“Sense and Respond”, or as we position it, “Know Sooner, Act Faster”, is a favorite topic on the Kinaxis blog. Many have had a lot to say on the topic (see here, here and here as examples). And now, so do our customers.
Before we get to that, let me ask you, do you know what the first step is that leads to being able to sense and respond? Acceptance – a recognition that you can’t plan perfectly. I suspect you are thinking to yourself, “everyone knows this and accepts this already”, right? Well, in theory and in their words they might, but in execution… not so much. For example, at a meeting with a prospect recently the team talked at length about their need to be more responsive and flexible. They said they needed to advance their processes and bring them together to be able to be more agile and effective in their planning, analysis and decision making. Awesome… music to our ears! And when the conversation turned to the capabilities they were seeking, guess what happened? They presented a series of feature checklists for each individual function, primarily focused on planning capabilities. Hmmm.
When an organization truly recognizes the difference between planning better and knowing sooner, acting faster, it means they are looking at the problem differently. And equally important, they start looking at the solution differently. The conversation changes from looking at ways to optimize the plan, to looking at ways to optimize decision-making processes when there are variances. They consider a set of capabilities that are fundamental to creating a competency in “sensing and responding” – from getting harmonized data, to being able to do quick simulations, to bringing teams together to make informed risk decisions and business tradeoffs.
We’ve posted a series of Kinaxis customer clips, among them are a few that speak to this theme. There are some pretty good insights that are definitely worthy of a listen.
“…we haven’t been able to accurately forecast for a long time, and it was just fooling ourselves, and so years ago we really embraced this philosophy that, “No we can’t, so what can we do about it?”… and so what we began doing was… ”
“We’ve learned to accept and embrace that a forecast is wrong, rather than continually try to influence a customer to correct that. I think that we just accepted that there is just inherent forecasting inaccuracy. So to mitigate that we… ”
“If I get a sales-out spike of two times my run rate, an alert goes to the planner. We go look at it. Is it an inventory problem? Is it not? Can I rebalance between regions? So in very tactical ways, we’ve become much faster at sensing and responding.”
Our Customers Are Talking – To hear more from Kinaxis customers on the topics of end-to-end supply chain visibility and orchestration, what-if scenarios, platform features and business results, watch these video clips.