Demand Driven Business (DDB) is an innovative pull methodology that helps better to plan inventory while increasing customer service.
It enables a company to build more closely to actual market requirements, taking into account real demand, sensing and shaping it, and better promoting quicker decisions and actions at the planning and execution level, such as:
- Repetitive materials shortages are largely reduced, even in turbulent scenarios.
- Lean principles are more easily adopted thanks to a more stable material availability, also with product having complex bill of materials and routings.
- Companies aiming to reduce inventories while improving customer service can get a significant competitive advantage into the marketplace because this technology right-sizes inventories as the external environment changes
- Companies looking to reduce lead times find a great ability to make it.
- Companies wanting to implement supply chain best practices are on the right and fast track
- Forecast error impact is largely reduced
The approach works in combination with a mature Sales and Operations Planning (S&OP), lean-six sigma, theory of constraints and total quality best practices, with a proven path already demonstrated with different best practices.
- Increased throughput
- Reduced operating expense and inventory
- Increased customer service and margins
- Reduced lead times
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