Demand Driven MRP

An innovative method of planning and execution activated only by confirmed customer orders

What is Demand Driven MRP?

The DDMRP is an innovative multi-echelon Supply Chain planning and execution method that only considers sales orders and in which the flow of products is protected through the positioning and management of strategic decoupling buffers.

The DDMRP, increasing the visibility of relevant information, allows you to obtain an easier supply orders release and a guided process of execution prioritisation.

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Metodo innovativo

Innovative method for multi-echelon planning and execution of the supply chain

SOLO Ordini Vendita

ONLY Sales Orders can activate replenishment

Buffer di disaccoppiamento

Pre-filled and adaptive decoupling buffers

Risultati evidenti

Clear results | DDMRP demonstrated better performance than MRP and Lean logics

Objectives and Benefits

  • In line with the complexity of global supply networks
  • Highly responsive to the "real" question signal
  • Stock reduction (typical results between -15% and -30%)
  • Improved Service Level
  • Lower order management cost
Obiettivi e Benefici
Approccio di progetto

Project approach

Preliminary workshop (2 hrs)

Organised within 1 week

Understand applicability

 

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PoV: Proof of Value

2-3 weeks

Potential Evaluation of Improvement in Stock and Service Level

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PoC: Proof of Concept + Pilot

2-3 months

Apply the new logic and get first results

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Extension

0,5-2 years

Complete the transition to a demand-driven business model

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 Request a Proof of Value (PoV)

What is PwC Proof of Value?

The Proof of Value (PoV) is a simulation tool developed by PwC that allows to evaluate the applicability and potential of DDMRP methodology in a customer value stream.

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Proof of Value activities

The Proof of Value is developed in three steps:

  1. Data preparation and Value Stream Map definition
  2. Simulation execution
  3. Drafting of the Report Out / Business Case

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Proof of Value Duration

PoV duration ranges from 2-3 weeks to 2 months, depending on the complexity of the value chain chosen to perform the simulation and the availability of the Client's data.

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Proof of Value benefits

Provides key information on the overall improvement potential according to the “stock vs service level” trade-off. Allows to analyze the results on the Value Stream overall and detailed insights on specific part numbers. It is the first step to build a Business Case to launch the DDMRP transformation path.

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The PoV provides key information on the overall improvement potential according to the "stock vs service level" trade-off

Prossime attività

Next steps

PwC opens the doors to its Supply Chain Academy, normally reserved for PwC consultants, also to its customers. A discounted membership fee and special conditions for the DDMRP methodology will apply.

For registration and information

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Contact us

Ivan Lavatelli

Ivan Lavatelli

Associate Partner, PwC Italy

Tel: +39 02 66720664

Marianna Falcone

Marianna Falcone

Senior Manager, PwC Italy

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