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1
STRATEGY | SOFTWARE | MANAGED SERVICES
SUPPLY CHAIN
PLANNING STRATEGIC
PLAYBOOK
2
TABLE OF CONTENTS
WHY SUPPLY CHAIN
PLANNING IS HARD
THE IMPACT OF POOR
PLANNING IS SEVERE
NAVIGATING A CONFUSING
TECH LANDSCAPE
LEVERAGING NEW TOOLS
AND TECHNIQUES
GETTING SUPPLY CHAIN
PLANNING RIGHT
GEP: YOUR
PARTNER
1
2
3
4
5
6
3
WHY SUPPLY CHAIN
PLANNING IS HARD
Skill set
• It can be challenging to acquire advanced skill sets in some manufacturing locations,
especially in rural locations.
• Many supply chain planning (SCP) roles require data scientist skills.
• Many companies struggle with maintaining and sustaining the job design and career
track for supply chain planners.
Data dilemmas
• Incomplete, corrupted, fragmented and poor-quality data is common.
• Master data may be non-standard across systems or business units .
• Poor master data management guidelines and policies threaten the quality and
integrity of master and transactional data, which powers the planning tools.
• Older approaches to SCP that solely relied on using historical data is no longer
an effective approach.
Copyright © 2022 GEP. All rights reserved.
With today’s
volatility and
complex
environmental
factors, relying on
history as your
primary
forecasting
strategy is no
longer effective.
1
4
Lack of internal and external integration
• Functional silos makes it impossible to develop, share and collaborate on demand and supply
plans.
• SCP is hampered by company culture, lack of metrics and incentives, hesitancy to share data,
and a lack of collaborative tools.
“Old Tech” still dominates SCP
• “Old tech” tools don’t lend themselves to an easy path for adaptability or flexibility as
requirements change.
• A few years after implementation it’s common for the organization to lose their skilled user base
or the complex meta-data is not maintained/refreshed.
Many of our clients have complex supply chains
• Clients may have tens of thousands of SKUs planned across many locations with widely varying
demand patterns and a broad mix of supply availability.
A lack of metrics
and tools, along
with a
hesitancy
to share data,
hampers
collaboration
efforts.
1WHY SUPPLY CHAIN
PLANNING IS HARD
Copyright © 2022 GEP. All rights reserved.
5
THE IMPACT OF POOR PLANNING
IS SEVERE
Copyright © 2022 GEP. All rights reserved.
GEP estimates that
about 20% or less of
GEP’s clients do an
effective job at
supply chain
planning.
2
The planning gap is real – those companies who excel at SCP will realize
higher levels of performance in key areas:
• Strategically differentiated fill rates for orders and customer types goods across channels
• Lower percentage of premium / expedited / air freight for both in- and outbound
operations
• Less “cost of chaos”
• Less ability to consistently hit their lead time targets for important customers
• Lower forecasting accuracy which will inflate inventories and buffer stocks
Leading to measurable financial advantages, including:
• Greater return on working capital
• Reduced cash flow out the door
• Higher direct labor absorption by volume / labor effectiveness
• Less reliance on non-value adding indirect labor
• Lower supervisory overhead
• Greater return on capital employed as plants, fleets and warehouse are more efficient
6
NAVIGATING
A CONFUSING
TECH LANDSCAPE
For decades, the supply chain planning landscape has been
dominated by what GEP refers to as “old tech" — a heavy reliance
on big, expensive ERP implementations, and often an
accompaniment of best-of-breed tools that bring optimization or
simulation capabilities to the transaction-focused ERP system. But
there are downsides to this approach — for example,
implementations can take years, and any updates are determined by
the vendor.
Some clients are looking at “new tech” in the SCP space that relies
on low-code/no-code platforms that look to rapidly co-develop
functionality instead of relying on packaged functionality that must
be configured; platforms with large extensibility that offers high
integration with almost any toolset that exists; and Rapid-
development digital tools such as Python that seeks to quickly solve
specific use cases with custom tools developed in swift sprint cycles.
Copyright © 2022 GEP. All rights reserved.
“Old tech" may still
dominate the market
with many options,
but some GEP
clients are moving
on to "new tech" for
greater
configurability,
functionality and
agility.
