The ostrich attitude

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Let’s accept it, the most widely used planning system, Material Requirement Planning (MRP), is not delivering sufficient performance anymore. Supply planners across all industries rely on Excel spreadsheets in an attempt to enhance their visibility and keep their supply planning under control.

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MRP concepts were laid down in the 50’s and coded in the 60’s, while the global society and economy have evolved:

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• Supply chains are more complex. They extend across the globe, have longer lead times and more stakeholders.
   

• Innovation driven economy has created more product categories and larger assortments.
   

• Customers demand shorter delivery lead times, and higher service levels.

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As a consequence, most companies are struggling to synchronize supply with demand.

 

The promises of ever more sophisticated analytics, forecasting algorithms and advance planning systems are not translating into better usage of company resources: Inventories are still high, with too much of the wrong products and too little of the right products.

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We provide an alternative solution, a new supply-planning concept called Demand Driven Material Requirement Planning (DDMRP).