With the advent of the digital era, supply chain has transformed dramatically. To increase flexibility, responsiveness, and competitiveness in the long run, the investment in supply chain digitalization will increase by 10%-15% over the next few years. According to a leading company in the global market, digitalizing the supply chain increases the company’s productivity by 45%. Supply chain digitalization enables companies to improve operational efficiency, speed up processes, provide better insights, and reduce total acquisition costs. Further, organizations can reduce their environmental impact due to digitalization and thus contribute towards sustainability and CSR strategies.
Most global analysts recommend digital investment as a strategic necessity. Recent surveys from Gartner found that 61% of respondents see advanced technologies as key differentiators for being competitive. Many identify developing technologies as key investment areas, with 20% investing in cognitive automation. In a recent article, Forbes discussed the rising success of touchless planning among supply chain leaders who were early adopters. Further, Deloitte showed how emerging technologies can be the foundation for the journey towards touchless networks. If trends hold, we will achieve touchless supply chains very soon.
Fuelled by recent digitalization trends, companies are adopting no-touch planning—a transformative, highly automated approach that minimizes human intervention and streamlines the planning process.
Working methodology for no-touch planning
- A single top-level virtualized data layer is created with thousands of daily Google-like data crawls across applications.
- This data layer is then cleaned, indexed, normalized and enriched to provide real-time, end-to-end visibility to functional planners.
- AI/ML algorithms analyze data to provide actionable recommendations, such as increasing production capacity, reallocating inventory, reducing prices, or switching suppliers and 3PL service providers.
Periodic table of no-touch planning elements
6 basic elements reinforce each other within the no-touch planning ecosystem:
- Hf : High-Fidelity input data (input)
- Rg : Right Granularity (input)
- Ai : Advance AI engine (engine)
- Ha : High-Accuracy results (output)
- Ef : Explainable Forecast (output)
- Fm : Feedback Mechanism (proactive feedback)
Roadmap for no-touch planning
- Holistic supply chain approach: Define a clear vision for no-touch planning, outline the plan-source-make-deliver-return roadmap and its impact.
- Cognitive Automation for Digital Transformation: Digital transformation initiatives center on cognitive automation and no-touch process execution to clearly articulate and deliver value.
- Customer-Facing Process Automation and Prioritization: Identify and prioritize customer-facing processes that could become bottlenecks due to manual, repetitive tasks.
- Data-Driven Approach and Thinking: Organizations must embrace a data-driven mindset, placing data at the core of operations. Integrate systems of record, systems of engagement, and industry-leading solutions to enable real-time decision-making powered by cognitive insights.
- Rule-based Automation: Develop rule-based decision-making for cross-functional process areas and thus reduce friction between operational functions.
- Adoption of Cloud-Based Applications: Cloud-based applications integrate seamlessly with existing systems, enabling faster deployment. They democratize data, empowering supply chain managers to run more simulations and scenarios for improved demand forecasting. These applications also enhance compatibility and interoperability, supporting technologies like AI and ML.
- Review Performance Indicators: Enhance customer-facing processes and performance indicators such as dynamic perfect order fulfilment and availability, on-time-in-full delivery and in-transit visibility.
- Organizational Change Management: Organizations need to develop a culture of no-touch supply chains by training their people in the use of new technologies. Companies must focus on developing these skills internally with the help of strategic service providers.
Use cases
Following are global case studies illustrating the benefits of no-touch planning:
- Global FMCG company automated 80% of its order-to-ship process and reduced the end-to-end processing time by 45%.
- Global Beverage manufacturer reduced forecast error by 40%–45%, reduced inventory level by 20%–25%, and planners’ time release by 30% from demand sensing.
- Global CPG manufacturer achieved 85% touchless purchase order adherence by improving master data, planning parameters in the system, and loss-free analysis.
- Global CPG manufacturer identified 35%–45% of its product portfolio for no-touch demand planning using machine learning (ML) forecasting.
- Global food and drink firm doubled the accuracy of its weekly demand forecasts using predictive analytics.
- Global industrial leader with too many processes, systems, and a long time of over 9 months for customer response. The business carried too much inventory about $6 B, which led to much waste through product obsolescence. The company saved 18% in inventory costs by adopting an integrated touchless planning solution.
Final thoughts
The quickly changing technological landscape and heightened customer expectations are causing organizations to revisit how they do business. Digital transformation in the supply chain today is one of the most effective and safest ways to build a resilient business. Integrating the supply chain with digital technologies can lead to greater efficiency and flexibility and build resilience.
To make touchless planning a reality, your digital supply chain needs to embrace cognitive automation capabilities.
Bristlecone’s Touchless Supply Chain Planning can transform your organization to drive enhanced customer experience and reduced cost. Contact us to request a meeting.
Mangesh Wandile
Manager (Process Consulting)
Bristlecone
