According to the experts from Camelot ITLab, were only at the start of the Demand-Driven journey in SAP. [hutterstock: 1096424867, KeepWatch]
In this exclusive E-3 interview, Christophe Hudelmaier, DDSCM Program Manager, and Ludmilla Kemling, DDSCM Transformation & Organization Lead, from Camelot ITLab give an outlook on where DDMRP is headed in the coming years and what steps companies can take to gain competitive advantages.
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A company has introduced DDMRP – now all’s well that ends well?
Christophe Hudelmaier: Companies introducing DDMRP benefit from quantum-leap-like performance improvements. They have already achieved a great deal. Although, this is just the beginning of the journey.
How does the journey continue?
Hudelmaier: DDMRP literally is the machine that enables Demand-Driven supply chain planning with the corresponding significant improvements at the operational level. The benefits that can be achieved are much greater if the orientation towards customer requirements does not stop with the operational model.
To be fully Demand-Driven, the principles of orientation towards customer requirements must also continue on to the tactical and strategic level, namely in the form of Demand-Driven Sales and Operations Planning and Adaptive Sales and Operations planning. When these three levels are established in a company, controlled by appropriate key performance indicators and closely linked to one another, the highest form of Demand-Driven is achieved: the Demand-Driven Adaptive Enterprise (DDAE).
What are the benefits for companies?
Hudelmaier: In addition to improvements to the operational performance, there are far-reaching leaps in sales, growth and increases in efficiency that can be achieved. The further a company is on the path to becoming a Demand-Driven Adaptive Enterprise, the more comprehensive and strategic will the benefits be that can be achieved at every step of the way.
How do companies get there?
Ludmilla Kemling: Of course, companies cannot turn into a DDAE overnight. This requires a step-by-step transformation that anchors the Demand-Driven mindset in the company and at the same time ensures the necessary system support.
How does the transformation succeed?
Kemling: The concept of being Demand-Driven questions some of the immovable truths in a company, that have been taken for granted for years. The focus of many roles in the company will change completely. The introduction of Demand-Driven Supply Chain Management (DDSCM) is therefore above all a business transformation that must be strategically planned and implemented.
Through years of experience in IT projects and business transformations, Camelot has developed an approach to successfully master the special challenge of DDSCM implementation in the company.
What exactly does that look like?
Kemling: Envisioning Sessions inform top management about the impending change and prepare them for their role in the project through continuous coaching. In its role model function, top management should also drive the necessary cultural changes towards an agile, Demand-Driven company. Through playful simulations and awareness sessions, all stakeholders are gradually introduced to the core changes that the introduction of DDSCM will bring about.
Together we work out the special features of the implementation for the company as well as the advantages for the integrated functional areas. Bootcamps provide supply chain planning managers with early training on concepts and processes. Then there are simulations and certifications that prepare them for the new working methods. In addition, our experts accompany the implementation through clear and timely communication on project progress, possible new challenges and realized business benefits.
Finally, the question of what the future holds in relation to DDSCM system support: What can SAP users expect?
Hudelmaier: As thought leader for Demand-Driven concepts and pioneer when it comes to SAP-based Demand-Driven solutions, Camelot fully supports companies on their way to becoming a Demand-Driven Adaptive Enterprise. These include solutions for DDMRP as the heart of the DDAE as well as for Demand-Driven S&OP and Adaptive S&OP, especially based on SAP Integrated Business Planning.
The Camelot experts are constantly developing the related IT solutions with the support of the latest technologies. An example is the implementation of AI-supported parameter updates in Demand-Driven S&OP. We are all only at the beginning of the Demand-Driven journey.