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Business impacts


Reported DDMRP implementation results across a wide range of industries, either in make to order (MTO), make to stock (MTS) or mixed strategies (MTO/MTS), can be summarized as follows:


  • 10 to 50% service level improvement, without increasing the overall working capital

  • 30 to 60% inventory reduction, including work in progress, without negative impact on service levels

  • 20 to 80% overall lead time reduction


Companies that implemented DDMRP report as well the following positive impacts:

  • Reduction of last minute changes to the production schedule, and reduction of the overall variability in operations

  • Reduction of minimum order quantities and production lot sizes

  • Empowerment of shop floor operators and higher motivation in planning teams


DDMRP methodology helps to protect operational execution from inherently wrong forecasts: all the above reported results were achieved without increasing forecast accuracy.


If your are interested to know more about DDMRP implementations, we can provide you with a wide range of case studies and video interviews.

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