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What Is Supply Planning?

Posted by [email protected] on Sep. 2, 2022  /  Subscribe 0

According to the U.S. Bureau of Labor Statistics, nearly 200,000 supply chain logistician jobs open up each year, and the logistics industry adds more than 56,000 new logisticians annually. If you’re a new logistics or supply chain professional, you may feel overwhelmed by everything that there is to learn about supply chain management. Today, we want to educate you on the specific question: what is supply planning?

Supply planning or supply chain planning (SCP) is a strategy for helping logistics clients get the right goods at the right times. SCP is critical to effectively meeting customer demand.

Are you interested in working in supply planning and want to know more about this exciting career opportunity? Then keep reading this guide. Plus, stick around until the end to learn how you can set yourself apart from other SCP applicants with an APICS certification.

What Is Supply Planning?

Supply chain planning falls under the umbrella of supply chain management (SCM). It combines the fields of business management and logistics and relies on the economic principles of supply and demand.

As supply chain planners, workers help to analyze a business' supply needs. Then, they might come up with a strategy to ensure that the business is well-stocked to meet seasonal demand. However, supply planning is not to be confused with demand planning.

Skills relevant to SCP include demand forecasting, inventory tracking, and production organization. This role is an excellent one for logisticians who also enjoy the ins and outs of business life.

Types of Supply Chain Planning

Supply chain planning roles can be divided into three distinct categories: short-term, long-term, and integrated plans. Below, we will offer some details on each of the types of supply chain plans.

1. Short-term Plans

Short-term supply chain plans cover the strategy for the upcoming weeks or months. Short-term plans are essential during periods of high demand, such as the holidays.

A company may have an overall supply chain plan in place. But they might hire a supply chain planner to pivot the strategy when demand increases.

2. Long-term Plans

Long-term supply chain planning addresses the long-term strategy of the business. Usually, these plans cover the strategy for the next year or a few years.

After COVID, many businesses were forced to alter their long-term supply chain plan to account for the many disruptions in the global logistics industry.

3. Integrated Plans

Integrated supply chain plans incorporate both short-term and long-term strategies. Together, these plans will serve as the overall company supply chain strategy.

How to Start a Career in SCP

Supply chain planning professionals are also known as supply planners. They typically earn around $30 per hour and see an average salary of more than $80,000 per year.

Sounds good? Then you may be wondering: how do I become a supply planner in 2022? Here are the three things you must do to get started.

Get a Degree

72.5% of the country's supply planners hold at least a Bachelor's degree. You may think this statistic means that you do not need a degree to get hired. But consider this: 13.6% of supply planners hold a Master's.

That means that less than 14% of supply planners only have a high school degree, GED, or associate's degree.

If you do fall into the former camp, degrees that would support your career goals include Business Management and Logistics. If you fall into the latter group, getting a certification can help you look more competitive.

Obtain Certification

Even if you do have a college degree or higher, you should still consider adding some certifications to your resume. These certifications can set you apart from fellow applicants. Certifications to consider include:

• CSCP: The Certified Supply Chain Professional certification
• CPIM: The Certified in Planning and Inventory Management certification
• CLTD: The Certified in Logistics, Transportation, and Distribution certification
• DDPP: The Demand Driven Planner Professional certification

These APICS certifications are all offered by The Association for Supply Chain Management (ASCM). And studies show that these certifications can increase your earning potential by over 21%.

Supply Chain Industry Experience

Some of the above certifications require real-life work experience, but many supply chain planning jobs also require experience before you can apply.

For example, many supply planner job postings mention previous experience as a supply chain buyer. These professionals help source the raw materials for business products. The job role deals with the supply process.

It is important to note that some professionals obtain their experience from industries outside of logistics. Production planners and even customer service professionals are prime candidates for supply chain planning roles.

Network With Experts in the Field

You know the old adage: it is not what you know but who you know. Fortunately or unfortunately, the same applies to supply chain planning professionals.

Luckily, organizations like The Association for Supply Chain Management can help you network with individuals in your industry. The ASCM holds networking events, professional development meetings, and even business tours for aspiring and current supply chain professionals.

Becoming an ASCM member also comes with endorsements when you apply for a job. Plus, the website offers resources to continue your education in the supply chain sector.

Join the Houston, Texas Chapter of ASCM

Supply chain planning (SCP) is an exciting job role falling under the overall function of supply chain management. It is a great choice for early-career professionals who want to combine logistics with economics and business management.

Now that we have answered your question about what supply planning is, are you ready to join the ASCM? We offer access to certifications, educational resources, and networking events. Become a member of our Houston chapter today!

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