THE NEW SUPPLY CHAIN

PLANNING MODEL

After one of the most tumultuous and disruptive periods in recent history, many
companies have had to face reality: Historical supply chain planning approaches have
proven inadequate against new challenges. Functional optimization and incrementalism
will not deliver the required resiliency and agility. The good news? Pioneering executives,supply chain leaders and practitioners around the world have recognized that a new
governance model, based on the technique of end-to-end concurrent planning, is now
available to optimize the business. Companies big and small are going from Excel toadvanced planning in 12 weeks or less.

Now is the time to adopt end-to-end
concurrent planning
Clear corporate benefits
Companies can see both supply chain benefits likeinventory reductions, accelerated S&OP and improved
customer experiences in addition to financial benefits
such as improved cash flows. They see return on investment
in times of stability and disruption, outperforming industry
averages on revenues and stock prices while achieving
higher returns on assets, sales, and invested capital.

Rapid time-to-value
New programs and methodologies can provide concurrent
planning, visibility and transparency in production
environments – not proof of concepts – in 12 weeks or less.
By right-sizing the start, companies can achieve benefits
earlier, accelerate adoption and payback, and grow andstreamline change management at their own pace.

ProvenThe technology to power concurrent planning is available
and validated by the market. Kinaxis is a Leader in the2022 Gartner® Magic Quadrant™ for Supply Chain Planning
Solutions and positioned furthest on completeness ofvision. Its RapidResponse® solution is trusted by a vastcommunity of the top supply chain innovators, big andsmall, across the globe. We believe partnering with arecognized Leader reduces deployment risk.

This graphic was published by Gartner, Inc. as part of a larger research document andshould be evaluated in the context of the entire document. The Gartner document isavailable upon request from Kinaxis.

It’s time to cast off the long-held myths about supply chain planning and digitaltransformation that have paralyzed your business and enter a new era. Read on as wedebunk the top five most limiting assumptions and outline the supply chain planningmodel of the future.

Note:
Gartner, Magic Quadrant for Supply Chain Planning Solutions, A. Salley, T. Payne, P. Orup Lund, J. Suleski 16 May 2022
Disclaimer:
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratingsor other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all
warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

R E A L I T Y

The right balance of accuracy and agility
streamlines day-to-day efficiencies and enables
supply chains to know sooner and act faster
when change happens
What COVID-19 and other global disruptions have taught
us is that accuracy can only take you so far – especiallywhen the historical data you’re using to create your models
can’t be trusted. You need to have the agility to pivot andrespond quickly to what’s happening in the real world.

How agile is your supply chain?
50%

During the COVID-19 pandemic, 61% of supply chain
practitioners dramatically lowered the estimate of their supply
chains’ agility when surveyed on a five-point scale (1=lowest,5= highest) by Supply Chain Insights.
However, “…companies rated themselves more agile in thepandemic if they were an innovator in analytics, [or] weremore balanced in managing S&OP processes…” 10%12345

Self-rating of agility on a 5-point scale, where 1=lowest, 5=highest
Pre-pandemic

Mid-pandemic

Source: Supply Chain Insights LLC, Pandemic Study (Sept-Oct, 2020) ¹
Base: All Answering – (N=118)

For biopharmaceutical company Ipsen, COVID-19 proved the agility of a concurrent planningsolution. During the peak of the pandemic, the company faced duel challenges: Demand spiked asmuch as 70% in some areas while capacity dropped due to shipping and manufacturing challenges.
The company used Kinaxis RapidResponse to identify products with low inventory levels and highvolatility. Because planners were able to recognize and prioritize these sought-after goods, Ipsen
made it through the pandemic without a single stockout.2

See why agility trumps accuracy every time.
WEBINAR
Deep dive: Navigating thesupply chain through thepandemicARTICLE
Forbes: Does Perfect
Customer Service Make
Sense?

