Integrated Supply Chain Planning
The other day I got a call that my flight was canceled. I had to immediately scramble to let the client know I had to reschedule. I then had to cancel my car and hotel. How much easier would it have been if all of the downstream activities were automatically notified — in other words, what if it had been an integrated process?
Integrated Supply Chain Planning or Integrated Business Planning (IBP) addresses scenarios like the one above in the business environment. For example, an organization is looking to expand based on sales forecast predictions that it will land a new retailer. As a result, the supply chain team is ramping up its production plans, which are driven by the demand plans.
In addition, the finance team is reviewing a new lease as part of the expansion plan. Now in most organizations, when a change happens to the sales plan, it may take weeks or months for the trickle-down effect to reach the other lines of business. With Integrated Supply Chain Planning (or IBP) it happens in real time. Alerts and notifications are sent to the key stakeholders whose plans have been changed.
Imagine now if that key retailer the organization thought was locked, suddenly looks like it may not happen. What happens to the sales forecast? What happens to those expansion plans? What does the supply chain team do with the excess materials they ordered? When an organization leverages the power of an Integrated Supply Chain Planning (or IBP) platform, scenarios like this are easily prepared for and managed.
What’s even better is when that platform leverages capabilities to predict what may happen and prescribe what organizations should do in those events. Further, what if that same platform could identify the risk drivers that may affect your plans and the probability of those happening? Now that would be nirvana, right? That is what Vanguard’s Predictive Planning platform delivers.
The value of leveraging predictive and prescriptive analytics in an integrated platform requires buy-in and support from executives, but the technology is now available. The question is, are organizations ready to operate in such a dynamic, data-based environment?