DRP

Term from Distribution Logistics industry explained for recruiters

DRP (Distribution Requirements Planning) is a business planning system that helps companies manage their product distribution more efficiently. Think of it as a smart planning tool that figures out what products need to be where and when, helping to keep the right amount of inventory in warehouses and stores. It's like having a detailed schedule that coordinates moving products from manufacturers to different locations while avoiding having too much or too little stock. Similar systems include Demand Planning or Inventory Optimization tools. Companies use DRP to save money on storage costs and make sure products are available when customers want them.

Examples in Resumes

Implemented DRP system resulting in 30% reduction in inventory costs

Managed regional Distribution Requirements Planning operations for 12 warehouses

Led team responsible for DRP software implementation and staff training

Typical job title: "Distribution Planners"

Also try searching for:

Supply Chain Planner Distribution Manager Inventory Planning Manager Supply Chain Analyst Logistics Coordinator Distribution Planning Specialist

Example Interview Questions

Senior Level Questions

Q: How would you handle a situation where actual demand significantly differs from forecasted demand?

Expected Answer: A senior planner should discuss creating contingency plans, adjusting safety stock levels, coordinating with suppliers and transportation teams, and using data analysis to understand the cause of the variance.

Q: What strategies have you implemented to reduce distribution costs while maintaining service levels?

Expected Answer: Should explain practical examples of optimizing warehouse locations, improving inventory turns, negotiating carrier rates, and using technology to improve efficiency.

Mid Level Questions

Q: How do you determine appropriate safety stock levels across different locations?

Expected Answer: Should discuss factors like lead time, demand variability, service level targets, and seasonal patterns that influence safety stock decisions.

Q: Explain how you would coordinate DRP with other business functions like purchasing and sales?

Expected Answer: Should describe communication processes, shared planning meetings, and how to balance different department needs while maintaining efficient distribution.

Junior Level Questions

Q: What are the basic components of a DRP system?

Expected Answer: Should mention inventory tracking, demand forecasting, order scheduling, and basic reporting capabilities.

Q: How do you calculate basic inventory requirements?

Expected Answer: Should be able to explain simple calculations for order quantities, reorder points, and lead times.

Experience Level Indicators

Junior (0-2 years)

  • Basic inventory management concepts
  • Understanding of supply chain terminology
  • Experience with spreadsheets and basic reporting
  • Familiarity with warehouse operations

Mid (2-5 years)

  • DRP software system operation
  • Inventory optimization techniques
  • Demand forecasting
  • Transportation planning

Senior (5+ years)

  • Strategic distribution network planning
  • Multi-site coordination
  • Budget management
  • Team leadership and project management

Red Flags to Watch For

  • No understanding of basic inventory management principles
  • Lack of experience with distribution planning software
  • Poor analytical or problem-solving skills
  • No knowledge of transportation and warehousing operations