The 3 key points for navigating uncertain supply chain waters

Industrial companies face a challenging landscape where supply chains are buffeted by both transient and enduring forces. Geopolitical instabilities, fluctuating demands, climate change, evolving consumer habits, and resource scarcity are just a few of the factors contributing to an environment of heightened uncertainty. To stay afloat and thrive, these companies must urgently enhance their capacity for mid-term foresight and short-term adaptability. This calls for a transition towards planning that is not only robust, agile, and efficient but also supported by modern tools. New technologies represent a real opportunity for industrial companies, provided that their use is part of a comprehensive approach that serves clear strategic ambitions. Here, we propose to detail three key points to make supply chain planning a means to achieve strategic objectives in a context of high uncertainty. 

Strategic alignment 

The first step in this journey is the alignment of long, medium, and short-term planning decisions. This is no small feat, as it requires a delicate balance between maintaining consistency and allowing for flexibility. The key lies in implementing IT interfaces to provide a unified view of reality, ensuring that decisions are made with a comprehensive understanding of the company's position across various time horizons. Simultaneously, integrating demand management, supply planning, and scheduling modules is crucial to achieve end-to-end supply chain planning. This integration ensures that each level of planning, from long-range strategic decisions to day-to-day scheduling, is aligned and informed by the other. 

Companies must also engage in a convergence of business perspectives, bringing together different viewpoints within the organization. This involves multifactorial analysis that takes into account demand forecasts, resources and storage capacity, component availability, and inventory targets to name a few. It's about seeing the big picture while also appreciating the details. The processes of Sales and Operations Planning (S&OP) and Sales and Operations Execution (S&OE) are instrumental in this regard. They provide a framework for aligning sales, production, and supply chain strategies, ensuring a cohesive approach across different organizational levels. These frameworks should materialize in suitable planning tools for informed decision-making at tactical and strategic levels. 

Anticipation and proactivity 

The second major area of focus is proactive event anticipation. This requires a shift from reactive to predictive modes of operation. Companies must rely on advanced statistical forecast models and use Machine Learning based models trained on appropriate internal and external variables. These predictive approaches are complemented by what-is scenarios. By creating, modifying, and sharing various demand and supply planning scenarios, companies can explore a range of possibilities and prepare for different futures. Comparing these scenarios and assessing their robustness against unexpected events enables companies to identify the most resilient planning approach. 

Continuous adaptation 

Finally, continuous adaptation is crucial in today's dynamic environment. Companies must be able to simulate and measure the impacts of changes in real-time, constantly comparing scenarios to make the most informed decisions. This necessitates automated decision support systems that can process data quickly and model various constraints and optimization criteria. But it's not just about the systems; it's also about the people. Encouraging collaboration, sharing scenarios, and keeping stakeholders informed through notifications and comments on plan changes and decisions is essential for a responsive and adaptable supply chain. 

In summary, mastering the art of supply chain planning in an era of uncertainty requires a blend of strategic alignment, anticipatory planning, and continuous adaptation. By focusing on these areas, companies can navigate through the stormy seas of modern supply chain management, not just surviving the uncertainties but leveraging them as opportunities for growth and innovation.