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DDMRP, IBP, two buzzing words for two genuine Supply Chain concerns !
Although buzz is often over emphasizing things and concepts, Supply Chain has engaged two modal changes since 2012, about planning and operations processes that are Demand Driven Material Requirements Planning (DDMRP) and Integrated Business Planning (IBP).
The Demand Driven Institute best describes why classic MRP fails at helping business planning and how DDMRP set a new paradigm for planning and operations.
Moreover O. Wright and software editors explain how MRP based planning can really be efficient through IBP S&OP process and solution implementation.
Both ways look pretty opposed however both are right ! Suprising isn’t it ?
These two propositions address the fundamental flaws of classic MRP, too synchronous, too nervous, too much relying on data accuracy.
On one hand DDMRP defines a new method, with simple, robust and dynamic rules everyone can understand and apply. The core consists in a replenishment order generation engine based on three colored zones, which interpret demand signal within ranges, not only as single target
value like MRP. Then DDMRP address planning and strategy within a comprehensive model.
On the other hand, IBP, directly derived from MRP logic, bridges MRP fragilities with a structured process. By monthly challenging demand, supply and finance it allows steering supply chain in proper direction, aligned with strategy.
Soon or later in both case, IT solution come into place as nowadays everything goes quick involving huge data.
At TeamWork we focus on Supply Chain solutions, within SAP ecosystem, which includes both propositions IBP and DDMRP! Also we propose three preconfigured solutions to shorten of Demand planning, Supply planning and S&OP, covering the IBP side. At DOWAP we propose a preconfigured solution to cover DDMRP. All four components are designed on the SAP-IBP application platform.