In today’s world-leading supply chain design must include Supply Chain Resilience. Resilience from a supply chain management point of view, is the ability of a supply chain to both resist and contain disruptions. When disruptions are so large, as was the case of the COVID-19 pandemic, the supply chain must be able to recover operational capabilities.
Contingencies in-built into supply chains around the world simply did not account for a global pandemic. Most supply chains were overwhelmed both with the inability to obtain products and materials as well as from the demand expectations of customers.
In this Industry Week article Abe Eshkenazi, CEO of the Association for Supply Chain Management (ASCM), discusses that supply chains need to secure more data and find specialists to manage it.
Build a Demand Driven Supply Chain
Some companies go down the route of stocking huge amounts of inventory only to find they stocked the wrong inventory. Some will create excess capacity with the manufacturing plant so they can ramp up quickly as demand ramps up but machines sit idle. The design of the supply chain needs to be Demand Driven and based on the business model and rules, to enable the reduction/elimination of excess inventory costs, and the positioning of optimum resource capacity. A Demand Driven supply chain model will give you just that where we integrate our Demand Driven solutions of Demand Driven Flow Technology (DDFT) with Demand Driven MRP (DDMRP).
A Demand Driven Supply Chain from High Impact Coaching & Strategies will enable responsive, agile manufacturing, and end to end supply chain optimization that will reduce your costs, inventory and lead times transforming your business into a world-class Demand Driven organization at the forefront of your industry.
Demand Driven Supply Chain Management Solutions
We provide our customers around the world with solutions that create synchronization and balance through the entire supply chain creating a competitive advantage in their marketplace. Demand Driven supply chains drive operational capabilities generating sustainable bottom-line benefits.
In the factory, Demand Driven Flow Technology focuses on the design and operation of the manufacturing flow. It is a comprehensive mathematical-based methodology that balances resource capability to actual, or planned demand, enabling a company to improve response capability to customer orders, reducing lead time, working capital, and Cost of Goods while improving productivity and overall customer satisfaction. DDFT is the framework that enabling manufacturing to be adaptive to daily changes in the required mix and actual demand.
Demand Driven MRP is the planning engine that drives the supply chain and the factory. It focuses on the optimization of strategically positioned inventory along the supply chain that absorbs demand volatility and supply variation we see in the bullwhip creating stability in supply downstream and demand creation upstream. Mathematical buffer designs that dynamically optimize inventory levels based on current market conditions and will reduce overall inventory across the entire supply chain while improving customer service levels and response capability. DDMRP provides the Supply Chain Planning and Execution tools to enable a company to become Demand Driven so that it can meet the expectations of its customers in today’s complex and volatile marketplace.
DDFT and DDMRP work together using actual demand to drive the Demand Driven supply chain removing traditional reliance on forecasting to drive the supply chain. The Demand Driven Supply Chain management activities still use the forecast, but now as an input for the Demand Driven Sales & Operations Planning (DDS&OP) process. DDS&OP will adapt the supply chain model based on the various business conditions and the forecast appropriately resizing the inventory buffers. Supply orders are now generated based on actual consumption from the dynamic buffers rather than based on a forecast requirement.
For further information or to inquire how you can implement Demand Driven Supply Chains please email us at info@highimpactcs.com or send a message via our contact page.
Manufacturing & Supply Chain Information
Previous Insights from High Impact Coaching & Strategies:
- What is Demand Driven Flow Technology
- What Is The Difference Between Lean and Demand Driven Flow Technology?
- The Tools of Demand Driven Flow Technology
- How Demand Driven Flow Technology Impacts The Health of Your Business (1st of 3 Parts)
- Cash Flow Generation is a Priority (1st of 2 Parts)
- Review of a Recent Demand Driven Flow Technology Implementation
- What is Supply Chain Management?
- Supply Chain Planning & Engineering
- The Supply Chain Methodology That is DDMRP
- What is DDMRP?
- MRP – Solution or Problem
- A Solution to Excess Inventories, Stocks-Outs & Poor Customer Service?
- Adapt or Die – Become Demand Driven
- Supply Chain Brain: DDMRP as an Emerging Disruptive Supply Chain Capability
- What Does VUCA Mean?
Overview of High Impacts’ Demand Driven strategies that will transform your factories and supply chain network:
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Talk to us today to learn more about how we can help your organization become Demand Driven through the adoption of our Demand Driven methodologies, DDMRP and Demand Driven Flow Technology.
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