Though the channel of Supply Chain Matters, The Ferrari Consulting and Research Group alerts clients and blog readers to an April 2018 Research Advisory: The Morphing of Supply Chain and Enterprise Business Planning: Process-People-Information Considerations.

Purpose and Overview

The objective and purpose of this research advisory is to update supply chain, IT and line-of-business management and process team readers on changes occurring in supply chain, business planning and decision-making processes and how such processes are morphing into the need for a singular, integrated business planning process and decision-support capability. Integrated Business Planning

This morphing is being accelerated by ongoing rapid business change occurring across multi-industry business and supply chain environments, along with changes that are occurring in the information technology, business application and supply chain management applications technology market.

Today, because of the constant need for growth in revenues and profits with lower costs, industry supply chains are far more globally extended. On the demand side, access to broader global markets provides added revenue and profitability opportunities. On the supply side, the quest for lower costs has led to global-wide sourcing. The result is a complexity of needs that include global component sourcing, finished goods manufacturing and customer fulfillment process and decision-making.

All of this comes with added complexity and added risks. Because of needs for more diverse products catering to specific market channels, organizations actively pursued supply chain segmentation strategies, creating the need to plan and manage multiple supply chains based on different business outcome needs.

Part one of this two-part research advisory provides context to the process, people, and information implications in achieving an integrated business planning capability. We address specific implications to end-to-end supply chain and integrated business planning information and decision-making needs including our view of the morphing of supply chain and sales and operations planning needs, and the implications for consideration and adoption of augmented technology support.

The second part of this advisory will have special emphasis on business systems technology implementation considerations with a special emphasis for SAP environments.

Implications and Takeaways

The need for more integrated business planning which brings together product management, sales, marketing, finance, and supply chain fulfillment considerations is becoming more acute among today’s dynamic business environments. While the term is sometimes depicted as a specific technology or application, it is more about the need for enterprise functions of a firm to be aligned towards a single set of financial, line-of-business, product, and operational outcomes. Alignment implies a common base of information and decision-making support capabilities, orchestrated, and managed by planners possessing somewhat different skills.

The process needs to be supported by a consistent set of decision-making capabilities predicated on a singular data and information architecture, and on combined abilities to be able to model, simulate and prescribe important, as well as critical decisions. Advanced data visualization, simulation, and combinations of descriptive and prescriptive analytics capabilities are an important and essential consideration to help overcome any functional or individual organizational biases.

Obtaining Your Copy

This Research Advisory is being provided as a thought leadership resource in conjunction with collaboration and support of Vanguard Software Corporation. The content included in this advisory is the sole responsibility of the Ferrari Consulting and Research Group which maintains the copyright.

The report can be downloaded on a complimentary basis from this dedicated web link. Some basic user registration data will be requested.

 

Bob Ferrari

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