SUPPLY CHAIN top talent from existing operations and implement a transformation unassisted is risky , especially in current volatile conditions .
Without adequate support , your top talent may believe they are being asked to assume career risk on such a project .
Where do you see S & OP being in 5 years ' time ? PB : I ’ m hoping for two key outcomes in the next five years .
First , I think we ’ ll see widespread adoption of tokenisation and blockchain usage in supply chain management . Firms will use a combination of standardised tokens and customised privacy rules to run their supply chains on the public Ethereum blockchain . Those companies with truly end-to-end visibility will be positioned to replace inventory with information and do so with far more confidence than ever before .
Second , and more aspirationally , I think we ’ ll see the beginning of the end of top-down operations planning . Instead of ‘ planning ’ a supply chain , companies will shift towards guiding self-organised networks . Smart contracts will have the power to automatically reorder supplies , and the purpose of the S & OP process will be to adjust the ecosystem guidelines and strategy , but allow the network to largely run itself .
ML : S & OP has been around for 40 years , and in the next five , I see S & OP still being underexploited by many . S & OP is difficult to sustain without executive engagement and supporting technology .
The increased realisation that S & OP needs to be combined with sales and operations execution ( S & OE ) will help mature the S & OP process , but , in some cases , it may distract attention from enhancing S & OP itself .
We anticipate :
• Increased focus on central planning to maximise the value of shared resources and trading partners .
• Improved cross-functional support and better aligned incentives
• Increased use of scenario planning and analytics to support decision making
• Increased use of process orchestration – often from a low-code platform
• More mature companies working hard to make ‘ true ’ integrated business planning work , eliminating duplicate S & OP and financial planning activities
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