8
8
THE OUTSIDE-IN PLANNING HANDBOOK | 2023
planning to be an outside-in market-driven process improves Forecast Value Added (FVA) by 10%, removes bias, improves
Then, and only then, will business leaders realize that with the movement from regional to global planning, that the problem
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. As more executive boards drive ESG (Environmental, Social, and Corporate Governmental Policy) improvements, reducing supply chain waste is essential. Making decisions at the speed of markets is core to accomplishing these goals. The shift will take time. Within the industry, technology leaders are pushing solutions to improve the “engines” within existing planning taxonomies without asking, “What is the
changed, but the technology platform did not accommodate the shift. As a result, just updating planning engines is not sufficient. Improvements require rethinking the approach. We must continually redefine the modeling and align metrics to outcomes to drive the industry forward. In the process, the important questions are: • Is the team solving the right problem? • Does the approach help the organization make better decisions? • Do the decisions improve value? • What defines a good plan?
______________________________ A taxonomy is a series of models powered by engines to improve decision-making. In today’s framework, examples of supply chain planning models are Distribution Requirements Planning (DRP), Forecasting, Inventory Management, Production Scheduling, and Transportation Planning (TMS). The consumption and alignment of the outputs, along with the workflow, of multiple models defines the taxonomy. ______________________________
In this report, we start by sharing insights on the current state and follow by sharing an
outside-in approach for supply chain planning and making a case for change. To improve the understanding of the work, we share a glossary of terms in the appendix. We feel that aligning definitions is essential.
problem we need to solve?” . Understanding the inadequacies of the inside-out approach and current taxonomies, becomes clearer as business leaders struggle with results.
Made with FlippingBook - Share PDF online