Top 6 Predictions for Supply Chain Planning in 2021 and Beyond


Over the year, COVID-19 introduced even greater complexity into the already difficult work of supply chain planning–and changed supply chain from a practitioner-focused topic to everyday dinner table conversation. Read our blog on open supply chain platforms.

Revisiting Supply Chain Planning

Logistics Viewpoints

I chose “Revisiting Supply Chain Planning” as the title for this blog post because I believe the phrase captures both the current focus of my research agenda (what I am doing) and the heightened priority SCP has taken on the agenda of many supply chain executives (what practitioners are doing). Earlier this week, I began updating ARC’s Global Supply Chain Planning (SCP) market study, last published in 2013.


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Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

In my work with Supply Chain Insights , I immerse myself in learning. I continually question my long-held beliefs on supply chain excellence. . When readers finish a Supply Chain Shaman blog, I want to drive a set of unique takeaways. Today, I am going to share five insights that I have gleaned from our work on Supply Chain Planning Benchmarking. Figure 1: Supply Chain Planning Benchmarking Methodology Overview.

Top 3 Supply Chain Planning Buzzwords


When it comes to supply chains, certain words seem to be bandied about like the ball at a championship tennis match. Back and forth, over and over, these supply chain buzzwords seem to have an endless lifespan. But are they just creative marketing spin (after all, developing them is kind of part of the job), or is what they stand for actually making a difference in your supply chain planning?

“Digital Transformation” and Supply Chain Planning


Your company has an older supply chain planning (SCP) system of record (SOR) like SAP APO that was developed in the 1990s. You may have added some best-of-breed add-ons for specialized applications such as multi-echelon inventory optimization (MEIO). But it’s clear that this platform is not getting you what you want: a “next generation”, “low touch”, and “not stapled together” planning platform. Stepping up to Connected Planning. Subconscious” planning.

The future of the supply chain planning profession


by Dr. Madhav Durbha It is a great time to be a supply chain planning professional. Advances in processing power, networking, and storage aided by the enduring power of Moore’s law have opened doors for some exciting new developments in supply chain planning. Specifically for planners, the advent of real time planning , ability to process massive amounts of data, and the rise of machine intelligence are all opening up newer challenges and opportunities.

Supply Chain Planning for Direct-To-Consumer


Direct-to-Consumer (DTC) presents special supply chain planning challenges for both smaller microbrands (e.g., eyeglass brand Warby Parker or mattress seller Casper) and much larger consumer goods incumbents, but the planning challenges are different depending on which type of company you are. They need planning competency to get efficient. Counting on the power of their more established brands, they have tuned their big-volume supply chains for efficiency.

Which supply chain planning processes should we automate?


Now that more companies are embracing supply chain planning productivity and automation, many firms are asking which processes they should automate. Gartner says that the attitude towards supply chain planning productivity and automation has changed dramatically. These are areas, they say, that can be run quite autonomously , sometimes known as “low touch planning” or “ algorithmic planning.”. Conscious supply chain planning at the top.

A Shift in Supply Chain Planning Priorities?


but supply chain planning priorities are changing. For several years there has been a commonly held belief that focusing on improving demand forecast accuracy should be a top priority for Chief Supply Chain Officers (CSCOs). Aberdeen’s “CSCO Planning Strategies for 2017: Addressing Demand Volatility” report rated it their #1 challenge: above customer fulfillment demands, rising supply chain costs, and all other pressures (see Figure 1 below).

Supply Chain Planning


Balancing the People, Processes, and Purpose of Supply Chain Planning. To be a leader in supply chain planning is to own a complex system, where you are at the nexus of hundreds, maybe even thousands, of different parties with their own constraints and goals in mind. When engaging in supply chain planning, LeanCor has identified three areas that need to remain in balance: 1) Purpose.

Using Digital Supply Chain Planning to Respond to Market-Changing Disruptions like COVID-19


With supply chain planning software you can automate the achievement of service levels, even under changing constraints resulting from major disruptions. As COVID-19 continues its malevolent spread around the world, concerns grow regarding the continued impact on supply chains and business continuity. Commonly companies will use a “firefighting” response in times of supply chain disruption in order to meet service levels.

Digital Transformation of Supply Chain Planning at SKF


Jörg Schlager describing SKF's Integrated Planning (Source: Optilon). At last week’s TG18 ToolsGroup user event , global bearing manufacturer SKF laid out an impressive review of their transformation to “ Integrated Planning ”. The company is moving from location-based planning to a global planning model, including a complete revamp of its supply chain planning operations to processes organized by product and factory. Inventory planning was local.

