In
recent weeks we have seen in France two rather virulent online
publications against DDMRP, one stating that "DDMRP is egocentric and
short-sighted", and the other giving a "numerical point of view" on
DDMRP, to conclude in short that the methodology was too
simplistic.
I experienced this kind of debate in 2014 when we, and others,
introduced and promoted DDMRP in France, and very few implementations
had taken place. I can only be astonished that more than 6 years later
some of them are still there, ignoring the obvious improvements
achieved in implementations.
We can see this in a positive way. There is no doubt that the two posts
I am referring to were made to attract attention and internet traffic
to the sites of their publishers, in this case two companies with
interests in sales forecasting and APS solutions. That is, to draw
attention to them by surfing on the DDMRP craze. Relevant SEO strategy.
I will not put in this post links to these publications to avoid giving
them more exposure than they deserve.
Unfortunately, these publications often denote a partial or biased
understanding of the methodology, and a profound lack of knowledge of
the software solutions on the market, of which the solutions of Demand
Driven Technologies, pioneer and leader in this segment.
Rather than entering into a polemic of specialists and refuting one by
one the arguments presented, I can only testify to the rapid and very
significant progress of the companies I have had the pleasure of
accompanying in their Demand Driven journey over the last few years,
and introduce you to some of them. You will then get to know
enthusiastic teams, who are delighted with the results of the
implementation of new processes and systems.
Wait a minute, wait a minute. Conquered and delighted users after the
implementation of a new IT system? In more than 3 decades where I have
been involved in the go love of several ERP and APS systems, I haven't
seen this so often - have you?
The polarization around DDMRP remains very strange to me. On the one
hand there are the unconditional fanatics, who sometimes seem to
attribute to the approach virtues that border on the magical... and who
invite you to contact them in order to sell you the magic. On the other
hand, there are the detractors, who may also have something to
sell.
These "religious wars" within the supply chain community are not new. I
started my career in the supply chain in 1985 (yeah, I know, I'm a
dinosaur), and I've had the opportunity in 35 years to attend or
participate in many of these battles.
My experience is that of a practitioner first and foremost - I have
spent 29 years in supply chain responsibilities in multinational
industrial companies. I have been involved in introducing MRP,
S&OP, MPS, sales forecasting, Kanban, Lean, constraint management,
6 sigma, and each time it has been a battle to convince, often against
self-proclaimed specialists.
I've had my fill of religious wars. "You have to stop looking in the
rear-view mirror and drive on forecasts", "Dependent demand must be
calculated, not forecast", "Lean is in place, you have to disconnect
the MRP calculation", "Forecasts are worthless, you only have to use
the actual demand", to take just a few of the adages I have come
across.
Throughout my operational career, I have endeavored to experiment with
my teams and to adopt pragmatically what works. I have moved to the
dark side of consulting over the last 6 years, but the companies I have
accompanied will probably testify to the same pragmatism without
dogmatism.
I have acquired some convictions along the way. For example:
- Pull flow is better than push flow.
- Forecasts are wrong but useful at an aggregate level.
- The human factor is essential in the management of a supply chain.
- S&OP is a key process, if it is based on the evaluation of scenarios.
When
I discovered DDMRP at the beginning of 2014, what won me over was its
ecumenical side: at the heart of the methodology is a combination of
good practices developed over the years in the field of Lean, TOC, MRP
etc. DDMRP makes it a coherent, accessible and understandable framework
for our teams, equipped in terms of software, training and
implementation processes. My experience is that it allows us to carry
out in 6 months / one year in-depth transformations that took me 3 to 5
years of effort and 10 times the costs to implement in the companies
whose supply chain I was managing...
Over the last 6 years many companies and supply chain experts have
joined the Demand Driven movement. Debates are welcome, the dedicated
LinkedIn groups are there for that. If you are convinced that it is now
more than ever essential for companies to adapt to an increasingly VUCA
environment, bring your contribution, let's improve together the model
and the tools, but let's not throw anathema.
DDMRP and the DDAE model is a great accelerator of transformation,
let's stop sterile backroom squabbles and help our companies to prosper
and get through crises, let's leave the haters to Facebook or Twitter,
they are useless in operations management.