One of the important elements in completing an external analysis in a strategic planning process is mapping out a supply chain. The relevance of adequately outlining the supply chain is that it assists a company in defining its own market and deciding where it wants to be in the future. Moreover, supply chain planning assists businesses in optimising product manufacturing and delivery. It can also reduce production costs, enhance sales and manage supplier relationships.
PredictiVu’s supply chain planning process begins with demand planning. A team made up of representatives from sales, marketing, and production builds a sales forecast using historical data and other information. The data in spread sheets, specialised demand planning software or data repositories are then thoroughly analysed to find patterns that offer hints about future demand.
The next step is demand shaping, which enables businesses to precisely balance demand and supply. Once the demand plan is authorised, it is translated into a corresponding production plan and then it is eventually implemented in the various supply chain execution processes, including distribution and order fulfillment. Effective supply chain planning helps companies to:
- Reduce inventory lugging costs
- Promote growth in the marketplace by utilising technology and its network
- Minimise lead time for customers to access brand products easily
- Remain competitive in the market to improve the sales funnel