Five Things I Have Learned About Global Supply Chain Planning

Supply Chain Shaman

Regional supply chain companies are attempting to define global requirements. They are well versed in requirements for regional supply chain planning, but they are attempting to redefine their processes and be more global. Initially companies believe regional planning systems easily adapt to become global, but they quickly learn otherwise and hit roadblocks. Success in Supply Chain Planning Is a Flip of a Coin. 4) Plan By Design.

Machine intelligence and human creativity in supply chain planning


The book did make me reflect on my own experiences and views on the division of labor between the machines and human supply chain planners. Much has been written and said about how machine intelligence is impacting supply chain planning in the form of automating a human planner’s function, with implications on the future of the profession itself. I would be remiss in stating that automation will have no impact on planning profession.

Supply Chain Planning with Microsoft Dynamics AX


But growth poses supply chain planning (SCP) challenges. This invariably leads to manual interventions and firefighting, as you struggle to manage demand volatility and improve forecast accuracy while dealing with the limitations of a basic supply chain system. For more on this topic, see When SMBs Hit the Inventory Planning Complexity Wall ). Struggling to identifying the right mix of inventory to serve multiple channels (e.g.,

Tips for Getting Executive Buy-in for Supply Chain Planning Software


Are you making an action plan of all the things you could do better and faster with your supply chain planning software when the next global crisis hits? The disruption we’ve seen in supply chain planning as a result of the pandemic is unprecedented. And as companies have learned the hard way, you can’t rely on the traditional planning models you’ve always used to get you through this new reality.

Supply Chain Planning BPO: What’s Driving It and Should You Get On Board?


More and more businesses are hopping on the outsourcing bus and letting the experts take the wheel to drive supply chain planning processes. Several years ago ToolsGroup pioneered business process outsourcing (BPO) as an alternative to in-house supply chain planning (SCP). Now Gartner reports that SCP BPO is gaining traction ( Market Guide for Supply Chain Planning BPO or BPaaS, 29 July 2019 ), particularly in North America and Europe.

Supply chain planning – Does it makes dollars and cents to get it all from one vendor?


Full disclosure: I work for a best-of-breed supply chain planning vendor so I will do my best to take an unbiased approach as I provide my opinions on how to solve the challenges of planning today’s supply chains with all its complexity and volatility. I’ll be honest, it would be great to get everything from one supply chain software vendor. When it comes to planning the supply chain, it’s best if it can be done on one platform.

Supply Chain Planning in Emerging Markets: Four Points to Remember


Supply chain planning in emerging markets is different. He adds, “Often, last-mile distribution costs to rural areas are high and reliability is low, compounded by the lack of visibility of in-transit shipments.” ( Invest in Four Key Capabilities While Developing Your Demand-Driven Supply Chain Strategy for Emerging Markets , 18 September 2017) Let’s take Indonesia, for example. Not knowing how much inventory is at each location.

5 Tips for Supply Chain Planning in a Turbulent Environment


In both cases, planning for the future has become increasingly difficult. It is often during seasons of tremendous uncertainty that … The post 5 Tips for Supply Chain Planning in a Turbulent Environment appeared first on Chainalytics. Almost every company is currently experiencing demand disruption.

How Supply Chain Planning Can Create Profit in a Declining Market


Trends and other market forces that impact commercial opportunities need to appear on the planning radar. Therefore, traditional push-driven supply chains are wholly unfit for this situation. 1] Mohawk sought to profit from the resurgent demand for ‘ analog experiences ’ by owning the fine paper space and transforming its extended supply chain. They also cut inventory levels, grew sales and resolved capacity issues.

2021 : The year of Supply Chain Planning


Could 2020 be the turning point that finally forces professionals and entire industries to reshape their global supply chain model? What are the news trends for Supply Chain Planning in 2021? We could not have predicted 2020, but we can anticipate and plan 2021.

Gartner's Five Stages of Supply Chain Planning Technology Maturity


In any business or trade you need the right tools for the job, and the supply chain business is no different. At every level of supply chain expertise and competitive differentiation you use certain tools, and seek others to move to the next level. He calls this the Scotch tape of supply chain planning. Planning is departmentally focused, with lots of independent decisions. They want higher-fidelity plans. Demand Planning.

Benchmarking Your Supply Chain Planning in 2017


The ToolsGroup customer base of more than 300 companies has allowed us to access a wide array of supply chain planning data for benchmarking in different industries and different circumstances. Overall, we found our consumer goods customers averaging forecast accuracy in the mid-80s (with monthly aggregation) with inventory levels around 25 days and service levels around 98%. We hope that this analysis sheds light on supply chain benchmarking and KPIs.

