SAP S/4 HANA DDMRP: Transforming Supply Chain

Client Snapshot:

A U.S.-based automotive leader with over $20 billion in annual turnover faced critical supply chain inefficiencies despite using SAP for planning and operations. Excess inventory, component shortages, and high logistics costs were eroding margins and delaying production. With complex global operations and fluctuating demand, their traditional MRP system proved inflexible and reactive. Total Plant Setup introduced Demand-Driven Material Requirements Planning (DDMRP) within SAP S/4HANA to bring agility, efficiency, and real-time visibility into the company’s supply chain processes.

Major Bottlenecks Identified

◾️ Excess inventory levels caused high holding costs and storage inefficiencies.
◾️  Regular stockouts of critical components disrupted production schedules.
◾️  Long planning cycles and rigid MRP logic reduced adaptability.
◾️  Expedited freight and reactive orders inflated supply chain costs.

Solutions Implemented by total plant setup

◾️  Strategic inventory buffer zones created across 4 high-impact nodes.
◾️  SAP S/4 HANA reconfigured with DDMRP logic for real-time demand sensing.
◾️  Custom SAP Fiori dashboards and supplier collaboration tools enabled visibility.
◾️  Predictive analytics and continuous improvement cycles refined buffer performance.

Key Results Delivered

✔️ 30% reduction in inventory holding costs through leaner buffer logic.
✔️  50% drop in stockouts, ensuring continuous production flow.
✔️  40% savings on expedited freight via proactive replenishment.
✔️  20% faster order fulfillment driven by real-time planning execution.

Looking to transform your supply chain with agility and precision !

• Let Total Plant Setup help you unlock the full potential of SAP S/4HANA with DDMRP.
• Reach out today for a strategic consultation and start building a smarter, leaner, and more responsive operation.
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