Supply chain planning implementations may vary from one company to the next, but there is broad agreement among supply chain professionals on the core functions and activities involved in the planning process. These core functions include demand planning, supply planning, inventory planning, and sales and operations planning (S&OP). Plus, an overarching control tower function that gives planners and leaders a real-time view into the planning process from end to end. For some companies, the supply chain planning process is linear, with the completion of one set of planning activities triggering the beginning of the next. However, companies with more mature supply chain planning practices view the overall planning process as continuous or circular. In practice, multiple individuals or teams are working on the different functional areas of SCP concurrently and the various stages in the process are continuously updated, optimized and re-aligned in response to new data and other inputs. Demand planning Demand planning involves forecasting future demand for a product as accurately as possible based on a wide range of inputs. These include a statistical analysis of past sales, modeling to predict future sales, and input from suppliers, partners, stakeholders and others. The resulting demand forecast is used to fine-tune company output to best meet the needs of customers. Supply planning Supply planning is the process of determining how the company will meet the demand for products or services detailed in the demand plan, while also achieving the critical operational and financial objectives of the business. Inventory planning Inventory planning involves determining how much inventory – whether raw materials, work-in-progress, or finished goods – will be required to meet the demand for the company’s products captured in the demand forecast. Key activities during this stage are determining the right quantity and timing of inventory as well as a minimum acceptable level of inventory. Sales and operations planning Sales and operations planning (S&OP) is a cross-functional activity within the company that is led by Operations, and brings together representatives from Sales, Marketing, Finance, Engineering, Procurement, and Manufacturing at regular intervals. S&OP focuses on satisfying corporate objectives, such as revenue and margin goals, by predicting demand and subsequently ensuring adequate supply. The goal of S&OP is to meet a forecast with a planning horizon of between 6 and 24 months. Control tower The control tower in supply chain planning is a software system that gives planners across the different functional areas a real-time view of operational data. Control tower software typically includes one or more dashboards which provide insights into key supply chain metrics. Armed with the data provided by the control tower, planners have the visibility they need to make timely decisions, manage risks effectively, capitalize on opportunities, and take corrective action quickly to deal with any critical issues.