This video suffers from the same assumption that has been plaguing industry for decades - that increasing environmental complexity can only be combated by the application of more complexity. Many times in life we must walk a fine line between oversimplification and overcomplication - both create less than desirable effects for systems. DDMRP is a package that sits right in the middle. But it needs to be understood that DDMRP is only the beginning and not the end of a journey. DDMRP is intuitive for people and, at least for the time being, people still run supply chains. When people don’t understand or don’t trust the system, they begin to work around it. Applying more complexity to the system will only exacerbate that lack of understanding or distrust. Joannes seems to not understand that DDMRP is simply a starting point and the supply order generation and management aspect of a larger framework. Thus, he is significantly under representing the ability to use appropriate and focused advanced mathematical tools in the tactical and strategic side of the Demand Driven Adaptive Enterprise Model. Joannes also misses the point that DDMRP is a package that is greater than the sum of its parts. By only comparing a part at a time Joannes fails to understand or address how the components work together to produce a result. This linear comparative approach is ironic given the author’s emphasis on complex mathematics and systems. Now, let’s talk real world - check out the case studies of companies across a wide array of industries that are winning big with DDMRP in a fairly quick fashion: www.demanddriveninstitute.com/case-studies. Additionally, you will find research projects from organizations such as the Massachusetts Institute of Technology (MIT) that find DDMRP is highly effective: www.demanddriveninstitute.com/research
So Lokad, a competitor in the Supply Chain tools space, makes a "webisode" or "podcast" that completely bags on a competitor, and calls it fact? This is just drivel. What a ridiculously pompous spokesperson. I am sure they are just jealous that SAP adopted DDMRP and not Lokad's "QUANTITATIVE SUPPLY CHAIN OPTIMIZATION SOFTWARE " So because DDMRP doesn't use the buzz words of "machine learning," "AI," or the other SC buzz words, they are crap? Come on man! All I heard at the Gartner SC Exec. conference a few weeks ago was a consistent message of these buzzwords. Nobody has a clue how to leverage these, but theyll happily sell them to you! Keep it up DDMRP. You guys are awesome. I can't get my company to bite, yet, but we are getting there. Lokad, you should spend some time in the world. I work implementing ERP and SC solutions, and you wouldn't believe how many businesses, throughout the world, don't even use ANY automated planning tools. MRP, DDMRP, APS, nothing. They manually plan each order individually. Most of these businesses have NO S&OP process that is linked to SC or even an S&OP process at all. No Forecasting process. They plan each order manually and have the overstock inventory and bad working capital metrics to prove it.
Agreed...DDMRP started showing results. While improvement are always IN SCOPE for any change...All the Changes must be welcomed with open heart...! Kudos to team DDI..!
Thank you LOKAD for explaining it so eloquently. When I am discussing what should be the approach for supply planning with clients and someone starts throwing high-level supply chain jargon without understanding the underlying logic, most of the energy goes into clearing these basics. Good to see content creation around the first principles without all the jargon.
I really didn’t hear real flaws in this presentation. I actually heard agreement with some of the major tenets of DDMRP. Do you have case studies where tour alternative to DDMRP worked better?
Unfortunately, case studies are not an acceptable format to prove or disprove anything in supply chain. The longer discussion at tv.lokad.com/journal/2021/2/3/supply-chain-personae/ Back to the DDMRP flaws, the video is relatively straightforward: most of the DDMRP claims are largely unfounded. For a more formalized discussion, check out www.lokad.com/demand-driven-material-requirements-planning-ddmrp which has a whole section on the matter. Cheers, Best regards, Joannes
@@LokadBy case studies I mean real world examples of how your methods have been put into practice to improve/optimize the supply chain. I scrolled through the video list to see, but didn’t find any. Examples of material spend reductions? Inventory reductions? Reduced stock outs? Improved on-time delivery? That’s what I’m looking for. Hard data on the better results from tour methods.
@@ir6895 Hard data on economic returns is *exactly* what case studies are supposed to deliver. We are circling back to the initial problem: why would you trust a vendor who has a massive conflict of interest in forging those numbers in the first place? Yes, nearly all vendors in the supply chain world claim *massive* ROI for their products and their methods. If Lokad were to publish a case study video claiming vast material spend reductions / vast inventory reductions / vast reduced stocks out / etc, why should you believe *any* of that? I know it's disappointing and frustrating, but as a community, we need to pay attention to the conflicts of interest at play. Cheers, Best regards, Joannes
One of the major flaws of “optimizing” supply chains is the inability for the optimized state to absorb deviations from that state. Simplistic doesn’t mean naive. Unnecessary sophistication only wins you admiration in academia, but when you are graded by a P&L, results matter.
