News

We are proud to announce that our white paper on the Demand Driven Material Requirements Planning (DDMRP) implementation project conducted with Valmex has been published on the Demand Driven Institute's website. This document describes how Valmex, Leader in heat exchanger production, successfully transformed its supply chain with the support of Advance Supply Chain Solutions.

Why Valmex Chose DDMRP

Valmex, based in Lucrezia di Cartoceto (PU), excels in manufacturing heat exchangers for domestic wall-mounted boilers, boasting a long-standing tradition of innovation and a strong focus on quality and customer service. In recent years, however, increasing demand complexity and the need for flexible market responsiveness have highlighted the limitations of traditional planning systems based on the Theory of Constraints. These limitations included growing difficulties in inventory management and rising operational costs associated with rescheduling and repetitive manual activities.

In 2020, seeking an innovative solution, the Valmex team participated in a webinar organised by Advance Supply Chain Solutions, introducing them to DDMRP, a methodology promising effective responses to demand variability by optimising inventory levels throughout the supply chain. After an evaluation phase, Valmex decided to implement DDMRP with the aim of enhancing efficiency and meeting customer demands more promptly and reliably.

The Role of Advance Supply Chain Solutions in the Project

Advance Supply Chain Solutions, a Partner of the Demand Driven Institute, supported Valmex through all project phases, employing an advanced DDMRP roadmap and a robust, consolidated project management method. The process included methodical steps such as exploring sessions with Valmex management to convey DDMRP concepts and contextualise them to the local business environment, Proof of Value on selected supply chain segments, and assistance in selecting DDMRP software.

A central aspect of the project was the Proof of Value phase, where Advance guided Valmex in conducting a real simulation of DDMRP benefits on representative product codes. Utilising proprietary software, strategic buffers were positioned, demonstrating anticipated improvements in stock reduction and service level enhancement.

Achieved Results and Benefits

Following an intensive phase of training and organisational change involving all key company functions, the DDMRP system went live without issues. From the initial weeks, Valmex observed improvements in production stability and visibility on supply chain KPIs, facilitating performance monitoring and identification of improvement areas.

The implementation yielded multiple benefits:

• 10% reduction in inventory across the entire supply chain, due to more precise and timely material management;
• 5% increase in customer service levels, essential for addressing growing demand;
• Reduction in non-value-added activities, such as rescheduling and expediting, positively impacting operational costs;
• Enhanced responsiveness to demand variations, through better balancing of production loads.

Conclusions

The success of this project highlights the effectiveness of the collaboration between Valmex and Advance Supply Chain Solutions, and the potential of DDMRP in transforming supply chains to meet modern market challenges.

With its expertise in the Demand Driven field, Advance Supply Chain Solutions is proud to have supported Valmex in this transformation journey. We are confident that this project marks the beginning of a new phase of success and innovation for Valmex and for all companies choosing to adopt a Demand Driven approach.

For more information, you can download our white paper: DDMRP – Valmex Success Story