.png)
Working in supply chain has never been simple. But with global forces at play like COVID, trade wars, sustainability regulations and more, the past decade or so has really pushed the industry to the limit, with age-old supply chain challenges like data silos, unpredictability, and collaboration crying out for an answer.
Fortunately, certain leaders in supply chain are finding new ways to tackle established challenges. That’s what I covered recently in a conversation with Colin Kessinger, formerly Managing Director at End to End Analytics, and Pam Hart, SVP Strategy, Insights & Technology at New Balance.
1. Getting demand forecasting right makes everything else easier
Getting an accurate demand forecast is critical - demand flows into supply, into inventory management, and so on. If your early signals on demand aren’t accurate, that spells disaster for the rest of your plans.
At New Balance, Pam is leading a focused effort on integrated data strategy, ensuring that all their different data sources are linked together, while also bringing in external data that might influence demand.
As a global organization, it’s also critical that each region uses consistent methodologies to deliver their demand plans - and that’s not possible without integrated data, and integrated processes.
2. Make plans for your plans
A lot of companies have grown up fast. When that happens, there can often be a lot of decentralization - which is natural and understandable, but it’s bad news for good planning. When you’re bringing in new technology, consider carefully whether it needs to be integrated at a global or a regional level.
Companies like New Balance are thinking about the processes and capabilities they’ll require from merchandise financial planning, financial planning, and supply chain planning in 5-10 years. If those plans aren’t all connected, you’ll be left in a state of chaos as different departments pull the organization in different directions.
3. Make ‘trust, but verify’ your new mantra
As the industry changes, the role of ‘demand planner’ is shifting more towards ‘demand analyst.’ With the rise of AI, we’re going to move from machines assisting humans to humans assisting machines. Roles are changing rapidly, and both Pam and Colin spoke at length about the importance of strong change management policy.
AI holds enormous potential, but for it to work at your organization, the workforce needs to understand how it works, rather than seeing it as a black box. The reason for this is that effective AI implementations require a ‘trust, but verify’ policy. When users see AI as a black box, they can get stuck on the ‘verify’ part - endlessly second guessing the results because it’s impossible to trust something you don’t understand.
4. Use scenario planning to prepare for anything
Logistics over the past 4-5 years have been harder to predict and manage than most people in the industry have ever seen. In the US, we saw port strikes on both coasts. In situations like that, it’s critical that you have a plan A, B, C, D, and so on.
If you don’t understand how you’re going to change shipping lanes for example, and you’re delayed while you figure that out, the chances are they’re going to be filled and you’ll be left high and dry. That’s why scenario planning is a must - it allows you to gameplan for every type of disruption, so that when they hit you can move decisively and fast.
But to do that, you need tools that are going to support this new way of working - it’s just not possible when you’re dealing with hundreds of Excel spreadsheets.
Next steps
If you’d like to watch the full discussion, the webinar is available on demand here.
To read more about Pigment’s supply chain offering, click here.
To join the next live tour of Pigment for supply chain, click here.
