Autonomous supply chain planning for consumer goods companies

Autonomous planning is a constant, closed-loop planning approach built on a fully automated technology platform, designed to optimize processes in real-time. For large, complex companies, autonomous planning can help supply chains function more effectively in volatile environments, and with less direct human oversight and decision making required. It combines big data (internal, external, and customer information) and advanced analytics at every step of the supply chain planning process.

Although it is based on technology, autonomous planning requires more than hardware and software. That’s because it entails a shift in the way that organizations work, based on a set of foundational principles:

·??????Reduce human involvement?by relying on automation to handle most processes end to end, with manual interventions required only to address exceptions and special circumstances.

·??????Rely on integrated advanced analytics?throughout the supply chain, moving beyond standard software functionality for individual processes to create an explicit link from demand forecasts and orders back through to the production schedule and plan.

·??????Evolve from structured planning processes—which are typically slow, rigid, and reactive—to a more fluid approach, based on cross-functional and continuous touchpoints that can proactively integrate real-time information.

·??????Hard-wire processes and KPIs directly into business units,?rather than concentrating ownership and control over the supply chain to the operations function.

·??????Build the organizational capacity to evolve over time,?by piloting new uses cases, learning from experience, and developing data and analytics capabilities.

Because it is so comprehensive, autonomous supply chain planning leads can improve performance in a range of processes across the supply chain

·??????Increased service levels.?As companies better understand and capture variability of future demand through forecasting, they can predict customer behaviors more accurately and meet their demand with a higher level of confidence.

·??????Optimized inventory.?Inventory levels can decrease by 10 to 20 per cent, often with a corresponding drop in inventory costs, while still meeting required service levels.

·??????Improved planning efficiency.?Automated execution equips an organization with a powerful tool that allows demand planners to shift focus to more complex issues and improve organizational efficiency.

Four elements to deploy autonomous planning

Autonomous planning is a journey. Companies have found that implementation is most successful when supported by four key elements