Supply chain planning – it’s time to get personal


Supply planning – to profitably align supply with demand. When I was planning supply, it wasn’t unusual to have a dinner interrupted, a weekend cut short or a vacation disturbed. It wasn’t a surprise when a supplier shipped late, a machine was suddenly overloaded or a demand planner informed you that you were working off the wrong demand plan. This meant it took too long for supply planners to understand the impact of demand changes.

Gartner releases new Supply Chain Planning Magic Quadrant


Gartner Research just released its new Magic Quadrant for Supply Chain Planning System of Record (SCP SOR). This Magic Quadrant analyzes SCP SORs (the foundational planning layer) that support the “integrate” maturity stage demand and supply planning (Stage 3 in Gartner’s five-stage maturity model). Gartner adds that a Stage 3 planning SOR “is usually distinct and separate from the transactional SOR, which is typically encapsulated in various ERP systems.

How to Attain “Stage 4” Supply Chain Planning Maturity


Gartner has identified five stages of supply chain planning maturity and they say that 70-80% of companies plan to increase their supply chain planning (SCP) technology spend over the next two years to climb to the next level. Stage 3 is where firms coordinate their supply chain processes—shifting concentration from functional capabilities to end-to-end processing for more planning visibility across the wider chain.

Mid-market companies leapfrogging supply chain planning maturity stages


Is the latest technology enabling some mid-market companies to leapfrog supply chain planning (SCP) stages of maturity? Not just analytics, but in planning overall.”. Outsourcing is one way companies are achieving more autonomous light touch planning and skipping a level.”. Inventory and replenishment planning has been reduced from 10 man-days per week to just one. In a word, technology, or more precisely a change in planning technology.

Four Reviews of DDMRP for Supply Chain Planning


In recent months four experts have weighed in on Demand Driven Material Requirements Planning (DDMRP). Lora Cecere of SC Insights was the first of the supply chain expert opinions I saw on DDMRP. She says she believes DDMRP “buffers are only a piece of the answer” and that “forecasting plays a vital role in determining the rules for inventory buffers.” Tim Payne of Gartner sees DDMRP as reflection of increased interest in what Gartner call “Respond Planning”.

Demand-driven supply chain planning in a push business


A question we hear often is “How can I have demand-driven supply chain planning in a push business? To answer the question we propose looking at the supply chain of two seemingly unrelated businesses, fashion companies and poultry producers. It would appear that demand-driven inventory optimization software would have little to say on this matter. And this decision can be optimized through multi-echelon inventory optimization (MEIO).

Is your supply chain planning ready for the “Experience Economy”?


Gartner says, “To guarantee this, the supply chain operating model must change. Supply chains need to deliver new types of customer experiences, and they will do so through virtual ecosystems that are powered by new digital technologies, including artificial intelligence (AI),” says Gartner. Early adopters like Lennox are refining their algorithms and improving planning outcomes over several years already - and they continue to do so.

Retail Supply Chain Planning Best Practices from Frost & Sullivan


Frost & Sullivan has reported its best practices in technology leadership in supply chain management for the Retail and Wholesale Distribution Industry. The global research and consulting organization starts by saying, “Forecasting demand and positioning inventory has become difficult for retailers in a multi-channel environment.” Supply Chain Planning (SCP) built around a single, end-to-end, highly automated and probabilistic model that reduces demand data latency.

The Quick Reference Guide to Supply Chain Planning

Demand Solutions

If your business relies on key supply chain elements to provide products or services, then supply chain management will be one of your key considerations. Intelligent businesses can save millions of dollars per year and build a sustainable competitive advantage through proper supply chain management. This relies on proper planning, and without it, you can’t manage your supply chain properly. What is supply chain planning?

What’s Wrong with Aftermarket Parts Supply Chain Planning?


What’s wrong with aftermarket supply chain planning really has nothing to do with planning, but with management expectations. There is a reoccurring conversation in the parts industry that suggests that demand and distribution in this space is so complex that companies need to settle for less – lower customer service levels, fewer inventory turns, more obsolete or stranded inventory, and ultimately less contribution to corporate profitability.

Conquering the Explosion of Supply Chain Planning Data


This article will discuss the opportunity generated from the explosion of supply chain planning data and the necessity for digital supply chain transformation. Exponential Growth in Supply Chain Data. In the middle 1990s, the supply chain was fairly linear with most planning data originating from a legacy or ERP system. Today, supply chains are complex and anything but linear with significantly more data streams to consider.