There are a lot of factors that come together in successful supply chain planning. Besides this, there are certainly many key elements in any business. At the top of the list is the direction and strategic plan of the company. Then, all the functions should reflect the business’ objectives. One way to look at the supply chain planning process is a hub and each spoke is connected to a function. These all rely on having a sound planning platform. Here are three of the basic hubs essential to the process.
Sales and Operations
During this phase, the business can receive input from all involved parties from promotions, seasonal demand and expectations. In one way, this step in supply chain planning puts the whole business on one page and looks at assets and capabilities so customer demand can be fulfilled. When sales and operations processes are run well, it will prevent overselling their supplies. Understanding supply and demand helps give better control of both cost and revenue.
Planning for Demand
Demand is the most confusing area of supply chain planning. There are so many factors to manage and they must be accurate. Accuracy is important when calculating inbound materials management, network utilization, inventory management, working capital and order fulfillment. When these are accurate, there is less waste, better management of finances, cost control and other benefits.
Planning for Supply
The supply plan consists of bringing all the downstream elements together. This is the step where a company generates the optimum performance from all its systems, including transportation, inventory management and manufacturing systems. There’s no substitute for good supply chain planning, which can eliminate downtime, reduce safety stock levels and coordinate product flow so customer requirements are met.
Ready to get the most out of your supply chain planning? Visit the Demand Solutions website to speak with a professional who can help optimize your processes.
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