Source: Gartner (April 2014) Supply Planning Maturity Model
Lead Article
Why Just S&OP is Not Enough!
According to Gartner there are
Five Stages of Maturity in Supply Chain Planning Technology.
Most companies are currently looking to get to what Gartner refers to Stage 3 of supply chain planning. That is having the capability of System of Records (SoR) for their planning environment. SoR implies a unified system for planners which is mainly horizontal across the supply chain. Although Stage 3, or SoR, is very important but it lends itself to a lot of manual planning and intervention by the planners in addition to scenario and what-if analysis. This is not a very productive use of planners' time and skill set. Furthermore, given the exponentially large number of options and scenarios, it is almost impossible to have a dependable plan let alone an optimal plan. To help planners, SoR systems need to be fast to respond. However, most vendors oversimplify the model of the supply chain in order to get quick answers at the cost of inaccurate plans. The latter results in much manual intervention by the planners and even worse it is not a plan that can be executed. Hence, taking away productivity from the execution side of the business. This lack of smooth transition between planning and execution is typically because S&OP systems lack proper modeling to allow for execution, what is referred to as Sales and Operation Execution (S&OE). The modeling of almost all S&OP systems is fundamentally the same as spreadsheet planning, i.e. fixed lead times, bucketed capacities and pre-defined bottleneck resources, all of which are false assumptions.
Although
Stage 3 can be beneficial, but once it is implemented, the need for
Stage 4 becomes even more desirable. It is imperative that systems that are deployed for S&OP are capable enough to take the supply chain to stages 4 (Systems of Differentiation) and 5 (Systems of Innovation); or else multiple systems will have to be deployed for S&OE capability. Stages 4 and 5 depict accurate analytics, no touch decisions and automation of planning process. This is what is known as Digitization of supply chain the basic components of which are model accuracy and configurability.
Digitization of supply chain is a lot more than just collaboration, scenario analysis and Visibility. Digitization brings together disruptive technologies such as machine learning, big data analysis, artificial intelligence (clever search algorithms) to generate plans that are accurate, reliable, automated and improve by usage-Hence
intelligent systems. The digitized supply chain delivers accurate plans without much input from the users, reduces cost, minimizes potential risk to the supply chain, improves productivity (usage of resources at high level and execution level) as well as responds to unexpected events while executing the plan.
Learn how Adexa's solutions
provides a flexible way to mold the system into the intelligent environment depicted by the Gartner diagram above, please click to read more.
Identify the Weak Links in your Supply Chain
Check out the latest feature of risk management window to identify where your supply chain risks are. Using Adexa's Supply Chain Planning module or Plant Planner module, you can now see where the weak links are in your supply chain as far as capacity as well as material is concerned. Examples are bottleneck resources that are expected to delay certain orders, suppliers who are at high risk to deliver, materials that will cause delays. Contact your Adexa account representative or send an email to info@adexa.com for additional information.
Adexa Update
Adexa has been selected by
The Silicon Review as one of the "
50 Innovative Companies to Watch 2017". Read more about why Adexa is selected
HERE.