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THE OUTSIDE-IN PLANNING HANDBOOK | 2023
Defining An Outside-in Planning Process
The goal of an outside-in planning process is simple. The objective is to use market data—both demand and supply — to
opportunity, increases risk, and exacerbates organizational alignment issues. While demand-driven senses and translates channel data to improve the demand
decrease the time to sense and improve the supply chain response—the expected results. The design of outside-in planning processes stretches from market to market (channel to the supplier), driving bi-directionally to improve organizational decision-making. This starkly contrasts inside-out processes that linearly thread through a transactional backbone to consume a time-phased demand forecast. The outside-in journey starts with training and organizational alignment. Alignment builds trust. The organization needs trust to outperform against their peers.
signal, a market-driven value chain drives bi-directional orchestration across source, make, and deliver, focusing on enhancing a balanced scorecard. The shift from a marketing-driven to a market-driven process is a challenging but critical goal for traditional retail and consumer goods companies. In our research, when we ask companies to rate the importance of alignment between organizational functions and the current level of alignment, we find that organizational alignment issues have grown three-fold over the last decade. Issues to alignment gaps between
______________________________ What Focus Drives Supply Chain Excellence? 1. Sales-driven: Alignment to a sales-driven forecast. 2. Marketing-driven: Organizational execution of marketing plans. 3. Budget-driven. The budget defines plans as a constraint. 4. Demand-driven: Ingestion of channel data to improve the demand signal. 5. Market-driven: Plans driven by market signals bidirectionally ______________________________
After defining supply chain excellence, the organization needs to clearly determine each function’s role. A sales-driven supply chain is starkly different than a marketing-driven organization. Similarly, introducing the budget as a constraint minimizes
commercial and operations teams are legacy. During the pandemic, alignment issues between the supply chain group and finance, manufacturing and procurement, transportation, and customer service became more acute.
Figure 6. Organizational Alignment Gaps
79+30+ +91+450+ +64+180+ +76+30+ +67+240+ +64+240+ +73+ 30+ +58+240+ +52+ 10+ +73+420+ +219+ Logistics and Supply Chain Planning Supply Chain Planning & Manufacturing Logistics & Procurement Sales & Supply Chain Planning Finance and Supply Chain Planning Finance and Manufacturing Finance and Procurement Customer Service and Distribution Procurement & Manufacturing Supply Chain Planning & Customer Service 79% 73% 30% 91% 45% 42% 21% 64% 76% 73% 58% 52% 30% 67% 64% 24% 24% 21% 24% 33% 18% Greatest Gaps Between Users & Vendors
9%
Corporate Social Responsibility & Manufacturing
Source: Supply Chain Insights LLC, Analytics Digital Transformation Study Q9. In your opinion, how important is it for each of the following pairs of teams to be aligned within your supply chain? Q10. How aligned do you believe that these same pairs of teams actually are with your company?
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