How manufacturing companies master unstable supply chains with IFS Cloud
In recent years, unstable supply chains have put manufacturing companies in German-speaking countries under significant pressure. Production delays, material shortages and rising costs are just some of the problems caused by unpredictable fluctuations in the supply chain. A promising and increasingly proven solution to effectively address these challenges is demand-driven material requirements planning (DDMRP). This innovative planning method goes beyond traditional approaches by placing actual demand at the center of planning, thus enabling flexible responsive control of material flows.
Demand-driven material requirements planning (DDMRP) is a modern concept for optimizing material supply in production. Unlike conventional MRP systems, which are mainly based on forecast-based planning, DDMRP focuses on actual demand. It considers current inventories, open orders and real customer orders to decide when and in what quantities materials should be ordered or produced.
A central aspect of DDMRP is the use of so-called ‘buffer zones’. These buffers, positioned at strategic points along the supply chain, enable flexible and responsive planning. This allows companies to react more quickly to fluctuations in demand or unexpected disruptions in the supply chain.
DDMRP offers numerous advantages to medium-sized manufacturing companies that directly impact their efficiency and competitiveness.
- Reduction of inventories: Through demand-oriented planning, companies can optimize their inventory levels and avoid overproduction. This leads to a reduction in inventory holding costs and ties up less capital.
- Increased delivery capability: As planning is based on actual demands, companies can respond more quickly and reliably to customer orders. This increases customer satisfaction and competitiveness.
- Less dependence on forecasts: Traditional forecasts are often error-prone and can lead to misplanning. DDMRP reduces this dependency by focusing on current and real data.
- Better responsiveness to disruptions: Through the use of buffers and flexible planning, companies can react more quickly to unforeseen events in the supply chain, thus minimizing production outages.
Technical support through IFS Cloud
The implementation of DDMRP requires a powerful software solution that enables comprehensive and flexible material planning. IFS Cloud offers an integrated ERP solution specifically tailored to the needs of medium-sized manufacturing companies. The software supports DDMRP through a series of functions that help companies efficiently manage their material supply:
- Real-time data analysis: IFS Cloud enables companies to capture and evaluate real-time data from the entire supply chain. This gives them an up-to-date overview of material inventory, open orders and demand at all times.
- Automated buffer management: The software supports the automatic setup and management of buffers at critical points in the supply chain. This ensures that sufficient material is always available without incurring high storage costs.
- Integrated planning and execution: IFS Cloud seamlessly connects material requirements planning with production planning and execution. This enables continuous and efficient production control.
- Scalability and flexibility: The solution is highly scalable and can be flexibly adapted to the changing requirements of companies. This ensures that material supply remains stable even in growing or changing markets.
Demand-driven material requirements planning offers manufacturing companies in German-speaking countries a valuable opportunity to address the challenges of unstable supply chains. By focusing on real demands and supported by powerful software solutions like IFS Cloud, companies can optimize their material supply, reduce costs and increase their competitiveness. If you would like to learn more about how IFS Cloud can support your company in implementing DDMRP, we are happy to provide a non-binding consultation.
Strong for the future with IFS Cloud!
Discover the benefits of IFS Cloud for your company’s digital future! Schedule an individual, non-binding initial consultation right away. As a full-solution provider, we will advise you comprehensively and develop the optimal solutions for you.
Digitalization. Simple. Flexible.
Strong for the future with IFS Cloud!
Discover the benefits of IFS Cloud for your company’s digital future! Schedule an individual, non-binding initial consultation right away. As a full-solution provider, we will advise you comprehensively and develop the optimal solutions for you.
Digitalization. Simple. Flexible.