Supply chain expert, Lisa Anderson, explains why successful planning requires process, people, data and cross-functional alignment – not just technology
CLAREMONT, CA, UNITED STATES, June 11, 2026 /EINPresswire.com/ — Lisa Anderson, MBA, CSCP, CLTD, a leading expert in manufacturing strategy and supply chain transformation and president of LMA Consulting Group, Inc., is highlighting a growing misconception among manufacturers: that artificial intelligence (AI), large language models (LLMs) and tools such as Claude can replace a formal Sales, Inventory & Operations Planning (SIOP) process.
“Artificial intelligence has become an incredibly valuable tool for manufacturers and supply chain organizations,” said Anderson. “However, AI is not a substitute for SIOP. It can support planning, accelerate analysis and improve decision-making, but it cannot replace the business processes, organizational alignment and operational discipline required to make SIOP successful.”
The issue recently surfaced during discussions with a prospective client who believed AI could replace advanced planning software and create a SIOP process. Anderson notes that this mindset reflects a broader misunderstanding of what SIOP is and what it takes to achieve predictable business results.
In another example, a recent supply chain article suggested that a SIOP system could be developed in approximately 30 hours using AI tools. While Anderson acknowledges that AI can significantly accelerate portions of the planning process, she cautions against confusing technology implementation with business transformation.
“SIOP is not software,” Anderson explained. “It is a business process that connects demand, supply, inventory, operations, finance, engineering, customer service and executive leadership. Technology can support that process, but it cannot create the cross-functional relationships, accountability and decision-making structure that make SIOP work.”
Successful SIOP programs require organizations to align disparate functions around a common set of objectives and metrics. They must understand customer requirements, evaluate capacity constraints, develop inventory strategies, collaborate with suppliers, create scenario plans and establish an operational cadence that supports proactive decision-making.
Each manufacturer also has unique requirements.
“An advanced planning approach that works for a food and beverage manufacturer with a complex network will be completely different from what is required in an engineer-to-order environment,” Anderson said. “The planning process must reflect the realities of the business, its customers, its products, its supply chain and its growth objectives.”
As supply chains become more complex and customer expectations rise, predictability and planning have become increasingly important. Companies are expected to respond faster while navigating greater geopolitical uncertainty, supply chain disruptions, labor shortages and changing customer demand.
“Companies like Apple became successful by anticipating what customers wanted before they knew they wanted it,” Anderson explained. “Manufacturers must improve their ability to predict demand, understand customer needs and plan accordingly. Even highly customized businesses benefit from standardizing what they do best and building customization from a strong operational foundation.”
This is where AI and advanced technologies can provide substantial value.
Artificial intelligence can help organizations identify patterns, analyze large amounts of data, evaluate scenarios, improve visibility and accelerate decision-making. Advanced planning systems, ERP systems, supply chain visibility platforms and AI-enabled analytics are becoming increasingly important tools for modern manufacturers.
“The companies achieving the greatest success are not replacing SIOP with AI,” Anderson said. “They are using AI to enhance SIOP. Technology is most effective when it supports a disciplined planning process that connects people, processes, systems and data.”
As manufacturers continue to invest in artificial intelligence and advanced technologies, Anderson encourages executives to focus on building strong business processes first, then leverage technology to improve speed, visibility and performance.
“AI can help you get to an answer faster,” Anderson concluded. “But it cannot determine the right answer without the business context, customer understanding, operational knowledge and cross-functional collaboration that are at the heart of a successful SIOP process.”
To learn more about SIOP, advanced planning and supply chain transformation, visit: Best of SIOP/Supply Chain Planning.
About LMA Consulting Group
LMA Consulting Group works with manufacturers, distributors and supply chain-related organizations to achieve predictable growth, profitable performance and scalable supply chain success. Lisa Anderson is recognized as a top supply chain and ERP expert and is regularly featured in major media, including Bloomberg, IndustryWeek, The Wall Street Journal and Inc. Magazine. She is a noted authority on the SIOP (Sales, Inventory & Operations Planning) process and author of SIOP: Creating Predictable Revenue and EBITDA Growth. For more, visit LMAConsultingGroup.com.
Kathleen McEntee
Kathleen McEntee and Associates, Lt
+1 312-501-1950
kmcentee@kmcenteeassoc.com
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