Supply Chain Planning (SCP) is one discipline of Supply Chain Management (SCM), the other being Supply Chain Execution.
Based on planning horizon and data granularity, Supply Chain Planning activities can be categorized as follows.
Typical questions that are analyzed during Strategic Planning from a cost minimization and/or profitability optimization perspective are the following.
Operational Planning has a short-term focus and is used to facilitate the following activities.
Tactical Planning links Strategic with Operational Planning. One of its most important functions is the determination of pre-build requirements because of seasonality and the refinement of Strategic Planning results in case of unforeseen changes in the demand pattern or the Supply Chain.
Supply Chain Planning spans across multiple departments of an enterprise. It is very typical that Supply Chain Planning projects are introduced sequentially rather than as a "big-bang" across the entire enterprise. In this context it is advantageous that most software vendors offer software modules that are focused on one specific planning activity.
The following list contains common Supply Chain Planning functions, together with their typical users.
There are several functions, especially in the tactical and operational area, where the line between planning and execution becomes blurry. ERP systems now include functionality that was historically only available in planning systems, such as Order Promising and real-time alerts. Since the nature of this functionality is transaction based, we did not include it in the list above.
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