Supply Chain Planning: What, Why and How


Since the Covid pandemic started, many industries have reconsidered their approach to optimization and automation. Supply chain has become one of the industries that is actively adapting technology. Supply chain management(SCM) software market is expected to reach 10.17 billion U.S. dollars by 2025, according to Statista.


Software used in the supply chain industry

SCM software is usually implemented as a whole set of solutions and tools integrated with each other. It’s used to manage all the processes in the supply chain, from planning to execution, as well as monitoring and streamlining collaboration with suppliers. Some of the modules of SCM might include supply chain planning, inventory and warehouse management, order management, logistics management, supplier relationship management and so on.

In our article we’d like to focus on one of the most important parts, supply chain planning. Generally speaking, it is the process of predicting demand and planning resources, materials and components to meet this demand. We will try to dive into the topic and explain how technology helps supply chain companies to plan their resources, minimize risks and do a whole lot more.


Supply chain planning software

Supply chain planning software is a set of tools used in order to plan and organize the different parts of a supply chain. Implementing supply chain planning software might look like a big investment, but the good thing is that it helps you achieve 100% ROI relatively quickly, within only 1 year of implementation.

The software is developed to pull data from integrated systems, such as ERP, CRM, order management software, procurement and logistics software systems, data warehouses and others. Supply chain planning software aggregates and analyzes the data, often powered by AI analytics tools and dashboards for comprehensive data visualization.


Why do companies implement supply chain planning?

Now that we understand what supply chain planning software is, let’s look into the benefits it provides for the business. The most common are listed below:

  • Increased speed of planning
  • Minimization of supply chain disruptions
  • Improved visibility and control over processes
  • Improved productivity through enhanced optimization
  • Insights into business planning

Of course, the decision to implement supply chain planning must be made along with the decision to invest in the whole SCM solution. But, without doubt, it can be a really powerful tool for your business.



While it’s up to you whether to invest in technology to optimize supply chain processes and streamline the workflow, we strongly suggest considering it. In today’s high risk environment supply chain planning software might save you thousands of dollars. Such planning software is especially effective for middle and big supply chain companies.