Advanced MRP

Make your MRP really agile!

 

Implement Advanced MRP within a few days and take advantage of a fully, flexible and agile planning engine to go further than normal MRP and get benefits out of first run.

  • Fast Implemention

  • Conditional Rules

  • Match Demand / Supply

  • Solution presentation

    DOWAP designed the Advanced MRP application, in order to offer its customers a powerful planning tool that allows, from customizable demand priorities, to create replenishment proposition, according to flexible Supply strategies.

    Advanced MRP allows to focus on service level by demand type, improve profitability of generated plan, reduce actual shortages. With Advanced MRP you can create your own rules to better control how MRP matches demands to replenishments.

    Advanced MRP allows simulation scenario, which calculate plans without any change in operational data, “just to see”, calculating economical parameters like cost, revenue and margin attached to the scenario.

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Typical MRP use case

A product is being planned mainly against forecast, however in short term customer orders are placed. Commonly priority level are confusing like MRP tending prioritizing overdue forecast instead of focusing on actual sales orders. As a result, although planners spend a lot of time to address the priority prior to releasing production orders, the production planner often re-schedule priority based on orders and not as expressed by planners. In the end, a lot of time is wasted in chasing production and procurement orders based on unstructured data input (shadow IT in Excel for instance).

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  • Typical Advanced MRP use case

    1. A product is in a regular shortage situation with demand being higher than replenishment capabilities. By picking demand in date order, the scarce supply is not optimized and overall margin may drop much. Prioritizing demand during planning may give preference to more profitable demand first. This is very applicable when orders and forecast are in competition.
    2. You wish replenishing important customer demand first, even before safety stock reconstruction, this from other plants (factory or DC), for the next 2 weeks, to allow short leadtime, whereas you select to replenish normally from main source after this initial period
    3. You wish to replenish any demand, sorted by priority on the demand location, from any leftover stock of other listed plants, before even placing new production order. You wish this to be dynamically determined in particular the leftover qty from other plants

Implementation of Advanced MRP

DOWAP proposes an agile way to implement Advanced MRP, that can fit in a time window as short as couple days. Implementing Advanced MRP does not require switching all products being in MRP toward Advanced MRP.

Implementing Advanced MRP is a 5 steps method:

  1. Implement Advanced MRP in SAP ECC, or APO, depending on your decision. Most of customers run Advanced MRP on ECC as not having APO. (1-3 days)
  2. Initialize master data to be run under Advanced MRP in pilot scope. Advanced MRP master data consist in extending standard SAP product master data with additional fields (priority, mode..). (1-5 days).
  3. Setup Rules in scenario to reflect planning alternatives. This is done in a single customizing screen. (1-3 days).
  4. In some case implement further customer rules, using BADI
  5. Go testing given results in simulation or in actual data

Return on investment

For most of our customer, the ROI of their Advanced MRP project is as short as couple planning runs. Like Estée Lauder company assessing stock saving in tenth millions after couple months utilisation.

 

Learn more about Advanced MRP:

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