Why Demand Driven MRP is a Game Changer for MedTech Inventory Management

In the MedTech industry, inventory management isn’t just about reducing costs, it’s about ensuring life-saving devices are available exactly when and where they’re needed. The stakes are high, the regulations are strict, and traditional supply chain planning methods just don’t cut it anymore.

Enter Demand Driven Material Requirements Planning (DDMRP), a modern methodology designed to address the unpredictable and high-compliance environment of medical device supply chains. When paired with the powerful WA360 platform from WA Solutions, DDMRP becomes a true game-changer.

The Problem with Traditional Inventory Planning in MedTech

Traditional MRP systems rely heavily on forecasts to determine supply needs. In the MedTech world, where demand can fluctuate based on patient volume, emergency procedures, or seasonal factors, forecasts are often inaccurate. This leads to two problems: excess inventory sitting idle (tying up capital), and stockouts that delay procedures or compromise patient care.

These systems also fail to adapt in real time, making it difficult to respond quickly to actual usage at hospitals, surgical centers, or in the field.

What is DDMRP?

Demand Driven MRP is a methodology that aligns inventory replenishment directly with actual market demand. Instead of forecasting demand months in advance, DDMRP uses strategic inventory buffers and real-time consumption signals to determine when and how much to reorder.

Key components of DDMRP include:

• Strategic Decoupling: Placing inventory buffers at critical points in the supply chain to absorb variability.
• Real-Time Demand Signals: Replenishment is based on actual usage, not forecasts.
• Visual Planning Tools: Color-coded prioritization (green/yellow/red) helps planners take action based on urgency and importance.

For MedTech companies, this means more reliable availability of parts and products, without the burden of bloated inventory.

Why DDMRP is Ideal for MedTech

The MedTech field is uniquely suited to benefit from DDMRP due to its:

• Highly variable demand
• Stringent regulatory environment
• Complex SKU profiles
• Decentralized distribution (e.g., consignment, trunk stock, FSLs)

DDMRP directly addresses these challenges by increasing supply chain agility, improving availability, and minimizing waste. For example:

• A surgical device company can better manage expiration-dated inventory in hospital stock rooms.
• A diagnostic equipment provider can reduce backorders while minimizing capital tied up in spare parts.
• An orthopedic implant company can streamline trunk stock for field reps, ensuring the right product is available at the right time—without overstocking every kit.
• A cardiac device manufacturer can reduce emergency overnight shipments by using demand-driven replenishment at regional forward stocking locations.

How WA Solutions Powers DDMRP with WA360

At WA Solutions, we’ve taken the principles of DDMRP and integrated them into our powerful WA360 inventory management system, purpose-built for MedTech.

WA360 helps customers:

• Track inventory in real time using Bluetooth-enabled devices and cloud-based dashboards
• Automatically replenish inventory based on consumption at point-of-use
• Manage expiration dates and lot numbers for regulatory compliance
• Visualize buffer zones to simplify inventory planning and prioritization

Whether you’re managing field inventory, consignment stock, or regional hubs, WA360 brings DDMRP to life—digitally, automatically, and intelligently.

Real Results in the Real World

Our clients have seen dramatic improvements:

• 30% average reduction in on-hand inventory
• Up to 99% service level achievement
• Faster cash conversion cycles
• Fewer emergency shipments and lost procedures

With over 2,500 FSL locations, WA Solutions provides the scale and technology MedTech companies need to modernize their supply chains. WA360 enables full visibility across decentralized networks, empowering teams to meet SLAs, respond to real-time demand, and minimize costly disruptions.

If you’re still relying on outdated MRP methods, it might be time to rethink your approach. With DDMRP and WA360, a true crossroads between planning and performance.