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THE OUTSIDE-IN PLANNING HANDBOOK | 2023
stale data. In Table 1, we show the reduction in latency with the implementation of outside-in planning. This test was with a durable goods manufacturer.
Data and process latency are problems with a more significant impact during periods of high variability. During the pandemic,
Table 1. Reduction in Supply Chain Latency is Possible with Outside-in Planning Processes
supply chain planners turned off traditional optimization and utilized spreadsheets to make over 90% of decisions. Companies used descriptive analytics and spreadsheet outputs to override conventional planning systems 6 .
The numerous disruptions and fluctuations in demand during the pandemic increased latency. The planning, based on order patterns, was out of step with the market. In an outside-in process, the time to know improves by 85%.
Market Latency
Demand Latency
Process Latency
Inside-out
3-6 months 2-12 weeks 2-6 weeks
Outside-in
1-2 weeks
1-2 Days
1-2 weeks
6 Supply Chain Insights, https://supplychaininsights.com/pandemic-report-temp/, February 2021
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