Demand-Driven Planning for S/4HANA and ERP
Key Takeaways
⇨ Demand-Driven Planning (DDP) is now available for SAP ECC with SAP Add-on tools.
⇨ Demand-Driven Replenishment usage on S/4HANA can be enhanced by SAP Add-on tools.
⇨ DDP decouples material flows, makes them less vulnerable to supply chain disruptions, and ensures the availability of relevant products through dynamically managed buffers.
Demand-driven replenishment, demand-driven planning, or demand-driven MRP help in efficiently planning and managing supply chains based on customer demand, as opposed to traditional MRP procedures. DDP decouples material flows, makes them less vulnerable to supply chain disruptions, and ensures the availability of relevant products through dynamically managed buffers. In this article, know how decoupling material flows at strategic points can help avoid the bullwhip effect, that is, increasing fluctuations in inventory along the supply chain in response to changing customer demand. These stock fluctuations can increase exponentially along the supply chain, resulting in excessive inventory costs or losses due to the scrapping of slow-moving items.
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