3
7 Copyright © 2022 GEP. All rights reserved.
“Old tech” – ERP “Old tech” – Best of Breed
“New tech” for Planning – Digital Tools /
Low-Code Platforms
Cost Multiple millions $$$ Multiple millions $$$ Fraction
Timeline Years 1-2 years Weeks / months
Focus
Transactional processing,
limited decision support
Application of proprietary models and
complex algorithms to broad networks
Use of targeted analytics or automation to solve a
specific use case and quickly drive value
Development pipeline
of vendors
Unsure, lengthy, decided by
software vendor
Unsure, lengthy, decided by
software vendor
Rapid – as soon as the organization can mobilize
around the next use case
Support requirements
Large team of internal and
external development &
production support
Large team of internal and external
development & production support
Small cluster of developers and users who can float
back and forth among roles
Prime functionality
Transaction processing and
Master Data Management
(MDM)
Optimization and simulation of large
complex supply chain networks
Predictive analytics and use of rapid AI tools to solve
highly focused use cases
NAVIGATING A CONFUSING
TECH LANDSCAPE
3
8
LEVERAGING NEW TOOLS
AND TECHNIQUES
Copyright © 2022 GEP. All rights reserved.
4
New tools that should be on your radar in terms of planning:
• AI tools. Machine learning and AI tools have become more common in SCP tools over the
past 5 years, but others include neural networks and robotic process automation (RPA).
• Large-scale predictive analytics. Most organizations have large amounts of unexplored
data. However, we're only at the tip of the iceberg in developing predictive analytics
applications.
• Rapid simulation for boot-strapping and data creation. Clients frequently struggle to
predict the demand for new products due to a lack of history or proxy data that can guide
new product introduction planning. Digital tools can very quickly offer simulation and data-
creation engines.
• Demand sensing. This new technology can take a much higher level of demand data
granularity and volume and can quickly develop alerts and insights into customer behavior.
• Autonomous planning. Representing a bit of the “holy grail” of supply chain planning,
autonomous planning seeks to combine new planning tech (rapid, concurrent, cross-data
source sensing tools) with business rules and exception-based planning models to truly
maximize the performance of a human-based planning team.
GEP clients are
thoughtfully
crafting niche
apps to solve
their most
pressing,
strategic and
value-driving
use cases in cost
and service
performance.
9
GETTING SUPPLY CHAIN
PLANNING RIGHT
Copyright © 2022 GEP. All rights reserved.
Four foundational
components for
delivering world-
class supply
chain planning
5
Four foundational components to
deliver world-class supply chain planning
1 Planning capabilities must be reflective of your competitive strategy
§ Define succinctly competitive business strategy- strategy context feeds into your planning
function/activities
o Operational Excellence Model/Low Cost – Walmart, Toyota
o Customer Intimacy/Customer Service Model- Highest service model that you can get-
Lexus, Ritz Carlton
o Product Innovation Model – Apple, Tesla
2 Planning capabilities must be integrated both vertically and horizontally
§ The right business architecture – processes, metrics and teams – must connect planning
vertically, up and down the org structure, and horizontally – from customers to suppliers –
to ensure a comprehensive planning capability that can truly affect cost and service.
10 Copyright © 2022 GEP. All rights reserved.
Modern digital
planning tools can
evaluate millions
of options in
seconds and push
those newly
optimized plans
back out to a
federated network
of planning hubs
for execution.
5
3 Planning capabilities must be iot enabled and
digitally powered
• IoT enabled means that the proper infrastructure is in place to collect low-
level data from across the ecosystem to drive your planning capabilities.
• Digitally enabled means that the collected data is presented to a powerful
set of analytic tools with rich functionality for analysis, simulation, and
optimization.
4 Planning capabilities must be supported by
an ownership and governance program
• The “clockspeed” across industries has clearly sped up, indicating that your
planning infrastructure must also evolve to match the ebbs and flows of
your business. That is only possible if there is clear and agreed-upon
ownership structure of the planning infrastructure by senior leadership.
GETTING SUPPLY CHAIN
PLANNING RIGHT
11
GEP: YOUR
PARTNER
6
We leverage a cross-functional, recurring mechanism that enables businesses
to translate corporate strategy into a tactical, executable plan.
