The concept of a Digital Demand-Driven Supply Chain is gaining traction in the market. The first webcast in a series of four answers the questions: What defines a digital Demand-Driven Supply Chain? And how is Demand-Driven Supply Chain Planning an answer to current challenges?

The DDMRP concept helps companies to deal with inaccurate forecasts and production schedules that result in higher cost through unbalanced stocks, production disruptions and artificial bottlenecks. It is the result of a paradigm shift in supply chain planning.

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A Digital Demand-Driven Supply Chain is established by two main components:

  1. Demand-Driven Material Requirements Planning – or DDMRP for short – as the process of strategically planning and intelligently managing inventory buffers, and
  2. Suitable processes for the replenishment of these buffers.

With this combination, planning becomes responsive to variations in demand and supply by introducing real market demands into the planning equation.

Instead of focusing on a perfect forecast, a Digital Demand-Driven Supply Chain helps to build a robust supply chain that responds autonomously to changes in demand.

In the first webcast of our Demand-Driven MRP expert series, our Demand-Driven expert Dr. Ulrich Wetterauer introduces the concept in detail, links it to benefits seen in our customer projects, and elaborates on the four milestones in a journey towards a Demand-Driven Supply Chain: awareness, evaluation, design and realization.

Race for Value: Towards the Digital Supply Chain

To leverage the full potential of digital supply chains, there are still challenges to overcome. This thought paper provides insights on how to drive the digital transformation of the supply chain.

Download our Thoughtpaper on Digital Supply Chains

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