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	Comments on: Mastering The Art of ERP Demand Planning	</title>
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		By: Damien Dockery		</title>
		<link>https://datixinc.com/blog/erp-demand-planning/comment-page-1/#comment-3655</link>

		<dc:creator><![CDATA[Damien Dockery]]></dc:creator>
		<pubDate>Tue, 29 Mar 2016 12:23:37 +0000</pubDate>
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					<description><![CDATA[Hi Dan, 

Well written and presented. Maybe I could offer some additional perspective as food for thought. 

Most ERP systems have demand planning capability, and in addition there are many add-on forecasting and demand management tools available. However, the problem ERP systems and global corporations struggle with in today’s business environment is that demand is more volatile and unpredictable than ever before. 
The traditional assumption that the past is a predictor of the future is outmoded and limited in applicability. 

MRP calculations based around ever changing demand profiles simply create the classic bull-whip effect – too much of what’s not needed, and not enough of what is needed, when it’s needed. Which all leads to expedites and increased working capital costs. 
Then factor in marketplace competition and product variability – if your product is not available where and when it’s needed, there will most likely be another alternative for your consumers to choose. 

The only effective way of managing demand in these market conditions is by utilising Demand Driven Planning (DDP) techniques, with Demand Driven MRP (DDMRP) calculations. DDP software programs are cloud based SAAS add-ons that easily interface to the existing ERP system. 

Companies who have embraced Demand Driven Planning are realising unprecedented benefits and cost savings, mainly through reduced inventory and working capital costs, significantly compressed lead times through the supply chain, greatly improved return on capital employed, and most importantly, hugely improved customer service and market responsiveness. 

Which is where traditional ERP demand planning in its standard form has such difficulty in coping. That is not to say that ERP demand planning (with inbuilt MRP / DRP functionality) is obsolete and should be cast away – it is very necessary and still has a big role to play. It just needs help from DDP to make it lean and responsive to volatile demand. 

I think ERP providers (like Epicor) can gain leverage in the marketplace by offering a DDP add-on. 
For those interested I can provide more information about Demand Driven Planning (incorporating DDMRP &#038; DDDRP), and DDP software options.

Regards, 
Damien]]></description>
			<content:encoded><![CDATA[<p>Hi Dan, </p>
<p>Well written and presented. Maybe I could offer some additional perspective as food for thought. </p>
<p>Most ERP systems have demand planning capability, and in addition there are many add-on forecasting and demand management tools available. However, the problem ERP systems and global corporations struggle with in today’s business environment is that demand is more volatile and unpredictable than ever before.<br />
The traditional assumption that the past is a predictor of the future is outmoded and limited in applicability. </p>
<p>MRP calculations based around ever changing demand profiles simply create the classic bull-whip effect – too much of what’s not needed, and not enough of what is needed, when it’s needed. Which all leads to expedites and increased working capital costs.<br />
Then factor in marketplace competition and product variability – if your product is not available where and when it’s needed, there will most likely be another alternative for your consumers to choose. </p>
<p>The only effective way of managing demand in these market conditions is by utilising Demand Driven Planning (DDP) techniques, with Demand Driven MRP (DDMRP) calculations. DDP software programs are cloud based SAAS add-ons that easily interface to the existing ERP system. </p>
<p>Companies who have embraced Demand Driven Planning are realising unprecedented benefits and cost savings, mainly through reduced inventory and working capital costs, significantly compressed lead times through the supply chain, greatly improved return on capital employed, and most importantly, hugely improved customer service and market responsiveness. </p>
<p>Which is where traditional ERP demand planning in its standard form has such difficulty in coping. That is not to say that ERP demand planning (with inbuilt MRP / DRP functionality) is obsolete and should be cast away – it is very necessary and still has a big role to play. It just needs help from DDP to make it lean and responsive to volatile demand. </p>
<p>I think ERP providers (like Epicor) can gain leverage in the marketplace by offering a DDP add-on.<br />
For those interested I can provide more information about Demand Driven Planning (incorporating DDMRP &amp; DDDRP), and DDP software options.</p>
<p>Regards,<br />
Damien</p>
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