Is Shadow Planning Right for You? Assessing Your Manufacturing and Supply Visibility.
Modern supply chain managers juggle an amazing number of uncertainties. From geopolitical tensions to sudden weather events, disruptions lurk around every corner. But have you ever considered the blind spots within your own operations? When you outsource manufacturing, the gap between placing an order and receiving finished goods can feel like a black hole, hiding potential pitfalls that could derail your supply chain.
If you’re still leaning on traditional planning methods that rely on historical data, you’re likely missing out on critical insights. Shadow planning offers brand owners a more forward-thinking strategy that empowers seamless collaboration with contract manufacturers (CMs) and component suppliers.
Are you facing these production and supply challenges?
Your current planning methods may not be giving you the full picture. If you’re dealing with supply delays, unexpected shortages, or unreliable supplier performance, it might be time to rethink your approach. Here are a few questions to consider:
- Are you satisfied with the delivery and cost performance of your outsourced manufacturing partners?
- Do you have sufficient visibility into the constraints faced by your outsourced contract manufacturers?
- Can you effectively prioritize and resolve constraints with your contract manufacturers?
- Are you tracking issue resolutions and inventory liabilities effectively?
If you answered “no” to any of these, shadow planning could be the key. Download the full self-assessment now to identify the gaps in your manufacturing and supply visibility.
Take the self-assessment
What is shadow planning?
Shadow planning is a proactive supply management strategy where brand owners run parallel simulations, or “shadow plans”, of their production with contract manufacturers. These shadow plans enable companies to optimize material flows across the multi-tier supply chain and guide decision-making to ensure that capacity constraints are addressed. The payoff? Greater supply assurance, more reliable production outcomes, and improved overall supply chain performance.
How can shadow planning help solve manufacturing and supply challenges?
Shadow planning offers a forward-looking solution that provides businesses with the tools to foresee and plan for potential challenges in manufacturing and supply by:
Enhancing forecast accuracy
Align forecasts with contract manufacturers and suppliers to ensure demand is consistently met.
Strengthening supplier reliability
Identify potential risks and create contingency plans to mitigate disruptions.
Optimizing inventory levels
Maintain optimal inventory to meet delivery goals while avoiding overstocking.
Improving collaboration
Use real-time data sharing and exception management portals to streamline communication with contract manufacturers and suppliers.
Scenario planning with digital twins
Conduct "what-if" simulations to prepare for demand spikes, supply shortages, or logistics issues before they affect your business.
How shadow planning supports business resilience
Traditional planning methods have become less reliable due to their reliance on historical data that may not be relevant in the modern context. After years of relying on reactive strategies, shadow planning has emerged as a leading strategy for brand owners who want to improve collaboration with contract manufacturers and component suppliers for a more dynamic approach to disruption response.
Shadow planning goes beyond forecasting; it equips businesses with essential tools to:
- Simulate potential disruptions and identify vulnerabilities: Model scenarios like supplier shutdowns, transportation delays, and demand surges to uncover and improve weaknesses.
- Explore alternative strategies: Evaluate backup plans, such as secondary suppliers, alternative logistics routes, and inventory repositioning, to keep operations running smoothly.
Don’t know where to start your shadow planning journey? Take this self-assessment and evaluate the quality of your manufacturing and supply visibility.