Digital Planning, S&OP, S&OE
GEP Key Differentiators
Comprehensive business
architecture catalog to
enable IBP
Tailored analytic tools (e.g.,
inventory, forecasting,
dashboards) to execute IBP
GEP NEXXE digital
integration platform to
enable processes
Rapid, agile sprints used to
deploy tailored packages to
quickly stand-up the
program
Typical Benefits
Competitive strategy executed
at all operational levels
Decreased active
inventory
Reduced “Cost of
Chaos”
Higher earnings
accuracy
Increased order fill
rates and lead times
Improved forecast
accuracy
GEP Perspective
Align all cross-functional strategic, tactical, and operational activities to
link corporate strategy with execution
Leverage an agile-based Crawl-Stand-Walk-Run methodology
Use digital tools to synchronize data sets: sales forecast, operations
forecast and financial plan / budget
Deploy tailored solutions using GEP’s business architecture to
enable Integrated Business Planning (IBP)
Copyright © 2022 GEP. All rights reserved.
13
GEP delivers transformative supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost
profitability and increase shareholder value.
Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE TM, GEP STRATEGY TM and GEP MANAGED SERVICES TM together
deliver supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including hundreds of Fortune 500 and Global 2000 industry
leaders who rely on GEP to meet ambitious strategic, financial and operational goals.
A leader in multiple Gartner Magic Quadrants, GEP’s cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and
media outlets, including Gartner, Forrester, IDC and Spend Matters. GEP is also regularly ranked a top supply chain consulting and strategy firm, and a leading managed services provider by
ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others.
Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com.
100 Walnut Avenue, Clark, NJ 07066 | P 732.382.6565 | info@gep.com www.gep.com
Clark, NJ | Austin | Chicago | Atlanta | Toronto | Mexico City | San Jose | São Paulo | Dublin | London | Amsterdam | Frankfurt | Prague | Cluj-Napoca, Romania | Pretoria | Abu Dhabi | Mumbai |
Hyderabad | Kuala Lumpur | Singapore | Shanghai | Dalian | Tokyo | Sydney
Copyright © 2022 GEP. All rights reserved.
GEP SMART is an AI-powered, cloud-native software for direct and indirect
procurement that offers comprehensive source-to-pay functionality in one user-friendly
platform, inclusive of spend analysis, sourcing, contract management, supplier
management, procure-to-pay, savings project management and savings tracking,
invoicing and other related functionalities.
GEP NEXXE is a unified and comprehensive supply chain platform that provides
end-to-end planning, visibility, execution and collaboration capabilities for today’s
complex, global supply chains.
Built on a foundation of big data, artificial intelligence and machine learning, GEP
NEXXE is next-generation software that helps enterprises make supply chain a
competitive advantage.

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GEP-Supply-Chain-Planning-Guide-Fnl_0.pdf

  • 1. 1 STRATEGY | SOFTWARE | MANAGED SERVICES SUPPLY CHAIN PLANNING STRATEGIC PLAYBOOK
  • 2. 2 TABLE OF CONTENTS WHY SUPPLY CHAIN PLANNING IS HARD THE IMPACT OF POOR PLANNING IS SEVERE NAVIGATING A CONFUSING TECH LANDSCAPE LEVERAGING NEW TOOLS AND TECHNIQUES GETTING SUPPLY CHAIN PLANNING RIGHT GEP: YOUR PARTNER 1 2 3 4 5 6
  • 3. 3 WHY SUPPLY CHAIN PLANNING IS HARD Skill set • It can be challenging to acquire advanced skill sets in some manufacturing locations, especially in rural locations. • Many supply chain planning (SCP) roles require data scientist skills. • Many companies struggle with maintaining and sustaining the job design and career track for supply chain planners. Data dilemmas • Incomplete, corrupted, fragmented and poor-quality data is common. • Master data may be non-standard across systems or business units . • Poor master data management guidelines and policies threaten the quality and integrity of master and transactional data, which powers the planning tools. • Older approaches to SCP that solely relied on using historical data is no longer an effective approach. Copyright © 2022 GEP. All rights reserved. With today’s volatility and complex environmental factors, relying on history as your primary forecasting strategy is no longer effective. 1
  • 4. 4 Lack of internal and external integration • Functional silos makes it impossible to develop, share and collaborate on demand and supply plans. • SCP is hampered by company culture, lack of metrics and incentives, hesitancy to share data, and a lack of collaborative tools. “Old Tech” still dominates SCP • “Old tech” tools don’t lend themselves to an easy path for adaptability or flexibility as requirements change. • A few years after implementation it’s common for the organization to lose their skilled user base or the complex meta-data is not maintained/refreshed. Many of our clients have complex supply chains • Clients may have tens of thousands of SKUs planned across many locations with widely varying demand patterns and a broad mix of supply availability. A lack of metrics and tools, along with a hesitancy to share data, hampers collaboration efforts. 1WHY SUPPLY CHAIN PLANNING IS HARD Copyright © 2022 GEP. All rights reserved.
