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Supply chain planning

An integrated approach to planning helps you run a sustainable, risk-resilient supply chain in the face of constant change.
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Synchronize supply chain planning decisions across lines of business

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Agile supply chain planning requires speed and resiliency, especially during times of disruption. By adopting an extended planning and analysis (xP&A) capability, you can synchronize supply chain planning in real time across the business in line with financial and operational plans. As a result, you can become a more aligned and risk-resilient organization that is ready to respond to any situation.

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Industry 4.0

Connect production with process execution across the supply chain.

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Supply chain planning software

Build an agile, sustainable, and risk-resilient supply chain with software from SAP. 

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Demand forecasting and management
Use demand sensing, statistical modeling, and machine learning algorithms to make accurate short- to long-term forecasts.

Multi-echelon inventory optimization
Set inventory targets to maximize profits, while leaving a buffer to help you meet unexpected demand.

Sales and operations planning (S&OP)
Collaborate on a cross-departmental sales and operations plan that balances inventory, service levels, and profitability.

Response and supply planning
Optimize supply management with plans based on prioritized demands, allocations, and constraints, such as production capacity.

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Master operational planning
Optimize supply chain operations toward service, cost, and capital for both short- and medium-term horizons.

Drive efficiency and agility in planning and scheduling
Manage changes to your operational plan in real time with feedback loops enabled by tight integration across ERP, business planning, and your MES system. 

Leverage planning automation for all manufacturing environments
Use constraint modeling for discrete or process manufacturing and apply advanced algorithms to yield insight and solve problems. 

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Demand management and forecasting
Capture historical demand, adjust demand data, and apply dedicated forecasting models for the parts business.

Inventory planning
Automate stocking and destocking decisions and calculate safety stock as well as economic order quantity (EOQ).

Parts supply planning
Perform distribution requirements planning (DRP) and generate order proposals.

Distribution logistics
Apply push or pull deployment, balance inventory across locations, and execute distribution.

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Priority-based order promising
Allocate the right stock to the right demand in a supply shortage situation, and speed up delivery for key customers.

Optimized stock allocation
Allocate stocks based on business priorities, considering suitable alternatives.

Analytics-driven decision support
Analyze supply and demand and product allocation to understand the influence of product availability constraints.

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Trading partner collaboration
Assure materials supply through planning, inventory, PO, and quality visibility and collaboration with trading partners.

Planning collaboration
Share demand plans and forecasts with your trading partners to receive commits and cut planning cycle time.

Purchase order collaboration
Digitally exchange POs, ship notices, multi-tiered order confirmations, invoices, and more with trading partners. 

Inventory collaboration
Connect with suppliers to detect disruptions and improve visibility into stock on hand, replenishment, and max/min levels.

Quality collaboration
Exchange quality notifications, inspections, and reviews with trading partners to quickly detect and resolve quality issues.

See how customers are succeeding with SAP

See what analysts are saying about SAP

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Building visibility to avoid risk

Read the Oxford Economics research into building visibility and collaboration in supply chain planning to increase resiliency.

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Tapping the power of AI for supply chain planning

Read what IDC has to say about how forward-thinking companies are using AI to make sense of their data and conquer supply chain complexity.  

Featured resources

Can you act fast when supply chain disruption happens?

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Safeguarding business continuity while growing profits

Find out how synchronized planning can help you build a sustainable, proactive, and risk-resilient supply chain that increases visibility, boosts agility, and helps you better meet customer demand. 

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Synchronizing business decisions for supply chain resiliency

Learn how synchronized planning breaks down silos between planning and execution, helping you to create flexible plans that focus on understanding risk, the probability of disruptions and changes, and their impact across the entire value chain.

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Jump-start your digital transformation strategy

Join the growing number of ERP leaders that are taking steps to accelerate their digital transformations. Subscribe to our supply chain newsletter, and let SAP help you modernize your business.

Resources

Frequently asked questions

Supply chain planning is the process of managing and organizing the various activities involved in sourcing, producing, and delivering goods and services to customers. It involves the strategic coordination of resources, information, and processes across the entire supply chain, from suppliers to manufacturers, distributors, retailers, and end consumers. The main goal of supply chain planning is to ensure that products and services are available at the right time, place, and quantity while minimizing costs, optimizing inventory levels, and improving overall efficiency.

Supply chain planning systems are software solutions or tools that organizations use to manage, coordinate, and optimize various aspects of their supply chain operations. These systems help companies to plan, execute, and monitor the flow of goods, information, and resources from the point of origin to the point of consumption in a cost-effective and efficient manner. By implementing a supply chain planning system, companies can gain better visibility and control over their supply chain operations, identify potential risks and bottlenecks, reduce costs, improve customer service, and enhance overall business performance.

  1. Demand planning: Forecasting customer demand to determine the necessary production levels, inventory requirements, and distribution strategies.
  2. Supply planning: Identifying and securing the resources needed to produce goods and services, including raw materials, labor, equipment, and transportation.
  3. Production planning: Scheduling and coordinating manufacturing processes, including capacity planning, resource allocation, and production sequencing.
  4. Inventory planning: Managing the levels of raw materials, work-in-process, and finished goods to meet customer demand while minimizing costs associated with excess inventory or stockouts.
  5. Distribution planning: Optimizing the transportation, warehousing, and distribution of goods from manufacturers to customers, including route planning, carrier selection, and shipment consolidation.
  6. Sales and operations planning (S&OP): Aligning the goals and objectives of various functional areas, such as sales, marketing, production, and finance, to create a unified and integrated plan for the entire supply chain.

Effective supply chain planning requires a comprehensive understanding of the internal and external factors that can influence the supply chain, such as market trends, customer preferences, supplier capabilities, and regulatory requirements. It also involves the use of advanced planning software, analytical techniques, AI for process automation and optimization, and collaboration among supply chain partners to optimize decision-making and adapt to changing conditions.