Demand v Supply: Take control of your stock in 2021
By Jakes Mantle, Solutions Director at SYSPRO Australasia The famous Benjamin Franklin quote ‘by failing to prepare, you are preparing to fail’ has been used many times over. As the ripples from 2020’s global events are still being felt throughout the manufacturing industry, this quote seems to add more weight to the current economic environment. Many manufacturers have adapted well but now more than ever, it is essential for manufacturers to manage their supply chain, plan to reduce waste and enhance resources. It is during challenging periods such as these that Demand Driven Material Requirements Planning (DDMRP) can really help a manufacturing business be prepared and take control of its inventory. DDMRP is an operational supply planning and scheduling methodology. It takes much of the manual work out of planning and execution by using advanced supply chain management software to compress lead times and enhance visibility. It combines Lean’s focus on reducing waste, pull vs. push processes, and the Theory of Constraints to become a new set of demand-driven planning tactics which enable smarter decision-making across a business and the supply chain. A key feature of DDMRP is the strategic positioning and sizing of decoupling buffer stocks to manage customer lead times while reducing the impact of normal variability and improving overall flow. Decoupling stocks is like having a safe but not excess stock level so that the inventory associated with one stage of production does not slow down other parts of the manufacturing process. Taking control to the next level Whether you manufacture consumer products, food and beverage or even aerospace parts, DDMRP can help any manufacturing industry that creates made-to-order items. It is important to note that DDMRP is not the same as MRP, MRP II or Enterprise Resource Planning (ERP). DDMRP is a more advanced way of […]