As the business world continues to evolve at a rapid pace, one thing remains constant: the importance of strategic planning. As 2023 comes to an end, it’s a good time to plan your business investment strategy for the upcoming year. One area that deserves your attention is supply chain planning software. This blog will explain the benefits of investing in technology in 2024 and provide tips on making a strong ROI argument.
Why Invest in Supply Chain Planning Software in 2024?
The past few years have shown us just how unpredictable markets can be. Supply chain disruptions, fluctuating demand, and changing consumer behavior have become the norm. Investing in supply chain planning software in 2024 can help you navigate these challenges more effectively. These tools provide real-time visibility into your supply chain, allowing you to respond to disruptions and optimize operations proactively.
In today’s hyper-competitive business landscape, staying ahead of the competition is crucial. To improve the work environment, reduce lead times and optimize inventory levels, use data-driven decisions for collaboration.
Customer expectations are higher than ever. They want products delivered faster, with complete transparency throughout the supply chain. Supply chain planning software can help you meet these demands by improving order accuracy and delivery speed.
How to Make the ROI Argument
Obviously, if you have been in business for any length of time, these steps are not new. If it were me, telling the cost savings story is a given. However, the more meaningful story may come from risk mitigation.
There is a lot of risk in supply chains today. Like Smokey the Bear says, it’s easier to prevent a problem than to fix it. So, it’s up to you to prevent supply chain issues and avoid dealing with them later. Trust me.
With that in mind, here are 6 items to highlight when making your ROI case to the corner office:
Begin your ROI argument by highlighting potential cost savings. Supply chain planning software can reduce carrying costs, optimize transportation expenses, and minimize stockouts. These tangible savings can quickly offset the initial investment.
Discuss how the software can improve efficiency within your supply chain. Automating day-to-day processes can improve demand forecasting by having your team focus on more value-added activity. Less time spent on Excel macros and overrides, more focus on understanding the “why” and finding strategic solutions for the issue.
Emphasize how supply chain planning software can help drive revenue growth. By reducing lead times, you can respond to market trends more quickly, potentially increasing sales and market share.
In a world filled with supply chain risks, software can act as an insurance policy. Highlight how it can help you mitigate risks such as disruptions, compliance issues, and stockouts, preventing potential revenue losses.
Satisfied customers are more likely to become repeat customers and brand advocates. Explain how improved order accuracy and faster deliveries can enhance customer satisfaction and, in turn, drive more sales.
Finally, stress the long-term benefits of supply chain planning software. It’s not just a short-term fix but an investment in your business’s future resilience and growth. Over time, the ROI will continue to compound.
There’s still one significant question to consider as you plan for 2024. “Am I investing in the right technology”?
There are a lot of options out there and often your planning process is inward looking. How are we performing, where can we make improvements, what’s not working, etc? Sometimes it is also helpful to look outward.
Gartner just published their annual “Hype Cycle” report for supply chain planning technology. This report provides a deep dive into which technologies are hot, cool and/or mature. They consider everything from generative AI to automated planning, to S&OP. Get your copy of the report and feel free to contact us anytime with your questions.