Over the past few years, there has been a significant revolution in supply chain management. Enterprise resource planning (ERP) systems were predominantly utilised by businesses in the past for data tracking and communication across the board.
Today, some businesses use a combination of spreadsheets and ERP systems to manage their planning, while others employ cloud-based platforms.
But this quickly becomes jumbled, unconnected, and untidy. This strategy quickly generates more questions than it does answers.
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Are projection data updated and distributed around the company to the appropriate parties, such as those in sales, finance, and operations?
Are inventory figures from earlier spreadsheet iterations correctly put into the current one?
What should you do when supply chain interruptions like natural catastrophes and labour disputes occur?
These issues are left unresolved in the absence of a connection. Additionally, you cannot afford to advance with a sluggish, Anaplan supply chain solution planning system in light of the waves of change that are currently sweeping across the supply chain management industry. Let's define supply chain management first, then discuss some important aspects of supply chain transformation, and finally, discuss five suggestions for creating integrated supply chain planning.
What is the procedure for supply chain planning?
The process of organising a product from its basic materials to its end user is known as supply chain planning. Demand planning, sales and operations planning, supply planning, production planning, and demand planning are all included.
The demand plan produces demands, and supply planning determines how to effectively meet those requests. Supply and demand must be balanced in order for the firm to meet its financial and service goals.
The production and manufacturing departments of a corporation are covered by production planning. It takes into account how resources are distributed among workers, materials, and manufacturing capability.
Demand planning is the practise of predicting demand to ensure that goods can be delivered in a reliable manner. A successful demand planning strategy can increase the accuracy of revenue predictions, match inventory levels to demand peaks and troughs, and increase the profitability of a specific channel or product.
Sales and operations planning (S&OP) is a monthly integrated business management process that enables leadership to concentrate on important supply chain drivers such as sales, marketing, demand management, production, inventory management, and the launch of new products.
The revolution in the digital supply chain has already begun.
Marc Engel Global, Chief Supply Chain Officer of Unilever, shared this message at the Gartner Supply Chain Executive Conference in London: "Innovation is not about machines; it's about asking 'what do people want?'" These are consumers, according to supply chain experts. Innovation in supply chain systems must be centred on the needs of the consumer to effectively meet those needs.
The "people transformation" in the Anaplan for supply chain digital revolution is a major obstacle. It's important to define the new rules and unlearn the old ones. It entails stating that "we'll only take actions that will benefit customers, not only for the sake of efficiency." Gartner's perspective, which highlights that digital transformation is more than merely digital optimization, was delivered by Mike Burkett. Building new business models is the main focus of digital supply chain transformation.
How to plan an integrated supply chain
You must effectively adapt to the digital revolution and look out doable ways to connect your supply chain planning from beginning to end if you want to succeed in the expanding global market. We suggest the following five steps for achieving linked supply chain planning.
1. Switch to real-time supply chain management
Companies frequently rely solely on historical data when utilising spreadsheets and ERP systems for planning, leaving little room for adjustment should supply or demand interruptions arise. For instance, a business can predict how many products it will sell in the upcoming quarter using data from the prior year.
2. Integrate enterprise planning and supply chain planning
The integration of historically separate sales, operations, and financial planning with supply chain planning is a crucial second stage. Businesses can gain from coordinating their short-term operational planning with their longer-term business planning procedures to update supply and demand projections in real-time.
3. Consider the demands of the final consumer.
Companies that manufacture consumer packaged goods face a constant problem in predicting what customers will want and when they will want it. In addition to their current network of wholesalers and retailers, a solution like Anaplan enables end-to-end visibility across the supply chain and the ability to detect demand signals from customers.
For a new supply chain, a new supply chain planner
New processes and technologies need the use of supply chain leaders with new skill sets. They need to combine technical and business expertise with teamwork and communication abilities if they want to pave the path for a transformational future.
Because supply chain projects frequently span beyond business divisions, it is crucial to have the skills to influence department executives that collaborate with the supply chain analytics as well as the ability to communicate intelligently with leaders throughout the organisation. Strong business acumen is also essential because speaking the same language as your colleagues in sales, marketing, and finance will make working with them easier.
The successful supply chain manager of the future is computer aware and at ease working with the "machine" world. According to some, managers who use AI will take the role of managers who don't, not artificial intelligence.
This demonstrates the change in the supply chain: both technology and humanity are necessary. Additionally, this leader is a storyteller who can sift through the numerous layers of the supply chain to identify the problems and construct the ideal narrative to address them.
Are you prepared to expand your supply chain's capabilities beyond those imposed by old ERP software and spreadsheets?
You'll be prepared to communicate across the company, swiftly respond to market changes, and profit from lower costs and better efficiency by successfully embracing the supply chain digital revolution and following the steps to linked supply chain planning outlined above.
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