The Definitive Guide to Adaptive Supply Chain Planning

The Definitive Guide to Adaptive Supply Chain Planning

As the last decade has clearly shown, supply chain disruptions are never a question of if, but when. The increasing complexity of global markets and ongoing instability around the world mean companies should never take a “set it and forget it” approach to their supply chain planning. Adaptability is the name of the game, and organizations need to be able to roll with the punches no matter what the situation may be. That's why the experts at ketteQ have put together this guide to adaptive supply chain planning to help supply chain professionals understand the value of this approach.

Adaptive supply chain planning means companies build flexibility into their operations to help them overcome and adapt to changes in market conditions, consumer behaviors and geopolitical conditions. This approach to supply chain and inventory management typically harnesses the power of big data and advanced analytics to respond to events as they happen for minimal disruption.

Why Traditional Supply Chain Models Fall Short

Legacy supply chain strategy systems are ill-equipped to handle the typical disruptions companies face in the modern global marketplace. Whereas 50 years ago the average company was mainly concerned with what was going on in their immediate geographic area, today events around the world can have a butterfly effect that results in serious problems. Labor strikes, geopolitical instability and natural disasters all have the potential to trickle down and impact a business's supply chain.

Unlike traditional methods of managing supply chain operation, the adaptive production planning approach doesn't take a fixed outlook. Instead, it looks forward and works to anticipate changes to create alternative plans that ensure coverage even when disruptions occur.

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Key Benefits of Adaptive Supply Chain Planning

By preparing companies to predict and prepare for disruptions rather than being reactive, the adaptive supply chain philosophy enables greater supply chain resiliency and flexibility. This puts businesses that adopt this for supply chain design at a significant competitive advantage, as they will be able to adjust quickly to changes as their competitors scramble to react.

The many benefits of this approach include higher flexibility, enhanced risk mitigation, and an overall improvement in customer satisfaction. The white paper below details specific methods such as  probabilistic modeling that can bring substantial improvements in these areas.

The Role of Technology in Adaptive Planning

Improving supply chain resilience in today's world would be nearly impossible without the right technology. Cloud computing, artificial intelligence algorithms, and machine learning are some of the best enablers of adaptive planning. These make it possible to analyze data in real time and simulate disruptions to help decision-makers adapt to any changes, along with providing the scalability needed to support the company's growth.

Future-Proof Your Supply Chain With Adaptive Planning

If your business is considering moving to an adaptive planning model for supply chain management, it's time to stop considering it and start implementing it. Change is constant, especially in today's global marketplace. This approach prepares you for future disruptions so you won't be caught flat-footed. To learn more about how adaptive planning can create a resilient, future-proofed supply chain and what your next steps should be, download the white paper today for actionable strategies you can start using today.

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