Demand Driven Adaptive Enterprise (DDAE) is an innovative Business Model established by the Demand Driven Institute (www.demanddriveninstitute.com/ ,of whose Lovecchio Consulting is Affiliate), enabling enterprises to sense market changes, adapt to complex and volatile environments, and develop market driven innovation strategies.
It enables a company to respond more closely to real market requirements, taking into account qualified demand, sensing and shaping it, and better promoting quicker decisions and actions at the planning and execution level. As a consequence:
- Materials shortages are largely reduced, even in turbulent scenarios.
- Lean principles are more easily adopted, with a better material availability, also with complex product structures and routings.
- Companies aiming to reduce inventories while improving customer service can get a significant competitive advantage into the marketplace, because inventories are right-sized as soon as the external environment continuosly 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 DDAE model includes the Demand Driven Operationg Model (DDOM), the Demand Driven Sales and Operations Planning (DDS&OP) and Adaptive Sales and Operations Planning (Adaptive S&OP)
This model has a proven track record of successful case studies you can discover by clicking here
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- Increased Throughput (T = Sales - True Variable Costs)
- Reduced Operating Expenses (OE) and Inventory (I)
- Maximise Return on Investments (ROI = (T-OE) / I
- Maximise capacity utilization at bottlenecks
- Increased customer service and margins
- Reduced lead times
Look also at www.adapting.it