---
title: What is so Different and Unique about DDMRP?
description: "What is so Different and Unique about DDMRP?\nDemand Driven Material Requirements Planning"
---

[Prophetic Technology Blog](https://blog.prophetic-technology.com)

# [What is so Different and Unique about DDMRP?](https://blog.prophetic-technology.com/what-is-so-different-and-unique-aboutddmrp)

 Written by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) | Mar 14, 2019 2:20:00 PM

Demand Driven Material Requirements Planning

For some reasons too numerous to mention here, *accurate sales forecasting* is becoming more difficult, consuming more effort and requiring *more mature recesses* and *complex data* sets than ever before. DDMRP could be the most effective option for some companies, as it can provide great value compare to **Material Requirements Planning. (MRP).**

What is DDMRP?

 

**“DDMRP's** *goal is to solve the shortcomings* of **MRP**.   
This method is used both for *planning and execution control,* defining:   
1) *where* to stock;   
2) *how much* to stock  
3) *dynamic review*  
4) *generation of supply orders* according to *average daily usage* *plus qualified sales spikes*    
5) to *guide and alert execution in a visual manner*. 

Further insights are :

- Inventory positioning will determine where the *decoupling points* are placed.
- Buffer profiles will determine the *amount of protection* at those decoupling points.
- Dynamic buffer adjustments define *how that level of protection flexes up or down* based on *operating parameters*, *market changes and/or planned or known future events*.
- Demand Driven Planning is the *process* by which *supply orders* (purchase orders, manufacturing orders, and stock transfer orders) are generated.
- Highly *Visible and collaborative execution* is the process by which a **DDMRP** system manages *open supply orders*.

Why MRP has to be changed?

DDMRP could be the most effective option for some companies, as it can provide great value compare to **MRP**, as it combines *some of the still relevant aspects of Material Requirements Planning* (**MRP**) and Distribution Requirements Planning (**DRP**) with the **pull and visibility,** and the **variability reduction.** **DDMRP** is the supply order generation and management engine of a Demand Driven Operating Model (**DDOM**); **all these** elements are successfully blended through key points *of innovation* in the **DDMRP** method.

We must consider the incremental value and the technology **DDMRP** brings**,** when compared to traditional **MRP** and interactive **DRP**, in addition to the *proven track record of customer service improvements.* Of course, reduced inventory and higher service levels are value claims not unique to DDMRP. So**, why is it different?**

Beyond doubt, these are some of the benefits of **DDMRP:**

- Above all, Simplicity. It’s surprisingly uncomplicated to understand and simple to use.
- Defining stock positions and socking levels in a dynamic way.
- It hides and alerts execution in a visual way.
- It generates supply events *according to the sales order of the day plus qualified sale spikes*.
- It provides *planning and execution performance improvements* in varying environments.
- It gives people a step by step *outline*.
- It’s *transparent*, *easy to figure out*, *intuitive*, *consistent*, and *sustainable*.
- It allows the *production to be aligned with the real demand* of the market.
- It facilitates a *better and rapid decision-making* solution.
- It’s *fast to implement*, bringing better *visibility*.
- A tangible reduction in *obsolete* and *excess inventory*.
- It demonstrates a *strong value proposition in customer service levels*.
- It removes the importance of accurate sales forecasts to generate supply plans.
- It reduces the quantity of positions where inventory is held, to operate at minimum.
- The buffer levels are dynamically *updated* as the *dependant parameters change*.

DDMRP is remarkably easy to plan with. It is five step process simply structured into three phases: Position, Protect, and Pull.

A *key benefit* of **DDMRP** is *a common enterprise-wide-supply planning process* across all facets of *distribution*, *production* and *procurement.* It is true that **DDMRP** *removes the importance of accurate sales fore*casts to generate supply plans; in many companies this is a *valuable advantage* of **DDMRP**.

To maintain these types of approaches requires a further level of capability, a continuing forecast feed and a dynamic review of the parameters in relation to forecast rather than only history, solutions like [SO99+](http://www.brookes-scs.com) from [ToolsGroup](http://www.toolsgroup.com) will help with these types of challenges. 

**CONCLUSION**: Some, or most of the existing **DDMRP** solution can *still be integrated* with different **MRP** packages. It is not something that can be done without considering *technology, talent, and process*. This includes having *certified talent on the planning team* and experts to operate the Supply Chain modelling and determine the *optimal placements of strategic inventory buffers*. To relieve against *the risks of change* and to *quantify* the business value, customers often choose to perform large pilots of **DDMRP** *prior* to deploying the definite program.

 

Dave Food

[Prophetic Technology](https://www.prophetic-technology.com/)

 

[View full post](https://blog.prophetic-technology.com/what-is-so-different-and-unique-aboutddmrp)

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