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Supply Chain Graphic of the Week: Is it Time for Autonomous Supply Chain Planning?

 

 

 

The Organizational Design of the Supply Chain Function can have a Critical Impact on Overall Performance. McKinsey Says

 

March 31, 2022

 

 

In a recent article, the consultants at McKinsey say that AI and machine learning in supply chain planning hold the potential to dramatically improve performance for consumer packaged goods (CPG) companies.

 

Yet most companies are limited by their approach thus far: investing in a collection of point solutions that work well for individual processes but don’t talk to each other or integrate data. The result is that there is still a lot of human intervention in the planning process, McKinsey adds.

 

Today, a bettter approach is to integrate the entire end-to-end supply chain so that the majority of processes and decisions are executed through real-time, autonomous planning.

 

What characterizes autonomous supply chain planning? A McKinsey graphic offer four key elements, as shown in the graphic below:

 

 

 

Source: McKinsey

 

McKinsey says that a  autonomous plannng in CPG can deliver big benefits, such as an increase in revenue of tp 4%, and a reduction in inventory of up to 20%.

 

What happen to all the current supply chain planners? That isn't clear.

 

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 

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