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EDSEN BLOG

Consumer-Goods Companies Must Transform Their Planning End to End

4/25/2022

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The consumer-goods industry has been fending off an array of challenges, such as shifts in consumer expectations and purchasing habits, low GDP growth in some large economies, and a global pandemic that created seismic upheaval. In 2020, the most resilient players were the ones that had already begun rethinking their planning practices.
 
Key success factors in advanced planning transformations
We agree that planning transformation is particularly complex. Successful companies must simultaneously manage a large stakeholder base and technological enablement while implementing new ways of working throughout the organization. Executive leadership is a vital component; without the engagement of the top team, any transformation is destined to fail. Business leaders should focus on five actions to accelerate their planning transformation such as;
 
Stakeholders outside of the supply chain and the organization should be involved. Because the supply chain impacts so many various elements of the business, the CEO and COO must be involved in the transformation. Their presence will give the transformation credibility and guarantee that decisions are taken in a cross-functional manner. Companies can also use external data (for example, from retailers, contract manufacturing organizations, copackers, trade partners, and proprietary databases) to generate value for themselves and their ecosystems, such as by improving capacity or supply visibility.
 
Develop a plan to start with high-value areas. To make the work more tangible, organizations should choose one of the top five use cases and determine their relevance based on granularity of product line, geography, and customer segment (called unit). This exercise develops a portfolio of applications that can be deployed in 12 to 24 months, initially focusing on high-impact units and units with sufficient data. One solution is to start with units that have significant business value. Once a sizable flagship is built and bearing fruit, it can be expanded more easily.
 
Choose the right technology partner ecosystem. Some technology partners offer advanced integrated solutions, and many startups have developed specialized supply chain products – for example, for specific planning processes or industries. While some organizations face specific planning challenges that require custom solutions, leaders should initially consider more than one key technology partner.
 
Reinvent the organization to ensure end-to-end optimization and more agile decision making at interfaces.
While superior making plans modifications consciousness totally on virtual and generation enablement, companies attain the finest making plans upgrades and performance profits via a company and procedure redesign. This technique guarantees stop-to-stop selection making in a fit-for-cause manner relying on geography, product segment, channel, and purchaser type.

Engage in a massive reskilling program with HR
As the transition continues, the planning team's function must shift to include more strategic decision-making, trade-offs, and stakeholder engagement. Companies must invest in upskilling as a vital pillar of the planned transformation due to the growth of the team and the unavailability of those resources in the job market. Successful attempts, in our experience, employ tactics like learning by doing. For example, each planner should participate in the solution design—from the establishment of the business case to delivery—and be aware of the possibilities of algorithms to aid planning.

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  • HOME
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