The term DDMRP has been around since 2011 and has received much attention in recent years. The promises are big: improved service levels, inventory reductions of 30-40%, shorter delivery times (up to 80% reduction!) and minimal costs. Are the windows in your Supply Chain department already fogging up? DDMRP is based on the fact that variability...
Part Three of this four-parter clarified exactly what DDSCM is and why you should want it. The only question that now remains is how DDSCM can help you in practice.
In Part Two of this four-parter we zoomed in on the importance of the ‘moment of decision’. Preferably, we should make a decision early if the information is reliable at an early stage, and late if it doesn’t become reliable until later. This is not always the case in practice, however, which creates a ‘planning mismatch’. This planning mismatch...
Demand Driven Supply Chain Management (DDSCM) is becoming increasingly popular – and deservedly so, in our opinion, because DDSCM offers huge potential – but the rate of adoption is still too slow for our liking. One thing holding it back could be the lack of a clear definition of what exactly DDSCM is. This is leading to many different...
In Part One of this four-parter we ascertained that demand-driven alignment is essential to break the service paradox. Although thoughtfully chosen targets and KPIs play an important role in this, they have limited scope. Luckily, there is another factor that you can influence, namely the ‘moment of decision’. In Part Two of this four-parter we...
Sometimes you learn about new ideas that are so logical that you think by yourself: why did I not come up with this myself? Recently I heard about a new app that enables you to pay for your visit to an amusement park, based on the time spent in the park. So as a visitor you no longer pay a fixed fee – which in the past forced you to spend the...
Breaking the service paradox Going on a family holiday entails a whole host of decisions. Some are made early on in the process, such as the period of time, destination and means of transport, and others much later, such as when and where to stop to eat, to refuel and to go to the toilet. There is a clear reason why you make the latter decision...
On 4 June 2018, a diverse group of supply chain professionals gathered at the Shell Pernis refinery in the Netherlands for an inspiration session called ‘Grip on projects’. Although the participants came from a wide variety of companies, including machine builders, maintenance companies and grid operators, it quickly became clear that they all...
After years of oscillating between shortfalls and surpluses and the chaos and frustration that this entailed, calm has recently returned for one of my clients and his supplier. How come? They simply turned off their MRP system. The consequences of this decision have been astounding. By reducing the delivery time from several months to just a few...
Machine manufacturers suffering from high costs and long unreliable lead times can make huge gains in terms of competitive edge if they manage to resolve the so-called ‘service paradox’: from relatively slow, unreliable and inefficient to reliable, fast and efficient!Machine builders develop and manufacture often-complex machines, many of which...