Share:

SAP’s David Vallejo on the New Era of Planning: From Algorithms to Data-Driven Confidence

In a rapidly evolving global supply chain landscape, SAP’s David Vallejo believes the most exciting innovations are happening in planning—and that the industry is entering a fundamentally new era. At the Gartner Supply Chain Planning Summit 2025 in Denver, Vallejo, who leads global product marketing for SAP’s supply chain portfolio, joined Scott Luton to discuss how planning is transforming, why data now sits at the center of competitiveness, and what SAP is doing to help organizations make faster, more confident decisions.

 

A Shift From ERP-Centric to Data-Centric

Vallejo described his team’s role as one that constantly scans the market—identifying trends, customer expectations, and the problems companies will need to solve next. Those insights help shape new innovations across the SAP ecosystem.

He noted that SAP has moved decisively from an ERP-centric worldview to a data-centric one. This shift is essential, he argued, because the biggest advantage in modern planning lies in having the right data—clean, connected, contextualized, and ready to drive decisions.

As Vallejo put it, “It’s all about the data that I need to make better planning decisions.”

 

Planning Models Are No Longer Static

Reflecting on how planning has evolved since he entered the field two decades ago, Vallejo described a dramatic shift. Historically, organizations built a static model of their supply chain—suppliers, stocking locations, customers—and ran algorithms to generate a plan.

Today’s world no longer allows for static assumptions. Trade uncertainty, shifting supplier networks, evolving consumer expectations, and generational changes in the workforce mean the “model” itself changes constantly.

Modern software, he explained, must reflect a world that evolves daily. That requires flexibility, agility, and a new level of responsiveness far beyond what traditional optimization engines were built for.

 

The New Competition: Confidence Through Data

For years, software vendors differentiated themselves through algorithmic capabilities, then through dashboards and user experience. According to Vallejo, the next competitive frontier is something deeper: empowering planners with the confidence needed to make decisions outside traditional norms.

To achieve that, organizations must integrate not only their operational data, but also financial, environmental, economic, and geopolitical signals—together forming a centralized data foundation.

With this foundation in place, companies can finally unlock AI in a meaningful way.

Vallejo emphasized that this isn’t about replacing humans; it’s about augmenting them. Grounded AI can analyze vast and diverse data streams, surface insights, and act as an intelligent assistant that guides users to stronger, faster, more informed decisions.

 

Meeting the Expectations of the Next-Gen Workforce

Vallejo also highlighted an important cultural shift: the growing expectations of younger workers. They want technology that guides them, teaches them, and accelerates their success. Intelligent assistants and AI agents are no longer “nice to have”—they’re what the next generation expects from modern enterprise systems.

SAP, he said, is positioning itself to deliver agents that not only support planning, but draw insights across logistics, manufacturing, and customer operations. The goal: a true, orchestrated supply chain.

 

Where to Learn More

Vallejo encourages leaders to explore SAP’s latest innovations at sap.com/scm and to connect with him directly on LinkedIn, where he regularly engages on supply chain transformation topics. Check out recent Supply Chain Now webinars featuring SAP leaders speaking on topics such as logistics optimization and supply chain orchestration.

We also invite you to listen to the full audio version of this interview with Scott W. Luton and David Vallejo: click here.

More Blogs

digital supply chain
Blogs
February 27, 2026

Five Key Supply Chain Trends for 2026: Navigating the Road to Transformation

This post is written by our friends at e2open. E2open is the connected supply chain software platform that enables the world’s largest companies to transform the way they make, move, and sell goods and services. Moving as one.™ Learn More: www.e2open.com.   Supply chains are entering a pivotal stretch of highway into the future. It’s a route marked by regulatory detours, geopolitical potholes, and rising expectations for speed, intelligence, and resilience. The journey ahead demands connected data, embedded AI, and agile decision-making. Below are the five major “mile markers” defining the road to supply chain transformation, and how e2open helps organizations navigate the way forward with confidence.   1. Tariff and non‑tariff compliance risks: avoiding costly road hazards Tariff volatility and non‑tariff barriers create regulatory road conditions that can change quickly. For cost-focused leaders, this unpredictability can feel like driving through dense fog. One wrong move can result in delays, penalties, or unplanned expenses. Forward‑thinking organizations are installing automated guardrails: integrated trade compliance systems, dynamic landed‑cost modeling, and synchronized import/export workflows. These tools help reduce blind spots and ensure companies don’t veer into costly territory. The e2open Global Trade suite puts the world’s most comprehensive, continuously updated regulatory content directly…
decision intelligence
Blogs
October 7, 2026

AI in Supply Chains: Trusted Data Makes AI Work

Special Guest Blog Post written by Chris Cunnane with InterSystems   Artificial intelligence is rapidly becoming a strategic priority across industries. Organizations are investing in AI to improve productivity, automate workflows, and unlock new business value. For supply chain leaders, however, the opportunity extends far beyond efficiency gains. AI has the potential to transform how organizations anticipate disruptions, make decisions, and coordinate activities across increasingly complex global networks. [ But there is an important reality many companies are learning: AI is only as valuable as the data that powers it. Without accurate, connected, and governed information, even the most sophisticated AI models can generate incomplete insights and unreliable recommendations. Success with AI starts with creating a trusted foundation of enterprise data. The Challenge: Too Much Data, Too Many Silos Supply chains generate vast amounts of information every day. ERP systems, warehouse management applications, transportation platforms, manufacturing systems, supplier networks, IoT devices, and third-party data sources all contribute critical operational intelligence. Yet most organizations struggle with fragmented information spread across hundreds of disconnected systems. As a result, when disruptions occur, teams often spend more time gathering and validating data than solving the actual problem. Decision-making slows down, opportunities are missed, and…