Sustained volatility means complex supplier networks need more than visibility
Manufacturers today manage global, multi-tier complex supplier networks that change faster than most planning systems can keep up with. Raw material scarcity, changing trade regulations, and sudden demand shifts put pressure on supply chain teams. Yet many manufacturers’ supply chains still rely on siloed, internally focused planning solutions that weren’t designed for these modern supply chain complexities.
During our live webinar, Charles Brennan, Senior Analyst at Nucleus Research and Dan Stidsen, Senior Director of Solutions Consulting at e2open, discussed how manufacturers are responding to these challenges by modernizing their supply chain planning. The discussion was centered around a recent report from Nucleus Research.
Why the current geopolitical landscape is reshaping supply chain strategy
The impact of geopolitics has evolved from affecting procurement to becoming a broader planning challenge for companies, notes Brennan. “Trade restrictions and tariffs are reshaping sourcing decisions. A single policy shift can change landed costs or supplier viability overnight which is why organizations are leaning harder into aspects such as scenario planning.”
These geopolitical pressures are also accelerating structural shifts in supply chains. Nearshoring and nationalization trends are transforming supply chains and accelerating network designs as companies rethink how and where they operate. “Companies are reconsidering where they build, where they source, and how they rebalance costs with resilience,” says Brennan. As an example, Europe faces growing regulatory complexity, with ESG requirements demanding deeper visibility into supplier networks.
However, supply visibility and tracking risk within your networks isn’t enough. Whether it’s rebalancing inventory, adjusting capacity, or shifting suppliers, Brennan notes that organizations need structured plans to act on these risks. “Companies that embody agility are the ones that treat planning as a dynamic capability that adjusts as geopolitical shifts unfold in real time.”
Trend alert: Rising demand for integration between supply chain planning and execution
For a long time, planning and execution lived in silos, but that’s changing.
“We’re seeing a demand from customers for integration between supply chain planning and execution systems – everything from manufacturing to warehouse and transportation,” says Brennan. “The goal is to unify forecasting, production, logistics and fulfillment, so when a disruption is identified, a plan automatically triggers a coordinated action across the network.”
“We’re moving towards a world where planning and execution happen in one continuous loop.”
Why traditional planning is no longer working
Traditional planning focuses on operations within the four walls of an organization, and internal data, like sales history, inventory, and production capacity. Understanding historical demand patterns and production schedules is valuable, but on their own, they no longer tell the full story.
The challenge is connecting those internal signals with what’s going on externally, both upstream with suppliers and downstream in the channel. When planning relies on siloed, internally focused planning solutions, it becomes difficult to account for supplier constraints, shifting consumer behavior, or disruptions occurring in the multi-tier network.
Traditional planning works well in stable environments. But it quickly breaks down when conditions change. Sudden demand shifts, material shortages, supplier capacity issues, or disruptions all introduce uncertainty that static plans can’t absorb.
The growing need for outside-in planning
“Most disruptions don’t actually happen to our business directly, but to our partners upstream and downstream which ultimately impact our business. That’s where you have the most exposure,” says Stidsen. Outside-in planning enables organizations to focus on early detection and proactive responses rather than reacting after the fact that something happened.
Stidsen points to an example of how outside-in planning works in practice: “Downstream into the channel, brand owners will use point of sale information from the retailers they sell into, because that allows them to see early demand signals. This in turn enables them to make better inventory positioning decisions and that helps them consider how they might need to be repositioning inventory.” Upstream, manufacturers collaborate with suppliers to understand constraints and align on what can realistically be delivered.
Real-world case studies: Making the case for supply chain planning software
Nucleus Research interviewed e2open customers to understand their challenges, why e2open supply chain planning software was selected, and the measurable business value they achieved. Two of these use cases were discussed in detail in the webinar.
How a global automotive manufacturer saved millions
Before working with e2open, a major luxury automotive manufacturer relied on manual processes and limited planning tools which hindered real end-to-end supply chain visibility and slowed decision-making. With 16,000 Tier 1 suppliers and around 5,000 aftermarket suppliers, they needed a better way to connect and manage these partners.
“They wanted a solution that could provide supplier confirmation tools to ensure that order acceptance and commitment tracking had the visibility,” says Brennan. He adds that they also wanted logistics visibility to monitor the movement of goods in real time, and advanced planning functionality to create efficient, resilient production plants.
The automotive manufacturer evaluated several supply chain management vendors. “They selected e2open for its manufacturing-specific strengths. And that it is a comprehensive, integrated solution that provides tools beyond supply chain planning,” says Brennan.
Multi-echelon inventory optimization (MEIO) can deliver quick wins
To generate early value and build momentum, the manufacturer began their transformation with Multi-Echelon Inventory Optimization (MEIO). The initial deployment focused on a controlled set of non-sequenced parts, such as fasteners, brake components, and accessories, across supplier stocking locations and assembly plants.