DDMRP is the archetype of an "optimization" (as in "mathematical optimization"). It is not usually presented as such, but it is logically equivalent. Thus, if optimization, in the general mathematical sense, is unable to do X, Y or Z for supply chain, then so is DDMRP. Best regards, Joannes
In DDMRP, a 'buffer' is a numerical target to pilot the flow. This is a textbook case of mathematical optimization. The actual antithesis of optimization would be either that (1) the problem is not of numerical nature (e.g. buffers are only a matter of leadership, inspiring confidence is all it take to have good buffers) or (2) that the numerical angle is irrelevant (eg. roll a dice, the number becomes the buffer size). Best regards, Joannes
I am working in consulting, where DDMRP now seems to be the latest and greatest. Having both an education in optimization and 10+ years of experience in SCM, I can tell you that the video is spot on. DDMRP is just better than having MRP. The fact that large companies are even thinking of DDMRP is just ridiculous. But this looks like the well-deserved backlash of all the overselling to push fancy SCM optimization tools into companies. Unfortunately, the majority in SCM is not educated well enough to separate between hype and the real deal. And most consultants are conflicted.
I did not hear any evidence of DDMRP failed in the real world in this discussion . I have worked for DELL supply chain in 1998 and part of their operation is just like DDMRP concept and it is working well . I doubt the speaker in this video has much less real hands on supply chain operation experience , you talked about supply chain not like a supply chain operational professionals but a consulting and academic person . I respect u as a supply chain data scientist on forecasting and optimization . I personally learned and practiced data science for over 7 years already , I understand your points , but those points is not 100% validated from a supply chain professionals perspective .
The points being made are that DDMRP is extremely weak in terms of conceptual and numerical contributions. In short, the "pillars" of DDMRP are a short series of trivialities. Let's take Dell as example: DDMRP does not provide *anything* to quantitatively address either product configurators (essential for Dell) or product life-cycles (essential for consumer electronics). Dell is a great success, but it is also obvious that DDMRP isn't the reason why. Name dropping is not a valid argument to support one supply chain theory or another. More details at tv.lokad.com/journal/2021/2/3/supply-chain-personae/ Best regards, Joannes
So criticizing ddmrp is worth nothing. What is your claims, what is your experience in real , what is the teal experience of this guy ? Looks to have zero !
This video suffers from the same assumption that has been plaguing industry for decades - that increasing environmental complexity can only be combated by the application of more complexity.
Many times in life we must walk a fine line between oversimplification and overcomplication - both create less than desirable effects for systems. DDMRP is a package that sits right in the middle. But it needs to be understood that DDMRP is only the beginning and not the end of a journey.
DDMRP is intuitive for people and, at least for the time being, people still run supply chains. When people don’t understand or don’t trust the system, they begin to work around it. Applying more complexity to the system will only exacerbate that lack of understanding or distrust.
Joannes seems to not understand that DDMRP is simply a starting point and the supply order generation and management aspect of a larger framework. Thus, he is significantly under representing the ability to use appropriate and focused advanced mathematical tools in the tactical and strategic side of the Demand Driven Adaptive Enterprise Model.
Joannes also misses the point that DDMRP is a package that is greater than the sum of its parts. By only comparing a part at a time Joannes fails to understand or address how the components work together to produce a result. This linear comparative approach is ironic given the author’s emphasis on complex mathematics and systems.
Now, let’s talk real world - check out the case studies of companies across a wide array of industries that are winning big with DDMRP in a fairly quick fashion: www.demanddriveninstitute.com/case-studies. Additionally, you will find research projects from organizations such as the Massachusetts Institute of Technology (MIT) that find DDMRP is highly effective: www.demanddriveninstitute.com/research
So Lokad, a competitor in the Supply Chain tools space, makes a "webisode" or "podcast" that completely bags on a competitor, and calls it fact? This is just drivel. What a ridiculously pompous spokesperson. I am sure they are just jealous that SAP adopted DDMRP and not Lokad's "QUANTITATIVE SUPPLY CHAIN OPTIMIZATION SOFTWARE
"
So because DDMRP doesn't use the buzz words of "machine learning," "AI," or the other SC buzz words, they are crap? Come on man!
All I heard at the Gartner SC Exec. conference a few weeks ago was a consistent message of these buzzwords. Nobody has a clue how to leverage these, but theyll happily sell them to you!
Keep it up DDMRP. You guys are awesome. I can't get my company to bite, yet, but we are getting there.
Lokad, you should spend some time in the world. I work implementing ERP and SC solutions, and you wouldn't believe how many businesses, throughout the world, don't even use ANY automated planning tools. MRP, DDMRP, APS, nothing. They manually plan each order individually. Most of these businesses have NO S&OP process that is linked to SC or even an S&OP process at all. No Forecasting process. They plan each order manually and have the overstock inventory and bad working capital metrics to prove it.
oh snap !
