There’s something to be said about the resiliency of a really good supply chain. One that’s able to quickly respond to those unexpected problems, easily adapt to changing industry conditions and make waves with its innovative, yet still efficient, processes. It’s like a piece of moving artwork – all those intricacies and people working behind the scenes to deliver exactly what the masses of the world want, when and where they want it. But as a seemingly growing number of companies face very public breakdowns in their supply chains, it’s becoming increasingly clear very few organizations actually have these masterpieces within their midst. Failure to keep pace with consumer demands. Inability to react to unanticipated risks like environmental disasters or political unrest. Breakdown in cross-functional communication. All present supply chain challenges that need to be overcome. Traditional supply chain processes tend to be linear in nature. Plan, then execute. Plan demand, then plan supply, then plan capacity, then plan inventory, etc. If a potential risk interrupts one of those steps, it’s back to the beginning, starting all over again with a new plan - and that’s assuming they even noticed the problem before execution, which wasn’t always the case... Doesn’t seem like a very efficient model, does it? Truly resilient supply chains, those that can nearly seamlessly respond and react to interruptions, are much more agile. They plan, monitor and respond continuously in a single environment and across business functions. When the unexpected happens, they know sooner and can act faster to minimize disruption. This kind of comprehensive and connected view across your global supply network has become a prerequisite to success. Concurrent planning allows supply chain challenges to be overcome by radically shrinking supply chain planning cycles and response times, while improving the accuracy of analysis and the profitability of actions.
With concurrent planning you’ll be able to achieve the following all from within a single system:
- synchronized demand, supply, product, capacity and inventory management;
- active monitoring of current and projected business results;
- rapid what-if analysis and scenario comparison to evaluate alternatives and impacts across multiple functions; and
- continuous orchestration of business activities and coordinated course corrections that optimize overall corporate performance and profitability.
Concurrent planning bridges functional silos and connects all nodes within your supply chain. It allows you to holistically manage multiple supply chain functions within the same system, improving cross-functional coordination and faster, more effective decision-making. It’s the difference between mediocracy and building a masterpiece. Want to learn more about concurrent planning? Check out our infographic Mange Murphy’s Supply Chain Law with Concurrent Planning.