A Guide to the Core Components of Supply Chain Management

What are the essential organs that keep a supply chain running? Ken Fordyce answers this question in an article at EBN, where he outlines the three primary activities of supply chain planning (SCP) and two secondary activities.

Anatomy Lesson

The three primary activities are demand management, supply planning, and the analytics workbench. Demand management is understanding things like exit demand, quantity, and due date. Supply planning matches things like inventory and resource capacity to determine what is feasible and how asset levels affect projections. The ‘analytics workbench’ is where you use analytics to develop insight into SCP or sales and operations planning (S&OP).

The two secondary activities are available to promise (ATP) and inventory modeling and policy. ATP includes the range of specific commitments you make to customers who have placed an order. Inventory modeling and policy involves understanding what your natural level of inventory tends to be, and how to accommodate for variability. You can read the full article here: http://www.ebnonline.com/author.asp?section_id=3742&doc_id=276501

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