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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.
Innovative method for multi-echelon planning and execution of the supply chain
ONLY Sales Orders can activate replenishment
Pre-filled and adaptive decoupling buffers
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
Project approach
- Preliminary workshop (2 hrs)
- PoV: Proof of Value
- PoC: Proof of Concept + Pilot
- Extension
Preliminary workshop (2 hrs)
Organised within 1 week
Understand applicability
PoV: Proof of Value
2-3 weeks
Potential Evaluation of Improvement in Stock and Service Level
PoC: Proof of Concept + Pilot
2-3 months
Apply the new logic and get first results
Extension
0,5-2 years
Complete the transition to a demand-driven business model
Request a Proof of Value (PoV)
- What is PwC Proof of Value?
- Proof of Value activities
- Proof of Value Duration
- Proof of Value benefits
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.
Proof of Value activities
The Proof of Value is developed in three steps:
- Data preparation and Value Stream Map definition
- Simulation execution
- Drafting of the Report Out / Business Case
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.
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.
The PoV provides key information on the overall improvement potential according to the "stock vs service level" trade-off
Upcoming Events
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.
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