What Is Demand-Driven Material Requirements Planning and How Does It Help Cash?

Why It Matters

Adopting DDMRP and AI‑driven forecasting lets banks cut cash‑handling costs, boost service reliability, and accelerate digital adoption in cash‑dependent economies.

Key Takeaways

• DDMRP uses dynamic buffers to optimize cash inventory levels
• Machine learning on SageMaker forecasts next‑day cash demand accurately
• Capitec increased cash throughput while reducing cash in circulation
• Cash remains vital in South Africa due to low digital literacy
• Omni‑channel strategy links app transfers with traditional cash services

Summary

At the Diebold Nixdorf Intersect 2026 event, Capitec executives Danie Van Den Berg and Shalima Adam explained how the bank is applying demand‑driven material requirements planning (DDMRP) to its cash supply chain. By replacing static forecasts with dynamic buffers that factor demand variability, lead times and short‑term indicators, the model continuously recalibrates optimal cash levels in ATMs and vaults.

The solution combines DDMRP with a machine‑learning engine built on Amazon SageMaker, which ingests historic transaction data to predict next‑day cash needs. Capitec reports that this approach has lifted cash‑throughput volumes while cutting the amount of cash in circulation, delivering significant cost efficiencies and faster response to market demand.

Danie highlighted South Africa’s fast‑moving cash environment and low digital literacy, noting that cash still changes hands multiple times before reaching banks. Shalima added that 18 million of Capitec’s 26 million customers rely on cash, especially in the informal sector, and that the omni‑channel strategy lets users send cash via the app while preserving traditional cash services.

For banks, the takeaway is clear: modernizing cash operations with DDMRP and AI can reduce inventory costs, improve service levels, and encourage gradual migration toward digital payments, all while respecting the enduring demand for physical cash in emerging markets.

Original Description

Joining FinextraTV at the Diebold Nixdorf Intersect event in Cannes, Shalima Adam and Danie Van Den Berg spoke about DDRP (Demand Driven Requirements Planning) and it's benefits for cash usage and efficiency. Adam and Van Den Berg help to define what the term means and why they see it as a sustainable and effective approach to an inclusive aspect of banking that helps protect its existence without threatening bank cash flow.

00:00 - 00:38 - Introduction

00:38 - 02:45 - DDMRP - What is it?

02:45 - 04:00 - Cash Modernisation

04:00 - 06:52 - Cash Popularity

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