Adaptable SCP for uncertainty regulation
| Planned regulation strategy | Planning challenge | Aim of the strategy | Examples of what is to be planned | |
|---|---|---|---|---|
| Ex ante | Ex-post | |||
| Predictive – for known-known | Accessing and utilizing available data, applying structured processes, appropriate methods and competent people to predict and ensure accurate plans | Building predictive capabilities (better prepare for shocks)
| Optimize plans within the limits of known uncertainty, MRP II, S&OP/S&OE, inventory management | Monitor and adjust based on deviations between plans and actual demand/supply |
| Proactive – for known-unknown | Insufficient understanding to define the relationships between uncertainty outcomes in probabilistic terms | Building proactive capabilities (prevent unprecedented shocks)
| What-if contingency planning/scenario planning, collaborative planning, IBP, monitoring systems | Use built-in flexibility to develop and implement solutions quickly through task force |
| Reactive -for unknown-known | Inability to foresee when or how a disruption will occur, despite a solid understanding of the likely effects | Building reactive capabilities (event-specific reaction to shocks)
| If-then contingency planning, predefine measures and structural flexibility | Activate predefined contingency measures to manage known consequences when unexpected events occur |
| Adaptive -for unknown-unknown | The occurrence and the consequences of disruptive events are unforeseeable and poorly understood | Building adaptive capabilities (adapt and transform with the shocks)
| Plan and design of modular, reconfigurable supply networks to enable rapid adaptation | Enable 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 |
| Planned regulation strategy | Planning challenge | Aim of the strategy | Examples of what is to be planned | |
|---|---|---|---|---|
| Ex-post | ||||
| Predictive – | Accessing and utilizing available data, applying structured processes, appropriate methods and competent people to predict and ensure accurate plans | Building 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 management | Monitor and adjust based on deviations between plans and actual demand/supply |
| Proactive – | Insufficient understanding to define the relationships between uncertainty outcomes in probabilistic terms | Building 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 systems | Use built-in flexibility to develop and implement solutions quickly through task force |
| Reactive - | Inability to foresee when or how a disruption will occur, despite a solid understanding of the likely effects | Building 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 flexibility | Activate predefined contingency measures to manage known consequences when unexpected events occur |
| Adaptive - | The occurrence and the consequences of disruptive events are unforeseeable and poorly understood | Building 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 adaptation | Enable 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 |