It Should Not Be This Way…

October 16, 2013
9:44 pm

Last week on my way to Frankfurt, I uploaded software files while over the Atlantic ocean using Lufthansa’s Wi-Fi service. I was able to work, and be effectively connected to my office, all the way to Europe. As I uploaded a 5 meg file to Slide Share somewhere over England, I smiled.
Similarly, tonight, as I write this blog post, country music is blaring from my iPhone. It is based on MP3 files. Over my lifetime, I have successfully transcended the music experience from records, to tapes, to digital files. The music experience today is far more portable and enjoyable than the days of vinyl. While I still hold onto my Beatles and Rolling Stones records, it is mainly for nostalgia. They are no longer played…
I also smiled this weekend as I unpacked boxes from my recent move. I held my old, well-worn Road Atlas fondly. At one time, it was very important in my life. I have the uncanny ability to get lost every time I turn. There were notes from trips twenty-years ago with my young daughter that is now thirty in the margins. I reminisced about the days when you plotted the trip with yellow markers and called ahead for a hotel room. Over my lifetime, I have moved from a paper-based Atlas, to MapQuest, to a satellite-based Garmin, and now to an iPhone. With each transition, my life got easier.
I recently attended SAPICS in South Africa. A speaker on robotics spoke on the potential impact of robotics and manless vehicles to reduce logistics costs by 40%. We see the constant evolution in the warehouse with robotics, voice and automated vehicles, so why not planning?
So, as I sat in my seat 5D and crossed the Atlantic, I asked myself the question, “Why have supply chain planning technologies not been reinvented through technology evolution in a similar manner?” By and large, companies are unhappy with the user experience of supply chain planning and feel that the system output is too difficult to use.
So, why has there not been a step change? In the words of Rick Sather, Kimberly Clark, “Why is there not an app for that?” Here is my answer:

Incentives: The market incentives are aligned to sell traditional software. Consultants are incented to sell traditional enterprise software. Companies are risk averse and consultants want to sell the software that gives them the greatest margin. The technology evolution reduces the margin for ecosystem. This surprises many. During the week, I had a long conversation with a good friend that moved from a manufacturing role to a consulting role and has now decided to move to a supply chain role in a distribution company. She was shocked at the level and amount of kick-backs made to consulting companies to sell traditional software.
Consolidation: As the software matured, the market consolidated. Most of the energy of the software providers was focused on platform migration and the protection of maintenance revenues. The protection of maintenance revenues is a deterrent for technology innovation. I know of no software company that has successfully migrated their product platform to new technology. In my decade of serving the industry as an analyst, each time that a company attempts to innovate on a new platform, they are pulled back by user enhancements and the need to protect license revenues.
History. The supply chain planning space has a legacy of long and expensive sales cycles with large payouts to the enterprise sales team. The deals are carefully planned and the battles are artfully waged. Sales teams have made large sums of money. The movement to cloud computing and mobility reduces the cost of software and changes the business model. No longer are sales teams able to generate the size of deals and the commission checks of yesteryear.
Sex and Fifty Shades of Gray. The software for supply chain planning is just not as sexy in the eyes of venture capitalists. Most of the money has poured into social and marketing technologies that are aligned to drive corporate growth. Supply chain problems require an enterprise-class solution that works. For many this is just not exciting.

So, as I write this, I am encouraged to be working with several new start-ups that want to change this picture. They are enjoying the challenge of creating cloud-based optimization solutions and new forms of visualization and analytics for mobile devices. They are poking holes in the old Advanced Planning Footprints of the 1990s and asking me to help them design it differently. They understand that the movement to the tightly integrated ERP footprint was a step back for the industry. Their interest is in building effective business networks that can sense and adapt using new techniques.
Shouldn’t it be this way? Shouldn’t technology evolution improve the experience? We shouldn’t start with process. Instead, we need to ask how the process could be improved with new forms of technology? Don’t we need to admit that the supply chain planning today is largely legacy, and that like the Atlas that I carefully packed away, that it is also needs to be shelved?
So, what can you do to change this?
1) Encourage innovation. Work with small and innovative solutions and open up the world of opportunities.
2) Push existing technology providers to also drive innovation in a meaningful way. Challenge them to think about problems differently.
I look forward to getting your thoughts and writing about these new forms of analytics as they evolve. But, tonight, as I recover from my jetlag and tap my foot to my blaring country music, I think that I will just toddle off to bed and dream about the world that could be.

