Reduce inventory related capital and storage costs.
Gain market shares.
Protect the flow by preventing the spread of variability (upstream, downstream, management …).
Set up a pilot model based on real demand.
To avoid forecasts for the operational management of the Supply Chain.
Share a common culture of the flow.
Make the performance of the organization sustainable.
Develop the skills and know-how needed to implement a Demand Driven model.
The flow is the heart of the supply chain:
« All benefits are directly related to the speed of the flow of material and information » (G.W. Plossl)
Flow is the heart of the supply chain , it must be at the center of reasoning. Thus, efforts must be concentrated on:
• Flow organization
• The acceleration of the flow
• Flow protection
• The pull of the flow by the customer demand
Historical models do not respond to the current context:
• Supply Chain challenges in today's environment are reduced lifecycles , increased product and flow diversity, and increased variability.
• MRP, based on forecasts, is a complex methodology sending complex and unprioritized signals.
• The application of Lean is, in practice, restricted to the framework of production workshops and can sometimes lead to dispersal.
• These two concepts each carry strong and relevant concepts that must be orchestrated.
Personnel are the engine of performance:
• In order to put the flow back in the center of attention, a culture change must take place.
• Any such significant change must be accompanied and involve employees of all levels and departments .
• Change anticipates, evaluates itself, is accompanied by a proven methodology.
• In a Demand Driven mature business, business people have a systemic view of the business.
The implementation of a pilot proves the effectiveness of the method:
Setting up a driver before generalizing the method allows :
• Get results quickly on ROI and customer service.
• Convince users and decision makers of applicability throughout the chain.
• Measure the impacts of change.
• Propagate the pilot through the production lines.
The performance and financial steering indicators contribute to the problem:
• Arbitration based on standard manufacturing costs creates local optima biased by the way in which costs are measured (eg. a plant may decrease its MIC by producing large volumes of unnecessary products because they are not sold).
• With Demand Driven, performance KPIs are reoriented to measure the impact of any FLOW decision on the one hand, and ROI on the other, aligning the business with the real ones deposits of results with a systemic vision.
Our solutions and know-how
Raise awareness and train at Demand Driven/Thoughtware before software
Before a project, it is essential to install the Demand Driven philosophy:
• Serious Games animation (DDBrix Factory).
• Stakeholder Awareness to Demand Driven concepts.
• Animation of Demand Driven methodology training (DDP, DDL, discovery days).
• Support for Demand Driven certification (CDDP, CDDL).
Define the perimeter and build the driver:
• Animation of participatory workshops to identify potential perimeters in relation to the constraints of the company.
• Simulations on potential perimeters for pilot implementation and associated gains.
• Strategic positioning and sizing of buffers .
• Simulations of results and earnings .
Accompany the driver launch:
• Tuning the Citwell Driver Tool or piloting the adaptation of your pilot tool.
• Monitoring pilot implementation .
• Training users in the pilot tool .
• Data setting.
The IMCM approach – Change Management allows:
• Analysis of the approach to roles and responsibilities.
• support for modifying KPIs and performance incentives.
• the overall analysis of the impacts of defining the change plan.
• assistance with the progress of the change plan (communication, training, coaching …).
Production is driven by demand, so finished product inventories correspond to the expected customer.
• The rate of service increases drastically (usually 97-100% On Time Delivery).
• Decrease of breaks (by 2 or 3).
• As a result, the turnover increases.
Stocks & Total Supply Chain Costs
Inventories decline throughout the supply chain
Inventories are declining across the supply chain :
• Decrease in fixed assets related to inventories - typically 25 to 45% reduction.
• Reduced storage costs (space, degradation, depreciation ...).
• Decrease of emergency management costs (express shipments, modification of production plans, partial/multiple shipments, etc.).
• The waiting time of parts between two machines decreases, the lead-time is reduced accordingly.
• Lead time perceived by the customer is reduced by the strategic positioning of the buffers.
• Up to 80% off in some verticals . Gain even in mature Lean businesses.
Personnel and turnover
Operators more serene and sharing the same orientation
• The DDMRP mechanism allows planning staff a clear, intuitive and shared vision of priorities .
• Demand Driven thinking facilitates cross-cutting decision-making by clarifying issues for the business .
• medium-term planning processes become more efficient and (somewhat) less time-consuming data preparation.
Our references in DDAE – DDMRP
DDAE – DDMRP Expert
Expert on the methodology and very active within worldwide work groups, Anaïs accompanies companies in their Supply Chain Demand Driven transformation in Industrial, Distribution and Services sectors. She has recently worked with SNR and bioMérieux.