  • 5. 5 THE IMPACT OF POOR PLANNING IS SEVERE Copyright © 2022 GEP. All rights reserved. GEP estimates that about 20% or less of GEP’s clients do an effective job at supply chain planning. 2 The planning gap is real – those companies who excel at SCP will realize higher levels of performance in key areas: • Strategically differentiated fill rates for orders and customer types goods across channels • Lower percentage of premium / expedited / air freight for both in- and outbound operations • Less “cost of chaos” • Less ability to consistently hit their lead time targets for important customers • Lower forecasting accuracy which will inflate inventories and buffer stocks Leading to measurable financial advantages, including: • Greater return on working capital • Reduced cash flow out the door • Higher direct labor absorption by volume / labor effectiveness • Less reliance on non-value adding indirect labor • Lower supervisory overhead • Greater return on capital employed as plants, fleets and warehouse are more efficient
  • 6. 6 NAVIGATING A CONFUSING TECH LANDSCAPE For decades, the supply chain planning landscape has been dominated by what GEP refers to as “old tech" — a heavy reliance on big, expensive ERP implementations, and often an accompaniment of best-of-breed tools that bring optimization or simulation capabilities to the transaction-focused ERP system. But there are downsides to this approach — for example, implementations can take years, and any updates are determined by the vendor. Some clients are looking at “new tech” in the SCP space that relies on low-code/no-code platforms that look to rapidly co-develop functionality instead of relying on packaged functionality that must be configured; platforms with large extensibility that offers high integration with almost any toolset that exists; and Rapid- development digital tools such as Python that seeks to quickly solve specific use cases with custom tools developed in swift sprint cycles. Copyright © 2022 GEP. All rights reserved. “Old tech" may still dominate the market with many options, but some GEP clients are moving on to "new tech" for greater configurability, functionality and agility. 3
  • 7. 7 Copyright © 2022 GEP. All rights reserved. “Old tech” – ERP “Old tech” – Best of Breed “New tech” for Planning – Digital Tools / Low-Code Platforms Cost Multiple millions $$$ Multiple millions $$$ Fraction Timeline Years 1-2 years Weeks / months Focus Transactional processing, limited decision support Application of proprietary models and complex algorithms to broad networks Use of targeted analytics or automation to solve a specific use case and quickly drive value Development pipeline of vendors Unsure, lengthy, decided by software vendor Unsure, lengthy, decided by software vendor Rapid – as soon as the organization can mobilize around the next use case Support requirements Large team of internal and external development & production support Large team of internal and external development & production support Small cluster of developers and users who can float back and forth among roles Prime functionality Transaction processing and Master Data Management (MDM) Optimization and simulation of large complex supply chain networks Predictive analytics and use of rapid AI tools to solve highly focused use cases NAVIGATING A CONFUSING TECH LANDSCAPE 3
  • 8. 8 LEVERAGING NEW TOOLS AND TECHNIQUES Copyright © 2022 GEP. All rights reserved. 4 New tools that should be on your radar in terms of planning: • AI tools. Machine learning and AI tools have become more common in SCP tools over the past 5 years, but others include neural networks and robotic process automation (RPA). • Large-scale predictive analytics. Most organizations have large amounts of unexplored data. However, we're only at the tip of the iceberg in developing predictive analytics applications. • Rapid simulation for boot-strapping and data creation. Clients frequently struggle to predict the demand for new products due to a lack of history or proxy data that can guide new product introduction planning. Digital tools can very quickly offer simulation and data- creation engines. • Demand sensing. This new technology can take a much higher level of demand data granularity and volume and can quickly develop alerts and insights into customer behavior. • Autonomous planning. Representing a bit of the “holy grail” of supply chain planning, autonomous planning seeks to combine new planning tech (rapid, concurrent, cross-data source sensing tools) with business rules and exception-based planning models to truly maximize the performance of a human-based planning team. GEP clients are thoughtfully crafting niche apps to solve their most pressing, strategic and value-driving use cases in cost and service performance.
