Supply planning is a critical function in supply chain management that has many moving parts. When it’s done effectively, supply planning improves operational efficiency and cost-effectiveness and helps the company achieve its financial goals. Some of the specific benefits of effective supply planning include: Helping the business maintain optimal inventory levels to reduce the risk of stockouts on one hand, or excess inventory on the other. By optimizing inventory levels with careful planning, businesses can reduce the amount of capital being used for production and reduce costs associated with inventory holding, warehousing and transportation. Effective supply planning increases customer satisfaction by ensuring that customers get the right products at the right time and in the right place. With the right supply plan in place, companies are more agile and better able to take proactive measures to mitigate the impacts of volatility. With a comprehensive supply plan supported by current data from across the entire supply chain, decision makers are equipped to make better, more accurate decisions. Companies that excel at supply planning improve their ability to manufacture their products more efficiently and cost effectively and get them to market faster to meet customer demand. This can create a significant competitive advantage in the market. Supply planners play an active role in proactively identifying gaps or issues with demand forecasts, sales orders, material, capacity, shipments and other elements of the supply chain, which increases efficiency and reduces risks to the business. By optimizing supply chain efficiency through planning, companies can reduce waste, which not only minimizes costs but also helps achieve the company’s sustainability objectives.