Frequently Asked Questions

Inventory planning is the strategic process of determining the optimal levels of inventory to be held by an organization to meet customer demand while minimizing costs and maximizing operational efficiency. It involves forecasting demand, analyzing inventory levels, and making decisions regarding when and how much inventory to order or produce. The goal of inventory planning is to strike a balance between maintaining sufficient inventory levels to meet customer demand and minimizing the costs associated with holding excess inventory. It aims to ensure that the right quantity of products or materials is available at the right time and place to support operations while optimizing inventory turnover and operational efficiency. Effective inventory planning helps organizations maintain adequate stock levels to fulfill customer orders promptly, minimize stockouts and excess inventory, reduce carrying costs, and improve overall supply chain performance.

Supply planning is the process of aligning supply with demand to ensure that sufficient materials, resources, and capacities are available to meet customer requirements effectively and efficiently. It involves forecasting demand, evaluating available resources, and developing strategies to optimize the flow of materials and goods throughout the supply chain. The primary goal of supply planning is to generate purchase requisition (PR) receipts and maintain an adequate supply of materials required for the production of finished goods, thereby ensuring seamless netting off from current inventory levels to support production requirements. Supply planning ensures that the right products are available in the right quantities, at the right time, and in the right locations to meet customer demand while optimizing costs and resources.

Dispatch planning, also known as delivery planning or routing optimization, is the process of efficiently scheduling and coordinating the delivery of goods or services to customers or destinations. It involves determining the most optimal routes, assigning appropriate vehicles or carriers, and scheduling delivery times to meet customer demands while minimizing costs and maximizing service levels. The main aim is to optimize vehicle utilization by analyzing the current vehicle picklist, identifying touchpoints for route generation, and allocating vehicles strategically to maximize efficiency and minimize empty miles. Dispatch planning ensures efficient and cost-effective delivery operations by optimizing vehicle routes, maximizing utilization, meeting customer deadlines, and providing real-time monitoring to respond effectively to changes.