How a radically different approach to supply chain yields vastly improved results.
By One Network Enterprises
June 08, 2017
One Network has delivered and continues to enhance and develop an approach to supply chain planning that we believe corresponds closely to what leading analysts, thought-leaders, and technology visionaries predict will become the new standard.
In particular we agree with the observation that hierarchical and serial planning (where broad aggregate planning is done up-front) is at best insufficient and at worst misleading.
The problems with the traditional hierarchical planning approaches are several:
- Planning is done at a broad aggregate level. However, ‘reality’ is much more detailed and real problems occur at the detailed level. (e.g. Product Family planning vs. Single item-at-a-single-location planning)
- Planning is done over a long time horizon. However, reality is constantly changing and many if not most of the assumptions made are invalidated by the time ‘now’ shows up.
The reason why planners spend most of their time in spreadsheets doing low value-added work is because their planning tools don’t help them with the here-and-now.
As a result they are forced to make-do which typically involves a lot of spreadsheets, emails, and calling back-and-forth.
What is needed is a framework that supports near-term execution as well long-range-planning.
However, near-term execution requires an entirely different conceptual as well as architectural approach.