Under present circumstances, one of the most important factors in the functioning and supply chain development is the effective management. A panning function takes a special position in this process. Practical experience shows us that the underestimation of planning, its total reduction or minimization can lead to unfortunate results, such as significant economic losses and even bankruptcy.
It should be noted that planning and the market – are two interacting and mutually complementary components of the economic mechanism. The market is functioning successfully due to purposeful, planned actions of its members. The same parallel can be drawn with integrated supply chain: the successful operation and development of the supply chain can be achieved by integrated planning of all its units. This allows all participants of the supply chain to allocate its resources effectively in time and space. Integrated supply chain must provide all types of planned activities: strategic, current and operational planning.
Nowadays many enterprises have begun to realize the necessity of integrated supply chain planning, because collaboration between different companies in the chain is important for every member of it.
Let’s calculate the benefits of integrated supply chain planning. First one is supply chain visibility, which provides a high-resolution look at supply chain activity, from sourcing to customer delivery. All of chain members have a single source of truth and they can quickly adapt their logistics plans to current situation.
The second advantage is real-time data and control. You always have real-time information about material flows, inventory positions and customer demand. You will have opportunity to adjust orders in advance, some days, weeks or even months before. Controlling option through planning helps all departments of organization to be informed about ‘when’, ‘what’ and ‘how’ to do things.
Next advantage of supply chain planning is simulation. We can call it powerful “what-if” analysis for your business. It gives the opportunity to compare different alternatives viewing them on graphics and pictures. Simulation helps to understand the overall supply chain processes. Using probability and modeling of unexpected events, plant shutdowns and transportation problems you can quickly identify and understand the impacts on supply chain and minimize the risk of changes in planning process.
Integrated reporting is also very important point in supply chain planning, because it helps businesses be informed, make decisions and manage all risks to improve future performance. It is a global viewing on your enterprise, company’s strategy and thinking. Reporting explains how all resources create value, that’s why it plays not the last role in planning.
To the advantages of integrated supply chain planning we can add also minimizing waste of resources, lower cost manufacturing operations, developing optimal production plans based on inventory requirements, product frequency and cycles, fewer barriers and excellent communication between the buyer and seller.
We believe that integrated planning is done for future and gives an opportunity to improve efficiency of your business in the best possible way. It means that you always keep your finger on market’s pulse.