Virtual roundtable


Demand-Driven Material Requirements Planning (DDMRP) is on the rise Becoming Demand-driven


A new approach to production planning, Demand-Driven Material Requirements Planning (DDMRP), is increasingly being applied as an alternative to the more traditional manufacturing resources planning. To find out more about how and why organizations are becoming demand driven, Supply Chain Movement organized a ‘virtual roundtable’ and asked several industry professionals for their responses to three statements.


Many companies fail to deliver the right value to their customers and incur a lot of additional yet avoidable costs to keep their promises towards customers and other stakeholders. In order to remain com- petitive, companies should develop into demand-driven organizations (DDOs).


Andrea Walbert, Manag- ing Partner, PMI Produc- tion Management Institute GmbH


“Over the last 20 years business condi- tions and customer expectations have changed with such an increasing speed that education providers are under pres- sure to support the growing need for the right competencies to keep pace with those changes. The biggest challenge in empowering the workforce is the com- bined use of change and business process management tools to support the neces- sary transformation of the entire value chain of a company. Companies not only have to become demand driven but also adaptive: adapt or die.”


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Michael Zerby, Head of Sup- ply Chain, Volvo Construc- tion Equipment Konz “I


costs are often called ‘enabling costs’; they could be avoided through more intelligent planning and effective implementation in the supply chains.”


Andreas Schön, System & Service Manager Europe, Nexans “Absolutely right! Creating


actions and solutions around customers is key in order to better understand and fine- tune a company’s offering, provide added value and even transform existing busi- ness models into future new revenue pos- sibilities.”


Thomas Meyer, Head of Sup- ply Chain, Sonae Arauco “Before changing into a demand-driven organization,


a company should first understand how it makes money. It is of course necessary to be focused on customer needs, but in some businesses the money is generated by


manufacturing processes. Changing


the organization without having a clear understanding of the value for the cus- tomer and for the company could create a lot of inefficiencies.”


Andreas Schöchtel, Manager Operations Laboratory Prod- ucts, Thermo Fisher Scien- tific


agree. The unnecessary


“I believe each organization is demand driven nowadays, but some do it better than others and thus have a competitive edge. It is more difficult to apply demand- driven practices in a 100% project-based business than in manufacturing, for exam- ple. In other words, each DDO has its own


In order to become a DDO and to create the cross-functional alignment required for supply chain success, other business departments should also be trained in sup- ply chain trade-offs.


Andrea Walbert, Manag- ing Partner, PMI Produc- tion Management Institute GmbH


“We see a major edge for companies with senior-level commitment for supply chain across all functions. Wherever supply chain is seen as an order winner by top management, supply chain processes are


market and operations/business and com- mercial strategy.”


Stefan Zabka, Supply Chain Manager, IMA Dairy & Food Holding “It is


most important to


get the right information into the supply chain in order to deliver the right value to the customer, and the demand-driven operating model provides exactly this framework. It is also important to define a set of rules to give organizational stability.”


Daniel Schmidt, executive MBA student, Kühne Logis- tics University “Today, meeting the


finan-


cial targets is the number-one priority to keep the business running. Companies are increasingly splitting up into several legal entities across countries to improve financial performance, e.g. through inter- company transfer pricing and different tax rates. But these financially driven measures do not support cross-functional process-based thinking and alignment and can hardly lead to a well-managed supply chain.”


SUPPLY CHAIN MOVEMENT, No.29, Q2 2018


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