Agreed...DDMRP started showing results. While improvement are always IN SCOPE for any change...All the Changes must be welcomed with open heart...! Kudos to team DDI..!
Boom shots fired! Getting my popcorn ready for the show!
Thank you LOKAD for explaining it so eloquently. When I am discussing what should be the approach for supply planning with clients and someone starts throwing high-level supply chain jargon without understanding the underlying logic, most of the energy goes into clearing these basics. Good to see content creation around the first principles without all the jargon.
You're welcome, glad you found it useful!
I really didn’t hear real flaws in this presentation. I actually heard agreement with some of the major tenets of DDMRP. Do you have case studies where tour alternative to DDMRP worked better?
Unfortunately, case studies are not an acceptable format to prove or disprove anything in supply chain. The longer discussion at tv.lokad.com/journal/2021/2/3/supply-chain-personae/
Back to the DDMRP flaws, the video is relatively straightforward: most of the DDMRP claims are largely unfounded. For a more formalized discussion, check out www.lokad.com/demand-driven-material-requirements-planning-ddmrp which has a whole section on the matter.
Cheers, Best regards, Joannes
@@LokadBy case studies I mean real world examples of how your methods have been put into practice to improve/optimize the supply chain. I scrolled through the video list to see, but didn’t find any. Examples of material spend reductions? Inventory reductions? Reduced stock outs? Improved on-time delivery? That’s what I’m looking for. Hard data on the better results from tour methods.
@@ir6895 Hard data on economic returns is *exactly* what case studies are supposed to deliver. We are circling back to the initial problem: why would you trust a vendor who has a massive conflict of interest in forging those numbers in the first place? Yes, nearly all vendors in the supply chain world claim *massive* ROI for their products and their methods. If Lokad were to publish a case study video claiming vast material spend reductions / vast inventory reductions / vast reduced stocks out / etc, why should you believe *any* of that? I know it's disappointing and frustrating, but as a community, we need to pay attention to the conflicts of interest at play. Cheers, Best regards, Joannes
One of the major flaws of “optimizing” supply chains is the inability for the optimized state to absorb deviations from that state. Simplistic doesn’t mean naive. Unnecessary sophistication only wins you admiration in academia, but when you are graded by a P&L, results matter.
DDMRP is the archetype of an "optimization" (as in "mathematical optimization"). It is not usually presented as such, but it is logically equivalent. Thus, if optimization, in the general mathematical sense, is unable to do X, Y or Z for supply chain, then so is DDMRP. Best regards, Joannes
@@Lokad The concept of buffers are the antithesis of optimization.
In DDMRP, a 'buffer' is a numerical target to pilot the flow. This is a textbook case of mathematical optimization. The actual antithesis of optimization would be either that (1) the problem is not of numerical nature (e.g. buffers are only a matter of leadership, inspiring confidence is all it take to have good buffers) or (2) that the numerical angle is irrelevant (eg. roll a dice, the number becomes the buffer size). Best regards, Joannes
I am working in consulting, where DDMRP now seems to be the latest and greatest. Having both an education in optimization and 10+ years of experience in SCM, I can tell you that the video is spot on. DDMRP is just better than having MRP. The fact that large companies are even thinking of DDMRP is just ridiculous. But this looks like the well-deserved backlash of all the overselling to push fancy SCM optimization tools into companies. Unfortunately, the majority in SCM is not educated well enough to separate between hype and the real deal. And most consultants are conflicted.
I did not hear any evidence of DDMRP failed in the real world in this discussion . I have worked for DELL supply chain in 1998 and part of their operation is just like DDMRP concept and it is working well . I doubt the speaker in this video has much less real hands on supply chain operation experience , you talked about supply chain not like a supply chain operational professionals but a consulting and academic person . I respect u as a supply chain data scientist on forecasting and optimization . I personally learned and practiced data science for over 7 years already , I understand your points , but those points is not 100% validated from a supply chain professionals perspective .
The points being made are that DDMRP is extremely weak in terms of conceptual and numerical contributions. In short, the "pillars" of DDMRP are a short series of trivialities.
Let's take Dell as example: DDMRP does not provide *anything* to quantitatively address either product configurators (essential for Dell) or product life-cycles (essential for consumer electronics). Dell is a great success, but it is also obvious that DDMRP isn't the reason why.
Name dropping is not a valid argument to support one supply chain theory or another. More details at
tv.lokad.com/journal/2021/2/3/supply-chain-personae/
Best regards,
Joannes
Thnk you
Can you mention the name of your guest please?
Like most of the Lokad TV episodes, Kieran Chandler is interviewing Joannes Vermorel (myself). Cheers, Joannes
So criticizing ddmrp is worth nothing. What is your claims, what is your experience in real , what is the teal experience of this guy ? Looks to have zero !