Improve Long-Range Capacity Planning by Anticipating Uncertainty
According to Gartner, “Disruptions, supply uncertainty and demand volatility, among other factors, make it difficult to identify true long-term capacity needs. Supply chain leaders can use this research to build a robust playbook to construct a more resilient, adaptable long-range capacity strategy.”
- Long-range capacity planning (LRCP) based solely on global available capacity risks underestimating business or manufacturing constraints, leading to suboptimal regional capacity.
- Increasing uncertainty in long-term demand due to disruptions, such as macro economy trends, geopolitical risks or labor challenges, proves a plan without contingencies or scenarios is inadequate. Reduced confidence in demand forecasts due to disruptions translates to lower confidence in determining capacity estimates.
- According to the 2023 Gartner Future of Supply Chain Survey, 62% of supply chain leaders mentioned making the right investment will be critical to deliver supply chain value and support growth for the next one to three years. Large capital investments associated with adding long-range capacity require thorough evaluation to balance risk and uncertainty.
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Gartner, Improve Long-Range Capacity Planning by Anticipating Uncertainty. By Ronak Gohel, Vicky Forman, Xiaoshun Sue Grant, 24 May 2024.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.