Supply Chain Planning

Establish more resilient and agile supply chain planning processes

Strategic Planning for Supply Chain

Supply chain strategic plans that are based on detailed, function-specific, bottom-up analysis are time-consuming and often lose sight of the overall supply chain strategic ambition.

Instead, use a disciplined framework to collaborate with key stakeholders across functions on end-to-end supply chain strategy development.

Download the Gartner Supply Chain Strategy Template for:

  • Three steps to scope, plan and execute the supply chain strategy 
  • A best-practice example for identifying gaps, interdependencies and priorities    
  • The customizable tool to document current and future capabilities

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    The job description of supply chain planning leaders today looks totally different than 10 years ago. It’s no longer enough to provide copious amounts of data — supply chain planning leaders must use the data to draw conclusions about future risks and opportunities.

    Marko Pukkila

    Vice President and Team Manager, Gartner for Supply Chain

    Greater demands on supply chain planning leaders

    In 2020, supply chain planning was challenged by high volatility in demand and supply globally. The COVID-19 disruption revealed many weaknesses in supply chain planning capabilities.

    While fundamental supply chain planning processes remain the same, supply chain planning leaders are under increased pressure to drive supply chain planning performance. Business leaders are asking for supply chain planning to be more resilient and agile to demand changes and supply.

    Supply chain planning leaders have responded by accelerating the frequency of supply chain planning — S&OP more than one time per month, S&OE daily. But most supply chain planning leaders lack the bandwidth to develop plans for business climates different from the current environment.
    60% of companies are dissatisfied with the fit between their supply planning objectives and supply planning capability.
    72% of companies with a physical supply chain are at Stage 3 or below in their supply chain planning maturity.

    Building supply chain planning capability

    With COVID-19 supply chain impact in mind, the challenges your business faced were, and will continue to be, different than those in the past.

    Those companies that had a robust supply chain planning processes for evaluating business risks and opportunities had a headstart in COVID-19 response.

    Now, all supply chain planning leaders must balance and adapt supply chain planning processes to fit short-term and midterm decision making.

    Companies currently at early-stage maturity in supply chain planning should shift from operating in "defensive mode" to intentionally driving business growth, in order to grow the maturity of the supply chain planning capability.
    72% of companies with a physical supply chain are at Stage 3 or below in their supply chain planning maturity.

    Supply chain planning insights you can use

    Supply chain planning delivers business benefits of improved profit, revenue, cash flow and customer service through multiple processes that span portfolio & inventory management, demand & supply planning and S&OP. Maximize these business benefits with Gartner.

    Reinventing Supply Chain for the Future

    Winning supply chains are disruption-tough. Download our 2022 eBook to discover the 4 priorities of the Future Supply Chain.

    Download eBook

    How to Assess Risks and Opportunities Through S&OP

    Learn a 5-step plan for assessing risks and opportunities through S&OP.

    Download Report

    Supply Chain Scenario Planning

    Download the four-step guide to run a supply chain scenario planning exercise.

    Download Guide

    7 Steps to Implement Supply Chain Planning Technology

    Follow this 7-step plan to successfully implement supply chain planning technology, including narrowing project focus, tackling data issues, building support and working with third parties.

    Download Report

    2022 Gartner Power of the Profession™ Supply Chain Awards

    Gartner Power of the Profession™ Supply Chain Awards 2022 for breakthrough supply chain innovations inspires supply chain transformation around the globe. Download the latest award winners report to read examples of supply chain excellence in action.

    Download Report

    Questions about becoming a Gartner client?
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    See the supply chain planning research

    Gartner insights, advice and tools can help establish more resilient, agile and cost-effective supply chain planning processes. We focus on proven practices for improving supply chain planning process, metrics and technology.

    Research

    The 5 Stages of S&OP Maturity

    Download Gartner’s infographic to diagnose your current S&OP maturity level and the steps to improve it.

