The COVID-19 pandemic has exposed how vulnerable supply chains are to disruptions and volatility and the need for better demand planning and sensing, according to latest Hot Topics publication from the Council of Supply Chain Management Professionals’ (CSCMP). In “Smarter supply chains for an unpredictable world,” the IBM Institute for Business Value argues that the first step to better navigating disruptions is to implement what they call “continuous intelligent planning.”
This approach combines the concepts of integrated business planning and continuous improvement while also making the planning process “more intelligent” by using automation and artificial intelligence capabilities. Under this model, companies would utilize control tower solutions to help create greater supply chain visibility and AI capabilities to analyze that real-time data and discover and resolve potential disruptions.
The authors conclude by recommending four best practices that can help companies make the transition to continuous intelligent planning:
- 1. Automate your planning process and then use the time saved from automation to focus on fine-tuning planning models for your industry and organization.
- 2. Establish a center of excellence to build a framework to help govern the process, people, and tools needed to improve the entire planning cycle.
- 3. Leverage a visibility control tower that will gather all relevant data—organizational supply chain and enterprise data, external data (such as weather, news, and social media reports), and partner data—to proactively monitor and manage disruptions.
- 4. Engage a modern planning architecture that incorporates real-time demand sensing, production planning, and inventory allocation.
Hot Topics are available to download by visiting cscmp.org, clicking on the “Develop” tab, and selecting “Hot Topics.” You can search for “Smarter supply chains for an unpredictable world” and purchase for immediate download (CSCMP members receive Hot Topics publications for free).
