What is supply chain planning?

Supply chain planning is a type of logistical planning that involves developing and managing the flow of products, goods, services, or information from the starting point to the point of consumption.

The main objective of supply chain planning is to create an optimal supply chain that makes sure that the correct products or goods are available at the appropriate time and place while using cost-effective measures and increased efficiency. Supply chain planning is a paramount process involved in overall supply chain management.

Organizations with effective supply chain planning balance supply and demand and have a competitive edge in their specific marketplace.

Some of the essential activities involved in supply chain planning include:

• Forecasting demand

This aspect involves forecasting consumer demand for products, goods, or services to make sure that there is adequate inventory to meet the consumer's needs.

• Inventory management

Figuring out the optimal levels of inventory for a product or good for meeting consumer demands and reducing inventory costs.

• Production planning

Calculating the correct amount of a product or good that must be produced to meet consumer demands, while also avoiding superfluous inventory.

• Transport planning

The management and coordination of shipping or moving products and materials between suppliers, manufacturers, and consumers. The goal here is enhanced efficiency and a reduction in transport costs and expenses.

• Supplier management

Choosing and monitoring suppliers to make sure that these entities meet delivery schedules, cost targets, and quality standards.

• Sales and operations planning