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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Related Topics
Our DDSCM services
CAMELOT offers market-leading consulting services for Demand-Driven Supply Chain Management.
Demand-Driven training courses
We offer global DPP™ and DDL™ training programs conducted by DDI-certified CAMELOT instructors.
Experience DDMRP
With our brand-new and worldwide first-of-its-kind DDMRP Game, you can now easily experience DDMRP by yourself.
Demand-Driven software solutions
The Camelot Demand-Driven LEAN Planning Suite is the first SAP certified software suite for implementing the Demand-Driven approach.
DDMRP insights
Stay up-to-date on the latest trends and developments in DDMRP, written and composed by CAMELOT experts.
DDSCM benefits and case studies
Find about DDSCM benefits and case studies of leading industry players, such as CocaCola, Michelin, or Shell.
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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.
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Contacts
Christophe Hudelmaier
Head of Supply Chain TransformationHelps 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 ManagementSupply chain management expert helping clients master the volatile new normal with agile, digitally-enabled and Demand-Driven supply chains
