What is demand driven MRP software and the advantages

Posted by Jonathan Davies on 18 Mar


Demand Driven Material Requirements Planning (DDMRP) software is an invaluable solution that uses an innovative methodology to plan out materials and inventories.

DDMRP has five crucial components: Strategic Inventory Positioning, Buffer Profiles and Levels, Dynamic Adjustments, Demand-Driven Planning, and Visible and Collaborative Execution. The initial three components define the changing configuration of the DDMRP model, while the last two define the method’s day-to-day operation.

Demand Driven MRP software can empower firms to operate closer to real market requirements and facilitates quicker and more accurate actions and decisions at both a planning and execution level. The following are just some of the benefits enterprises can gain from adopting a DDMRP solution.

Lower inventory levels 

DDMRP software can lower stock levels by guiding firms to order what they require; it can also ensure that stock has minimal time to be rendered obsolete. Manufacturing firms dealing in consumer goods where products are perishable will find this particular asset especially useful.

Improved service levels

Firms operating in highly competitive markets often can see enhancements in service levels after adopting a DDMRP system; in lowering lead times and increased performance for commitment dates. This invaluable aid can ensure companies remain leaders in their sector.

Enhanced agility

As mentioned, DDMRP solutions can make sure operations are not affected by excess materials and unnecessary production processes. It will allow enterprises to respond more quickly to customer requests which can lead to increased sales and revenues.

Less overtime required 

Companies can reduce the need for overtime when DDMRP software allows them to respond more smoothly to swift changes in demand. While a DDMRP solution cannot cancel out the possibility of unanticipated delays or last-minute orders, its effective management ensures that your production schedule isn’t packed and can react to challenges and opportunities far easier as and when they arrive.

Lower costs for order management 

Companies will discover that when they have less hectic last-minute rearrangements to make in production, it can lead to other costs reductions. Planners, for example, won’t be required to spend hours going back and forth tweaking plans. This leaves more time for working on other activities that can add value and benefit the firm - resulting in less unnecessary expediting, reducing short-notice materials costs and overheads on express shipping.

Higher margins

Finally, margins will always suffer when manufacturing firms need to lower their prices to compete for business or when costs rise to expedite orders. Demand Driven MRP can enable manufacturers to dramatically reduce lead times, ensuring they don’t have to drop prices to win contracts and even add charges for speedier service. Overall, the more predictable a company’s production plan is, the lower overhead costs will be as well.

Tailored MRP and ERP options for your enterprise 

Demand Driven MRP software can be bought separately as a standalone solution or as one part of a dedicated ERP system. Manufacturing firms may find they will benefit most from an all-in-one system, due to the extensive range of functions it will offer them. Whether you’re looking for ERP software or DDMRP for your firm, you can rely on our team at WinMan for bespoke manufacturing resources.

Contact us today for advice and support.

>> Download our eGuide on 'How to Tell You Need a New ERP System' 

Topics: Manufacturing, Production Management, Lean Manufacturing, Business Efficiency, supply chain, Productivity

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