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Supply Chain planning solutions – for automation or agility?
Many companies are currently in the process of implementing sophisticated Supply Chain planning solutions. When I ask their teams about its intended benefits, they often mention streamlined production planning, raw material ordering, finished goods dispatches. These answers point to automating the current processes in the new tool, possibly with a few minor improvements.
If the purpose of implementing these advanced planning solutions is to just automate the current processes, the benefits will also be just marginal, mostly in terms of reduction in manual working.
My suggestion is to use these planning solutions to improve agility of the entire end-to-end supply chain, thereby improving customer service levels and offering fresher products to consumers through reduced system inventory. This would require tweaking various underlying processes as well as system parameters.
Would love to hear your thoughts…