DEMAND DRIVEN S&OP

DEMAND DRIVEN SALES & OPERATIONS PLANNING (DDS&OP)

The tactical component of the Demand Driven Adaptive Enterprise (DDAE) Model managing the tactical adaptive cycle. DDS&OP is a tactical bi-directional integration point in a Demand Driven Adaptive Enterprise between the strategic and operational relevant ranges of decision making. Operating primarily in the tactical relevant range, DDS&OP maintains and updates the parameters of the DDOM based on current and emerging business strategy supplied by Adaptive S&OP and the systematic review of past and projected DDOM performance. DDS&OP evaluates scenarios proposed in the Adaptive S&OP process in order to provide relevant DDOM projections. Additionally, DDS&OP recommends strategic alterations and/or internal innovations to leadership involving DDOM future capability and performance.

DDS&OP manages what is called the "Tactical Relevant Range". This is where the tactical and strategic adaptive loops meet in a business. Each adaptive loop has three stages; emergence, feedback and selection.

Emergence is a reconfiguration of the system triggered externally or internally.
Feedback is a set of signals and triggers monitored by adaptive agents.
Selection is decisions, actions and learning in response to signals and triggers.

Carol Ptak and Chad Smith of the Demand Driven Institute walk you through the six elements of Demand Driven S&OP.

THE SIX ELEMENTS OF DEMAND DRIVEN S&OP

Tactical Review

Performing variance analyses on the feedback loops coming from the three operating model components; DDMRP, Demand Driven Scheduling and Demand Driven Execution.

Tactical Projection

Understanding how the Demand Driven Operating Model might perform in the upcoming tactical relevant range given what is known or planned.

Tactical Configuration/ Reconciliation

Shaping the Demand Driven Operating Model (and thus the organizational capability) to the evolving business strategy.

Tactical Exploitation

Looking for short range opportunities to supplement or augment operational flow.

Strategic Recommendation

Internal innovation ideas for better flow performance that needs senior management approval.

Adaptive S&OP Participation

Marrying DDOM capability, potential and reality into the Adaptive S&OP process.

DDOM EDUCATION OFFERINGS

The Demand Driven Leader (DDL)™ Program equips senior and mid-level operations and supply chain managers with the ability to design, implement and sustain a Demand Driven Operating Model (DDOM) including parameter settings through Demand Driven S&OP (DDS&OP). Designed by the leading authorities on Demand Driven methods at the Demand Driven Institute, the Demand Driven Leader™ Program is comprised of 7 modules of in-depth Demand Driven education. The DDL Program is THE official preparatory course for the Demand Driven Leader Professional (DDLP)™ endorsement certification test.