SCP involves the development of various resource plans to support the efficient and effective production of goods and services.
It has 4 main steps.
Demand planning & forecasting - we use historical data to develop the most accurate forecasts possible.
Distribution planning - Once demand planning is complete we can work on planning the movement of product to distributors.
Production scheduling - this focuses on the coordination of all activities needed to create the product or service.
Procurement planning - this is the process of development of inventory estimates using simulations.
- There are four plans.
- Procurement - Production - Distribution - Demand
It is important to note that SCP is an ongoing process. As new data is obtained, plans are updated.