Fair plan at Supply Chain planning

The planning behaviours of companies are a reflection of the relationship between the company and customers. Companies with no planning goals and defined processes cannot be fair to their customers. Low cost products, good quality products, transparency of their orders and accurate delivery dates are some of the important factors for customers. The importance of these indicators changes depending on product / industry and market. Companies should prioritize their customer requirements in order to increase their sales.

Transparent product

If products are transparent, then the planning systems of companies should be transparent too. 

Three main steps are important for a company to adopt an optimized supply chain planning:

  • Define a strategy for your supply chain planning
  • Apply the strategy to supply chain
  • Supply chain reporting and analysing

Define a strategy for your supply chain planning

Supply chain planning helps companies to implement their planning strategy. Firstly, the product/industry plays a major role in defining the planning strategy. The complexity of products, stocking strategy, quantity, and specific customer orders all define the planning strategy. 

Secondly, the market defines the planning strategy and the following questions are important to define the correct planning strategy:  

  • Which factors effects sales on the market
  • What forecast strategy is needed to react earlier to customer demands
  • How products are delivered to the market
  • How optimum stock levels are calculated

Apply the strategy to supply chain

Suitable software is necessary to apply supply chain strategy in a company. The main tasks of supply chain planning software is considering planning constraints and finding the most profitable supply chain plan. 

The key points of proper software selection are: 

Integrated software: Can it change and configure software according to customer requirements? 

Open source software architecture:  Does it have software modular structures for different processes?

Supply chain reporting and analysing

Reports and analysis is important to measure the quality of the plan. Simulated plans could also be reported. KPIs should be defined for customers to generate effective reports.

Unfortunately there is no magic button to optimize your supply chain. Planning strategy is different from customer to customer and the correct software and reporting tools should be used to provide reports to management from summarized to detailed. A good supply chain planning strategy and correct software, increases the profit of the company and helps management to monitor the supply chain.