This website does not support Internet Explorer. Please, switch to Edge, Chrome, or Firefox browser to view this page.

Learn about IE support
o9 video

Watch next

December 1, 2023

Planning Under Pressure for Discrete Manufacturers

Discrete manufacturing leaders share how they’re leveraging
technology such as AI/ML to better anticipate disruptions.

The Takeaways:

1. Supply chain organizations are looking to incorporate new tools and data analysis methods to better understand and manage risks across multiple tiers of suppliers in response to unprecedented disruptions caused by COVID-19 and semiconductor shortages.

2. To address supply chain visibility, companies are investing in data strategy and planning systems to standardize and synchronize external and internal data. There is a growing focus on optimizing the inbound side of the supply chain, with some of the best companies creating synergies between inbound and outbound operations and using scenario modeling to make better tradeoffs.

3. Scenario planning has become a necessity for supply chain risk management. However, collaboration on decision synchronization and economic incentive alignment are also important dimensions to consider. While the industry is capable of doing scenario planning, putting it into practice requires incentive alignment on the organization's end to ensure that all parties contribute to optimizing the outcome of the supply chain.

4. To translate scenario planning into operational change, flexibility and options in terms of sourcing and manufacturing decisions are crucial. It's important to understand different scenarios, insights, and what needs to be modeled and tested to make the best decisions. Forecast accuracy remains a challenge, but getting more information upstream from customers and positioning an understanding of components can help mitigate risks. It's important to balance servicing the business with inventory objectives and cash flow considerations and to act quickly on opportunities to service the business.

5. To address joint supplier planning, companies are focusing on granularity of data, collaboration models with suppliers, third-party manufacturers, and key customers, and optimizing against multiple dimensions, including cost, service, risk, resilience, and ESG. The ability to shape demand through net revenue management and pricing elasticity is also crucial. There is a need for strong analytical capabilities and insights into what's in the supply chain to improve forecast accuracy and address actual discrepancies.

6. Holistic, end-to-end supply chain planning requires integrated business planning and breaking down silos across the organization, with everyone involved in the process from procurement to sales to finance. Educating key stakeholders on the value of planning and improving relationships with customers can lead to greater flexibility in shaping demand and finding solutions that meet overall needs in shortage situations.

O9 whitepaper industrial pbp mockup

Strengthen outcome-based service models with technology

Outcome-based service models can enable manufacturers to structure bigger and more profitable deals. Learn how to make the right strategic shifts.

I agree to the privacy policy.


View our related articles, white papers, use cases & videos


Go digital: supply chain transformation in the Capital Goods industry

O9 whitepaper genpact mockup

How to Transform with Purpose

22 min
How to transform with purpose thumbnail

Embracing a Platform-Based Approach to IT in the Digital Age

40 min
Embracing a platform based approach to it in the digital age thumbnail

The Chief Digital Officer transformation story

18 min
The chief digital officer transformation story thumbnail

Addressing planning challenges in the Telecom industry

O9 pov mockup telecom

Pursuing a Career in Procurement

6 min
Pursuing a career in procurement thumbnail

Demand Planning in today's world: a demand planner's perspective in manufacturing

2 min
Demand planning in today’s world: a demand planner’s perspective in manufacturing thumbnail

Olympus’ Integrated Business Planning Journey

25 min
Olympus’ integrated business planning journey thumbnail

Digitization Leaders: What Differentiates the Best from the Rest?

20 min
Digitization leaders: what differentiates the best from the rest? thumbnail

Integrated Planning: Interactions between Commercial and Supply Chain

37 min
Integrated planning: interactions between commercial and supply chain thumbnail

Webinar: AI-driven capabilities for manufacturing organizations

Capital goods industry

Overcome constrained supply with digital operating models

O9 whitepaper industrial global shortages mockup
© – o9 Solutions, Inc.
Privacy Policy Cookie policy Support o9 Guide
tree nation
tree nation