    Download Infographic

    Research

    Optimize Resilience and Cost With a Stronger CSCO-CFO Partnership

    Watch this on-demand webinar to learn how chief supply chain officers (CSCOs) and chief finance officers can build a stronger business relationship to drive growth.

    View Webinar

    Research

    Key Supply Chain Planning Activities

    Download the activity map to learn what leaders say are the key supply chain planning activities to building a world-class organization.

    Download Activity Map

    Experience Supply Chain conferences

    Join your peers for the unveiling of the latest insights at Gartner conferences.

    View Conferences
    Moving from made-to-stock (MTS) process to made-to-order (MTO) process achieved $8 million in inventory redutction.
    Client Success Story

    Supply Chain Strategy for Optimal Inventory

    A large enterprise construction company’s regional supply chains were operating at cross-purposes, due to the lack of governance from the global center. Gartner’s expertise in demand and supply planning helped the client achieve $8 million in inventory reduction.
    Learn More

    Gartner Supply Chain Top 25 for 2022

    See the 18th annual ranking to learn the standard for supply chain excellence.
    See the Top 25 List

    Supply Chain Planning FAQs

    • Supply chain planning (SCP) is the forward-looking process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand. An SCP suite sits on top of a transactional system to provide planning, what-if scenario analysis capabilities and real-time demand commitments, considering constraints. 
    • Supply chain planning strategy, organization design & talent: Design, implement and communicate supply chain planning strategy and organization structure; recruit and motivate talent.
    • Supply chain planning process excellence & metrics: Align supply chain planning strategy and execution; determine performance metrics and processes.
    • Cost optimization & business value: Drive cost optimization, working capital and growth investment initiatives via effective supply chain planning.
    • Personal effectiveness of the supply chain planning leader: Increase personal influence on the CSCO and other supply chain and commercial stakeholders.
    • Supply chain planning technology & digital transformation: Identify, evaluate, select, adopt and maintain supply chain planning technologies.
    • Head of supply chain planning: Advance the maturity of supply chain planning processes.
    • Head of sales and operations planning (S&OP) and integrated business planning: Design, define and align the S&OP process.
    • Head of demand planning: Develop and orchestrate a demand-driven value network throughout your business in order to optimize costs and forecast accurately. 
    • Head of supply/inventory planning: Effectively assess capability availability and manage an ever-growing network of indirect suppliers via innovative technology.
    • Step 1) Shortlist the most critical supply chain planning capabilities the function needs to remain competitive for the foreseeable future. These might include competencies such as curiosity, collaboration or data-driven decision making. Then focus supply chain planner recruitment efforts on targeted talent pools.
    • Step 2) Define supply chain planning career paths that are lateral within the supply chain planning function and across other supply chain functions. Avoid traditional, hierarchical career paths as they’re no longer enough to engage and retain the average supply chain planner, especially for millennial and Gen Z talent.
    • Step 3) Foster skills development in the supply chain planning function via experiential learning interventions (like stretch assignments or job rotations) and relationship-based learning (like mentorship programs or peer best practice sharing).
    • Step 4) Tailor performance management practices for the supply chain planning function. For example, give a supply chain planner who lacks experience leading projects the opportunity to revamp the S&OP process.

    Demand planning is the development of a consensus-driven demand plan that optimizes the balance between market opportunity and supply network capability. Demand planning enables organizations to make more accurate demand forecasts for a product or service, increasing their efficiency in producing and delivering the product to the customer's satisfaction.

    Sales and operations execution (S&OE) is a weekly cyclical multistep process that involves at least four subprocesses or steps running in parallel with an underlying financial-alignment process. These subprocesses include a merchandising review, a demand review, an inventory plan and gap reconciliation, and an executive S&OE meeting.

    Support for supply chain planning leaders

    Gartner provides trusted insights and objective advice to help supply chain planning leaders establish more resilient and agile supply chain planning processes.
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