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Supply Chain planning and execution – sequential or concurrent?
Supply Chains have evolved in a way that planning and execution are often seen as sequential activities. It served us well during times of relatively stable demand, poor availability of actual demand data, low computational power, and limitations of statistical time series models.
The evolution continues, the limitations are now behind us. We can establish fast feedback loops in the system to give us timely feedback on how our plans are working. We can course correct our actions on daily basis.
These agile processes of continuous demand sensing, execution tracking, and fast feedback loops have now made planning and execution as concurrent processes instead of sequential. Planning learns from actual demand patterns, actual execution of its plan, and tweaks the near future plans accordingly.
CPG companies have already moved to daily update of their plans. Quick Commerce companies have moved to hourly updates.
What’s holding you back?