Watch: Supply Chain Planning for the Middle Market

Formalized supply chain planning isn't just for the enterprise market, says Lori Gipp, vice president of product management with TransImpact. The technology is both affordable and effective for mid-market supply chains.

As a formalized discipline, supply chain planning has often adopted to great effect by large enterprises. But the software that makes it happen is also available to the middle market, Gipp says. Advances in the technology “have made it so you can get the same benefits that years ago were thought of as the wheelhouse of statisticians and sophisticated players, who needed large departments. Now, simple front ends in the hands of middle-market companies give people the ability to do the exact same thing at a much lower price point.”

The requirements of effective supply chain planning have nothing to do with the size of the organization, Gipp says — they’re based on the complexity of supply chains, which is a characteristic of companies of all sizes. Even smaller retailers, for example, must juggle multiple SKUs and adjust to seasonal demand. “Maintaining that in a spreadsheet is almost impossible.”

When faced with new tariffs, the first step that companies should take is renegotiate with suppliers for a better rate. The second is taking cost out of the supply chain. All organizations need to be doing this, Gipp says, and the way to achieve it is through formal supply and demand planning.

Given the benefits of modern-day planning applications, why aren’t more middle-market businesses adopting them? “It’s an education and awareness thing,” Gipp says. Smaller organizations are made up of managers who often wear multiple hats, and don’t think they have the time to review new software applications.

Yet the benefits of doing so can be substantial. Payback can start happening in a matter of months. “This is a straight ROI [return on investment] conversation,” Gipp says.