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Demand Driven Freight Optimization
Functional Demo Odoo Enterprise
Location: Studio 6 - 10/7/21, 4:00 PM - 10/7/21, 4:30 PM (Europe/Brussels) (30 minutes)
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Demand Driven Freight Optimization
Lois Rilo
Odoo Consultant at FORGEFLOW, S.L.
Lois Rilo
Odoo Consultant at FORGEFLOW, S.L.

Lois Rilo is a consultant at ForgeFlow with both technical and functional skills. He is a very active contributor in the Odoo community, specially in the logistics and manufacturing areas. Over the last years he has been involved in numerous Odoo implementations worldwide, helping companies of different sizes and sectors to improve their processes and results. In the Demand Driven world he is recognized by being Demand Driven Planner (DDP), endorsed DDP instructor by the Demand Driven Institute (DDI), and co-author of the ForgeFlow's DDI compliant software solution.

With increasing freight costs worldwide, the optimization of those is becoming more and more important for the supply chain of any company. Getting to know the quantity of each SKU needed to cover our demand and improve our return on investment, while at the same time fulfill different agreements and constraints (space, amount, weight...) is not an easy task. The DDMRP prioritized share, which is a powerful freight optimization schema based on net flow positions and different constraints defined and grouped in freight agreements is definitely a good help to solve this problem.

The prioritized share is one of the key innovations brought by the DDMRP (Demand Driven Material Requirements Planning) methodology and that can be a differential factor for any manufacturing or distribution company. Even if you are not familiar yet with DDMRP this talk can be interesting to you. You will get an introduction and a demo of the implementation of this freight optimization schema in Odoo done by ForgeFlow.

Quiz

In Inventory Planning it is really important to not get stocked-out with demand. What would you say to a planner that systematically orders the double of the net requirements for a period?
That is good, as long as we don’t lose sales the business will continue making profit. She/He should not do that for all the products, only for finished products that are directly sold to the market. That is not a good idea, you are reducing the ROI of the company, and in the big picture, it can be worse than losing some sales. That is not a good idea, you are reducing the ROI of the company, but it will always be better than losing some sales.
When a DDMRP Stock Buffer needs to be reordered, what is the ideal order quantity?
The difference between TOG (Top of Green) and the NFP (Net Flow Position). The difference between TOY (Top of Yellow) and the NFP (Net Flow Position). The difference between TOG (Top of Green) and TOY (Top of Yellow). The difference between TOG (Top of Green) and NQS (Net Qualified Sales).
In a scenario with a sourcing unit that has a fixed batch quantity that it is directly sent to regional warehouses to be stored. What should we do if the Batch quantity is bigger than the total order recommendation of all the warehouses?
Wait some time until the warehouses requirement increase. Apply prioritized share to allocate the remaining quantity using factors based on the TOG (Top of Green) that will multiple the recommended quantity. Round up the individual order recommendations to allocate the remaining quantity. Try to get a similar level of coverage (measured with the Net Flow Position) in all the warehouses while respecting the constraints.