Touchless planning is redefining supply chain management by leveraging advancements in forecasting engines and the increasing availability of structured demand data, improving accuracy and enabling more granular forecasts (e.g., daily or store leveldemand). Automating routine forecasting tasks reduces the need for human intervention, enabling planners to redirect their efforts toward guiding systems to make decisions and focusing on strategic initiatives. While this shift streamlines operations and enhances efficiency, planners must trust the system and intervene only when human insights add value.

The Periodic Table of Touchless Planning

Central to any touchless planning process are six elements: high-fidelity data input, right granularity, advanced AI engine, explainable forecast, proactive feedback mechanisms, and ultimately, high-accuracy output:

• 𝐇𝐢𝐠𝐡-𝐟𝐢𝐝𝐞𝐥𝐢𝐭𝐲 𝐢𝐧𝐩𝐮𝐭 𝐝𝐚𝐭𝐚: Planning systems require complete, rich, and accurate data as an input; both historical and future-oriented.
• 𝐑𝐢𝐠𝐡𝐭 𝐠𝐫𝐚𝐧𝐮𝐥𝐚𝐫𝐢𝐭𝐲: Data must offer precise information across various dimensions, e.g., time, market, product, and product life cycle.
• 𝐀𝐝𝐯𝐚𝐧𝐜𝐞𝐝 𝐀𝐈 𝐞𝐧𝐠𝐢𝐧𝐞: AI algorithms must be able to handle complex data sets, identify patterns, deal with outliers, and learn over time to improve accuracy.
• 𝐇𝐢𝐠𝐡-𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲 𝐫𝐞𝐬𝐮𝐥𝐭𝐬: The output should be accurate, unbiased, reliable (avoids big outliers), and stable (low variations from one forecast to the next).
• 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐟𝐨𝐫𝐞𝐜𝐚𝐬𝐭: Explainability refers to a system’s ability to offer clear and understandable justifications for how it reached a particular decision.
• 𝐅𝐞𝐞𝐝𝐛𝐚𝐜𝐤 𝐦𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦𝐬: Systems need to provide helpful feedback with detailed insights into how adjustments affected forecasting accuracy and forecast value add.

Challenges in Adopting Touchless Planning

Despite its many benefits, transitioning to touchless planning can be challenging due to both technological and organizational shifts:

Knowledge Gap

Many planners are accustomed to traditional methods and may lack the skills to fully adopt AI-driven systems. This knowledge gap can lead to resistance, with some reverting to manual adjustments, undermining the system’s effectiveness.

Misalignment with Reality

Planners may struggle to align their expectations with the AI system’s capabilities, leading to unnecessary adjustments based on subjective views. This misalignment can reduce both forecast accuracy and efficiency.

Shift in Control

Touchless planning alters the role of the planner from manually adjusting output (forecasts) to improving the data inputs (demand drivers) with diminished control over the process  However, they are still held accountable for forecasting outcomes, which may create discomfort. Information on forecast value added (did I improve the forecast?), clarity on-demand drivers (which factors are most relevant for this product?), and explainability of models (why is the forecast that low?) are crucial for a successful shift. Resistance to Change.  Transitioning to touchless planning requires a fundamental mindset change.

Moreover, there can be organizational resistance to adopting new ways of planning, with concerns about accuracy and the system’s ability to understand changing market dynamics or react swiftly to unexpected changes. This underscores the importance of alerts and guardrails. Building an understanding in the system’s capabilities is critical towards creating planners’ buy-in.

Conclusion

Touchless planning is not just a technological upgrade—it represents a transformative shift in supply chain management that blends advanced automation with human expertise. By minimizing routine manual tasks it empowers planners to focus on strategic initiatives that enhance operational efficiency and customer satisfaction. Core to its success are high fidelity data input, right granularity, advanced AI engine, explainable forecast, proactive feedback mechanisms, and ultimately, high-accuracy output

However, the transition to touchless planning is not without challenges. Planners must adapt to a new role, requiring a shift in mindset and the cultivation of trust in AI capabilities. Addressing knowledge gaps, managing resistance to change, and fostering a culture of data literacy are critical to overcoming these barriers. Strong leadership, standardized processes, a strategic roll-out, data culture, training, and transparency are essential to aligning touchless planning with broader business objectives, ensuring a smooth and effective adoption.

Please view our extended White Paper on “Building Trust in Touchless Planning” below.