Great planning solutions are designed before they’re scoped

Many supply chain transformations begin with a simple assumption: “A new planning platform will fix the issues we have today.” Unfortunately, that is rarely what happens, technology has an uncomfortable habit of exposing problems rather than solving them.

Poor master data, weak planning processes and disconnected decision-making all stay the same, the only difference is that those issues become visible faster. That is why many supply chain transformations struggle before they have even begun. The organisation becomes focused on the future solution before it has properly understood its current reality.

Most planning problems existed before the software arrived

When businesses evaluate a new planning platform, conversations naturally focus on capabilities.

• Forecasting.
• Inventory optimisation.
• Scenario modelling.
• Supply planning.
• Connected planning.

These are all important discussions, but an equally important question is often overlooked:

“Do we trust the information we are planning with today?”

If demand data is inconsistent, inventory records are inaccurate or planning assumptions are undocumented, a new planning platform will not solve the issue, it will simply process poor information more efficiently. Yes, technology can improve planning, but it cannot compensate for a lack of planning discipline.

Bad data is not usually a data problem

When organisations talk about data quality, the conversation often turns towards systems.

• Missing fields.
• Duplicate records.
• Integration challenges.
• Data structures.

Whilst these things matter, they rarely are the root cause, more often, poor data is a symptom of poor process.

• Different teams maintain information differently.
• Planning assumptions are not documented.
• Ownership is unclear.
• Business rules change over time.
• Workarounds become permanent.
• Spreadsheets become unofficial systems of record.

Over time, the organisation develops multiple versions of the truth, and the data problem is a process problem. Which means solving it requires understanding how decisions are being made, not just where information is stored.

The most important phase of a planning transformation

The strongest transformations spend significant time understanding the current state before discussing the future state, this is to they can avoid carrying existing problems into the new environment.

They ask questions such as:

• Where does planning data originate?
• Who owns it?
• How often is it reviewed?
• Which assumptions drive key decisions?
• Where do planners rely on manual intervention?
• Where are spreadsheets filling process gaps?
• Which metrics are trusted and which are challenged?

The objective is not to document the processes; it is to understand how the business really operates because the reality often looks very different from the process maps..

Every workaround tells a story

One of the fastest ways to understand planning maturity is to understand where workarounds exist, because they always exist for a reason. At some point, the process failed to support the business, so someone found another way and over time that workaround became accepted practice.

A new planning platform provides an opportunity to address these issues, but only if they are identified early. Otherwise organisations risk recreating the same problems in a more sophisticated environment.

Good planning starts with understanding your decisions

The most mature organisations recognise that planning is not really about data, it is about decisions, data simply supports those decisions. This changes the conversation entirely.

Instead of asking: “What data do we need?”

The question becomes: “What decisions are we trying to make?”

• Demand planning.
• Inventory planning.
• Supply planning.
• S&OP.

All exist to support decision-making, if the decision is unclear, the process will struggle, then the data will suffer and then no technology investment will deliver its full value. Understanding the decision-making process is often the fastest route to understanding where planning improvements should begin.

Why this matters before scope is defined

Many projects start by asking what functionality should be delivered, but functionality should always be secondary to understanding the problem.

• If inventory is too high, why?
• If planners are spending too much time manually updating forecasts, why?
• If service levels are inconsistent, why?

Without understanding the drivers behind those challenges, organisations risk defining solutions before properly defining the problem and is an expensive mistake to make.

Our view

The most successful planning transformations do not begin with system design, it begins with understanding:

• The data.
• The process.
• The assumptions.
• The decisions that drive outcomes across the supply chain.

Otherwise, you risk doing something many businesses have done before, investing in a better platform whilst carrying the same planning problems into the future.

What to read and do next

Previous article

The Biggest Risk to Your Supply Chain Transformation Isn’t the Technology

Why successful planning transformations depend on adoption, trust and involving the people who will ultimately use the solution.

A question worth asking

If you implemented a new planning platform tomorrow, which of today’s data, processes and assumptions would you be carrying across with it? The answer will often tell you more about the likelihood of success than any technology evaluation ever could.

Our Anaplan Value Check takes two minutes and ten questions. It assesses the strength of your planning foundations, shows you where the gaps are, and gives you a practical view of what to address first.