Supply chain management is under a dark cloud, pushing supply chain planning software to the breaking point.
Lately, the forecast of market demand has become critical and complicated – as businesses are (almost) unable to use the past data to foresee future buying patterns. The supply chain balancing algorithms are witnessing a never seen before situation, where the factory demand overflow is unexpectedly higher than the available capacity.
Such massive fluctuations are disrupting the supply planning optimizers inbuilt in most of the software. In addition, even algorithms cannot give precise indications to enterprises on how much stock to hold at various nodes – within the supply chain. This is primarily due to the unchartered levels of market uncertainty.
To cope with the situation, the software is being halted, and the supply chain conflicts are being set up to keep businesses running through the crisis. However, given that the worldwide supply chains will remain affected by the COVID-19 over the next 1-2 years, manual planning is unsustainable.
Post-pandemic supply chain scenario
There is no new way out in the software planning system that can resolve these problems spanning different industries. However, organizations can start analyzing the preferred capabilities that supply chain planning tools should have in the coming days. Such capabilities primarily include –
- Mapping of demand revival pattern
- Flexible system for demand and supply matching
- A new approach to inventory optimization
- Allocation choice in terms of demand shortage
- Capacity to manage compliant master data
- Change of the focus from anticipation to analyzing the manner
Post-panning planning for enterprise software
with certain considerations, many bigger enterprises are currently are fine-tuning the supply chain planning solutions to fit in specific capabilities. This will help to function even in the increasing level of market uncertainty. Some of the factors that are being considered in the software optimization process include –
- Customized outlier correction techniques
- Planning of circumstances at industrial scale by CXOs
- Authority tuned into trial and error
- Demand-driven planning to absorb shocks
- Integration with different tech platforms to improve planning
- Alternative manufacturing process
Just like any other resolution to a business crisis, it will take time for the software development to pick up and align with current pain-points. Till then, experts suggest for an advanced supply planning solutions and a bit of tweaking around the edges. This could help in offering a way for enterprises to shore up customer sentiment – and, ultimately, win big in the long-term.