A Short Guide to Cloud-based Supply Chain Planning

Supply chains have become more complex than ever.

Consumer expectations have changed dramatically, with demand for greater product variety, faster fulfillment, and flexibility to shift strategies as market conditions change.

At the same time, globalized supply chains, trade uncertainty, and disruptions like COVID-19 have made supply chain operations more challenging. Legacy supply chain software is no longer adequate to manage this complexity.

That's why best-in-class enterprises are moving to cloud-based supply chain planning solutions. By tapping into unlimited cloud capacity, you can run complex demand forecasting algorithms, scenario models, and comprehensive product optimization routines with speed and precision.

Here's how a SaaS model can transform your supply chain planning:

Real-Time Visibility and Coordination:

Cloud connectivity gives planners instant access to live data across the extended supply chain network. This enhances decision making with real-time inventory positions, production statuses, order changes and delay alerts. All partners from manufacturing to logistics can collaborate in the same cloud platform for synchronized execution.

Continuous Planning:

With legacy systems, planning was batched and stagnant between periodic cycles. Cloud-native platforms enable real-time planning with constant data feeds. As new inputs arrive, the planning engine automatically reruns forecasts, inventory targets, and order quantities. This eliminates planning latency and keeps plans locked in on targets.

Also read: Supply Chain Planning Strategic Playbook

Advanced Analytics:

Machine learning and AI capabilities built into cloud platforms can crunch billions of data points from across the supply chain to improve demand sensing, identify resource constraints, highlight purchase order anomalies, and more. These insights enhance planner productivity and decision quality.

Rapid Deployment and Upgrades:

You can roll out a cloud planning solution extremely quickly since there is no hardware to install and software is updated automatically. This allows your planners to take advantage of new features and innovations on the fly rather than waiting for lengthy upgrade cycles.

Resilience to Disruptions:

Natural disasters, cyberattacks, and other disruptions can cripple on-premise IT systems and interrupt planning operations. With the cloud, your planners can access plans and data from anywhere with an internet connection, keeping the supply chain moving amid chaos.

Also read: Supply Chain Planning: Why Is It So Hard?

Despite the advantages, cloud-based supply chain planning also warrants careful consideration:

Change Management:

Moving from legacy on-premise tools, planners will need training on the new system. Clearly communicate benefits and provide ongoing support to drive user adoption across the organization.

Migration Complexity:

Data and system integration between the cloud platform and your various internal ERP/IT systems takes time and IT resources. Create a detailed migration roadmap and validate integrations thoroughly.

Hybrid Model Flexibility:

Rather than a rip-and-replace approach, many leverage cloud planning tools in conjunction with existing on-premise systems for specific functions during a transitional period. Take a phased deployment approach.

Conclusion

As supply chain complexity continues to grow in an uncertain world, harnessing the power of cloud-native planning platforms is becoming imperative to outmaneuver disruptions, optimize costs, and delight customers. With the right strategic implementation approach, a cloud planning solution can rapidly deliver the responsiveness, agility, and resilience demanded in today’s environment.

Here's how GEP can help you optimize your supply chain planning.