Distribution Requirements Planning

Take your distribution requirements planning process to a new level

Distribution Requirements Planning - Kinaxis

Effective distribution requirements planning (DRP) has the power to minimize shortages, reduce ordering, transportation and inventory carrying costs, and improve customer service. But, before these benefits can become reality, planners must coordinate and synchronize a large number of data elements living in multiple sources across many locations.

The Kinaxis® RapidResponse® Distribution Requirements Planning (DRP) application lets you:

  • Accurately plan the replenishment of inventory for the purposes of distribution at the detailed part level to immediately evaluate trade-offs between customer satisfaction and costs.
  • Drive dependent demand to pull and/or push the needed supply into the distribution network through the generation of a near term plan (usually 2-6 weeks) in daily or weekly buckets.
  • Plan concurrently with master production scheduling (MPS), order fulfillment and supply action management processes to ensure the effectiveness and accuracy of replenishment.

ADDED VALUE THROUGH INTEGRATED APPLICATIONS

Among the greatest advantages of any given RapidResponse application is the ability to leverage it in conjunction with other applications as part of a broader, integrated solution. Depending on your needs, you can realize significant added benefits by using the DRP application alongside one or more related applications to ensure synchronization across interrelated planning processes.

Organizations using the DRP application can achieve even more value by using it with the Master Production Scheduling, Demand Planning, Order Fulfillment and Inventory Management applications.

Distribution Requirements Planning Journey - Kinaxis

Distribution Requirements Planning - Kinaxis

Benefits

The RapidResponse Distribution Requirements Planning application can deliver a wide range of business benefits for your enterprise:

  • Balance customer service and the cost of distribution in complex networks
  • Faster, more accurate distribution plan development, reconciled with material availability
  • Early identification of the operational and financial impact of demand and supply misalignments
  • Quicker, more cost-effective decisions through cross-functional adaptive collaboration
  • Intelligent tradeoffs between supply, demand and inventory risks
  • Pulls or pushes supply distribution in response to demand signals to accurately reflect network limitations

FUNCTIONAL CAPABILITIES

  • Balance supply and demand to ensure distribution locations are replenished to support demand
  • Simulate changes to balance trade-offs between customer service expectations and cost of distribution
  • Update the plan to respect changes in demand or supply based on exceptions
  • Evaluate trends and exceptions on a dashboard and drill through to detailed information to resolve specific problems
  • Identify gating material and storage constraints through multi-level supply chains
  • Gain visibility into the demand that drives supply decisions
  • Easily and efficiently perform analysis of inventory projections versus targets
  • Gain cross-location inventory visibility and redistribution process
  • Adjust part planning parameters and sourcing parameters such as lead times and production lot sizes
  • Use Bill of Distribution to view and add network relationships and transportation modes
  • Report under and over utilization of storage for current and future time periods

DRP - Main Dashboard

DRP - Workbook

MANAGING PERFORMANCE

Evaluate and track metrics associated with distribution planning alongside standard corporate measures such as revenue, margin, inventory value, on-time delivery and constraint utilization.

Now it’s easier than ever to focus on what matters. The DRP dashboard includes measurements on:

  • Total distribution cost
  • Site/storage types over/under capacity
  • On-time order lines by due date
  • Cross-docking opportunities
  • Transfer order exceptions
  • Top sites with push part candidates
  • Transit time deviation
  • Firmed orders misaligned to demand
  • Planned orders to be executed by due date
  • In-transit orders
  • Firmed orders by due date
  • Transfer parts with the most stock-outs
  • Late revenue caused by transfer orders

Distribution Requirements Planning - Kinaxis

APPLICATION PROCESS COMPONENTS

The out-of-the box DRP application supports these process steps:

Distribution Requirements Planning Process Components - Kinaxis