Faced with volatile demand and outdated planning buffers, this manufacturer regained control—improving service, reducing idle time, and restoring warehouse flow with a smarter, demand-driven model.

A global manufacturer of heat exchangers faced persistent planning instability across its warehouse and production operations. Fluctuating demand and legacy buffer strategies left critical materials bottlenecked, service levels declining, and on-time delivery suffering. The company needed a solution built for volatility—fast.

The Challenge

Despite high market demand, operational bottlenecks were limiting growth. A rigid planning setup—rooted in outdated TOC buffer methods—was no longer suited to the dynamic market environment. Delays were frequent, warehouse capacity was under strain, and customer service took the hit.

Key Constraints:

• Static Drum-Buffer-Rope methodology unsuited to demand volatility

• Short-term plan changes clashed with real-world constraints

• No visibility for suppliers, leading to unreliable replenishment

Strategic Intervention

Led by Patrick Rigoni, ABA implemented a Demand Driven Operating Model (DDOM) tailored to dynamic market conditions. The team focused on buffer design and visibility to stabilise the supply chain and enable fast, accurate decision-making.

• Flow Mapping: Product and information flows were mapped end-to-end, including third-party contract manufacturers.

• Redesigned Buffers: Decoupling points were repositioned and recalculated to absorb variability.

• Customer Policy Strategies: Ordering policies (consignment, spot, blanket, local) were segmented and modelled.

• Supplier Enablement: A new supplier portal gave visibility and responsibility for raw material buffers.

• Weekly Rhythm: DDMRP replenishment replaced static planning with a dynamic, responsive cadence.

The initial pilot was launched on the high-growth INOX product line (CIRCOND), the newest business area. Success here enabled internal teams to scale the approach rapidly across copper and aluminium lines—without further external support.

Tangible Results

Within three months, the new model delivered measurable improvements:

• Improved Service Levels: Across the full chain—supplier, production, customer

• Faster, More Reliable Deliveries: Improved on-time performance and reduced delays

• Fewer Material Shortages: Idle production time decreased significantly

• Warehouse Under Control: Flow re-established and capacity pressures resolved

“Patrick’s extensive DDMRP experience helped us to make the right choices in each phase of the project.”
— Barbra Nesta, Procurement and Logistics Manager, VALMEX

Key Takeaways

This project shows how a fit-for-purpose DDMRP model can break through planning bottlenecks and restore reliability, even in volatile environments. By redesigning buffers and empowering suppliers, the business quickly regained control of warehouse operations and delivery performance.

Without intervention, customer service would have continued to decline—leading to lost sales, strained client relationships, and missed growth opportunities.