Plan
Description
Balances supply and demand across the network by generating and managing plans that optimise inventory, capacity, and resources to meet customer commitments. Plan capabilities translate demand signals into feasible supply plans, set inventory policies, and ensure that production and logistics resources are aligned to meet service level expectations.
Key Activities
- Demand forecasting and consensus planning
- Supply network planning and constraint management
- Inventory policy setting and optimisation
- Capacity and resource planning across production and logistics
Enabling Systems
- Advanced planning systems (APS)
- S&OP and integrated business planning (IBP) platforms
- ERP planning modules
- Demand sensing and inventory optimisation engines
Related Principles
- Single Source of Truth
- Data as a Strategic Asset
- Loosely Coupled, Highly Cohesive
- Business Agility Over Rigidity
L2 Capabilities
| Capability | Description |
|---|---|
| Demand Planning | Generates statistically-driven demand forecasts incorporating market signals, customer inputs, and promotional events |
| Supply Planning | Converts demand plans into feasible supply plans, coordinating procurement, production, and distribution requirements |
| Inventory Optimization | Determines optimal inventory policies and target stock levels across the supply chain network |
| Capacity & Resource Planning | Matches long-horizon capacity requirements with available production, logistics, and labour resources |