DDMRP is a great method to increase service levels, reduce lead time, and cut inventory costs
Many manufacturing companies are looking to improve their short-term operational planning and create a better link to tactical planning.
With the Demand Driven Material Requirement Planning (DDMRP) method, they have found a suitable way to make significant improvements that can be measured in double-digit percentages.
Real life experiences show, that DDMRP amongst other things can increase service levels by up to 20 percent; reduce inventory by 40 percent; and reduce lead time by up to 50 percent.
One of the first in Denmark
One of the first companies to adapt DDMRP in Denmark is Novozymes, who did so in corporation with Syncronic. After running a few simulations to confirm their business case, a pilot project was created, which was so successful, that Novozymes now uses DDMRP in large scale and have incorporated it in their daily planning routines and systems.
“We have reduced the inventory size and improved product availability, so we are able to deliver on time to our customers. DDMRP is one of the key reasons to this positive development,”
- said Peter Christian Graae, Head of Supply Chain Service in Novozymes.
Will DDMRP benefit your supply chain?
DDMRP can be used in different areas, where benefits will vary. It is relatively easy to test if the method will be beneficial for your department or supply chain by running a simulation based on your own historical data.
The data should include stock levels, demand numbers, and key parameters.
Syncronic can help you run the simulation, make everybody in your group understand the DDMRP concept, and help you gather conclusions from the simulation in a management report with recommendations on the potential (or benefits) that DDMRP will have for your organization.
Fill out your details and let us help you getting started.
The leading DDMRP consultancy
Syncronic is a pioneer and leading consultancy within DDMRP in Denmark and the Nordics. So far, we have eight consultants that have been trained, involved and/or certified with real DDMRP projects.
It was also Syncronic, who were the consultancy partner, when Novozymes, as the first company in Denmark, implemented DDMRP.
Furthermore, we are a partner with SAP and B2wise, who offers software solutions, that are compliant with DDMRP.
If you want to know more or have any questions about DDMRP, we are happy to help you and answer questions.
In these short videos you will be introduced to the DDMRP method and learn why it might apply to your organisation, and how to move on, if you want to improve your service levels and bring down your stock levels significantly.
This is why DDMRP is a superior planning strategy
The everyday life of operational planners is often characterized by turbulence and firefighting tasks because the assessment of how much to produce often is based on forecasts rather than current orders. That often leads to too high levels of inventory, too long lead times, and too low service levels
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Novozymes has implemented DDMRP in a broad part of its planning
Following a successful pilot project together with Syncronic, Novozymes is now ready to implement DDMRP in a broader part of its planning. DDMRP fascinated Strategic Project Manager in Novozymes, Peter Christian Graae, because the concept is simple and easy to understand compared to …
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DDMRP Services from Syncronic
Inspirational meeting (free)
Unless you already know a lot about DDMRP, we suggest starting with a free inspirational meeting (2 hours) with some of our experienced experts to give you a basic introduction to DDMRP and to learn about the potential benefits for your organisation.
DDMRP Starter Kit (75.000 DKK)
With our DDMRP Starter Kit you will get a few steps deeper on how DDMRP works. You and your colleagues will have a thorough introduction to the concept, and we will play a DDMRP game to give you a hands-on experience of the way DDMRP works.
The most interesting part of the starter kit is probably a simulation based on your historical demand and stock data. The simulation will compare your realized stock curve with the stock curve, that would have been realized, if you had used the DDMRP method for operational planning.
With the simulation you will be able to see the exact effects of using DDMRP in your organisation even before you have tried it!
Furthermore, you will receive the summarized results, conclusions, and recommendations on how to eventually move on with DDMRP, in a report you can share with your management.