Supply Chain Planning & Optimization Software

What Is Supply Chain Planning & Optimization Software?

Supply chain planning software helps organizations manage and replenish their inventory through sales and demand forecasting. As part of a supply chain management system, supply chain planning solutions like sales & operations planning (S&OP) serve an important function in the ongoing effort to reduce waste and increase profitability.

By offering a supply chain planning tool like demand planning software or S&OP, supply chain management software providers give organizations the ability to take a glimpse into a number of possible futures. Based on an analysis of historical market trends and an awareness of the organization’s upcoming promotions and product rollouts, demand planning systems allow organizations to simulate potential demand and adjust their incoming inventories accordingly.

Supply Chain Features & Functionality

Supply chain optimization software handles capacity planning as well as sequencing and scheduling. Beyond simply providing demand estimation data, it allows organizations to act immediately on any pertinent information gathered from the data by altering delivery schedules, shifting stored inventory loads, and adjusting revenue and expense projections. These actions ensure that the buyer does not purchase too many or too few supplies to match demand.

Specific features of a supply chain planning program include:

Evaluating Supply Chain Planning & Optimization Software

Recent advances in networked solutions have made possible a series of collaborative supply chain solutions that allow buyers and suppliers to share the burden of supply chain planning and reduce the amount of non-productive inventory. Vendor managed inventory software is one of many supply chain planning systems that takes advantage of e-Kanban technologies, alerting the vendor when the buyer has run out of supplies so they can send new batches.

When selecting your supply chain planning software, cost will be an obvious concern, as will the features and functionality. Consider order consistency, hands-on management activity, and inventory levels as part of your decision-making process.