WEBINAR
Customer service revolution:
Ipsen’s digital supply chaintransformation

R E A L I T Y

A better technique (versus technology) thatsimultaneously optimizes end-to-end versus
siloed metrics drives breakthrough results
Companies prioritizing end-to-end optimization see
dramatic performance differences against their peers, notjust at the supply chain level but across the entire business.
Kinaxis customers saw significant percent differencesin performance compared to industry averages. They
outpaced peers on key metrics, like return on assets, returnon sales, return on invested capital and asset turnover,according to an analysis of publicly held North Americancompanies conducted by Professor Morgan Swink of Texas
Christian University. During major disruptions, like the
COVID-19 pandemic, that gap grew as much as 2.5x.3
With companies like these setting the standard, it’s nosurprise that supply chain planners across the industry
recognize the need for cross-functional optimization andagility. Surveys from Supply Chain Insights and IDC findoperational efficiency and end-to-end capabilities top thelist of practitioner priorities.

Performance advantage for Kinaxis
customers vs industry averages
5%

0%

ROA

ROS

ROIC

Pre-pandemic

ATO
Mid-pandemic

Source: Speak your CFO’s language – Managing risk and opportunity in supplychains. M. Swink, Mar. 10 2021

What steps are supply chain professionals taking to prepare for future disruptions?

50%

What-if scenarios tounderstand the options andtheir impact 1

47%

Implement end-to-end supply
chain visibility, including
tracking and tracing 4

Ready to break down silos? Arm yourself with research that sways even the most doubtful skeptics.
WEBINARSpeak your CFO’s
language - Managing risk andopportunity in supply chains

RESEARCH REPORTSupply Chain Insights:
Navigating the supply chain
through the pandemic

EBOOK
Resilient. Agile. Competitive:
Supply chain transformation
for lasting innovation

R E A L I T Y

Visibility provides only awareness whiletransparency adds understanding to makebetter decisions
Closing the gaps between functions requires both thevisibility to see what’s happening and the transparency
to gain context into causes, so you can make faster, more
confident decisions.
This alignment between functions has always been
important, but the pandemic was a catalyst for closing
gaps. Supply Chain Insights found that alignment
between functions was perceived as important – ashigh as 92% for S&OP – but actual alignment was low.
Then the pandemic happened, silos dropped andactual alignment increased. However, actual alignment
achieved across functions was still lower than its
perceived importance even during the pandemic.1

How supply chains rated theiralignment
100%0%

Sales& operations

Manufacturing& procurement

Importance

Finance& operations

Pre-pandemicOperations& IT
Mid-pandemic

Source: Supply Chain Insights LLC, Pandemic Study (Sept-Oct, 2020) ¹
Base: All Answering – (N=118)“Driving value from supply chain planning solutions requires alignment and governance.
Using technology to improve decisions assumes that organizational alignment in making adecision and agreement on what constitutes the right decision.” 1LORA CECERE
Founder, Supply Chain Insights

You can’t fix problems you don’t understand. Learn about the power of supply chain transparency.
BROCHURE
5 best practices for supply
chain response to disruption

WEBINAR
Weathering any storm:
Building a resilient supply
chain

BLOG POST
Overcoming the barriers of
ineffective tools to drive S&OP
success

R E A L I T Y

AI & ML is important to learn from prior decisions
and support automation but cannot replace
human judgement, creativity and ingenuity
Hype around the wonders of artificial intelligence (AI)and how it can lead to lights out planning is everywhere.
AI and machine learning (ML) do play an important rolein helping companies learn from past decisions andautomating routine tasks to free up planners’ time.
But make no mistake. AI is not a replacement for people.
It’s a way to enhance their capabilities.

Use of AI/ML by supply chain process
maturity(% of Respondents)
Top 10%75-90%
50-75%
25-50%

Seventy-six percent of companies at the top 10% of
supply chain maturity say they use AI/ML solutions that
reduce the time planners spend completing low-value,
repetitive tasks.410-25%
Bottom 10%0%

Using AI
today

100%

Starting to use Plan to invest
for priority
for priority use
user cases
cases

Plan to invest, No plans
but unsure
howSource: IDC White Paper, Sponsored by Kinaxis, Supply Chain Planning Drives Better Business
Performance in the Modern Enterprise, Doc. #US46191520, May 2020

“An important emerging use case for AI and machine learning is the ability to augment
people’s capability to respond to data insights.” 4
SIMON ELLISProgram Vice President, Supply Chain Strategies, IDC

