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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