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In today’s volatile world, traditional supply chain planning is no longer enough. Disruptions are the new normal, and businesses need a more agile and connected approach. Enter network aware planning – a strategy that emphasizes connectivity and awareness across the entire supply chain.
In a recent episode of The Future of Supply Chain Podcast, Alexis Lozada, Practice Director for Supply Chain Planning at Westernacher Consulting, explained why network aware planning is essential for modern supply chain success. Here are the top 5 takeaways from the discussion:
1. Connectivity is key.
Network aware planning is all about connectivity. This includes process connectivity, material flow connectivity, information flow connectivity, and money flow connectivity. It’s about understanding how decisions impact the entire supply chain, both upstream (suppliers, vendors) and downstream (customers, distribution).
2. Know your position in the network.
Supply chain professionals need to understand their role within the broader network. Whether you’re managing supplier relationships or overseeing distribution or leading manufacturing, knowing your position is crucial for making informed decisions that benefit the entire value chain.
3. Data trustworthiness remains a challenge.
While technology offers unprecedented visibility and data processing capabilities, the trustworthiness of data remains a significant hurdle – though one that can be quickly overcome with today’s master data technology offerings. Companies must focus on master data management and data governance to ensure the accuracy and reliability of their planning processes.
4. Processes need to be network-based.
Many organizations are still stuck in deterministic, siloed decision-making processes. It’s crucial to train and retrain planners to think in terms of networks, considering the broader impact of their decisions across the supply chain. Staying with siloed-focused decisions can lead to solutions that simply push costs elsewhere in the value chain.
5. Leverage simulations and "What-If" analysis.
Network aware planning enables companies to take full advantage of simulation and “what-if” analysis. By understanding the key variables that impact their decisions, businesses can run scenarios and sensitivities to identify the most critical factors to monitor and manage. This helps in predicting and mitigating risks effectively.
Embracing the future of Supply Chain Planning.
Network aware planning is not just a buzzword; it’s a necessity for navigating the complexities of modern supply chains. By embracing connectivity, prioritizing data quality, and training professionals to think holistically, businesses can build more resilient, efficient, and adaptable supply chains that are ready for whatever the future holds.
