Book contents · 9 chapters
Chapter 1 · The problem

Predictions and visibility are inputs. Decisions are the output.

Why a decade of investment in predictive capability has not produced better decisions.

Supply chain technology stacks into three layers. Predictions — what do we think the future looks like? Visibility — what's actually happening right now? Decisions — what should we do about it? The first two have moved forward dramatically. The third has barely moved at all.

ML-driven hierarchical forecasting beats the naive baselines we shipped in 2016 by 25 to 40 percent. Demand sensing captures granular signal that didn't exist a decade ago — point-of-sale telemetry, weather, search trends, social chatter. Control towers stream events in near-real-time across networks that used to refresh nightly. Credit where credit is due: the prediction layer and the visibility layer have earned the investment they've absorbed.

The decision layer is the layer that converts those better inputs into a committed action — release this PO, allocate this customer, hold this safety stock, reserve this lane. It is built on the same architecture it was built on twenty years ago: sequential five-stage planning, single-future master-data assumptions, single-objective optimization, no memory of yesterday's commits, no measurement of today's policy.

Better forecasts do not produce better decisions when the decision architecture is sequential, single-future, master-data-driven, and amnesiac. That sentence is the diagnosis the rest of this book is built on.

VYAN's answer

We're not adding another forecasting layer or another visibility surface. We're replacing the decision layer.

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