Supply Chain Management, Risk Management, Technology More than half of surveyed industry professionals say their supply chain planning process is only “somewhat effective,” regardless of the technology used, finds new research by AIMMS. A combined 28% state that their planning process is “very effective” or “extremely effective,” while 15% say their process is “not so effective,” and 2% say it is “not at all effective.” The survey was launched in February 2020, coinciding with the spread of COVID-19, and offering insight into organizations’ preparedness to respond to ongoing disruption.When it comes to accuracy in long-term planning, 52% are looking to attain enough accuracy to make a resilient decision, 22% don’t have enough time for long-term planning, and 26% are looking to attain the same level of accuracy for short- and long-term planning.However, accuracy in long-term planning is increasingly difficult to achieve. Accuracy in the short term and resilience in the long run is key to uphold service levels. Yet, for 31% of respondents, upholding service levels is a constant challenge given the chaos they face day to day. Several factors hinder a team’s ability to advance their planning capabilities, the research shows. Besides lacking a formal commitment to this purpose, many still use spreadsheets, which are error-prone and make collaboration difficult. Only 17% use scenarios in real time, during meetings, to agree on a course of action.Organizations that have incorporated scenario planning into their process may be better prepared to cope with today’s scope of disruption and growing uncertainty. For those who have not advanced their planning capabilities, weathering the storm of events like the coronavirus pandemic, and preparing for the next disruption, may not be as easy.
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