Last year, Demand Driven Technologies hosted a Demand Driven Operating Model (DDOM) webinar series. Debra Smith, the co-founder and managing partner of Constraints Management Group, was our guest presenter. The series is an advanced webinar and audience members should have a basic understanding of a Demand Driven Operating Model before signing up to watch the series. For a brief definition and understanding, visit the Demand Driven Institute.

During the first webinar, Debra Smith shared with audience members the problem all supply chains face today. Planning and Operations professionals must plan for the future, meet their customers’ shorter and shorter delivery expectations, and deliver their profit and inventory targets, with outdated tools and assumptions that do not meet today’s complex global markets.  People are forced to rely on forecasts that never match up, deal with pages of conflicting MRP messages, the reality of “excel-hell” spreadsheet “answers” and schedules that are rescheduled as soon as they hit the floor.  It’s no wonder your team is left feeling stuck between a rock and a hard place while they work harder and harder to meet their KPIs.

Before you dive deep into the Demand Driven Operating Model (DDOM), there are three questions your team needs to understand and agree on: Why change? What to change? And what, to change to?

Why change?

If you are repeatedly taking the same fire-fighting actions to address the same issues in a never-ending cycle, it’s clear that the root cause is not being addressed or even understood.  The connection to the repeated fire-fights and their negative impact on OE, OTD and inventory is the first step in making a business case for change.

What to change?

The firefights are symptoms of a core problem spiraling through your supply chain and blocking Flow.   The first step is to agree on and define what that problem is. The team needs to identify and agree that the problems in each of their areas are tied directly to a core issue and that addressing it together is the only way out.

What to change to?

The next step is for the team to agree on the solution set necessary to solve the core issue. Using the same “old” thinking and software logic that supports it, won’t get you out of the box.   Today’s supply chains are complex systems and cannot be managed with the linear optimization rules and software tools that currently exist.  You need to understand the “rules” that govern Flow and the “tools” necessary to manage Flow in a complex system.

To get the answers to these three questions, watch Deep Dive Session 1: The Problem Blocking Supply Chain from Demand Driven Performance.

During the second webinar, Debra Smith showcased the software to plan, schedule and execute across your supply chain. Watch Deep Dive Session 2: Visibility – The Key to Keep Your Market Signals and Actions Aligned to see the interaction and real-time visibility between Replenishment+ and DBR+ that keep all signals and execution actions and metrics aligned to customer demand and ROI.

Last, but certainly not least, Deep Dive Session 3: DDOM – A Competitive Weapon demonstrates how DDOM metrics are used to sustain and improve a Demand Driven Operating Model. DDOM tactical variance reconciliation is Demand Driven S&OP and is the missing link in Sales and Operations Planning. Knowing where and how your tactical actions block System Flow can focus improvement investment and efforts that deliver market strategy objectives and ROI gains.

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