  • 9. 9 GETTING SUPPLY CHAIN PLANNING RIGHT Copyright © 2022 GEP. All rights reserved. Four foundational components for delivering world- class supply chain planning 5 Four foundational components to deliver world-class supply chain planning 1 Planning capabilities must be reflective of your competitive strategy § Define succinctly competitive business strategy- strategy context feeds into your planning function/activities o Operational Excellence Model/Low Cost – Walmart, Toyota o Customer Intimacy/Customer Service Model- Highest service model that you can get- Lexus, Ritz Carlton o Product Innovation Model – Apple, Tesla 2 Planning capabilities must be integrated both vertically and horizontally § The right business architecture – processes, metrics and teams – must connect planning vertically, up and down the org structure, and horizontally – from customers to suppliers – to ensure a comprehensive planning capability that can truly affect cost and service.
  • 10. 10 Copyright © 2022 GEP. All rights reserved. Modern digital planning tools can evaluate millions of options in seconds and push those newly optimized plans back out to a federated network of planning hubs for execution. 5 3 Planning capabilities must be iot enabled and digitally powered • IoT enabled means that the proper infrastructure is in place to collect low- level data from across the ecosystem to drive your planning capabilities. • Digitally enabled means that the collected data is presented to a powerful set of analytic tools with rich functionality for analysis, simulation, and optimization. 4 Planning capabilities must be supported by an ownership and governance program • The “clockspeed” across industries has clearly sped up, indicating that your planning infrastructure must also evolve to match the ebbs and flows of your business. That is only possible if there is clear and agreed-upon ownership structure of the planning infrastructure by senior leadership. GETTING SUPPLY CHAIN PLANNING RIGHT
  • 11. 11 GEP: YOUR PARTNER 6 We leverage a cross-functional, recurring mechanism that enables businesses to translate corporate strategy into a tactical, executable plan. Digital Planning, S&OP, S&OE GEP Key Differentiators Comprehensive business architecture catalog to enable IBP Tailored analytic tools (e.g., inventory, forecasting, dashboards) to execute IBP GEP NEXXE digital integration platform to enable processes Rapid, agile sprints used to deploy tailored packages to quickly stand-up the program Typical Benefits Competitive strategy executed at all operational levels Decreased active inventory Reduced “Cost of Chaos” Higher earnings accuracy Increased order fill rates and lead times Improved forecast accuracy GEP Perspective Align all cross-functional strategic, tactical, and operational activities to link corporate strategy with execution Leverage an agile-based Crawl-Stand-Walk-Run methodology Use digital tools to synchronize data sets: sales forecast, operations forecast and financial plan / budget Deploy tailored solutions using GEP’s business architecture to enable Integrated Business Planning (IBP) Copyright © 2022 GEP. All rights reserved.
  • 12. 13 GEP delivers transformative supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE TM, GEP STRATEGY TM and GEP MANAGED SERVICES TM together deliver supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including hundreds of Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP’s cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC and Spend Matters. GEP is also regularly ranked a top supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com. 100 Walnut Avenue, Clark, NJ 07066 | P 732.382.6565 | info@gep.com www.gep.com Clark, NJ | Austin | Chicago | Atlanta | Toronto | Mexico City | San Jose | São Paulo | Dublin | London | Amsterdam | Frankfurt | Prague | Cluj-Napoca, Romania | Pretoria | Abu Dhabi | Mumbai | Hyderabad | Kuala Lumpur | Singapore | Shanghai | Dalian | Tokyo | Sydney Copyright © 2022 GEP. All rights reserved. GEP SMART is an AI-powered, cloud-native software for direct and indirect procurement that offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities. GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of big data, artificial intelligence and machine learning, GEP NEXXE is next-generation software that helps enterprises make supply chain a competitive advantage.