Modern Supply Chain Management Demands a New Planning Approach
The traditional depiction of a supply "chain" as a linear sequence of links is no longer sufficient in today's fast-paced, omnichannel marketplace. The digital revolution has reshaped commerce, leading to a complex network of intertwined processes, channels, and customer engagements. To succeed in this landscape, supply chains must adopt a new strategy: unified planning.
The outdated model of manufacturer-warehouse-store is obsolete. The rise of e-commerce, mobile shopping, and varied fulfillment methods such as buy online, pick up in-store (BOPIS) has given rise to a multifaceted ecosystem. Conventional supply chain solutions, engineered for a simpler time, are struggling to adapt.
Unified planning acknowledges the interconnectedness of various supply chain operations. Inventory, transportation, warehousing, and labor are no longer separate entities but integral components of a dynamic system. Actions taken in one domain have widespread consequences throughout the entire network. For instance, an inventory planner who postpones stocking up for peak season to reduce storage expenses could unintentionally lead to increased labor costs due to expedited processing upon arrival. Likewise, maintaining minimal inventory while depending on reactive shipping to meet sudden demand surges can result in inflated transportation expenditures.
Unified planning dismantles these silos, promoting cooperation and synergy among departments. It enables planners to...