Demand-Driven MRP—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.

Companies can now also benefit from using the Demand-Driven MRP concept (DDMRP) in the SAP IBP platform. DDMRP for SAP IBP supports all five steps of the DDMRP concept. The solution was confirmed to be “DDMRP compliant” by the Demand Driven Institute (DDI), the global authority for Demand-Driven concepts.

It is regarded as a central milestone in SAP’s strategy to provide an open and expandable infrastructure for a rapidly 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 based entirely on SAP IBP standard functions.

Enhancement Module

The DDMRP for SAP IBP Enhancement Module includes those functionalities that cannot be implemented with standard IBP functions. These comprise, for example, the strategic placement of decoupling points or the dynamic calculation of decoupled lead times in the first two steps of the Demand-Driven MRP concept.

Configuration Module

The actual planning and control takes place via preconfigured planning views in MS Excel using the SAP IBP Excel add-in and 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 central component and easily possible. The “DDMRP for SAP IBP Configuration” solution is offered as a Rapid Deployment Solution (RDS), which enables companies to implement a pilot project in very short time.

The DDMRP concept is already in use at internationally operating companies from a wide variety of industries. By introducing and using the “DDMRP for SAP IBP” enhancement solution, they have reduced the variability and stabilized the material flow in their supply chain. Customers benefit from improved service quality and increased agility in the supply chain.

(Image above) The graphic above is a visualization of the supply chain network provided to the supply chain planner in DDMRP for SAP IBP. The planner can interactively read all relevant network information and set or remove decoupling points. Simulations and decisions can be incorporated into the active planning process. This functionality supports Strategic Decoupling in particular—the first step of the DDMRP concept.