Read this blog to learn 10 (More) Supply Chain Planning Terms Worth Knowing
In a previous post we looked at 10 supply chain planner terms that are building blocks for today’s successful supply chain planners. You can find that post here. This article brings you the next 10 that found their way into the supply chain planning vernacular.
11. Collaborative Planning: A practice in which supply chain stakeholders plan key supply chain activities to efficiently meet demand at the lowest possible cost.
12. Configurable Workflows: Aligning teams to promote collaboration and efficiency by defining tasks, automating approvals, and monitoring work-in-progress.
13. Demand Planning: The development of a consensus-driven plan that optimizes the balance between market opportunity and supply network capability.
14. Financial Planning: The process of taking a look at how supply chain processes affect finances. This enhances the finance department’s ability to manage performance by linking corporate strategy to execution.
15. Predictive Forecasts: An approach to forecasting that has an emphasis on making assumptions of future data based on the combination of past data with insights and understandings about demand.
16. Production Planning: A manufacturing process that involves making sure that sufficient raw materials, staff, and other necessary items are procured and ready to create finished goods according to a specified schedule.
17. Safety Stock: A term used to describe a level of extra stock that is maintained to mitigate the risk of stockouts caused by uncertainties in supply and demand.
18. Stock Keeping Units (SKU): A unique identifier that defines an item at the inventory level; for example, in the retail industry, the SKU may designate style, size, and color.
19. Supply Chain Visibility: Having the ability to monitor and manage events across the entire supply chain to plan their activities more effectively and anticipate problems before they arise.
20. Supply Planning: the entire planning process which includes distribution, manufacturing, and procurement operation according to demand forecasts, considering capacity constraints and material availability.
Keep a lookout for more terms on the horizon. We will continue to build out this supply chain planning glossary in the next installment, including terms like Capacity Planning, Inventory Analysis, and Purchasing Lead Time.
Interested in learning more about supply chain planning for demand? Check out this guide, The Business Case for Demand Forecasting, to learn how advanced analytics improves forecast accuracy.