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)
| Component | description |
|---|---|
| Demand Forecasting | Uses historical data and models to predict future demand. |
| Supply Planning Engine | Plans supply to meet demand considering capacity and constraints. |
| Inventory Optimization | Determines optimal inventory levels and safety stock. |
| Production Planning | Schedules manufacturing runs based on resource constraints. |
| Procurement Planning | Generates purchase orders based on material requirements and lead times. |
| Distribution Planning | Optimizes inventory deployment and stock transfers across the network. |
| Scenario Planning | Simulates various planning scenarios for S&OP and risk mitigation. |
| Collaboration Tools | Facilitates communication across internal teams and external suppliers. |
| Analytics & Reporting | Provides KPIs and dashboards for performance monitoring. |
| Integration Layer | Connects to ERP, WMS, TMS, and other enterprise systems. |
| Master Data Management | Maintains clean and structured planning data (Item, Location, Resource). |