Lora's Latest Post

Have You Given Your Planner Love Today?

As I write this blog, Valentine cards scatter my desk. This is the week for love: a time to send cards and letters to those that we appreciate. I am in the middle of sending the cards to my grandchildren. It is in this spirit, that I write this post. The most unloved employees in the back office are supply chain planners. As supply chain leaders, I would encourage you to send each of them some love for Valentine’s Day. That to do? Here I give you some ideas that go beyond flowers and candy.

Background

Each year, when we complete our annual talent survey, we note greater and greater dissatisfaction within the role of supply chain planners. In Figure 1, note the lowest satisfaction is Generation X (birth years of 1965-1980) in manufacturing organizations. Note that academics and employees of technology software companies have a statistically significant higher level of job satisfaction. Within the data is the story of planners. The numbers are small, but the dissatisfaction is high.
Figure 1. Relative Job Satisfaction of Employees

Some Thoughts:

Supply chain management is heady stuff. A complex non-linear system is not easily wrangled by the uninformed. For every action there is an opposite reaction. The response is often surprising .
In Figure 2, we share insights on five characteristics of companies with a supply chain working well. Note the comparison to the larger population. Companies that outperform their peer groups have supply chain executives with a better understanding of supply chain management.
Figure 2. Characteristics of High-Performing Supply Chains
1) Market-Driven Processes.
Business cycles. Markets go up and down. Supply chains take their sweet time to respond. (It took six months for supply chain executives to sense the market downturn of 2007 and make adjustments to their supply chain. Why? Bad news (declining volumes) moves slowly across an organization while good news (increasing volumes) travels quickly. Today, companies seek a growth agenda, but the signs are omnipresent. The economy is slowing down.  Last week, the Wall Street Journal reached out to discuss the rising inventories near the Port of Los Angeles. In my share groups, large manufacturing clients have a Q1 freeze on travel.  (Normally the freeze begins in the third quarter.) I am no economist, but there are signs of a market slowdown.
During a market downturn, the life of a demand planner is tough. As the patterns of declining volumes rise to the surface, organizations struggle in disbelief. The unknowing supply chain leader will send demand planners back to their cubicles to “fix the demand plan.” (In other words, forced to concoct a story of growth in a market that is slowing down. Planners hate this stress.) Tensions rise as demand planners attempt to do their jobs in an organization that does not want to engage with market data.
The answer? Embrace the data and use the work of demand planners to see early signs of the market downturn. Use the information to adjust the supply chain to minimize the impact.

2) The Story of Policy, Strategy, and Modeling.

The supply chain combines policy, strategy and models. However, there is a disconnect. Despite the fact that supply chain modelers have great insights, they model; but do not drive strategy. These planners are often stuck at low-levels of the organization struggling with what to tell the “boss” when the strategy decisions are not feasible.
The action? Align. Ask data modelers using supply chain strategy tools to validate policy and refine the outcomes. Make the modelers important members of the team. The more that they feel involved, the greater the love.
3) Buy Technologies that Supply Chain Planners Will Love.
Over 65% of supply chain planning happens in Excel spreadsheets. One of the reasons? Usability. The second? The ability to model the supply chain in the technology. Models are not created equally.
Many times it is the result of the purchase of supply chain planning technologies purchased based on IT standardization. The lack of usability and modeling capabilities drive dissatisfaction.
Figure 3. Planning Technology Satisfaction

As shown in Figure 3, satisfaction with planning technologies low. The gap is greater in emerging economies. User satisfaction is the same as the flip of a coin.
Next steps? Focus on buying planners systems based on usability and modeling capabilities. Make sure that the planners have the right stuff. Make their jobs easier. As shown in Figure 4, the fit of technologies to do adequate modeling is significant gap.
Figure 4. Gaps in Planning Technologies
So, when Valentine’s day rolls around, feel free to buy your planners lunch or host a celebration. Love in any form is a great thing; but to make a long-term impact, don’t forget to address the tough issues that drive the low-level of planning satisfaction.  I would start with these three.

Prior Blog Posts:

For additional reading, check out these posts.
Have You Given Your Demand Planner Some Love Today?
Selection of a Supply Chain Planning Solution
Supply Chain Planning Is Like A Flip Of A Coin

Search the Archives
Search
Share this Post
Email
Twitter
LinkedIn
Facebook
Pinterest
WhatsApp
Featured Image
Recent Posts

Is your Supply Chain AI Ready?

A simple quiz to assess an organization’s AI readiness.

The pace of change is fast and furious. Every day, technology advances faster than we can digest. A great challenge to have.

Determining whether a supply chain is “AI-ready” is less about technology and more about the gray matter between the ears of supply chain leaders. Leadership, alignment, and clarity of goals matter.

Too few companies are clear on the definition of supply chain excellence. Measuring and rewarding functional metrics reduces the firm’s value. Putting agentics on top of today’s processes can make bad practices run faster, reducing value.

The toughest job for the supply chain leader is challenging existing supply chain paradigms that were defined by the limitations of decades of supply chain technologies. As the curtain lifts on the potential of new forms of technology, process redefinition is our opportunity, but only if we are clear on what drives value. (Here, I link to the Supply Chains to Admire reports to help you define value. The next report will be published on June 23rd, along with my Dynamic Benchmarking Product, to help you define value in the face of your AI readiness. More information about the launch is at the bottom of this blog.)

Read More »

Case Study: A Scrappy Demand Management Approach

This study of Franklin Sports shines a light on the work that needs to be done at the sales account level to challenge a retail forecast, and also highlights the importance of a new technique for a forecast engine — reinforcement learning.

Artificial intelligence comes in many forms — large language models, generative AI, machine learning, unstructured text mining, deep learning, neural networks, reinforcement learning, agents, and agentics. While the industry is wigging out about agentics, I think reinforcement learning is a great step forward in the journey of Artificial Intelligence.

Read More »

Can We Side-Step the AI Spin Cycle?

When it comes to combining tech, 1+1+1 should equal more than 1. The impact should be exponential. Unfortunately, today, the answer is 0.

What do I mean? Let me explain.

I find that the supply chain technology market moves slowly along traditional technology lines. Conferences are usually focused on the use of technology, not on redefining work. This bothers me. I want it to bother you as well.

Here I share some insights to drive change.

Read More »

Supply Chain Health Check: The Power of an Orbit Chart

An orbit chart is a powerful tool for understanding the “health” of a supply chain and its potential for improvement. The supply chain is a complex, non-linear system with limited trade-offs. The relationship between trade-offs varies by industry, region, and size. The orbit chart is a diagnostic we use in the Supply Chains to Admire work. Here I explain the use case.

Read More »

Are You Writing a Check You Cannot Cash?

Don’t let a well-intending, but ill-informed consultant or technologist set an expectation that you cannot meet. No when wins when there is a check written that cannot be cashed. In this case, the consultant will move to the next account leaving you holding the bag. Fight back with a data-driven argument. Help the organization think about inventory more holistically.

Read More »