Why our way to communicate is undermining our message

Implementing Demand Driven Material Requirements Planning (DDMRP) in businesses can be challenging. Part of this challenge stems from how we communicate DDMRP’s benefits and mechanics to the industry.

When people learn about DDMRP, the first thing they learn is about the stock buffers and the Net Flow Equation. That really is the core of DDMRP and we often say that DDMRP is the engine of a Demand Driven Operating Model.

But DDMRP is not just an innovative, high-performance engine but as an entire racing car designed to leverage this engine’s capabilities. This car includes a different chassis, suspension, and transmission, making it fundamentally different from traditional racing cars. Driving this car involves new strategies & tactics that might seem counterintuitive at first but can lead to significantly improved performance, potentially reducing track time by 10%, 20%, or even 30%.

The initial communication often focuses on the mechanics – stock buffers and the Net Flow Equation – which are indeed the core of DDMRP. However, this emphasis can lead to misconceptions. When someone only hears about the “engine” of DDMRP, they might dismiss it as merely another stock management technique:

• “Oh, that’s just a different stock management approach, so what’s the deal?”
• “Oh, that’s just a glorified reorder point; we use reorder points already.”
• “Oh, I understand, it’s dynamic safety stock, but how can this dramatically change my supply chain performance?”
• “Oh, I see, it might work for make-to-stock, but we’re make-to-order.”

This misunderstanding can be attributed to the cognitive bias where individuals believe they understand a concept based on superficial knowledge but lack the deeper insight needed to grasp its full impact – a phenomenon called the Dunning-Kruger effect.

When you explain DDMRP in a sales pitch you rarely have the time to explain the logic sequence that goes from the engine to the 30% faster track time. And most likely your interlocutor won’t have the bandwidth to absorb the quantity of information required to do that anyway.

Instead of delving into the technical details first, we should shift our focus in sales pitches, especially to higher-level executives, to the performance outcomes:

• Highlight the End Result: Emphasise that DDMRP offers a new method of managing supply chains, akin to learning how to drive a race car that breaks track records. Mention the potential for significant improvements in speed, efficiency, and responsiveness without getting bogged down in technical jargon.
• Simplify the Concept: Explain that while DDMRP involves a novel approach (the car), the real value lies in how it’s driven (applied in business operations). This approach makes the concept more relatable and less about understanding complex systems.
• Leave the Details to the Experts: Suggest that the intricacies of how DDMRP works (the engine details) should be left to the engineers and mechanics (supply chain specialists) while executives focus on the strategic benefits.

 By reframing our communication to prioritise the operational benefits and performance outcomes, we can make DDMRP more appealing and understandable, thereby enhancing adoption rates in the industry.