Use Material Planning to Support Your Supply Chain

In order to meet the demand of current and future client needs, as well as maintain storage and logistic costs, material planning can be used to supplement and enhance supply chain strategy.  Supply chain and material planning are used connectedly to address a number of issues:
  1. Cost and Availability

There are many questions asked in supply chain management. Material planning helps to answer these questions.

What do we need?

When do we need it?

Where can we get it?

How much will it cost?

Having the ability to identify and track the answer to such questions can become complicated. A variety of client needs, more product and service offerings, and an expanding network of preferred vendors, suppliers, transporters, and warehouses add to the complexity of the supply chain.

  1. Developing Metrics

With added complexity in the supply chain strategy, metrics are developed in order to improve performance based on accurate benchmarks. Metrics should prioritize and focus efforts based on growth, profitability, and the elimination of inefficient processes.

Metrics can include priorities like inventory planning, warehouse replenishment, lead time, and order minimums. Metrics should seek to optimize demand relationships parallel to optimizing supply relationships.

  1. Process Standardization

After developing metrics to identify critical resources and processes, another element to optimize the supply chain strategy is to standardize the processes and quality controls surrounding these metrics.

Material planning for supply and demand is critical to the performance of the supply chain. Having a partner like SAP Business One to help measure and standardize best practices, navigate an expanding supply chain network, and improve processes and resources is a practical resource and an invaluable tool.

Contact us to learn more about how to enhance your supply chain strategy using material planning.