What does it mean to be Demand Driven?

 
The core concept in Demand Driven management systems is that they are triggered by actual market consumption and demand instead of long range forecasts.

The vast majority of manufacturing and distribution companies today are heavily reliant on forecasted demand as their planning signal. In spite of massive efforts to improve forecast accuracy, the forecasts remain inaccurate and unreliable. Companies are finding that the ‘improve the forecast mantra’ creates an immense burden on sales and operations personnel and all too frequently leads to limited (if any) sustainable advantage.

Demand Driven Technologies offers a wholly different approach by providing tactics and tools which can dramatically compress lead times, improving operational responsiveness while concurrently reducing inventory and working capital investment. Levering the breakthrough concepts of Demand Driven MRP, our Replenishment+® solution delivers substantial results while enabling customers to use actual sales orders as the demand signal.

To learn more about DDMRP and Replenishment+®, please attend one of our upcoming webinars.