Paradigm Shift in Supply Chain Management
Increasing volatility and uncertainty on the demand side and complexity in global value chains – this is the new norm for businesses. Simultaneously increasing customer requirements and cost pressure are driving traditional planning methods to their limits. Material Requirements Planning (MRP), which was developed in the 1950s based on demand forecasting, was never intended for these requirements, yet it still comprises the core of almost every supply chain planning concept. The consequences of this include unnecessarily large inventories, shortages and high planning costs through regular readjustment (“fire fighting”).
Demand Driven LEAN Supply Chain Management is an innovative planning concept that CAMELOT has developed together with leading research institutes and industrial businesses in response to this challenge. Demand Driven LEAN SCM is based on developing and combining proven planning approaches:
- consumption-based provisioning and effective prioritization of demand signals according to the DDMRP concept
- continuous material flow and efficient usage of production resources with “rhythm wheels”
- synchronization of planning parameters along the entire value chain
The achievable results speak for themselves:
- reduction of supply chain variability by 40-70 percent
- improvement of goods availability by 99-100 percent
- increase in capacity utilization by 5-15 percent
- reduction of inventories by 30-40 percent
As specialists who have garnered widespread acclaim from numerous independent analysts, we will support you on the path to Demand Driven LEAN Supply Chain Management. Together, we will hone your ability to meet today’s demands and overcome the inadequacies of traditional planning concepts.