The Quick Reference Guide to Supply Chain Planning

If your business relies on key supply chain elements to provide products or services, then supply chain management will be one of your key considerations.

Intelligent businesses can save millions of dollars per year and build a sustainable competitive advantage through proper supply chain management. This relies on proper planning, and without it, you can’t manage your supply chain properly.

What is supply chain planning?

Supply chain planning defines how the final product is created, from the raw material to the end consumer. This process allows for a deeper understanding of your business and its capabilities, as well as how it provides the products to the market.

It’s important because without this process, the entire supply chain becomes difficult or impossible to manage. When it becomes difficult to manage, it’s much more susceptible to shocks which could harm your business.

Key Supply Chain Planning Elements

● Supply planning is how to best provide products to satisfy demands. This requires a
● Production planning is how products and services are created, using the supply plan available.
● Demand planning is how products are expected to be purchased based on forecasts. If done wrong, the supply may not match the demand, causing shortages or unnecessary inventory.
● Sales and operations planning (S&OP) is how management is expected to focus on key supply chain drivers. This could include sales & marketing, inventory & production management, and creating new product lines.

Strategies & Methods for Proper Supply Chain Planning

Supply chain planning is generally done using various types of software. Spreadsheets, first in paper form and then in digital form, were always used in supply chain planning in order to show a logical flow. However, as technology got more advanced, supply chain planning software started to crop up.

Demand Solutions offers several types of supply chain planning software for a wide range of needs, all the way from supply planning to S&OP planning. The software is cloud-based and runs on a single database, allowing for redundancy & easy access for all strategic partners and employees, no matter where they might be.

Benefits of Supply Chain Planning

Supply chain planning helps your company develop an overall supply chain management strategy, which will help you become more competitive in the long run. For each piece in your supply chain, there may be inefficiencies found that allow your business a sustainable competitive advantage. Supply chain planning systems allow your business to take advantage of these while also giving you & your partners a greater understanding of core business needs.

In Summary

● The key to proper supply chain management is careful planning.
● Supply chain planning generally exists in four steps: supply planning, production planning, demand planning, and S&OP planning.
● Supply chain planning systems and software can help make this complicated process much easier to manage.