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The Importance of Advanced Supply Chain Planning for Companies

The Importance of Advanced Supply Chain Planning for Companies

In the midst of technological developments, Advanced Supply Chain Planning is considered as the main backbone of a company because it plays an important role in the running of business operations at the company. In addition, this mechanism plays an important role for business progress in a company because it is able to manage company costs more efficiently as the company wants. The company collaborates with a trusted software provider company so that it can run this mechanism more effectively. Thus, this mechanism will be able to connect various things such as planning, resource management, procurement of goods, production, transportation, as well as all other logistical management activities.

Definition of Advanced Supply Chain Planning

Advanced supply chain planning is a mechanism that can connect all parties involved in a business run by a company. In addition, this mechanism also connects the process of changing raw materials into a finished product. The parties participating in this mechanism hold the responsibility of delivering the finished goods to the customers in the most efficient way possible.

This supply chain planning mechanism is supported by software that can optimize the delivery of goods, services, and information from suppliers to customers and also balance supply and demand more effectively and efficiently.

Components of Advanced Supply Chain Planning

The components contained in the supply chain mechanism include Upstream Supply Chain, Internal Supply Chain and Downstream Supply Chain. These three components are supporting factors for the success of the advanced supply chain planning mechanism that is run by a company. The following is an explanation of the three components:

Upstream Supply Chain

Upstream (upstream) supply chain includes all activities where the company gets suppliers from outside parties to get raw materials which will be used as production materials. The main activity that takes place in the upstream supply chain component is the procurement of materials.

Internal Supply Chain

Internal supply chain is the stage of changing raw materials or raw materials into a finished product. In the internal supply chain, the main concern lies in production management, manufacturing, and inventory management.

Downstream Supply Chain

Downstream supply chain is the last component in the supply chain mechanism. This component is a stage where the distribution of finished goods by the company to its customers is generally carried out by an external distributor. In other words, downstram supply chain is a process that focuses on distribution, warehousing, transportation, and after-sale service.

Strategic Objectives of Advanced Supply Chain Planning

This mechanism plays an important role in the business processes run by a company because it can connect suppliers, producers, and customers. In managing this supply chain, companies need to carry out processes including planning, implementing, and controlling supply chain operations.

Of course in this supply chain there are strategic objectives to be achieved. The purpose of this mechanism is to align requests and offers effectively and efficiently.

Another strategic goal that needs to be achieved from this mechanism is to make it at least able to survive in today's fierce business competition. To be able to win the market competition, the supply chain must be able to provide a variety of products that are cheap, quality, timely, and varied so as to gain the trust of consumers.

All steps taken by this company intend to help the company achieve strategic competitiveness so that it can generate large profits. Such competitiveness can be achieved when the company has succeeded in formulating and implementing a value creation strategy.

By implementing a supply chain that is supported by a trusted software system, the strategy implemented by the company is not easy to emulate by other companies that run the same business as it. Thus the company can achieve its main goal, which is to get the maximum profit.

Thus the importance of advanced supply chain planning that can be run by a company. This mechanism does play a crucial role in a company because it can optimize goods, services, and information from suppliers to customers in order to get above average profit. For more detailed information about advanced supply chain planning, click on the following link:

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