“We intentionally started small,” says Stidsen. “The objective was to identify excess inventory without increasing risk, and to demonstrate that optimization across the network could work in practice — not just in theory.”
The results were immediate. Excess inventory was identified and safely set aside during the pilot, building confidence within the organization. As the scope expanded to more than 80,000 parts, the manufacturer achieved a 13% reduction in inventory, while maintaining service levels.
Beyond inventory savings, the impact extended to risk mitigation. Optimized buffer positioning reduced exposure to assembly line shutdowns and minimized the need for costly expediting. To date, the automotive manufacturer has reported approximately $15 million in operational savings, driven largely by improved inventory optimization and faster disruption response.
“Connected planning changed how decisions were made,” Brennan notes. “With earlier visibility into constraints and the ability to act on them, the organization improved production efficiency, model mix decisions, and overall supply chain resilience.”
How an equipment manufacturer reduced inventory and increased OTIF performance
Over the past 30 years, a $40 billion equipment manufacturer specializing in mechanical and electronic security and locking technologies grew heavily through mergers and acquisitions. This resulted in a fragmented environment and disconnected tools with a legacy ERP system that had limited forecasting and production planning capabilities.
They needed an end-to-end platform to manage and unify operations across two supply chains: one for traded goods and one for configured components. “What they required in a planning solution is demand and supply planning, inventory management, and sales and operational planning capabilities,” says Brennan. They needed multi-tier supply chain collaboration for sustainability and mining source visibility. And chip production transparency for upstream supply assurance.”
“When they evaluated the market, e2open was selected for its intuitive, trustworthy, end-to-end platform, combining strong functionality with ease of use,” states Brennan. By leveraging e2open solutions, the company saw measurable operational impacts, including a 30% reduction in aged inventory. This allowed the organization to clear nearly three decades of accumulated inefficiency.
“They were able to dynamically reallocate stock across their warehouses, helping them improve supply chain connectivity. As a result, they improved on time and in-full rates. They went from 88% to 95%, and this is driven by better visibility and control.” Brennan adds, “Overall, this allowed them to have faster planning cycles, enhance agility, and provide stronger operational alignment.”
Boost planner productivity and forecast accuracy with AI-powered demand sensing
People and AI work together to drive better outcomes in complementary ways. The equipment manufacturer used demand sensing, e2open’s real time forecasting solution, to apply AI and generate a highly accurate baseline forecast.
Once that baseline was established, demand planners refined the forecast using their own judgment and input from the sales team. However, despite significant time and effort, improvements in forecast accuracy stalled. “It wasn’t clear how their manual adjustments were translating into better results,” says Stidsen. “So, we implemented forecast value add, which allows us to measure the true impact of human changes to the forecast.”
For some products, forecast overrides by the planner improved the accuracy because planners added important business context that the system didn’t have, like new product launches. But in many other categories, those manual adjustments made the forecast less accurate. “This provided clear direction on where planners should focus their efforts and where the forecast should be handled autonomously by the forecast engine,” says Stidsen. “In terms of the impact, this allowed planners to focus on where they’re adding the most value, and improved forecast accuracy overall.”
More accurate forecasts with demand sensing often lead directly to inventory savings. Stidsen states, “The more accurate the forecast is, the more likely we have inventory where and when it’s needed, which means we need less safety stock to buffer against any uncertainty.”
Implementing a supply chain planning solution
Why now is the time to invest in connected planning
“The supply chain has become a true differentiator for a lot of customers. They’re not competing against each other anymore – they’re competing against each other’s extended value chains,” says Stidsen. “The faster and more efficiently they can get products to their customers, the stronger their competitive position is.”
Stidsen points out that we’re at an inflection point with technology. Every executive is now asking how AI is being applied to their business strategy. “Generative AI has opened everyone’s eyes to what technology is really capable of,” says Stidsen. “But it’s important to recognize that generative AI is only a piece of the technology pie.” He suggests focusing on the outcomes you want to achieve, and that will drive the right technology to use.
Three best practices for deploying a supply chain planning solution
- Balance team composition: Achieving the right balance between internal teams and external consultants is essential for successful deployment. Brennan notes that consultants can help accelerate the project, but overreliance can create long-term dependencies. “On the other hand, relying solely on internal teams can stall the project, especially if the organization lacks technical expertise or bandwidth to maintain the momentum. The sweet spot we’ve found is to maintain that hybrid model.”
- Adopt a bite-sized implementation approach: Rather than rolling out the entire solution at once, use a phased implementation strategy instead. Start with smaller, manageable components. Pick one core area like demand planning, and once it hits a certain level of operational maturity, then move on to the next phase, such as supply chain planning or inventory optimization. “Each phase becomes a quick win, and this helps organizations build high confidence, provides value early, and keeps that executive sponsorship strong throughout the entire journey,” says Brennan.
