Post

Open Supply Planning Components

What are the typical components of a Supply Planning Software system?

OpenAPI response included this.

A typical Supply Planning Software system includes a suite of integrated components that collectively support the planning and execution of supply chain operations. Here are the core components and their roles:

🔹 1. Demand Forecasting Module Uses historical data, seasonality, and statistical/machine learning models.

Generates forecasts at various levels: product, location, time.

May include consensus forecasting workflows involving sales, marketing, and finance input.

🔹 2. Supply Planning Engine Balances demand with supply constraints.

Determines what to produce/procure, when, and where.

Often includes:

Material Requirements Planning (MRP)

Distribution Requirements Planning (DRP)

Capable-to-Promise (CTP) logic

🔹 3. Inventory Optimization Optimizes safety stock, reorder points, and inventory policies.

Includes multi-echelon inventory optimization (MEIO) in more advanced systems.

🔹 4. Production Planning and Scheduling Plans manufacturing runs based on capacity, lead times, and constraints.

May support finite capacity scheduling or constraint-based scheduling.

🔹 5. Procurement Planning Generates planned purchase orders for raw materials and components.

Integrates with supplier lead times and constraints.

🔹 6. Distribution Planning Determines how to allocate inventory across the distribution network.

Optimizes transfers between warehouses and distribution centers.

🔹 7. Scenario Planning & Simulation Allows planners to model different assumptions (e.g., demand spikes, supply shortages).

Useful for S&OP (Sales and Operations Planning) and risk management.

🔹 8. Collaboration & Workflow Supports internal collaboration (e.g., between supply chain and sales teams).

May include external supplier portals or EDI integration for vendor collaboration.

🔹 9. Analytics and Reporting Dashboards for KPIs like Fill Rate, Inventory Turns, Forecast Accuracy.

Tools like Apache Superset, Grafana, or embedded BI tools may be used.

🔹 10. Integration Layer Connects with ERP (e.g., SAP, Oracle), WMS, TMS, and MES systems.

Uses APIs, ETL pipelines, or message buses (e.g., Apache Kafka).

🔹 11. Master Data Management Manages key planning dimensions: Item, Location, Resource (e.g., production line or supplier).

Ensures data integrity and version control.

Optional Advanced Features AI/ML-based planning assistants

Autonomous planning agents

Carbon footprint optimization

Mobile planning apps

Supply Planning Software System Components (generated by OpenAPI)

Componentdescription
Demand ForecastingUses historical data and models to predict future demand.
Supply Planning EnginePlans supply to meet demand considering capacity and constraints.
Inventory OptimizationDetermines optimal inventory levels and safety stock.
Production PlanningSchedules manufacturing runs based on resource constraints.
Procurement PlanningGenerates purchase orders based on material requirements and lead times.
Distribution PlanningOptimizes inventory deployment and stock transfers across the network.
Scenario PlanningSimulates various planning scenarios for S&OP and risk mitigation.
Collaboration ToolsFacilitates communication across internal teams and external suppliers.
Analytics & ReportingProvides KPIs and dashboards for performance monitoring.
Integration LayerConnects to ERP, WMS, TMS, and other enterprise systems.
Master Data ManagementMaintains clean and structured planning data (Item, Location, Resource).
This post is licensed under CC BY 4.0 by the author.