Choosing a supply chain planning tool – pitfalls you should avoid

In today’s volatile supply chain environment, robust planning capabilities are no longer optional. Tools promise to reduce firefighting, align cross-functional plans, and unlock margin potential. But choosing the wrong solution, or implementing the right one in the wrong way, often leads to costly delays and missed expectations.

The Supply Chain Management software market is set to nearly double by 2030, with hundreds of vendors competing for attention.[1, 2] This growing diversity, coupled with rapid updates and artificial intelligence (AI) driven add-ons, makes tool selection increasingly complex and cost forecasting more uncertain.

Based on our project experience across industries, we from TenglerConsulting have identified the 8 most common pitfalls companies face when evaluating and selecting supply chain planning software, and how to avoid them.

1.Assuming software will fix the processes

It’s a common misconception: the right tool will fix flawed planning. In reality, software can only enhance processes that are already functioning. If the underlying process is unclear, fragmented, or not followed, the tool will simply digitize dysfunction. A mature planning process is the vital prerequisite for successful implementation of a supply chain planning tool.

: Stabilize and document core planning processes before tool selection. Ensure roles, inputs, and decision points are understood. Tools should enhance clarity and efficiency, not attempt to define how the business works. Well-functioning Sales & Operations Planning or even better Integrated Business Planning process are essential enablers for unlocking the full potential of a planning tool.

 

2. Starting without a clear use case

Many initiatives begin with a vague desire for better planning – but without a clear scope or value case. Generic solutions may appear attractive but often lack the functionality to address company-specific requirements, like attribute-based planning, dynamic allocation optimization, etc.

Best practice: Define key use cases and decision points that the tool must support. Involve business owners in identifying critical pain points. This sharpens the selection criteria and helps avoid expensive mismatches later.

 

3. Underestimating data requirements

Many companies assume that software will somehow “fix” their data issues along the way. In reality, planning tools rely on timely, structured, and accurate data. Poor master data, inconsistent formats, or missing transactional records lead to unreliable outputs and mistrust among users – regardless of how advanced the software is.

Best practice: Assess your current data readiness before implementation. Identify and resolve key gaps in master data, ownership, and data governance. Tools amplify data quality – they don’t fix it.

 

4. Overlooking the people factor

Even the most powerful software fails if users reject it. Clunky interfaces, inflexible reporting, or siloed functionality reduce adoption and erode trust. When selecting a planning tool, the focus is often only on functionality and costs. User input is often ignored, leading to resistance later.

Best practice: Involve key users early in tool evaluation, especially in usability testing and fit-gap analysis. Prioritize intuitive tools that support daily planning work – not just back-end optimization.

 

5. Skipping scenario planning capabilities

In uncertain environments, businesses need to evaluate multiple options quickly – whether it is an evaluation of an optimal response strategy for internal events or external disruptions. Yet many tools still focus on static, single-plan approaches that limit agility and lack the ability to easily model what-if scenarios.

Best practice: Choose solutions that support dynamic scenario planning. Users should be able to model alternatives, compare impacts, and align across functions. This capability is critical for strategic decision-making.

 

6. Underestimating total cost of ownership

Initial license fees and implementation costs are just the tip of the iceberg. Customization, integration, extensions, updates, training, and support often drive up costs – and erode return on investment (ROI) if unaccounted for. This risk is growing as the market expands. With more vendors, frequent feature releases, and AI add-ons, the long-term cost picture becomes harder to predict.

Best practice: Evaluate the total cost of ownership over a 3- to 5-year horizon. Include implementation, upgrades, external support, and internal resource costs. Ensure the investment aligns with your planning maturity and roadmap.

 

7. Falling for buzzwords

AI, machine learning, and “autonomous planning” dominate vendor pitches. While powerful in theory, such features often require stable patterns, clean data, and well-defined business logic. Without this foundation, the results are inconsistent or non-transparent.

Best practice: Ask for concrete business cases, explainability, and override capabilities. Focus on tools that enhance planner judgment, not replace it. Smart augmentation beats black-box automation.

 

8. Ignoring future IT fit

When selecting a future planning tool, businesses are often guided merely by current software structures. Your IT environment will change – especially with cloud migration, ERP modernization, and data platform integration. A planning tool that fits your current IT landscape may become a burden for the future.

Best practice: Ensure architectural flexibility. Scout digital trends, involve your IT team closely (ideally enterprise architects) to assess long-term compatibility and integration requirements. Your tool should evolve with your digital strategy.

Planning tools are powerful enablers – but only if selected and implemented with a clear strategy. The wrong choice delays results, wastes budget, and damages stakeholder confidence.

Given the current ever-changing economic, political, and natural environment, along with rapidly developing possibilities (new vendors, tools, data sources, etc.), it is very difficult to keep up to date. For this reason, it is advantageous to be able to rely on external expertise. TenglerConsulting helps companies identify best-fit solutions and avoid pitfalls by aligning tool selection with business priorities, process maturity, required digital capabilities, and future IT strategy. In the next article, we will focus on the critical mistakes to avoid during implementation – where the real value is either realized or lost.

 

 

Sources
[1] Introspective Market Research, 2024: Supply Chain Management Software Market | Industry Research Report [Accessed: 07 August 2025].
[2] Horizon Grand View Research, 2024: Supply Chain Management Software – Enterprise Software Market Statistics [Accessed: 07 August 2025].

In the next article, we will focus on the critical mistakes to avoid during implementation – where the real value is either realized or lost. For more information on optimizing your supply chain planning, please take a look at our Insights.