Software Planning: Satisfaction is Like a Flip of a Coin

August 16, 2018
11:15 pm

This week, after ten years, I am test-driving cars. I have not owned a car for a decade. City living has come to an end and it is time for me to get some wheels. Buying a car is overwhelming. I just want one that works. I find the process of negotiation, and comparison shopping tiring. My goal is safety and comfortability. It is hard to sort through the options.
As we prepare for the Supply Chain Insights Global Summit, the Supply Chain Insights team is combing through the research data collected over the past six years. We sit on 9,000 quantitative responses and we want to better understand the drivers of supply chain excellence. Supply chain planning satisfaction is a driver of excellence.
Companies that are better at supply chain planning are better able to manage operating margins and inventory turns. However, the odds of business user satisfaction are low. In our research, we find that there is only one satisfied business user out of two. It is the same as the flip of a coin.
As I look at the data, the analogy of test-driving a car comes to mind. The gaps, as shown in Figure 1, are high. The largest is the “willingness for the software company to go the extra mile.” Most business users that I talk to feel that the software vendor always has their hand in their pocket asking for more money–maintenance, tune-ups, conferences, upgrades.
Figure 1. Supply Chain Planning Performance Elements

I feel for the users. As you look at the gaps, I hope that you do as well.
The model of car ownership is changing. Lyft/Uber provide shared rides. Zipcar and other rental car services provide car sharing. In the future, car ownership will decline. My question in this blog post is “should the supply chain planning software industry rethink it’s model as well?” Especially in light of these gaps? Here are three initial thoughts:

Maintenance. Maintenance costs of license software are 18-22%. In the heyday of planning software when average deal sizes were larger, maintenance fees were higher. There is the opportunity to rethink maintenance.
Planning As a Service? Should the focus be on outcomes? I spoke to Baxter Software this week. Their focus is service parts planning and they have progressively grown their business model to provide planning as a service (the deal includes the software along with the planning service). Since many companies struggle to retain talent, this might be a viable option.
Value-Based Planning? With the wider adoption of Software as a Service and Cloud-based Solutions, business value monitoring is more feasible. Should we center on value delivery? Should this become a new model?

As I close this post, take another look at Figure 1. Think hard about the gap of “Going the Extra Mile for the Customer.” If you are a software vendor, I hope that this gives you pause.
Have a great week. I hope to see you at the Supply Chain Insights Global Summit! The event is on September 4-7, 2018 in Philadelphia, PA.

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.

Can We Side-Step the AI Spin Cycle?

June 7, 2026 3:44 pm

When it comes to combining tech, 1+1+1 should equal more than 1. The impact should be exponential. Unfortunately, today, the answer is 0.

What do I mean? Let me explain.

I find that the supply chain technology market moves slowly along traditional technology lines. Conferences are usually focused on the use of technology, not on redefining work. This bothers me. I want it to bother you as well.

Here I share some insights to drive change.

Supply Chain Health Check: The Power of an Orbit Chart

May 27, 2026 9:49 pm

An orbit chart is a powerful tool for understanding the “health” of a supply chain and its potential for improvement. The supply chain is a complex, non-linear system with limited trade-offs. The relationship between trade-offs varies by industry, region, and size. The orbit chart is a diagnostic we use in the Supply Chains to Admire work. Here I explain the use case.

Industry Solutions Should Drive Value Networks: They Don’t Today

May 19, 2026 10:06 pm

Today, companies require industry-specific supply chain solutions. The performance of 82% of the industries–I term this industry potential–is going backward while companies are trying to

Are You Writing a Check You Cannot Cash?

May 14, 2026 10:16 pm

Don’t let a well-intending, but ill-informed consultant or technologist set an expectation that you cannot meet. No when wins when there is a check written that cannot be cashed. In this case, the consultant will move to the next account leaving you holding the bag. Fight back with a data-driven argument. Help the organization think about inventory more holistically.

Supply Chain Shaman