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THE OUTSIDE-IN PLANNING HANDBOOK | 2023
Getting Started
Moving forward requires courage and organizational enlightenment. To drive change, follow the steps in this handbook. 1. Define Supply Chain Excellence. Train the team on supply chain definitions of efficiency, responsiveness, and agility. Type your product flows. 2. Build a Balanced Scorecard. Align the definition of supply chain excellence to a balanced scorecard. 3. Redefine Work. Define the roles of the organization in the definition of
8. Take a Hard Look at S&OP. Evaluate the current S&OP processes based on the factors in this report. 9. Layer Network Design Modeling as Part of S&OP. Model the design of buffers and push-pull decoupling points monthly as input into S&OP. Implement this as a monthly process. 10. Sense Demand and Supply Flows. Build an outside-in knowledge graph to sense demand and supply streams. Align policy and rules to the streams.
______________________________ WATCHOUTS:
Get clear on definitions. Don’t confuse engines and models. Most of the market is selling new engines, but are unwilling to test new models. Drive a cross-functional coalition for change. Train. Test. Evolve. Don’t approach this as a project with a well-defined ROI. On the journey, recognize that data does not have to be perfect. _____________________________
11. Inform and Align Models. Build a planning master data layer to improve outcomes. Use market data for lead time, conversion, and material availability in each planning run. 12. Evolve. After completing the first ten tasks, begin the search for a new technology, realizing that the current definition of supply chain planning is outdated.
forecasting, budgeting, and inventory management. Get clear on the differences between marketing-driven and market-driven. 4. Map Demand Latency. Understand the latency of all market data and the order latency by channel. Latency
increases lethargy. Identify it, remove the process barriers
13. Be Open to the Outcome. Listen to data patterns without bias. 14. Get Clear on the Role of the Budget and ERP. The financial budget is an input to planning but should never be a constraint. ERP is the transactional system of
Table 11. Degree of Difficulty
and measure latency to improve performance. 5. Understand the Current
Difficulty in Implementation
Task
1
Getting data. Cleaning and harmonizing the data sets.
State. Measure Forecast Value Added (FVA) and the bullwhip in current processes. Build a planning master data
2 3
Defining the model.
4
Testing the model.
layer to inform and align supply engines/models. 6. Build a Balanced Scorecard. The mission matters. Learn the art and science of balanced business trade-offs. Align bonus structures to allow the team to win. 7. Tackle Inventory Management. Measure inventory effectiveness and set goals for the form and function of inventory. 5
record but should never be the backbone of the supply chain planning taxonomy. 15. Take on the Change Management Journey. When asked, one participant in the test ranked the difficulty of the testing elements on a scale of 1-5, with five being the most difficult. Organizational change management.
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