H.EDRIS, BAISAH T.
SESSION 13 - MODULE 5
MGT112 Gg
NOVEMBER 15, 2021
REFLECTION PAPER
IMPORTANCE OF SUPPLY CHAIN PLANNING
We know that Supply chain planning helps your business meet customer demand
in the most efficient way possible. But to increase profitability and keep demand from
outstripping supply, every step in the supply chain planning process from ordering raw
materials to product delivery must be reliable. Supply chain planning also helps you match
product supply with customer demand using forecasting, pricing strategy and inventory
management techniques.
Supply chain planning is a way to improve your operations by standardizing
procedures, reducing waste and planning for variability. It also plays a pivotal role in price
and delivery two of the most important aspects of customer satisfaction. A well-run supply
chain lowers manufacturing costs, improves the reliability of deliveries and helps you
respond to unplanned demand.
So that I can really say that this Supply chain planning is important, it is because
it affects your top and bottom lines. Stock shortages can result in lost sales or rush
shipping charges. Too much inventory ties up cash. And over-forecasting and canceling
orders can damage important relationships with suppliers and disrupt your own business.
It’s difficult to argue with the why, but there’s often less agreement on how the process
should be structured.