21st Century Supply Chains Require Demand Driven Tools

Manufacturing software has its heritage in the 1960’s and mainframe computing. Since then, material requirements planning (MRP) software has transformed from a program handled only by large mainframe computers to a program that can be run on a desktop environment. It is now an important component to many manufacturing operations. There is, however, one problem with continuing to rely on MRP software to run manufacturing operations: it is an inadequate tool for handling today's complex supply chains.

We no longer live in a world where manufacturers can build ahead of demand and run their business on excess inventories. Today's supply chains are increasingly complex, and the generation signals that flow down the supply chain are often out of alignment with the demand. This causes manufacturers to do one of two things: build too much or build too little. What's need is a new way to run manufacturing operations, a way to make manufacturers more responsive to demand rather than simply trying to predict it.

In their recent article, Chad Smith and Carol Ptak of the Demand Driven Institute discuss a new approach for manufacturers to work with supply chains. The article discusses what is being termed "demand-driven MRP," a new software approach to manufacturing. This approach takes the manufacturing process from the world of push and promote to the world of position and pull. To find out more about the notion of using MRP software to position and pull, visit the Software Advice blog at 21st Century Supply Chains Require Demand Drive Rules and Tools.

Derek Singleton
Software Advice
derek@softwareadvice.com
(512) 364-0130 (office)