DDMRP - Agile Supply Chain

SAP Integrated Business Planning (IBP) is SAP's cloud solution for real-time supply chain planning. To enable companies to use the demand-driven MRP concept (DDMRP) in the SAP IBP platform, Camelot Innovative Technologies Lab (Camelot ITLab) and SAP have developed the extension solution "DDMRP for SAP IBP" as part of a co-innovation project - as the first extension for SAP Integrated Business Planning.

DDMRP for SAP IBP supports all five steps of the DDMRP concept. The solution has been certified as "DDMRP compliant" by the Demand Driven Institute (DDI), the global authority on demand-driven concepts.

It is considered a key milestone in SAP's strategy to provide an open and extensible infrastructure for the fast-growing, modern supply chain planning platform.

DDMRP for SAP IBP consists of two components: the Enhancement Module implemented in the SAP Cloud Platform and the Configuration Module, which is completely based on SAP IBP standard functionalities.

Enhancement Module

The DDMRP for SAP IBP Enhancement Module includes those functionalities that cannot be implemented with standard IBP functions.

These include, for example, the strategic placement of decoupling points or the dynamic calculation of decoupled lead times in the first two steps of the DDMRP concept.

Configuration Module

The actual planning and control is done here via preconfigured planning views in MS Excel by using the SAP IBP Excel Add-in as well as via dashboards and alerts in the SAP IBP Web Interface.

Since SAP IBP is a cloud-based solution, integration with existing on-premise ERP and planning systems through SAP Cloud Platform Integration for Data Services (HCI-DS) is a key component and easily possible.

The "DDMRP for SAP IBP Configuration" is provided as a Rapid Deployment Solution (RDS), which enables companies to perform a pilot implementation in a very short time.

The DDMRP concept is already in use at internationally operating companies from a wide range of industries. As a result of the introduction and use of the extension solution "DDMRP for SAP IBP", they have achieved and continue to achieve a reduction in variability as well as a stabilization of the material flow in their supply chain. Customers benefit from improved service quality and increased agility of the supply chain.

Image above: Visualization of the supply chain network provided to the supply chain planner in DDMRP for SAP IBP. He can interactively read all relevant network information and set or remove decoupling points. From here, simulations and decisions can be transferred to active planning. The presented functionality supports especially the first step of the DDMRP concept - Strategic Decoupling.