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What is Demand-Driven Supply Chain Management?

Game-changer in supply chain management

Demand-Driven Supply Chain Management (DDSCM) and its core, Demand-Driven MRP (DDMRP), are considered a game-changer in supply chain management, enabling massive benefits for organizations. The full implementation of all components of DDSCM is the Demand-Driven Adaptive Enterprise (DDAE), the highest form of Demand-Driven. It is a way to achieve a new level of supply chain resilience.

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The heart and engine: DDMRP

Demand-Driven Material Requirements Planning (DDMRP) is a powerful approach that focuses on the variability in today’s supply chains rather than forecasting. The disruptive character of DDMRP requires companies to radically redefine their planning and execution processes. Companies will greatly benefit from that concept by significantly improving key performance indicators.

Up to 54% service level increase

After implementing Demand-Driven Supply Chain Management, enterprises on average experience a service level increase up to 54%, a decrease of lead time up to 85%, and an inventory reduction up to 70%. DDSCM significantly improves supply chain performance across industries. The further a company has progressed on the path to becoming a Demand-Driven Adaptive Enterprise, the more comprehensive and strategic will the benefits be that can be achieved at each step of the way.

Managing variability in today’s VUCA world

Almost all ERP or SCM/APS systems today are still working with the material requirements planning (MRP) processing logic from the 1960s. But that only works with very accurate demand forecasts – an impossibility in today’s lightning-fast global economy. Demand-Driven Supply Chain Management with DDMRP at its core is a strong approach to mastering the extensive variability in today’s supply chains of the VUCA world, where VUCA stands for volatility, uncertainty, complexity, and ambiguity.

How to adopt DDSCM

Adopting DDSCM is a business transformation that must be strategically planned and implemented. The award-winning Demand-Driven supply chain transformation of BSH, a company of the Bosch group shows how to successfully master this challenge.

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Why CAMELOT

CAMELOT is a global market leader and consulting pioneer guiding transformations for resilient supply chains. We help clients thrive in the VUCA world by bringing together the capabilities needed to guide organizations end-to-end on their Demand-Driven journey. CAMELOT is a global affiliate of the Demand Driven Institute.

Thought leadership

CAMELOT is a recognized consulting leader and pioneer for the new paradigm of Demand-Driven Supply Chain Management. Clients around the globe benefit from our profound conceptual Demand-Driven Supply Chain Management know-how, proven in global transformation projects with leading industry players.

Designing resilient supply chains

CAMELOT helps clients improve resilience on the operational and tactical planning level: In addition to numerous Demand-Driven S&OP implementations, we have successfully complemented Demand-Driven MRP with Demand-Driven Scheduling to realize Demand-Driven Operating Models (DDOM) for our clients.

From concept to implementation

CAMELOT guides clients end-to-end on their Demand-Driven journey. We work with our affiliate Camelot ITLab to support the implementation of Demand-Driven software solutions. Camelot ITLab is a market leader and pioneer for making Demand-Driven happen in standard software.

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Contacts

Christophe Hudelmaier

Head of Supply Chain Transformation

Helps international companies from diverse industries optimize and transform their value chains, leveraging his leadership background in the automotive industry and in mechanical and plant engineering

Frank Arnold

Vice President Sales Supply Chain Management

Supply chain management expert helping clients master the volatile new normal with agile, digitally-enabled and Demand-Driven supply chains

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