Demand-Driven Planning – Step 5 - Visible and Collective Execution

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  1. Demand-Driven Planning – Step 4 – Demand Driven MRP (DDMRP)

    Reading time: 4 mins

    Demand-driven Material Requirements Planning (DDMRP) is a modern approach to supply chain management that focuses on meeting customer demand efficiently while minimizing inventory costs. Unlike traditional Material Requirements Planning (MRP) systems, which rely on forecasted demand and fixed lead times, DDMRP uses actual customer demand signals to drive replenishment decisions in real time. By continuously…

  2. How to Optimize the Performance of MRP on SAP HANA

    Learn how to activate the new material requirements planning (MRP) performance optimizations available as of SAP enhancement package 6 for SAP ERP Central Component (ECC) 6.0, version for SAP HANA. Understand the differences between the classic MRP transactions and the new MRP Live and under which circumstances each one should be used. Key Concept As...…

  3. Implementing the Simplified Subcontracting Process with MRP Areas in SAP S/4HANA

    Learn the changes and simplifications in the subcontracting process introduced with SAP S/4HANA and how to effectively implement it in SAP S/4HANA. Key Concept SAP S/4HANA introduced major simplifications in production planning, including changes in the subcontracting process. The subcontracting scenario has been simplified in SAP S/4HANA, and now SAP recommends the use of subcontracting...…

  4. Manage Material Requirements Planning Exception Messages in SAP

    Exceptions generated via material requirement planning (MRP) on the MRP elements should be evaluated daily or, at a minimum, weekly. Managing MRP exception messages effectively at the operational level is an essential business activity because these messages impact operational key performance indicators (KPI). Depending on the organization size and product volumes there could be hundreds…

  5. Real-Time Supply Chain Planning with Demand-Driven MRP in SAP S/4HANA

    Learn how to use the new demand-driven material requirements planning (DDMRP) method to decouple the lead time. It minimizes the bullwhip effect to achieve real-time supply chain planning in SAP S/4HANA. Key Concept The demand-driven material requirements planning (DDMRP) concept was introduced in SAP S/4 HANA 1709. DDMRP is a new planning method introduced by...…

  6. Advanced MRP Post Processing with new MD06 and MD04 – Part 1

    The MRP exception monitor provides a detailed view on your whole supply chain, all important materials, important orders, missing parts, MRP exception messages, actual inventory, and important KPIs. In one single transaction, you have all the relevant and important information to act proactively as an MRP planner or buyer. The advanced MD04 also provides you…

  7. Advanced MRP post processing with new MD06 and new MD04 – Part 1

    The MRP exception monitor offers a comprehensive overview of the entire supply chain, including crucial materials, significant orders, parts shortages, MRP exception alerts, current stock levels, and key performance indicators. This single transaction equips MRP planners or buyers with all the essential data needed for proactive decision-making. Similarly, the enhanced MD04 transaction delivers a wealth…

  8. SAP’s Overlooked Electronic Kanban Can Bring New Efficiencies to Your Shop Floor

    As a logistics professional, you might know that Kanban is a system to manage the execution of a manufacturer’s shop floor/distribution processes. It is a variation on the “two bin” system where parts are delivered to an assembly area in bins or other containers, one material per container. In Kanban, the assembly worker uses the...…

  9. An Analysis of Simplified Sourcing on SAP S/4HANA

    Learn the differences between the material requirements planning (MRP) source of supply determination in SAP ERP and the simplified sourcing logic introduced in SAP S/4HANA. Key Concept Source of determination is the process of selecting a source of supply. This process can be executed by material requirements planning (MRP) when a replenishment proposal is created....…

  10. Cross-plant Planning in SAP S/4HANA with MRP – Part 1

    In cross-plant planning within S/4HANA, two primary approaches exist. One involves the utilization of the special procurement key within the MRP functionality, while the other entails employing the SAP Add-on known as cross-plant planning. This series will discuss the available options for cross-plant planning in SAP S/4HANA. Part 1 explores these options in conjunction with…