Lisa Anderson warns manufacturers not to replace SIOP with AI tools

Supply chain expert Lisa Anderson says manufacturers are making a mistake if they treat AI, large language models and planning software as a substitute for a formal SIOP process. Her message: technology can speed analysis, but predictable planning still depends on people, data, cross-functional alignment and disciplined execution.

Why it matters: - Manufacturers are investing heavily in AI, but poor planning discipline can still undermine inventory, production and customer service decisions. - Anderson says the real risk is confusing faster analysis with a working Sales, Inventory & Operations Planning process. - Strong SIOP can improve predictability at a time when companies face geopolitical uncertainty, supply chain disruption, labor shortages and shifting demand.

What happened: - Lisa Anderson, president of LMA Consulting Group, highlighted a growing misconception that AI tools such as Claude can replace formal SIOP. - Anderson pointed to discussions with a prospective client who believed AI could replace advanced planning software and create a SIOP process. - She also cited a supply chain article that suggested a SIOP system could be built in about 30 hours using AI tools. - Anderson said that view confuses technology implementation with business transformation.

The details: - Anderson said AI is a valuable tool for planning, analysis and decision support. - AI cannot replace the business processes, organizational alignment and operational discipline required for effective SIOP. - SIOP connects demand, supply, inventory, operations, finance, engineering, customer service and executive leadership. - Successful SIOP programs align functions around common objectives and metrics. - The process requires manufacturers to understand customer requirements, evaluate capacity constraints, develop inventory strategies, collaborate with suppliers, create scenario plans and establish a regular operating cadence. - Anderson said each manufacturer needs a different planning approach based on its business model, customers, products, supply chain and growth goals. - She said a food and beverage manufacturer with a complex network needs a different approach than an engineer-to-order operation. - Advanced planning systems, ERP systems, supply chain visibility platforms and AI-enabled analytics are becoming more important for modern manufacturers. - AI can identify patterns, analyze large volumes of data, evaluate scenarios, improve visibility and accelerate decision-making. - Anderson said technology works best when it supports a disciplined planning process that connects people, processes, systems and data. - For more information, readers can visit Best of SIOP/Supply Chain Planning.

Between the lines: - Anderson is drawing a line between automation and transformation. - Her argument is that AI can improve a process, but it cannot create the trust, accountability and executive alignment that make SIOP effective. - The message also suggests that manufacturers using AI without a clear operating model may get faster answers without getting better ones. - Anderson said companies like Apple succeeded by anticipating what customers wanted before they knew it themselves, a reminder that demand insight still matters more than tooling alone. - She said even highly customized manufacturers can benefit from standardizing what they do best and building customization on a strong operational foundation.

What’s next: - Anderson is urging executives to build strong business processes first and then use technology to improve speed, visibility and performance. - The likely next step for many manufacturers is to pair AI-enabled tools with clearer SIOP governance, metrics and decision rights. - LMA Consulting Group continues to advise manufacturers, distributors and supply chain organizations on predictable growth and supply chain transformation.

The bottom line: - AI can help manufacturers get to an answer faster, but SIOP still determines whether that answer is right.