February 25, 2025
4 read min
To read our extended White Paper on this topic, please refer to this page.
Touchless planning is redefining supply chain management by leveraging advancements in forecasting engines and the increasing availability of structured demand data, improving accuracy and enabling more granular forecasts (e.g., daily or store leveldemand). Automating routine forecasting tasks reduces the need for human intervention, enabling planners to redirect their efforts toward guiding systems to make decisions and focusing on strategic initiatives. While this shift streamlines operations and enhances efficiency, planners must trust the system and intervene only when human insights add value.
The Periodic Table of Touchless Planning
Central to any touchless planning process are six elements: high-fidelity data input, right granularity, advanced AI engine, explainable forecast, proactive feedback mechanisms, and ultimately, high-accuracy output:
- - : Planning systems require complete, rich, and accurate data as an input; both historical and future-oriented.
- : Data must offer precise information across various dimensions, e.g., time, market, product, and product life cycle.
- : AI algorithms must be able to handle complex data sets, identify patterns, deal with outliers, and learn over time to improve accuracy.
- - : The output should be accurate, unbiased, reliable (avoids big outliers), and stable (low variations from one forecast to the next).
- : Explainability refers to a system’s ability to offer clear and understandable justifications for how it reached a particular decision.
- : Systems need to provide helpful feedback with detailed insights into how adjustments affected forecasting accuracy and forecast value add.
Challenges in Adopting Touchless Planning
Despite its many benefits, transitioning to touchless planning can be challenging due to both technological and organizational shifts:
Knowledge Gap
Many planners are accustomed to traditional methods and may lack the skills to fully adopt AI-driven systems. This knowledge gap can lead to resistance, with some reverting to manual adjustments, undermining the system's effectiveness.
Misalignment with Reality
Planners may struggle to align their expectations with the AI system’s capabilities, leading to unnecessary adjustments based on subjective views. This misalignment can reduce both forecast accuracy and efficiency.
Shift in Control
Touchless planning alters the role of the planner from manually adjusting output (forecasts) to improving the data inputs (demand drivers) with diminished control over the process However, they are still held accountable for forecasting outcomes, which may create discomfort. Information on forecast value added (did I improve the forecast?), clarity on-demand drivers (which factors are most relevant for this product?), and explainability of models (why is the forecast that low?) are crucial for a successful shift. Resistance to Change. Transitioning to touchless planning requires a fundamental mindset change.
Moreover, there can be organizational resistance to adopting new ways of planning, with concerns about accuracy and the system's ability to understand changing market dynamics or react swiftly to unexpected changes. This underscores the importance of alerts and guardrails. Building an understanding in the system's capabilities is critical towards creating planners’ buy-in.
Key Takeaways for Successful Transition
To successfully implement touchless planning, companies need to adopt a strategic approach that balances both technology and human elements. Here are the key factors to consider:
Leadership Commitment
Strong leadership is essential for driving the adoption of touchless planning. Executives must champion the initiative, align it with broader company goals, and provide the necessary resources to overcome resistance.
Standardize Processes and Post-Game Analysis
Standardizing planning processes and consistently reporting metrics such as forecasting accuracy, share of touchless volume, and forecasting value add creates a common foundation. Regular audits and post-game analyses demonstrate touchless system value, fostering continuous improvement and stakeholder confidence.
Plan Rollout Strategically
Begin touchless planning with low-risk decisions, gradually building confidence. Companies can take different paths, but starting small can help illustrate the system's effectiveness through real-world successes.
Data Culture and Training
Building a strong data-driven culture is crucial. Planners need training in data collection, cleaning, and input, along with continuous upskilling, to close knowledge gaps and promote data literacy.
Create Transparency for Trust
Trust in AI is paramount to its success. Ensuring transparency with clear and timely feedback on the value-add of enrichments and explainable forecasts will help build this trust. Regular feedback loops allow planners to see the impact of their interventions, fostering greater engagement with the system.
Conclusion
Touchless planning is not just a technological upgrade—it represents a transformative shift in supply chain management that blends advanced automation with human expertise. By minimizing routine manual tasks it empowers planners to focus on strategic initiatives that enhance operational efficiency and customer satisfaction. Core to its success are high fidelity data input, right granularity, advanced AI engine, explainable forecast, proactive feedback mechanisms, and ultimately, high-accuracy output
However, the transition to touchless planning is not without challenges. Planners must adapt to a new role, requiring a shift in mindset and the cultivation of trust in AI capabilities. Addressing knowledge gaps, managing resistance to change, and fostering a culture of data literacy are critical to overcoming these barriers. Strong leadership, standardized processes, a strategic roll-out, data culture, training, and transparency are essential to aligning touchless planning with broader business objectives, ensuring a smooth and effective adoption.
Please view our extended White Paper on "Building Trust in Touchless Planning" below.
About the authors
o9
The Digital Brain Platform
o9 Solutions is a leading AI-powered platform for integrated business planning and decision-making for the enterprise. Whether it is driving demand, aligning demand and supply, or optimizing commercial initiatives, any planning process can be made faster and smarter with o9’s AI-powered digital solutions. o9 brings together technology innovations—such as graph-based enterprise modeling, big data analytics, advanced algorithms for scenario planning, collaborative portals, easy-to-use interfaces and cloud-based delivery—into one platform.
