Beyond Software: CPG Strategies for Advanced Planning and Scheduling Success

Optimizing Supply Chain Planning: Key Strategies

Effective supply chain planning in the CPG sector is not a one-size-fits-all solution. It requires a multi-faceted approach involving short-term, mid-term, and long-term strategies. Seamless data flow between finance, marketing, and supply chains is critical across all planning horizons. Regular system upgrades and sturdy data integration frameworks are essential to meet evolving business needs. APS solutions need to be paired with capabilities such as:

• Sales and Operations Planning (S&OP). S&OP is crucial for aligning supply and demand in the short term, ensuring optimized inventory levels, and efficiently meeting customer demand. Implementing S&OP processes involves transforming workflows to align sales, operations, and finance better. Success requires active stakeholder engagement through regular training and clear communication.
• Integrated Business Planning (IBP). IBP extends S&OP principles to a comprehensive, cross-functional approach, aligning strategic and operational plans across the organization. AI-driven validations can assist in planning accuracy by identifying patterns and anomalies and providing more reliable forecasts.
• Strategic Supply Network and Capacity Planning. These planning approaches further optimize the supply chain network for resilience and flexibility. Actualizing these strategies requires careful change management to address organizational aspects, choosing experienced partners, and investing in agile, scalable platforms to adapt to changing business needs.
• Artificial Intelligence: Integrating AI into supply chain planning can transform the accuracy and efficiency of forecasting and decision-making processes. AI can automate data validation, identify trends, and provide actionable insights, making it an invaluable tool for CPG companies.

Overcoming Implementation Challenges

Implementing and sustaining APS solutions can take time and effort despite the best strategies. Companies must ensure seamless integration of various systems while maintaining accurate and up-to-date master data. Proper governance ensures that data is correct, consistent, and reliable, reducing the risk of errors that can cascade through the planning process. Regular data audits and updates help maintain data integrity, supporting more accurate forecasting and decision-making.

Manual overrides and transaction errors can disrupt planning processes, however. Automating data validation and implementing AI-driven alerts can help mitigate these issues. Supply chain agility is essential in responding to market dynamics and disruptions. Agile planning systems can swiftly adapt to changes, ensuring supply chain operations remain efficient and responsive.

Driving Ongoing Enhancements and Comprehensive Support

Fostering a culture of continuous improvement within the organization is vital. Companies must also focus on change management, process optimization, and ongoing support to get the most out of APS solutions. This comprehensive approach ensures that companies can navigate the complexities of supply chain planning in the CPG sector and achieve long-term success.

In our work with several leading CPG companies, we have observed that the recipe for long-term success is the careful integration and continuous support of APS solutions backed by expert guidance and strategic planning. In areas like demand planning, master production scheduling, and distribution resource planning, our supply chain planning consultants have observed that strategic APS integration drives significant improvements, such as a 40% reduction in batch run time, reduced excess inventory costs at plants, and minimized short supplies in production planning.