Reinventing the modern supply chain: New whitepaper introduces UK businesses to DDMRP
26/02/2018 Ardent Solutions Ltd
With industrial supply chains becoming increasingly complex, UK-based Microsoft Dynamics 365 partner Ardent Solutions has released a whitepaper introducing the concept of demand-driven materials requirements planning (DDMRP) to UK businesses.The whitepaper, which is available from the company's website, explores the meaning of the concept and the ways that adopting DDMRP methodology can improve supply chain efficiency. In particular, Ardent Solutions explains why many existing manufacturing theories have become incompatible with the modern industry, especially due to their reliance on forecasting.
Where traditional MRP methods use sales forecasts to drive orders through a supply chain, DDMRP focusses on qualified orders as a means of pulling products through production. DDMRP methodology decouples the supply chain at strategic points to help manufacturers operate with greater flexibility, allowing businesses to improve customer service, minimise lead times and reduce the volume of stock held.
"Traditional MRP methods were developed almost 50 years ago and are simply incompatible with modern market conditions and changes in consumer demand," explains Roger Fleury, Managing Director of Ardent Solutions. "Despite this, they are still widely used by SMEs. This means that many businesses are still relying on forecasting as a way of planning production, even though forecasts are often inaccurate.
"In modern supply chains, forecasting is a waste of time and there is a fallacy that it will help improve operations planning. Instead of forecasting, operations managers should adopt a demand-driven approach and only respond to relevant demand signals, which in most cases would be qualified orders."
DDMRP has been gaining momentum since it was conceived in 2011, yet the majority of adoption has been among US and French companies. The UK has seen few companies implement the methodology into their production planning -۠something that Ardent Solutions says must change.
"With Brexit looming, there is a lot of market uncertainty that will impact operations for many UK businesses," continued Fleury. "Not only this, but Brexit will put a greater focus on UK export and with that the need for improved, efficient supply chains. As such, UK manufacturers must change their approach to planning.
"Our new whitepaper lays out, in straightforward and understandable terms, the case for DDMRP and the impact it can have. Using it as a resource will allow production planners and operations managers to make an informed decision about how they operate."
The downloadable guide to DDMRP is available from Ardent Solutions' website.
For more information, please contact:
Rebecca Bradley
Ardent Solutions
The Waterdale Group
111-113 Fort Dunlop
Fort Parkway
Birmingham
England
B24 9FD
Tel: +44 (0)344 880 6140
Email: rebecca.bradley@waterdale.co.uk
Web: www.ardentsolutions.co.uk/contact/
Print this articleShare article:
Process and Control Today are not responsible for the content of submitted or externally produced articles and images. Click here to email us about any errors or omissions contained within this article.