Authored by: Vijendra Kargudri
SAP has always delivered digital supply chain portfolio innovations that simplifies its customer’s day-to-day operations and in how they operate their organizations. SAP IBP supports organizations with steady & real-time supply chain management to address changes in the market or within their own organization in a viable manner.
Keeping up to its ideology, in March 2019, SAP announced to bring the Demand-Driven Adaptive Enterprise (DDAE) model into the SAP Integrated Business Planning solution.
This latest offering from the stables of SAP IBP was unveiled in May 2019. It incorporates a nimble & adaptive supply chain management process to address the challenges of increasingly volatile business landscapes and gain immediate improvements in business operations.
Regardless of huge cost outlays on technology & improvement methods, today, most businesses’ growth is stunted. They are unable to drive adaptation to an increasingly more volatile, uncertain, complex, and ambiguous business landscapes. It has resulted in an unprecedented rate of failure across businesses of all shapes and sizes.
The key methodology behind this application is that of Demand-Driven Material Requirements Planning (DDMRP), which helps to model, plan and manage supply chains, along with protect & promote the flow of relevant process information and materials.
The DDAE model uses three connected & reconciled relevant ranges viz., Operational, Tactical and Strategic through its three primary components:
- The Demand Driven Operating Model,
- Demand Driven Sales & Operations Planning, and
- Adaptive Sales & Operations Planning.
The model utilizes a process of emergence, feedback and selection through adaptive cycles to continuously respond and adapt to the complex, changing, and volatile supply chain circumstances prevailing today.
The supply chains across industries can improve their services levels, drastically reduce lead time and inventory. Planners across processes can continue to work in their familiar environment while benefiting from the advantages of this application’s multi-echelon approach to stock management, and make informed decisions based on reliable figures & simulation results.
As the #1 value-add service provider of SAP for small to large enterprises, Krypt can help you implement the updated version across your supply chains, protecting & promoting the flow of relevant process information and materials.
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Image Credit: Freepik & FAPICS