Decision Intelligence (DI) is a natural evolution in supply chain planning technology.

It closes the planning and execution automation gap which has been left by ERP and APS, both technologies that have reached the maturity phase for their functional aims. 7% of companies have started to adopt autonomous end-to-end planning. 3% of companies use autonomous execution to enhance their supply chain resilience.

Prediction are that 50%-80% of S&OE decisions can be automated. Whatever the number is, we have a gap to overcome here.

Supported by the AI hype, ERP and APS are being stretched into systems of digital everything, but they remain a system of record for master data and transactions (ERP) and a system of record for forecasts, plans, schedules, probabilities & assumptions (APS).

Decision Intelligence uses intelligent agents that mimic human cognition to make decisions, analysing and choosing from many possible options, taking action autonomously, storing the decision context in a system of record for decisions to create a decision memory, and learning from it.

In terms of decision making, DI has different capabilities and objectives as ERP and APS. An ERP transaction is the execution of a short-term decision with direct business impact. An APS plan is a business intent, not necessarily a decision and an action with a direct business impact! A decision is only made when resources are irrevocably allocation to the execution of the decisions. This notion limits the number of decisions a planner actually makes. Planners are facilitators of decisions, an important role, but they are often not final decision makers.

When disruption hits in the supply chain, an APS (re)plan or (re)schedule is still an intent, a calculation, often at best a recommendation, not necessarily a decision with business impact. As my colleague mentioned:

“Replanning the supply chain within the execution horizon using the same method that you used to create the original plan is a bit like reprinting the map on your home printer to find a detour when you are stuck in traffic.”

ERP and APS can work in perfect harmony with decision intelligence to solve the planning & execution automation gap, and they should. To solve this gap, DI can autonomously read data from ERP and APS, as well as other sources, analyse options, decide on the best option under circumstances, and write back decisions and actions to APS and ERP to support planning and execution.

ERP and APS are important supply chain technologies. Every self-respecting supply chain should have them. But compared to decision intelligence, ERP and APS are different evolutionary phases in supply chain planning & execution technology.