Table 1

Adaptable SCP for uncertainty regulation

Planned regulation strategyPlanning challengeAim of the strategyExamples of what is to be planned
Ex anteEx-post
Predictive – for known-knownAccessing and utilizing available data, applying structured processes, appropriate methods and competent people to predict and ensure accurate plansBuilding predictive capabilities (better prepare for shocks)
  • through structured processes

  • use of forecasting and optimization tools

Optimize plans within the limits of known uncertainty, MRP II, S&OP/S&OE, inventory managementMonitor and adjust based on deviations between plans and actual demand/supply
Proactive – for known-unknownInsufficient understanding to define the relationships between uncertainty outcomes in probabilistic termsBuilding proactive capabilities (prevent unprecedented shocks)
  • through information channels

  • strengthening preparedness

  • monitoring and continuous learning

  • creating integrated and collaborative processes for visibility, coordination, trust building, etc.

What-if contingency planning/scenario planning, collaborative planning, IBP, monitoring systemsUse built-in flexibility to develop and implement solutions quickly through task force
Reactive -for unknown-knownInability to foresee when or how a disruption will occur, despite a solid understanding of the likely effectsBuilding reactive capabilities (event-specific reaction to shocks)
  • allocate capacity to be able to absorb changes

  • build structural flexibility and coordinate collaborative arrangements

If-then contingency planning, predefine measures and structural flexibilityActivate predefined contingency measures to manage known consequences when unexpected events occur
Adaptive -for unknown-unknownThe occurrence and the consequences of disruptive events are unforeseeable and poorly understoodBuilding adaptive capabilities (adapt and transform with the shocks)
  • develop modular and reconfigurable supply chain structures

  • developing jury-rigging capabilities

  • possibilities of regionalization

Plan and design of modular, reconfigurable supply networks to enable rapid adaptationEnable rapid, coordinated responses by activating real-time visibility and advanced analytical tools, such as digital twins and AI-based scenario simulators, to assess emerging uncertainties as they unfold

or Create an Account

Close Modal
Close Modal