At the Demand Driven World 2017 Conference Thibaut d’Herouville, Michelin VP Supply Chain, announced that following 8 DDMRP pilots, Michelin will start a global roll-out of DDMRP across an additional 60 factories. By the end of 2018 Michelin is planning to be operating DDMRP across nearly 70 global sites.
Check out their rollout plans:
Update. 2nd Oc 2017. The Demand Driven Institute have released the recording of the Michelin DDMRP presentation.
What is DDMRP?
DDMRP is a Multi-Echelon Material and Inventory Planning and Execution system that enables a company to become Demand Driven. It provides companies with the operational planning and execution tools to work in today’s “New Normal” where forecasts have gotten worse, supply chain complexity has increased, customer tolerance has decreased and inventory has become a major priority.
DDMRP is rapidly becoming the world standard for the emerging Demand Driven methodology in planning, scheduling and execution of the entire supply chain from retail and distribution to manufacturing and multi-tiered suppliers.
DDMRP (Demand Driven MRP) is the core of the Demand Driven Operating Model that provides companies with the operational planning and execution tools to revolutionize their supply chains, right-sizing inventory at strategic locations throughout the entire supply network while dampening supply chain volatilities at the same time. These strategic inventories decouple the entire supply network and absorb inherent variabilities and volatilities enabling visibility, control, responsiveness, and agility.
DDMRP was developed by Carol Ptak and Chad Smith the founders of the Demand Driven Institute as a tool that will promote and protect flow through the entire supply network. The Demand Driven Institute is an organization that is devoted to the proliferation and development of Demand Driven strategies in industry.
DDMRP will enable improvements of up to:
❯ 65% reduction in average on-hand inventory
❯ 80% reduction in lead times
❯ 100% on-time delivery performance
❯ 90% reduction in inventory obsolescence
❯ 400% improvement in inventory turns
❯ 25% improvement planner availability
For information about supply chain optimization using DDMRP and how it will reduce your business risk read the following:
❯ DDMRP
❯ Introduction to Demand Driven MRP (DDMRP)
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