Demand-Driven Planning – Step 5 – Visible and Collective Execution
Meet the Experts
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Marc Hoppe
Expert since 2023
Key Takeaways
⇨ The advanced MD04 is a new and effective way of managing the day-to-day operational activities in the MRP post processing.
⇨ MD04 is a frequently used standard transaction which gives planners an overview of demand, inventories, and goods received.
⇨ SCM consulting solutions provide an advanced version of this transaction as an add-on, which features a range of additional functions including information for demand-driven approach.
Visible and Collaborative Execution refers to the methodology employed by the Demand Driven Material Requirements Planning (DDMRP) system to manage and oversee open supply orders. It emphasizes the importance of transparency in the supply chain, allowing stakeholders to view and track the progress of orders in real-time. Furthermore, by fostering a collaborative environment, different players in the supply chain can work cohesively, making necessary adjustments based on prevailing conditions. This proactive and interconnected approach ensures timely deliveries, reduces excess inventory, and enhances the responsiveness of the entire supply chain.
MD04 is a frequently used standard transaction which gives planners an overview of demand, inventories, and goods received. SCM consulting solutions provide an advanced version of this transaction as an add-on, which features a range of additional functions including information for demand-driven approach. It uses color coding to indicate the status of materials, from dark red (highly critical), red (critical), yellow (low), and green (sufficient), to blue (overstocked) as seen in the image below.
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