At the end of 2023, while attending a supply chain planning conference organized by a leading analyst firm, I was particularly impressed by one of the presentations.
An Austrian company presented its project to overhaul its supply chain planning processes, with the support of a major consulting firm for the implementation of a digital supply chain transformation platform. This platform was one of the most prominent solutions available—you know, one of those in the top right-hand corner of the repositories, one of the “leading” solutions that analysts often tout as must-haves for businesses looking to modernize their operations.
The presentation itself was a masterclass in persuasion. They spoke about process orchestration, forecasting, supply chain agility, and the S&OP (Sales and Operations Planning) process. The project was outlined as a comprehensive transformation, leveraging the latest technologies and methodologies to revolutionize their supply chain. Frankly, the presentation was remarkably well-articulated—I’m sure most of the 150 or 200 professionals in the room came away convinced that this was the gold standard in supply chain planning.
Here’s an excerpt from the pitch for this presentation:
“Discover how to move from strategy to action and harness the power of integrated, demand-driven supply chain decision-making to achieve unprecedented levels of responsiveness and supply chain resilience.”
It had all the buzzwords and selling points that make for a compelling narrative in the supply chain world. However, there was one significant downside: the presentation focused almost entirely on the deployment of the solution and the processes that supported it, but there was no mention of results. Why? Because it was still too early to show any measurable outcomes, with the end of 2023 marking the end of the implementation phase. As such, it was a case study in progress, a promise rather than proof.
This was clearly a large-scale project and therefore a costly one. The consulting firm involved, a well-known German consultancy, employs several hundred consultants and has a high revenue per consultant. Leading supply chain planning solutions, in my experience, are at least 3 to 10 times more expensive than Intuiflow, a solution I’ve often worked with. The stakes were high, and the investment was significant.
Fast forward to the end of 2024, and the Austrian company in question made headlines—but not in the way anyone at the conference had anticipated.
Here’s an excerpt from the news:
“These are difficult times for KTM. One of the reasons is the massive overproduction of motorcycles. The current stock of Austrian machines is massive! So much so that it is weighing heavily on the company’s ailing accounts.”
“Although demand has fallen, motorcycle production has not. The resulting build-up of excess inventory has increased cash requirements by around 440 million euros between January 2023 and October 2024. More than 265,000 motorcycles are now in stock, equivalent to the number sold in one year.”
If you speak German, you can find more details on this story online.
Looking back, I realized just how compelling that 2023 presentation had been. I believed it wholeheartedly, and so did everyone else at the conference. Perhaps not all of them paid attention to what came next. Perhaps some were so impressed by the project and its promises that they recommended similar initiatives to their CEOs and shareholders.
After all, the presentation had everything that excites analysts and industry leaders: expensive technology, forecasting capabilities, an emphasis on the S&OP process, collaboration tools, data analytics, and maybe even a sprinkle of artificial intelligence. It ticked all the right boxes for a modern, data-driven approach to supply chain management.
And yet, there was one glaring omission—something that wasn’t just missing from the presentation but is often missing from discussions at these conferences altogether: flow driven by real demand.
What about the pull flow methodology? The “obsolete” practice, according to many of these analysts, focuses on manufacturing at the rate at which you sell—based on actual consumption. This logic, championed by Toyota for decades, helped them become global leaders in manufacturing and supply chain excellence. Why is this approach so often ignored or dismissed in today’s conversations?
I’m entering my fortieth year of supply chain planning practice, and I can testify to this: pull flow methodology is THE indispensable technique that should be at the heart of ALL supply chain operations. It’s the basis for continuous adaptation to market conditions. In a VUCA (volatile, uncertain, complex, and ambiguous) world, where natural disasters, geopolitical crises, and supply chain disruptions are increasingly common, it’s not just a good idea—it’s a matter of survival. This is what a “demand-driven supply chain” is really about.
And yet, at these large supply chain planning conferences, pull flow methodology is virtually absent. It’s not promoted by the leading analysts. It doesn’t capture headlines or win awards. Why? Possibly because it doesn’t sell a lot of technology and consulting services, industries in which these analysts have a vested interest.
At our own user conferences, which are much smaller in scale and more intimate than the industry events I’ve been describing, the story is different. These events are free, by invitation, and focused on real-world success stories. At these conferences, every company that presents shares their actual results, not just their plans or aspirations. They discuss measurable outcomes, tangible improvements, and lessons learned from implementing practical solutions.
For example, Hutchinson achieved a payback of less than a year on each plant. Freshmark reduced inventory by €7 million in just six months while simultaneously improving service levels. Kormotech, a Ukrainian company, continues to develop rapidly despite facing significant challenges due to the ongoing war. These companies aren’t chasing trends or buzzwords—they’re focused on what works.
So, what if, in 2025, we collectively shift our focus to what truly delivers results? What if we prioritize approaches like inventory optimization through pull flow methodology? This doesn’t mean abandoning advanced technologies or modern tools—it means using them in service of proven principles, rather than as substitutes for them.
Strategies like predictive analytics, real-time visibility, and data-driven decision-making are incredibly valuable when applied correctly. They can help reduce lead times, meet customer demand, and minimize waste. But without a foundation of pull flow methodology, these tools risk being applied in ways that overcomplicate rather than simplify supply chain operations.
Supply chain leaders must prioritize informed decision-making. This requires balancing advanced technology with sound principles like pull flow methodology to foster continuous improvement and adapt to ever-changing market conditions. Ultimately, the goal is to meet customer demands while maintaining the optimal amount of inventory to ensure long-term success.
To return to the Austrian company’s experience, what lessons can we learn? First, technology alone is not a panacea. No matter how advanced or expensive the tools you implement, they will not solve fundamental issues in your supply chain if your processes are misaligned with demand. Second, the importance of simplicity cannot be overstated. Sometimes, the most effective solutions are those rooted in common sense, like producing at the rate of consumption.
In today’s fast-paced, highly complex business environment, it’s easy to get swept up in the allure of cutting-edge technology and grand-scale transformation projects. But we must not lose sight of the basics—principles that have stood the test of time and continue to deliver results when applied correctly.
As supply chain professionals, we have a responsibility to question the narratives we’re presented with, especially when they come from parties with vested interests. We need to critically evaluate the solutions and strategies being proposed and ask whether they truly address the root causes of our challenges or merely serve as band-aids.
In conclusion, 2025 should be a year of renewed focus on what works. By embracing proven methodologies like pull flow and combining them with the right technologies, we can create resilient, responsive, and efficient supply chains that are equipped to navigate the uncertainties of the modern world. Let’s move beyond the buzzwords and the flashy presentations and commit to solutions that deliver real, measurable results.d the decision-making process, supply chain leaders can foster continuous improvement and adapt to ever-changing market conditions. Ultimately, the goal is to meet demands while managing the optimal amount of inventory to ensure long-term success.
