DDMRP implementation in Automotive Industry
CONTEXT
An industrial company that designs, manufactures, and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, and motorcycles.
The company has 69 manufacturing sites & 130 retail centers.
The Supply Chain faced the bullwhip effect and many inventory issues.
MAIN RESULTS
20 to 50%
Inventory reduction
10%
Increase of the OTD
Link the flows
between the manufacturing plant and the customers
69
sites DDMRP implementation
STAKES OF THE PROJECT
Absorb future increasing demand
Decrease product lead times ; improve the quality of the stock
Visibility on WIP & order process
Improve the delivery performance
OUR APPROACH
TOOLS USED
RISKS ON THE PROJECT
Accept changes (from cost reductions to flow improvement)
Increase the inventory level
Decrease the customer service
Increase the capacity
Inventory Reduction
Global usage of the method : Time, inventory, capacity buffer
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