Article | REF: AG5197 V1

From DDMRP to the Demand Driven Adaptive Enterprise (DDAE) model - Caracteristics and challenges

Authors: Caroline MONDON, Christoph LENHARTZ

Publication date: December 10, 2022

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ABSTRACT

In the face of the “new normal” characterized by high variability and unpredictability of international markets, companies must adapt to transform their supply chains into real “supply chains in response to demand”. This article recalls the principles that govern the complex systems of which supply chains are part. It presents the foundations of the DDAE (Demand Driven Adaptive Enterprise) model and its DDMRP (Demand Driven Material Requirements Planning) engine component as well as its singularities. It takes stock of the research work particularly active in France, and proposes a reflection on the evolution of IT tools and on the perspectives of contribution of this model to sustainable development.

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AUTHORS

  • Caroline MONDON: Development Director, Association francophone de supply chain management AfrSCM - Executive coach, VISCONTI Partners

  • Christoph LENHARTZ: Managing Director, Catena Strategies - Master Instructor, Demand Driven Institute

 INTRODUCTION

The history of the Demand Driven Adaptive Enterprise DDAE model in France began in 2008, when the APICS (now ASCM) magazine published Carol Ptak's article entitled "Brilliant vision, set your sights on responsive scheduling", subtitled "Managing capacity and materials: how to meet the synchronization challenge" . Its primary process: DDMRP (Demand Driven Material Requirements Planning) is described in 2011 in the 3rd edition of the book by Joseph Orlicky, the inventor of MRP calculation in 1975: "Orlicky's MRP" .

In France, it was the Purchasing-supply chain group of the Centraliens association (now CentraleSupélec Alumni), with which the Fapics association (now AfrSCM) has been working closely since 2011 as part of a Think Tank, that published the first text on DDMRP in its December 2013 review. It ends with this prediction: "DDMRP, a marriage between Lean and MRP, combining power and simplicity, is a real paradigm shift. It promises to be a major revolution in the industrial management of companies" .

Since 2013, most of the presentations and publications describing the formalization stages of the model have been launched in France, culminating in January 2022 with the book: "Adaptive Sales and Operations Planning" .

Why in France? Because AfrSCM's business model has enabled us to put DDAE to the test, both within a few months in 2015 at the SME EMKA Electronique, and within a few years at the multinational Michelin, two member companies who testify along with others in the following article

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KEYWORDS

complex systems   |   Supply chain   |   supply chain   |   supply chain   |   planning   |   DDMRP   |   DDAE


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