Warning: Sidestep the Narrative of the Misguided Goldiggers

August 10, 2026 4:58 pm

Ten years ago, I started writing a book titled Stories of the Misguided Gold Diggers. The book was a collection of stories from two decades of stories of technology leaders perpetuating the myth of integrated end-to-end supply chain planning.

I dusted off the manuscript on Saturday. I think that we have a new chapter. Companies focused on putting Artificial Intelligence (AI) on top of existing architectures are putting AI Stupid on steroids.

The Myth of End-to-End Planning

July 31, 2026 9:14 pm

Supply chain planning, supply management, supply chain execution, network design, and transportation/logistics management operate in silos. Not much has changed over four decades. The connections flow back through transactional systems: order-to-cash and procure-to-pay. There is a myth that companies can buy an end-to-end supply chain management solution. This is largely a myth. Here we explain.

Lead Time: A Broken Gossamer

July 16, 2026 6:38 pm

If you are struggling with supply chain planning, dancing in the light of shiny objects, and scratching your head, please read on. My goal is to help you.

Please do not AI Stupid. What do I mean? AI Stupid is putting agents and agentics on top of existing architectures believing that making them faster and hands free add value. To me, this is fools play.

I love AI. I am excited about new technologies. To this end, I want to shine a light on how new technologies can help address the black holes and inconsistencies in today’s supply chain, which largely stem from the limitations of the first generation of supply chain planning and execution technologies. In this blog, I give you three places to start.

Do You Need a Supply Chain Coach?

July 9, 2026 5:27 pm

Supply chain is where the rubber hits the road. For a public company, over 40% of market capitalization is tied to the trade-offs between growth, operating margin, inventory management, and Return on Capital Employed.

The road for supply chain improvement is fraught with issues. Here we share some and offer some advice.

Is your Supply Chain AI Ready?

June 11, 2026 2:39 pm

A simple quiz to assess an organization’s AI readiness.

The pace of change is fast and furious. Every day, technology advances faster than we can digest. A great challenge to have.

Determining whether a supply chain is “AI-ready” is less about technology and more about the gray matter between the ears of supply chain leaders. Leadership, alignment, and clarity of goals matter.

Too few companies are clear on the definition of supply chain excellence. Measuring and rewarding functional metrics reduces the firm’s value. Putting agentics on top of today’s processes can make bad practices run faster, reducing value.

The toughest job for the supply chain leader is challenging existing supply chain paradigms that were defined by the limitations of decades of supply chain technologies. As the curtain lifts on the potential of new forms of technology, process redefinition is our opportunity, but only if we are clear on what drives value. (Here, I link to the Supply Chains to Admire reports to help you define value. The next report will be published on June 23rd, along with my Dynamic Benchmarking Product, to help you define value in the face of your AI readiness. More information about the launch is at the bottom of this blog.)

Case Study: A Scrappy Demand Management Approach

June 9, 2026 5:37 pm

This study of Franklin Sports shines a light on the work that needs to be done at the sales account level to challenge a retail forecast, and also highlights the importance of a new technique for a forecast engine — reinforcement learning.

Artificial intelligence comes in many forms — large language models, generative AI, machine learning, unstructured text mining, deep learning, neural networks, reinforcement learning, agents, and agentics. While the industry is wigging out about agentics, I think reinforcement learning is a great step forward in the journey of Artificial Intelligence.

Supply Chain Shaman