Plan to deliver: From stockouts to success

One of the single biggest table stakes for consumer goods companies is both physical and virtual on-shelf availability. Empty shelves represent more than just immediate revenue loss—they signal a critical threat to long-term brand sustainability. When a consumer encounters a stockout, they don't just walk away disappointed—they often switch to a competitor's product, potentially severing their lifetime relationship with the brand. This seemingly simple supply chain failure can have devastating ripple effects across the entire business.

The root cause? A deeply fragmented supply chain where poor communication and misaligned objectives create a perfect storm of inefficiency. Manufacturing “interprets” production requests from supply chain, producing what they believe will be needed; supply chain fails to coordinate sufficiently with commercial, misreading what to deliver; and the enterprise and customers themselves misunderstand consumer interest, providing the wrong assortment. The result is a reactive system that consistently fails to deliver the right products at the right time to the right places.

The stakes are enormous, but so is the opportunity. Leading companies that have tackled these challenges head-on through supply chain reinvention are achieving 2-5% improvements in on-shelf availability, both physical and virtual. This translates into millions in recovered revenue while strengthening customer loyalty. Yet achieving these gains requires more than incremental improvements—it demands a fundamental rethinking of how consumer goods supply chains operate.

The reinvention imperative

Traditional supply chain models are increasingly unsustainable in today's market. Consumer expectations for personalized attention and availability have never been higher, while market volatility and supply chain disruptions have become the norm rather than the exception. Companies clinging to conventional approaches face not just lost sales, but existential threats to their market position.

Yet within this challenge lies an unprecedented opportunity. The convergence of artificial intelligence, advanced analytics and integrated systems is enabling a fundamental reinvention of how consumer goods supply chains operate. Forward-thinking companies are moving beyond incremental improvements to embrace a new holistic approach: the end-to-end value chain, an interconnected ecosystem where insights, decisions and actions flow seamlessly across manufacturing, marketing, sales and supply chain.

Real-time signals for clear, actionable forecasting

Plan to deliver, one of the core mega processes for reinventing the value chain, represents a radical departure from traditional functional silos. Instead of separate teams operating in isolation, it creates an end-to-end value stream that connects every aspect of the supply chain—from demand shaping to production on demand to delivery at the speed of the market. At its core is a simple but powerful idea: the supply chain should be an active driver of growth, not just a cost center to be optimized.

The AI advantage

What makes this reinvention possible is the revolutionary impact of AI, particularly generative AI. Unlike previous technologies, today's AI solutions can integrate unstructured insights—like social media sentiment and local event data—with traditional demand signals to create a richer understanding of market dynamics.

The impact is transformative. Companies implementing AI-powered supply chain strategies are experiencing:

• 2-5% improvements in on-shelf availability (both physical and virtual)
• Up to 80% reduction in time spent analyzing data
• Enhanced customer confidence through more precise demand fulfillment
• Improved sustainability metrics through reduced waste and optimized logistics

Consumer trends at the zip code level

A global food and beverage company demonstrates the power of this approach. By connecting marketing and supply chain functions through advanced analytics, they now monitor consumer trends at the zip code level. When they identified growing demand for a specific fruit-flavored drink among Hispanic consumers in certain areas, they rapidly developed and targeted distribution to those locations.

The results were impressive: a 7% increase in beverage sales in targeted areas, plus a 9% lift in complementary snack categories. This success story illustrates how an integrated, AI-powered supply chain can drive growth across the entire business.

The Plan to deliver journey

Implementing the Plan to deliver mega process requires a systematic approach that acknowledges the evolving nature of AI and organizational capabilities. This journey involves:

1. Conducting a comprehensive capability assessment to identify technological and operational gaps.
   
   
2. Building a secure, AI-enabled digital core that can adapt to emerging technologies.
   
   
3. Developing cross-functional teams with advanced analytics skills, supported by continuous upskilling programs.
   
   
4. Fostering a mindset of ongoing reinvention focused on enterprise agility and sustainable value creation.

The countdown has started

The reinvention of consumer goods supply chains isn't just an opportunity—it's an imperative. Companies that embrace the Plan to deliver mega process, and value chain reinvention as a whole, will find themselves not just avoiding stockouts but driving sustainable growth through truly consumer-centric operations.

The technology is ready. The potential value is clear. The only question is: will you make a start, or will you remain stuck in outdated supply chain models?

Connect with Adheer Bahulkar to explore how your organization can turn its supply chain into a strategic growth engine powered by AI.