Demand Driven Replenishment
Why demand-driven replenishment is a game changer
Just imagine: Your warehouse is never too full, but also never empty. Your customers receive their products on time, even though demand fluctuates. And you no longer have to spend time on complicated demand forecasts. Sounds too good to be true?
With Demand Driven Replenishment (DDR) in SAP S/4HANA, you can do just that.
đź’ˇ What’s behind it – and why should I care?
Many companies struggle with the same challenges:
- Too much inventory, which ties up capital and eats up space
- Lack of products when demand suddenly increases
- Unreliable forecasts based on outdated planning methods
- High manual planning effort, which costs time and nerves
Especially in the consumer goods industry – with its fast product cycles, seasonal fluctuations and strong competitive pressure – these problems can severely impair efficiency and customer satisfaction. If you want to remain competitive, you need a smart, demand-oriented solution for your inventory and procurement management.
The solution: planning according to real needs
Using Demand Driven Replenishment, the classic planning concept is turned on its head: instead of predictions, material planning is based on real consumption – in other words, on what actually happens.
Core idea:
Buffers are defined at key points in the supply chain, which are automatically and dynamically adjusted. This allows you to react flexibly to changes in demand – without chaos in the warehouse or bottlenecks at the customer.
This brings tangible benefits::
 Less excess stock – lower storage costs
 More availability – fewer out-of-stock situations
Automatic adjustment – less planning effort
More sustainable processes – thanks to less waste and transportation
How it works: Step-by-step control
SAP S/4HANA provides an integrated solution with five coordinated phases and intuitive FIORI apps:
- Analytics – material classification via ABC, XYZ and PQR analysis
- Buffer Positioning – identification of the products that require buffering
- Buffer Sizing – dynamic calculation of buffer sizes
- Replenishment Planning – creation of specific replenishment orders
- Replenishment Execution – implementation and monitoring of replenishment
Everything is based on real-time data – not guesswork.
How to get started with Demand Driven Replenishment
Demand Driven Replenishment is already integrated into SAP S/4HANA – so there is no need to buy or add anything extra. Companies that use SAP S/4HANA can get started straight away. It is set up via user-friendly apps that make planning and control transparent and simple.
Conclusion: smarter planning, better delivery
Demand Driven Replenishment is more than just a new planning process – it is a forward-looking approach to finally adapting replenishment to reality. It enables companies to act flexibly, efficiently and cost-optimized.
Less stock, more availability, less stress.
So why continue to rely on estimates?
Do you want to use Demand Driven Replenishment? Then please contact us!