oboloo Glossary

Importance Of Supply Chain Planning

oboloo Glossary

Importance Of Supply Chain Planning

Supply chain planning is the process of ensuring that all materials, information, and services needed to support the production and delivery of an organization’s products and services are sufficiently available when needed. Establishing a well-designed supply chain plan will help organizations improve their operational performance and business strategy. It can involve determining the choice of suppliers, pricing structures, delivery times, order sizes and quantities, lead times, and other factors that affect how efficiently a company’s supplies pass through its processes. Importance of supply chain planning in procurement lies in its ability to reduce costs, improve inventory control, increase efficiency, and make better use of resources. Planning also helps companies meet demand promptly and achieve greater customer satisfaction with their products or services.