Change Management & Thoughtware
Plan to change and change to plan - quickly
The adoption of Demand-Driven SCM has a transformational impact upon corporate as well as supply performance – its benefits percolate through to:
- Sales and Marketing in the form of better service leading to increased sales and market share
- Operations with schedule stability and predictability, raised OEE and capex delay
- Finance in the form of higher profitability and cash flow
- Procurement as a means of stabilizing supply schedules that enables shorter lead-times and lower input prices
- Employee morale improvement by allowing an increase in value-add activity at the expense of continuous fire-fighting and its associated frustrations
Transformations of this type however can’t happen over-night, though if the right program is put in place, it can happen surprisingly quickly.
The easiest issue to tackle is the technical one – selection and implementation of the inevitably required software support (that works through your legacy ERP network) to enable the management of Demand-Driven SCM across a complex supply chain – and this isn’t even the first step on the road to becoming Demand Driven.
Proof of Concept Simulations / Pilots
What comes first is convincing SCM people that the very simple Demand-Driven process can so effectively deliver “agility thru’ stability” (yes, even with your company’s “especially volatile” demand patterns) that their role can change from being one of continuous intervention to one of continuous improvement, configuration calibration, exception management and “hands off”.
Demand Driven Institute training courses & certifications (DDL, DDP)
So the road towards becoming genuinely Demand Driven begins with the “thoughtware”: bringing all those involved with the supply chain up to speed on what supply chains really are (answer: material queues); what supply chains should be (answer: material flows) and how to convert from one to another without using expensive and unplanned capacity (answer: minimize variability through being de-coupled and demand-driven).
Of course, such training and education doesn’t actually prove anything so another part of the transformation program includes comparing your company’s historical supply chain performance with that of a Demand-Driven simulation using exactly the same demand patterns and supply parameters. And this is usually followed by a small scale pilot that enables you to experience the benefits for real, and build belief, enthusiasm and involvement from all your key stake-holders.