Requirements Planning, but this shortened name can also be a way to differentiate between MRP or Material Requirements Planning to DDMRP. The difference between MRP and DDMRP is that the former is a push system in the sense that it starts production based on forecasting while DDMRP is a pull methodology to plan inventories and materials based on current demand.

Others claim that DDMRP is just a clever marketing gimmick to say it is better than what it is as a third version of MRP or MRP III, but in many ways, DDMRP is totally different from conventional MRP, and it is essential to be applied in our present modern time. Over the years, supply order, chain planning, chain management and planning systems have changed, while traditional MRP or material planning has not been updated. DDMRP can help in supply planning and inventory management and is an innovative multi-echelon method or planning methodology, which senses changing customer demand, then adapting supply chain planning, lead times and production while pulling from suppliers – all in real time.

The five steps of DDMRP

GETTING STARTED WITH DDMRP

Ready to get started with DDMRP for your business? Start your journey with an experienced professional. Patrick Rigoni is the best guide and resource for all things related to Demand Driven and can advise companies and supply chain leaders to set them on the path to success. Contact him today to learn more about the exciting potential of DDMRP.
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Download DDBRIX Brochure

The best way to learn about DDMRP is to put the principles into practice in an interactive workshop. Sign up your team for Patrick Rigoni’s DDBrix workshop and optimize your supply chain planning skills and download the DDBRIX Workshop Brochure.


 

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