Supply plan: essential variables to take into account

Supply plan: essential variables to take into account

The supply chain, as an integrated system of the different stages that compose it, begins mainly with the planning of needs for goods and services. These correspond to hard work by the user areas, in an initial stage, to define requirements that guarantee the operation of the company, as well as its growth, based on the projects to be executed. Secondly, it depends on the supply areas that define the strategies that allow efficient supply management, making this a competitive advantage of the organization.

There are essential variables to take into account when creating the supply plan, which we define in this article.

Key elements of the Supply Plan

1. Subsequent goods/services  that are mandatory by the company for its correct operation. As  input  in the creation of the plan, it is necessary to identify the contracts or agreements for these requirements and whether their expiration occurs within the validity of the supply plan. 

2. Types of requirements  where they stand out if they are goods or services; selection modalities in purchasing or contracting (supply strategy); new or previously supplied needs (whose prior data strengthens the process) or even if modifications or extensions of existing contracts/agreements are required.

3.  Categorization of needs,  here the matrix of activities or categories used by the organization becomes important. This allows the definition of supply risk at the level of probability and impact, as well as the viability of subsequent demand consolidation and aggregation activities.

4.  Business rules  that, based on the typology of the requirements and the organization of the company (corporate governance), define internal processes of the areas involved, approval lines, contractual documents, among others.

5.  Activities and conditions of the chain at an internal and external level  that define the framework and time spectrum that must be taken into account. This is based primarily on the supply service level agreements (SLA) defined in the organization.

6. Review of requirements and consolidation of needs,  is a highly important stage in the creation of the supply plan because it allows integrated processes to be carried out, improves efficiency in terms of time and economic results (economy of scale) and brings together common needs of the areas of the company (transversal requirements), as well as the needs that share the same category of goods and/or services and, therefore, market suppliers.


Conclusion

The use of technological tools in the creation, monitoring and measurement of the supply plan, as well as the link with the different stages of the chain, allows supply leaders to take assertive measures in order to obtain better results for the organization every day.

Ricardo Plata

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