Summary of the 6-part blog Series using DDMRP

This is part of my blog series on using the principles of Demand Drive MRP and its five primary components and applying it to marketing. This particular blog is the summary of the series.

These five components work together to dampen, if not eliminate, the unnecessary nervousness of traditional MRP systems and the resulting bullwhip effect in complex and challenging environments. In using this approach, planners will no longer have to try to respond to every single message for every single part that is off by even one day. This approach provides real information about those parts that are truly at risk of negatively affecting the planned availability of inventory. Demand-driven MRP sorts the significant few items that require attention from the magnificent many parts that are currently being managed. Under the demand-driven MRP approach, fewer planners can make better decisions more quickly. This means that companies will be better able to leverage their working and human capital as well as the significant investments they have made in information technology.

The above is from the Orlicky’s Material Requirements Planning 3/E. written by my recent podcast (Is Orlicky’s MRP relevant today? Think DDMRP) guest Carol Ptak and Chad Smith of the Demand Driven Institute.

This exercise of taking the 5 components of DDMRP provides an interesting and innate view of the Lean Marketing perspective. I think specifically it assists in explanation of how to scale the Lean Marketing principles. So often in this world of one to one marketing or marketing singularity we forget to view the enterprise foundational need for marketing to our core customer base. There is so much talk about innovation and early adaptors and they certainly have a role in your marketing structure. However, the core customer group of an established customer is that 68% majority found in the middle of the diffusion curve.

Other companies that keep venturing to the extremities of the curve will continue to compete on price and availability. The organizations that align themselves with similar cultures if so desired will give themselves the opportunity to establish that structure that we identified in Profiling the customer by knowledge gaps. Surprisingly when we go to scale, these factor are seldom different. Establishing your presence through increase knowledge transfer will allow you to dig deeper within the structure of any company. It may take you longer to dig the hole but every shovelful will make it that much more for your competition to overcome.

Effective knowledge transfer seldom occurs without effective collaboration and in today’s world having the right tools in place plays a vital role. Dr. Graham Hill addressed this issue in a blog post, CIO view: Ten principles for effective collaboration where he said:

Companies should start to develop their collaboration capabilities before purchasing collaboration technology. This will ensure that the technology really fits the style of collaboration that has already been developed. The pace of business is getting faster and faster. Today’s competitors may not even have existed a few years ago. Improving effective collaboration is one of the few insurance policies that companies have in these hyper-competitive times.

I encourage you to read Dr. Hill’s entire post. It provides an excellent groundwork for the role of tools in collaboration.

The other blog posts in this series on DDMRP:

1. Is Orlicky’s MRP relevant today? Think DDMRP
2. What Sales and Marketing can learn from Demand Driven Manufacturing
3. Positioning your organization to learn from your customers
4. Profiling the customer by knowledge gaps
5. Dynamic Buffer: Think Self-organized Teams
6. Systemizing the transfer of knowledge at the execution level
7. Highly Visible and Collaborative Execution