The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
The traditional image of a supply “chain,” a linear progression of links, is no longer adequate in today’s dynamic omnichannel world. The digital age has transformed commerce, creating a complex web of interconnected processes, channels and customer interactions. To thrive in this environment, supply chains need a new approach: unified planning.
The linear model of manufacturer-warehouse-store is obsolete. E-commerce, mobile shopping and diverse fulfillment options like buy online, pick up in-store (BOPIS) have created a multifaceted ecosystem. Traditional supply chain solutions, designed for a simpler era, struggle to keep pace.
Unified planning recognizes the interdependence of various supply chain functions. Inventory, transportation, warehousing and labor are no longer isolated silos but interconnected parts of a dynamic whole. Decisions made in one area have ripple effects across the entire system. An inventory planner delaying peak season stock to minimize storage costs might inadvertently trigger higher labor costs for rushed processing upon arrival. Similarly, minimizing inventory while relying on reactive shipping to meet demand spikes can lead to inflated transportation expenses.
Unified planning breaks down these silos, fostering collaboration and alignment across departments. It empowers planners with an enterprise-wide view, enabling them to make decisions that optimize the total landed cost – the complete expense of getting a product from origin to the customer’s hands.
Technology is the cornerstone of unified planning. Solutions like Manhattan Active Supply Chain Planning provide the digital tools to centralize data by aggregating information from various sources for a holistic view of the supply chain. This also facilitates collaboration, enabling cross-functional teams to work together, sharing data and insights in real time. It further supports scenario modeling, evaluating different planning options and their potential impact on various aspects of the supply chain, and it optimizes decisions. The system makes informed decisions that balance costs, service levels and risk across all functions.
While technology is essential, the human element remains crucial. The technology needs humans to program it, provide it with the queries to solve and implement its structures. Unified planning requires a shift in mindset, embracing collaboration, data-driven decision-making and continuous learning. Unified planning is not just a technological upgrade; it’s a fundamental shift in how supply chains operate.
The benefits of unified planning are significant. First, it increases efficiency through optimized processes, reduced waste and improved resource utilization. It also enhances agility as it provides the ability to adapt quickly to changing demand, disruptions and market conditions. In a world of customers with ever-increasing expectations, it improves customer satisfaction as it provides the customer with on-time deliveries, product availability and a seamless omnichannel experience. And it finally provides greater profitability through reduced costs, increased revenue and improved overall financial performance.
Unified planning is no longer a luxury but a necessity for businesses to thrive in the digital age. By embracing this approach, companies can orchestrate the complex symphony of their supply chains, creating a harmonious and efficient flow of goods that delights customers and drives sustainable growth. It requires a commitment to technology, collaboration and a continuous pursuit of improvement, but the rewards are substantial: a supply chain that is truly fit for the future.
Look for more articles from me every week on FreightWaves.com.
About the author
Strategic Adviser
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.
The post Modern supply chain management requires new planning approach appeared first on FreightWaves.