- Validate value at each phase: Before moving to the next stage or deployment phase, validate that the current one is delivering measurable results. As an example, Brennan states, “If you’ve just deployed demand planning, take time to measure forecast accuracy, cycle time, or exception management improvements. Once the KPIs are stabilized, then move on to the next layer of planning. This creates a solid foundation where every stage builds on proven outcomes, rather than just assumptions.”
Biggest untapped ROI potential in supply chain planning implementation
Beyond improvements in forecasting accuracy and inventory, Brennan sees connecting planning to execution as being the most significant untapped potential for organizations, realizing faster ROI and quicker time to value.
“When decisions are made, this behavior spreads throughout the entire supply chain. You push that visibility deeper into the supplier network, and you get ahead of these constraints,” says Brennan. “Tying into how your plan is going to affect your execution is where I see organizations lacking. They often use systems that don’t integrate well with each other, and they look at it as separate functions within an organization.”
How to ensure long-term improvements with planning software
Beyond identifying aged inventory and reducing inventory costs, organizations must focus on sustaining these benefits and compounding value in years two, three, and beyond. According to Brennan, long-term success comes down to strong data governance, clear ownership of the platform, and a mindset of continuous expansion. “These are the biggest ways organizations continue to realize ROI as they move on their deployments.” He adds, “Organizations that are able to realize a ton of value in year one, continuously look at their supply chain as an evolution.”
Sustained improvement also requires strong executive alignment, setting clear expectations, tracking/measuring progress against defined goals, and driving adoption across the organization. If you’re considering adopting a Connected Planning strategy, there are a few considerations to keep in mind:
- Questions to ask: Why are we making an investment? What problems are we solving? What outcomes do we expect?
- Establish a baseline to measure against: Focus on whatever matters most to your organization, whether it’s forecast accuracy, service, or inventory. Set the target, track it, and make the results visible.
- Automation changes how people work, so it’s important to have transparency: Show people how the system is making decisions and how their insights are also reflected in the system.
Finally, organizations need to invest in tools that support continuous improvement beyond the initial implementation. “You need a system that can learn, adapt, and evolve over time,” says Stidsen. He points to e2open’s next generation of demand sensing as an example, where teams can create scenarios to test different models using different inputs rather than locking into a single approach. “The big gains don’t last forever, but small improvements over time add up,” he adds. “This creates a cycle of learning, measurement, and continuous improvement, so the value’s not fading after year one, it’s compounding.”
How to drive long-term value with connected supply chain planning
Connected supply chain planning is no longer a “nice to have” for manufacturers, but a requirement for successfully competing in an environment defined by volatility, geopolitical disruption, and complex, multi-tier networks. Organizations that connect operations across demand, supply, inventory, and execution outperform those relying on fragmented, siloed approaches.
When it comes to achieving real value in supply chain planning, Brennan and Stidsen reinforced these key takeaways for manufacturers:
- Take a sustained, phased approach. The most successful organizations understand that transformation is a journey. Focus on quick wins, then build momentum and expand the capabilities over time.
- Anchor planning outcomes. Be clear about the outcomes you want to drive and the business metrics that matter. Decisions need to get better, faster, and more connected, while remaining open to how those outcomes are achieved.
- Connect planning to execution. Ensure plans drive real-world actions across your supply chain network.
- Invest in systems that evolve. AI-enabled capabilities like demand sensing, scenario planning, and MEIO can help organizations adapt as business conditions change.
In a world where companies are competing against each other’s extended value chains, connected supply chain planning becomes a powerful differentiator. The manufacturers that treat planning as a dynamic, adaptive capability are the ones best positioned to improve resilience, accelerate growth, and deliver sustained value year after year.
For deeper insights and hear the full discussion, watch webinar on demand, Unlocking Value: Research Insights on Supply Chain Planning. Or download a copy of the full report, Nucleus Research: Assessing the Value of e2open Supply Chain Planning for Manufacturers.
If you’d like to connect with an e2open expert about how to drive long-term value with connected supply chain planning, contact us today.
FAQs: Supply chain planning for manufacturers
1. What is connected supply chain planning?
Connected supply chain planning integrates forecasting, production, inventory, and logistics into a unified process. It enables real-time collaboration across suppliers, manufacturers, and partners to improve agility and resilience.
2. How does demand sensing improve forecast accuracy?
Demand sensing uses AI and real-time data signals, such as point-of-sale (POS) and market trends, to create highly accurate forecasts. This improves forecast accuracy, increases planner efficiency, and reduces buffer stock by placing the right inventory in the right location upfront.
3. What are the benefits of multi-echelon inventory optimization?
Multi-echelon inventory optimization (MEIO) optimizes inventory across multiple tiers of the supply chain, reducing excess stock while maintaining service levels. Benefits include lower inventory carrying costs, improved cash flow, and reduced risk of service disruptions.
4. How quickly can manufacturers expect to see positive results from supply chain planning implementation?
It depends on the size of the implementation and how the organization approaches the deployment. “Typically, we see payback period within a 6-month range. That is when we’ve seen a lot of organizations starting to realize value from their supply chain planning deployment,” says Brennan.
