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Supply Chain Planning: Turning exception management into a growth driver

Organizations can no longer afford an outdated approach to supply chain planning.

Overview

In today’s complex and volatile marketplace, organizations can no longer afford an outdated approach to planning. But achieving supply chain visibility alone won’t solve the problem.

What organizations need is a proactive, orchestrated approach to supply chain planning that leverages advanced digital technologies to build agile sense-and-react capabilities.

Such a proactive approach would help make every element of the business more connected and responsive, turning a threat into a growth opportunity—even in very challenging circumstances.

Beyond Visibility - Infographic
Are you turning exception management into a growth driver?
Leverage digital to build sense-and-react capabilities agile enough to drive growth.

 

Beyond Visibility

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Key Findings

By accepting that sequential planning is dead and recognizing that supply chain visibility alone is not enough, organizations can start to turn exception management into a proactive planning capability.

  • The age of sequential planning is over. In today’s markets, customers’ demands can change so fast that the best-laid forecasts are often obsolete before they’re even finalized. Exceptions now threaten to overwhelm the planning process.

  • You need more than visibility alone. And evidence suggests that companies are already looking beyond it. Just 2 percent of operational and supply chain executives name “lack of visibility across the business” as the biggest obstacle to supply chain optimization.

  • From exception management to proactive planning. Disruptive digital technologies like analytics, dynamic scenario modelling and mobile connectivity can help organizations move from reactive, ad hoc exception management to proactive planning.

Recommendations
The key to success is an orchestrated approach. Start by determining how many of your resources are currently dealing with exceptions.

If it’s not sustainable, and if too much of management’s time is being consumed by requests to resolve complex exception challenges, it’s time to move beyond supply chain visibility—toward the orchestration that enables more timely decision making and supports profitable growth.

Authors

Jose Bleda is a managing director in Accenture Strategy and is the global lead for the Accenture Supply Chain practice.

He specializes in supply chain strategy and has more than 27 years of experience developing innovative solutions in the areas of supply chain management, pre- and post-merger logistics integration, supply chain operating model development, and supply chain cost reduction including outsourcing strategies.

Jose holds an Industrial Engineering degree from ETSEIB in Barcelona, Spain, and an MBA from ESADE Business School in Barcelona. He is based in Barcelona.

Pablo Caballero is a managing director in Accenture Strategy and is the global lead for the Accenture Operations capability network. He specializes in the areas of planning optimization, supply chain cost reduction, supply chain value transformation, and inventory cost reduction.

Caballero holds an Industrial Engineering degree from Polytechnic University in Catalonia, Spain, and an Executive Development Program degree from IESE Business School in Barcelona, Spain.

He is APICS CPIM and CIRM certified. He is based in Barcelona.