I, What is Supply Chain Planning (SCP)?

Supply chain planning is a part of supply management that coordinates assets to optimize the delivery
of goods, services, and all information flowing from a supplier to a customer while balancing supply
and demand.

Supply chain planning refers to the whole process of planning a product from its raw material stage to
the final one delivered to the consumer. It is inclusive of supply production and demand planning as
well as sales and operations planning.

Gartner defines supply chain planning as the forward-looking process of coordinating assets to optimize
the delivery of goods, services, and information from supplier to customer. In addition to synchronizing
supply and demand, this process provides what-if scenario analysis capabilities. Plus, it helps a business
fulfill real-time demand commitments.

II, SCP Components :

For supply chain planning to be implemented successfully, there must be seamless coordination
between different teams and processes.
Here are the key elements of supply chain planning:
1. Demand planning and management: The goal is to strike a balance between having sufficient
inventory levels to meet customer needs without having a surplus. Demand planning is done by
looking at historical data, projected sales, market conditions, and other factors.
2. Supply management: Supply management involves sourcing and procuring trusted sources of
raw materials, components, software, and other goods that go into making your product or
service.
3. Production planning: This involves determining how much of a product or service needs to be
produced, as well as when and where it will be produced. Also involves forecasting demand,
developing a production schedule, and allocating resources to ensure that the necessary
materials, labor, and equipment are available to meet customer demand.
4. Sales and Operation Planning (S&OP):
Often conducted once a month, sales and operations planning essentially brings diverse
business teams working with different objectives on the same page. It helps sales and marketing
leaders assess and merge their plans with operations.
The all-party meeting of different teams aids in the coordination of supply assets and
capabilities to meet demand requirements for the short and long term.
 In some companies, S&OP is performed as part of a broader process called integrated business
planning that incorporates plans of other departments
This enables effective decision-making by providing a comprehensive view of the
organization's future demand and corresponding supply capabilities.

III. The benefit of SCP? Compare with SCE.

A, Benefits

Supply chain planning is a way to improve your operations by standardizing procedures, reducing waste,
and planning for variability.

It also plays a pivotal role in price and delivery—two of the most important aspects of customer
satisfaction. A well-run supply chain lowers manufacturing costs, improves the reliability of deliveries,
and helps you respond to unplanned demand.

Additionally, planning can enhance customer satisfaction by ensuring that products are available at the
right place at the right time. Enhanced customer satisfaction, in turn, helps a business build customer
loyalty.

In the event of an unforeseen event, such as the COVID-19 pandemic, that causes sudden disruption, the
business gets exposed to new risks. Without preparation, it cannot respond in a manner that can ensure
seamless operations.

B, Supply chain planning vs. supply chain execution

Supply chain planners are long-term prognosticators, asked to peer months or even years into the
future. But their predictions aren’t based on what they see in crystal balls. Instead, they analyze
manufacturing, logistics, and inventory data to make their plans.

Supply chain execution, on the other hand, is the day-to-day implementation of that plan—order
fulfillment, transporting goods, and warehousing. Think of them as two sides of the same coin.