Demand Driven Planning
with SAP IBP for Demand Driven Material Requirements Planning (DDMRP)
Benefits
Get an Accurate Demand Forecast to Meet Customer Needs
Ensure optimum customer service levels through right-sized inventories
Reach desired service levels while maintaining optimal inventory and flow across the supply chain network to minimize the bullwhip effect of high buffer inventories.
Avoid constant firefighting and expediting
Leverage a “traffic-light” system to monitor and advise optimal inventory and buffer levels across each decoupling point while creating replenishment orders based on actual demands.
Increase profitability
Prioritize orders in real-time based on live buffer sizing and use these priorities to execute replenishment.
Strategic Inventory Positioning
Place decoupling points strategically in the supply chain to cover and bolster the flow of materials through the supply chain.
Buffer Planning and Adjustments
Absorb demand signal variations and reduce lead times. Make calculated adjustments based on strategic and business priority parameters.
Monitoring
Leverage alerts to monitor the buffer levels and adjust them if necessary.
Average Daily Usage Calculation
Define buffers by calculating the rate of demand considering crucial parameters like frequency of update of forecast horizon in the past or future.