Business Breakfast: The Case for DDMRP in Distribution Operations
Demand Driven Materials Requirements Planning (DDMRP) makes use of strategic decoupling of key inventory items to protect against demand variability, reduce lead times to customers and to optimize inventory levels of those items. This is typically viewed in a production context, where inventory of purchased, and manufactured items need to be kept at optimal levels. But production of products is only one small part the supply chain, one must also consider supply and distribution.
Can DDMRP principles can also be applied to distribution networks? Absolutely! DDMRP outlines several distribution strategies that make use of strategic decoupling of distribution through various methods. These are particularly useful in a third/fourth part logistics framework. Join us to discuss how DDRMP can be used to leverage for your xPL organization and your customers.