In this article we compare crucial components of DDMRP (demand-driven material requirements planning) to a couple of product offerings: specifically, Sage 500 and Sage Inventory Advisor. Sage 500 is an ERP (enterprise resource planning) solution focused on mid-sized business enterprises, and Sage Inventory Advisor (SIA) is a cloud-based SaaS (software-as-a-service) supply chain management solution also from Sage Software.

 

DDMRP Component

Sage 500 ERP

Sage Inventory Advisor (SIA)

Dynamically-adjusted inventory buffers – flex buffer positions based on changes in actual demand

The implementation of Demand, Safety Stock and Lead Time formulas in Sage 500 will permit inventory buffers to be dynamically adjusted. However, they are adjusted only after processing period end (manually) and the execution of (1) Calculate Projected Demand, and (2) Calculate Replenishment Parameters. There is no native automation, and the number of days in the Inventory Periods determines the maximum frequency for dynamic buffer adjustments.

Buffer sizes are dynamically recalculated with each overnight upload and execution by SIA.

Planned Adjustments to inventory buffers – aids in managing seasonality, product introductions / end-of-life transitions, and more

Users may enter Demand Adjustments, but these must be in quantities, rather than the more convenient percent change. Therefore, these adjustments do not flex with dynamic changes to the buffers.

Forecasts may be adjusted by amount or percent.

5-Zone inventory buffers
1) Excess
2) Green Zone
3) Yellow Zone
4) Red Zone
5) Out-of-stock
-
provide easy status and relative-priority visibility for planning and execution at all levels

Does not report stock positions by zones.

Does not specifically report stock positions by zones, but does report SKU-locations in the following categories: excess stock, excess supply, potential out-of-stocks, and out-of-stock

Globally-managed inventory buffer profiles – SKU-locations are grouped by similar attributes for ease of management

Purchase Product Lines may offer some similarities, but are intended for an entirely different purpose.

Automatically assigns items to nine (9) categories based on activity level and value (in a matrix). Also assigns best-fitting statistical algorithm for management, which is reassessed monthly.

Decoupled BOM explosion – creates a unique blend of dependence and independence for planning

Uses traditional MRP or DRP.

Employs a statistically-augmented traditional MRP approach for SKU-locations with BOM dependencies.

Actively Synchronized Replenishment Lead Times (ASRLT) – lead time determined by the BOM’s longest unprotected sequence

May do this, but only via manual calculation and SKU-location configuration.

May do this, but only via user-assigned (manual) lead times. Otherwise, lead times are calculated from replenishment history by SKU-location.

Order spike protection – accounts for problematic sales orders based on spike thresholds and spike horizons

Uses standard MRP or DRP methodologies.

Uses standard MRP or DRP methodologies.

Material Synchronization Alerts – identifies specific misalignments between child supply and parent demand

Uses standard MRP or DRP methodologies. May provide pull-in, push-out, or expedite signals.

Uses standard MRP or DRP methodologies. May provide signals to guide pull-in, push-out, or expedite actions.

Multi-location inventory buffer status visibility – relative status visibility across a distribution network for similar SKUs to facilitate proper priorities for effective action

Does not use buffer status reporting.

Does not use buffer status reporting. Does signal excess stock, excess supply orders, potential out-of-stocks, and out-of-stocks by location or across all locations.

Lead-time managed SKU-locations – managing critical non-stocked items through time buffers and alerts

No.

No.

Matrix BOM + ASRLT analytics – revolutionary lead-time and working capital compression method across all BOMs and SKU-locations

No.

No.

 

If you have any questions regarding either of the products mentioned, or on DDMRP itself, please feel free to leave your comments below, or to contact us directly, if you prefer. We look forward to hearing from you.

 

 

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