Top 10: Supply Chain Planning Stratagems to Mitigate Uncertainty

Supply chain uncertainties show no sign of easing as inventories continue to swell and consumer demand fluctuates. While most organizations rely on predefined processes and tools for planning their supply chain, those that have adopted smart planning and pricing solutions are strengthening the management of day-to-day operations and their response to disruptions, with speed and confidence.

Here are 10 ways businesses can deploy smart supply chain planning and pricing to manage current and future disruptions.

Top Supply Chain Planning Strategies: Price Optimization Tools

The right pricing optimization tools allow teams to adjust pricing across broad assortments and channels, easily and accurately. Even with large assortments, retailers can use these technologies to intentionally shape demand. These systems apply artificial intelligence (AI) and machine learning (ML) to merge data with computing power so that they can deliver these results in large demand forecasts.

With the constant disruption businesses experience today, it’s important that product teams respond quickly to ensure the least impact on sales and profitability.

Resilience requires being flexible in the face of change, so being able to shape prices as needed can help maximize profits even in times of challenge. When the price optimization tools are in place before the disruption happens, you can lower prices to eliminate inventory that isn’t selling and raise fast mover prices to increase margins.

Key Supply Chain Planning Strategies: Managing Demand

Multi-Echelon Inventory Optimization (MEIO) calculates companies’ daily inventory needs across the entire supply chain network based on both customer demand and unique customer configurations. company and its network. The tool helps create a customer demand forecast that reflects constraints that impact the actual ordering of goods, including attached ordering logic, store ordering schedules, supplier capacity, holidays , purchase minimums, maximums, time frames and a host of other factors that often arise during disruptions.

When product teams use smart technology to analyze their entire supply chain network as a single, holistic unit, they can ensure the most accurate and cost-effective allocation of inventory across their various nodes. , thereby reducing risk, increasing service targets and optimizing inventory investment.

Top Supply Chain Planning Strategies: Smart Forecasting

The most innovative forecasting technology in supply chain management analyzes historical sales data, current market research and consumer trends to accurately predict demand. These forecasting techniques allow you to manage your supply chain to ensure you have enough products to meet consumer demands without overbuying.

On average, 20-30% of all inventory is overstocked or obsolete. In the event of a disruption, it can be difficult to predict what the next few months will look like, but the process is critical to success. On the one hand, you don’t want to run out of stock when demand is high, but on the other hand, you don’t want to have extra stock waiting for months.

While there may be light at the end of the tunnel, shortages, delays and bottlenecks persist and many companies make the mistake of overbuying inventory for fear that the next disruption will interrupt their productions. .

However, having unnecessary capital tied up can distort sales forecasts. Get it right, and you maximize profitability and survive disruption.

Best Supply Chain Planning Strategies: S&OP Tools

Disruption is forcing businesses to adapt to new sales models to accommodate shopping preferences and practices as demand shifts. Sales and operations planning tools can combine intelligence and automation to create a single version of the “truth of demand.” This truth helps you make informed, joint decisions across functional silos, establish accountability, reduce risk, and act quickly on new opportunities.

Alignment between departments, such as sales, production, procurement, and supply chain operations, is crucial to dealing with frequent disruptions. S&OP can break down the walls that typically exist to deliver a truly agile and collaborative planning experience. When you align revenue, demand, supply, and financial plans to achieve consensus, you can focus on competitive differentiation, market agility, and rapid ROI.

Key Supply Chain Planning Strategies: Insights and Analytics

Predictive data analytics combined with software equipped with AI and ML is the key to supply chain management excellence. Using data to generate actionable insights, combined with smart supply chain planning software, can improve performance with real-time, actionable insights into inventory level planning.

Instead of reacting to disruptions, companies can be proactive by using supply chain data to ask for guesswork. These diagnostics allow teams to be able to act quickly in the event of a disaster with a properly modeled plan in place. With today’s level of unpredictability in supply and demand, it’s crucial that businesses have this next level of intelligent planning.