17 THE OUTSIDE-IN PLANNING HANDBOOK | 2023
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______________________________ MOVING TO FLOW:
Outside-in processes aim to drive cross- functional collaboration on demand and supply decisions and move the organization to business-led decision-making. While many well-intended data scientists attempt to improve outcomes through better math, the answer lies in better mapping and managing demand flows and rethinking taxonomies. The redefinition needs to precede planning engine redefinition. Today’s taxonomies reinforce functional optimization and do not enable cross-functional collaboration and decision-making. The first step in moving to an outside- in process is to type demand flows and understand the barriers and enablers for each stream. With advances in Web 2.0 technologies and schema on read,
companies can drive substantial improvement through NoSQL to create a real-time perpetual inventory signal to align Available to Promise (ATP) and allocation strategies at the speed of business. In addition, an ontological semantic engine coupled with a knowledge graph can automate rules and policies to monitor planning streams and connect optimization more effectively. However, embracing these changes requires rethinking architectures. Today, there is no way to effectively connect optimization outputs to rules and policies.
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Identify demand streams.
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Map supply streams and understand constraints.
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Align rules and policies based on flow. Define a feasible plan.
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Design bi-directional orchestration levers.
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Minimize the obstacles-rocks, eddies, and barriers. Design supply flows based on market drivers, variability, and modulating demand flow.
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Build collaboration processes for demand.
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Identify the constraints for make, source and deliver. Build a planning master data layer to align planning engines to market data. ______________________________
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Figure 5. As-Is Flow for the River of Demand for New Product Launch for a Food Company
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