Oct 4, 2023
•2 minute read
DDP
Demand-Driven Planning – Step 5 – Visible and Collective ExecutionVisible 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.
Demand Driven Planning – Dynamic Adjustment – Step 3Buffers need to be re-calculated dynamically if material, market or company-related parameters change. This can be done with the consulting solution safety stock and buffer simulation. Buffers must be recalculated if the average daily usage changes and changed daily, weekly, or monthly depending on the analysis period. If the average daily usage is calculated based on the last three months, the key figure should be checked daily or weekly. If the base is more than six months, it is sufficient to recalculate the key figure monthly. With the SAP add-on safety stock and buffer simulation (TCODE: /SAPLOM/SSS), demand influencing factors like the average daily usage can be changed This article focuses on the third step identified by the Demand Driven Institute, called Dynamic Adjustments.
Apr 17, 2023
•3 minute read
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