Brief overview of supply planning

1. Master Supply Planning
Functions
An overview of one of the most intricate part of Supply Chain management

2. Master Supply Planning & its Functions
 Supply planning is the forward-looking collaborative process of delivery of goods,
services and information from supplier to customer in the most efficient manner. It’s
main objective is balancing the supply and demand
 The various functions are:
 Operations planning
 Event planning
 Inventory planning
 Production/factory planning and scheduling
 Distribution requirements planning
 Logistics optimization
 Production capacity planning
 A master supply planning ERP sits on top of a transactional system which provides
a birds-eye view planning, what-if scenario analysis capabilities and real-time
demand commitments, considering constraints

3. Master Supply Planning Functions and
their position in SCM
 Supply planning functions spans
almost across the entire length of
SCM
 They have significant influence over
the decision making
 Activities in these functions are the
major cost drivers
 Effective collaboration is necessary
 An ERP suite can help in effective
synchronization of all the activities

4. Role of various Master Supply Planning
Functions
 Operations planning – planning of all the day to day activities
 Event planning - promotions, festive discounts
 Inventory planning – define optimal stock quantity
 Production/factory planning and scheduling - establish an overall level of output and optimize
it
 Distribution requirements planning – allocate right quantity to right location on time
 Logistics optimization – set-up an efficient mode of transport
 Production capacity planning (master production scheduling, rough-cut capacity planning) –
design the right capacity plan to meet current and future production output

5. Flow chart of movement of goods in supply planning functions
Logistics
&
FG INV
Logistics
&
FG INV
Vendor Sourcing Operations DRP Customer
Material Flow
Information Flow
Impact of master supply planning functions on SCM
Strategic
•Supply Chain Network Design
•Strategic Partnerships
•IT Infrastructure
•Make or Buy Decisions
Tactical
•Purchasing Decisions
•Inventory Decisions
•Transportation Strategy
•Production Related Decisions
Operational
•Daily Production & Distribution Planning
•Production Scheduling
•Inbound & Outbound Logistics
•Constraints Management

6. Future of Master Supply Planning
Functions
 Technology complements teams
 IoT makes warehouses smarter
 Pre-fulfillment speed becomes vital
 Customization along the supply chain
 Inventory flow optimization
 Further optimization of working capital
 Enhanced relationships with suppliers
 Block-chain provides universal visibility
 Use of AI