Combine human intelligence with AI and concurrent planning to prepare for any future.
W H I T E PA P E R
IDC: Supply chain planning
drives better businessperformance in the modern
enterprise

WEBINARThe ethical challenges of AI
adoption

WEBINAR
Architecting intelligent supplychains

R E A L I T Y

Small changes can have massive impact in ashort time period
You don’t have to complete a full-scale digitaltransformation to realize significant benefits. Gradualadoption of concurrent techniques works too. If silos affectdecision-making which, in turn, affects business outcomes,
then even small improvements in visibility have ripple
effects. On an average day, those impacts add up. During adisruption, they become significant.
Revenue and stock price, two of the most important metrics
for every executive at a publicly held company, were better
among Kinaxis customers than industry averages, according
to a recent analysis by Texas Christian University professor
Morgan Swink. During the pandemic, Kinaxis customers
saw a 2% growth in revenue versus a 3% decline for others.
Kinaxis customers also saw their stock price increase by 3x
more than the industry average.3

Impact of the pandemic on revenue
and stock price
8%0%-3%Revenue
KinaxisStock price
Individual average

Source: Speak your CFO’s language – Managing risk and opportunity in supply chains.
M. Swink, Mar. 10 2021

“We no longer need to monitor the top line and pray for the margins to align the way weexpected. We can monitor the margins in real time.” 5FRANÇOIS ALLAIN
Chief Operating Officer, Technicolor Connected Home

Change is hard. There’s no question. But you don’t need to handle it in an all or nothing fashion. Every organization andevery person is capable of change – no matter your company’s maturity level or how long you’ve been doing somethinga certain way. It just has to be done thoughtfully and with a focus on building transparency and trust first.

Scale transformation to meet your objectives. See what’s possible.
WEBINARSpeak your CFO’s language:
Managing risk andopportunity in supply chains

ARTICLEForbes: Mastering agility across
supply chain and finance withconcurrent planning at Hologic
and Technicolor

WEBINAR
Technicolor: Managing
financial and supply plans

Break free from the myths that have held you
back from supply chain planning success
The time to reinvent supply chain planning is upon us. Break from the status quo with Kinaxis RapidResponse. Our
extensive, cloud-based platform is the only one on the market capable of delivering true concurrent planning, so you caninstantly and continuously balance your end-to-end supply chain. That way, you can embrace volatility, build resiliency
and focus on what really matters.
Get more value, faster with our secure integration capabilities. Bring together all your internal and external supply
chain data sources and connected algorithms, even if you have dozens of enterprise resource planning (ERP) instancesacross platforms, such as SAP or Oracle.
Start from anywhere and grow the way you want: S&OP/IBP, demand, supply, inventory. You decide. RapidResponse
is easily scalable and delivers the capabilities you need to grow and succeed.
Focus on what really matters and leave the repetitive, low value-add activities to the machines. Our automatedintelligence uses techniques like AutoML and robotic process automation to improve your supply chain’s performanceand keep it operating in top health.
If you can dream it, you can build it. Use Kinaxis to run one or more of our customer-proven planning applications. Or,
build your own custom apps and embedded algorithms. We give you the flexibility to create the supply chain you want,
either with or without code, using our developer capabilities.

Start reinventing your supply chain planning in 12 weeks or less with Kinaxis
Gain end-to-end concurrent visibility in 6 weeks or less with Live Lens Insights or start concurrent planning in 12weeks with RapidStart. Contact us to find the right solution for your supply chain – no matter where you are on yourtransformation journey.

Resources
1 Supply Chain Insights, Navigating the Supply Chain Through the Pandemic: An Opportunity to Build Better. L. Cecere, Feb. 2021
2 Forbes, “Does perfect customer service make sense?” S. Banker, Nov. 13, 2020
3 Kinaxis, Speak your CFO’s language – Managing risk and opportunity in supply chains. M. Swink, P. Van Hull, Mar. 10 2021
4 IDC White Paper, Sponsored by Kinaxis, Supply Chain Planning Drives Better Business Performance in the Modern Enterprise, Doc. #US46191520, May 2020
5 Forbes. “Mastering Agility Across Supply Chain And Finance with Concurrent Planning At Hologic and Technicolor.” Jan 11, 2021

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