Friday, January 29, 2010

Where is the innovation in Advanced Planning Systems (APS)?

Noha Tohamy at AMR research published a great article titled "Getting more out of your APS Investment ..." Her observation is that companies are generating value from APS, but mainly from 20 year old innovations - forecast improvement, postponement, and risk pooling. She goes on to say that companies have become more adept at recognizing different supply chains in their business and dealing with the separately.

Yes, today better tools are available for segmentation. Better tools and availability of downstream data have become available to improve forecast. Rapid planning systems have made it easier to do what if analysis. But where is the beef?

Noha thinks that "... we have yet to scratch the surface in reaping benefits of systematic and methodical SCP techniques." Is there a *big* step and if there is, what is that next *big* step in enterprise planning systems?



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