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THE OUTSIDE-IN PLANNING HANDBOOK | 2023
Conclusion
The building of outside-in processes offers great promise for the organization to sense and adapt. In the face of increasing variability, this grows in importance. The most significant barrier is unlearning conventional planning concepts to be open to new outcomes from outside-in planning. A second obstacle is the lack of understanding of the potential of new forms of analytics in the industry. The key is to redesign the model and the process to improve work. A frequent mistake is to use more advanced analytics in traditional advanced planning architectures, which has minimal value. The third obstacle is redesigning work to drive self-service by business leaders while moving the current planning role to one of orchestration. The shift from inside-out to outside-in processes is not an evolution. Instead, it is a step change requiring the redefinition of supply chain planning technologies and processes. The opportunity is to improve the demand signal, decreasing demand latency and the bullwhip effect while democratizing
planning and redefining work. The lack of fit of today’s technologies resulted in the creation of large teams of planners, both inefficient and often self-serving. As business leaders begin the journey, don’t stop with demand. Drive bi-directional orchestration across demand and supply processes to enable trade-offs and improve the feasible plan. The potential of an outside-in planning process looms large. The redefinition of supply chain planning to be an outside-in market-driven process improves Forecast Value Added (FVA) by 10%, removes bias, improves the time to know by 150%, and decreases the bullwhip by at least 50%. In the research, we find that the deployment of an outside-in model always beats an inside-out model, reducing process and data latency while improving the organization’s ability to make decisions at the speed of business. The impact is better fulfillment with lower costs, less waste and the right inventory to power growth.
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