Introduction:
Supply chain management has evolved significantly in recent years. Many businesses used to rely solely on enterprise resource planning (ERP) systems for collaboration and data tracking. Today, some still use a mix of spreadsheets and ERP, while others have adopted cloud-based planning platforms. However, this mix can get messy and raise more questions than answers.
Critical Questions:
1. Are forecast numbers regularly updated and shared with key stakeholders like sales, finance, and operations?
2. Can we trust that inventory data from previous spreadsheet versions is accurately transferred to the latest one?
3. How do we handle disruptions like natural disasters or labor issues in the supply chain?
Without connectivity, these questions go unanswered. In a changing landscape, slow and isolated supply chain planning is risky. In this article, we'll explain supply chain management, explore areas of transformation, and provide five tips for building a connected supply chain planning system.
Understanding Supply Chain Planning:
Supply chain planning involves taking a product from raw materials to the consumer. It includes supply planning, production planning, demand planning, and sales and operations planning (S&OP).
Supply Planning: This focuses on meeting demand while achieving financial and service goals.
Production Planning: It allocates resources like employees, materials, and production capacity.
Demand Planning: This forecasts consumer demand to ensure reliable product delivery, improving revenue forecasts, inventory management, and profitability.
S&OP: A monthly process aligning sales, marketing, demand, production, and inventory management.
The Digital Supply Chain Revolution:
In today's supply chain world, innovation centers on understanding consumer needs. It's vital to unlearn old rules and embrace new ones. Digital supply chain transformation involves building new business models.
Wayfair, an internet retailer, achieved substantial time savings in planning by implementing autonomous supply chain planning. If you want to know more about this case study read it up on the article on our website.
Achieving Connected Supply Chain Planning:
To succeed in the global market, adapting to the digital revolution is essential. Here are five steps:
1. Real-Time Planning: Instead of relying solely on historical data, use real-time connected supply chain management solutions like Anaplan. These enable "what-if" scenario planning for better preparation against disruptions.
2. Unify Planning: Connect supply chain planning with sales, operations, and financial planning. Real-time S&OP solutions allow enterprise-wide collaboration, helping stakeholders make informed decisions during unforeseen events.
3. Anticipate Customer Demand: For retail supply chains, predicting customer preferences is challenging. Solutions like Anaplan provide visibility across the supply chain, allowing you to sense changing demand signals and adapt for better profitability.
4. Leverage Real-Time Data: Supply chain planning involves many elements, making models complex, especially when using spreadsheets. Real-time data integration improves accuracy and reduces stockouts or overstock situations.
5. Adapt to Change: Technology that enables efficient planning and quick responses to disruptions saves time and money, increasing profitability.
Embracing Disruptive Technologies:
Blockchain, artificial intelligence, and machine learning are gaining attention in supply chain management. They offer benefits like smart contracts, ethics, sustainability, security, traceability, and efficiency. With Hyperblock by Anaplan, we can get the benefits of GenAI without investing in inhouse AI for scenario planning.
Benefits of Connected supply chain management include improved inventory management, enhanced order fulfilment, better collaboration with suppliers, and minimized operating costs. If you're interested in building a more resilient supply chain network, read up on the blog here.
Conclusion:
To thrive in the digital age, companies must move away from outdated ERP systems and spreadsheet-driven planning. By following these steps, organizations can connect their supply chain planning processes, collaborate effectively, adapt swiftly, and achieve lower costs and increased efficiency. Agility, connectivity, and integrating emerging technologies are the future of supply chain management for retail leaders.
At Polestar Solutions, we specialize in data analytics and Enterprise Performance Management (EPM) solutions, including advanced supply chain planning with Anaplan. In light of the insights shared above, we are committed to helping businesses across the entire supply chain ecosystem, from manufacturers to retailers, enhance their resilience and efficiency.
Our expertise and solutions are designed to empower organizations to navigate uncertainties, adapt to disruptions, and proactively align supply chain effectiveness with efficiency. In today's dynamic and unpredictable business landscape, this proactive approach is not just an option but a necessity.
Partner with Polestar Solutions to harness the latest trends, research, and insights in supply chain planning, inventory optimization, and demand forecasting. Together, we can create maximum value for your business and ensure a more resilient and agile supply chain.
Take the first step towards a more robust and adaptable supply chain by reaching out to us today.