31 THE OUTSIDE-IN PLANNING HANDBOOK | 2023
31
Driving Change in the Technology Market
Technologists compete fiercely with each other, and business leaders blindly adopt the existing definitions of planning. Most of the discussions center on improving engines versus improving workflow. These cycles perpetuate the current state. As new forms of analytics evolve, the definition of supply chain planning remains rooted in history despite the explosion technology capabilities including the explosion of market data,
4. S&OP Playbook Execution: Translation of S&OP plans into playbooks to rationalize tactical and operational planning horizons. 5. Market-driven Demand Management: The broadcasting of demand flows by roles across the supply chain with visibility of demand and market latency, bullwhip impact, and Forecast Value Added (FVA) by role. 6. Demand Visibility: A collaborative
the promise of NoSQL with ontological learning, and graph databases. One of the issues is that the pandemic fueled spending in existing supply chain planning investments. For technologists, this is a quandary, “Why invest in a platform that the market is not asking for?” The mounting frustration with supply chain planning from Enterprise Resource Planning (ERP) technologies like Infor, Oracle, and SAP leaves many buyers seeking a new solution. This is especially acute for SAP
______________________________ “We see value in outside-in planning, but testing each area outlined in this report requires a large effort between technology and business leaders. The reality is that we see customers having shorter-term and simpler priorities. The key is to raise awareness with business leaders on the value of the outside-in approach.”
what-if analysis layer to allow business leaders to analyze demand flows based on shifts in product mix, demand shaping programs, and the changing market response. 7. Procurement Buyer Workbench: The translation of demand flows and bi-directional orchestration for the procurement buy plan in the tactical planning horizon.
Technology Leader
______________________________
users facing the discontinuance of SAP APO and the evolution to SAP IBP. As a result, expect the most significant market impact in the evolution of outside-in supply chain planning processes to come from new entrants. Outside-in processes are a step change outdating technologists’ current offering. The market opportunity is for technologists to refine existing taxonomies and platforms to redefine planning: 1. Planning Master Data: A data layer to define and align market signals to define planning parameters to ensure all optimization engines align based on market shifts. 2. Unified Planning Data Model: A NoSQL layer to harmonize the differences between different planning models. The NoSQL layers enable the production of a real-time inventory signal to better manage the trade-offs of Available to Promise (ATP) and Allocation. 3. Form and Function of Inventory: A solution to recommend the form of inventory to be held at what level based on demand and supply variation.
8. Revenue Management Effectiveness (Test & Learn): Demand Shifting Versus Shaping/ Balanced Scorecard Impact. Continual analysis of baseline demand and making shifts in demand shaping based on lifts in baseline demand. 9. Bullwhip Monitor: Measure the impact of the bullwhip effect and minimize distortion. 10. Bi-directional Orchestration: Trade-offs across deliver, make, and source based on well-defined bi-directional orchestration levers in the tactical and operational planning horizon based on market shifts. As a result, business leaders should approach the work on outside-in processes as a joint development project with technologists. While the leaders in testing—Kinaxis, o9, and OMP each have pieces of the solution, no company has stepped forward to market and sell an outside-in platform to business leaders.
Made with FlippingBook - Share PDF online