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Planning still a required skill  or is it dead?

As Supply Chain systems become ever more responsive, the capability to build a real time tool that l...

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Posted by Dave Food on May 17, 2016 6:00:00 AM
Dave Food

As Supply Chain systems become ever more responsive, the capability to build a real time tool that looks up and down your extended supply chain is quite possible. End to end value chains (E2open), End to end Logistics networks (OneNetwork and GTNexus) or real time point views of a single location (Kinaxis) that gives you a real time view of the status of your demand and supply. Gartner seems to be calling this rapid plan, or rapid replan, for some vendors the phrase is rapid resolution, the basic principle is you have a real time view of the state of your supply and demand that allows you to understand future shortfall and future surplus. Maybe under the banner of NRE (Network Requirements Execution).

Planning still a required skill - or is it dead?

Whats interesting is that there are experts who are suggesting this could replace planning!

In my humble opinion, its focusing on the the wrong thing, NRE tools are scheduling and education tools, at best short term re-planning tools that respond to net change to correct and resolve. Which means your network will follow the signals coming from your locations.

Planning tools enable you to set out intention with assumptions and contingency, which you can then execute against, just because we can run our supply chains with less and less planning does not mean that we should.

Getting a plan right sets the company off in the right direction to fulfill strategy and expectation, if we just follow the trends then how can companies be masters of their future destiny.

We need excellent planning processes (such as ToolsGroup) that set forth strategy, covering demand uncertainty, supplier contingency, inventory considerations and financial perspectives that will enable businesses to fulfill their intended goals and objectives, delivering profit and shareholder value back to the stakeholders. 

 

Dave Food 

 

Prophetic Technology

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