CONTINUATION OF INITIAL ARTICLE – “What do you Know about the Supply Chain” – Focus here is on the Initial Facet-Planning & Inventory Mgt.

FACETS OF THE SUPPLY CHAIN (SC):These are the facets:

  • Planning & Inventory Management
  • Procurement
  • Logistics
  • Distribution

This article will focus on where it all starts: Planning & Inventory Management (PIM).

However, note that each enterprise initially needs to identify for its’ marketplace and from that a supply network. This would start from the demographics of the customers and the associated geo-political/economic makeup. Having this view along with the customers service/product needs lays the foundation for identifying a network of supply that can competitively satisfy the customers desires.

DECRIPTION OF PIM:There are some basic things necessary to perform the actions of this facet.

  1. To define the “NEED”. In order to do this, there is a necessity to have a projection of demand – NEED
    1. Typically, this is obtained from Marketing/Sales
    2. This is monitored and accuracy of the projection by both organizations (Sales & PIM)
  2. Plans are made by the PIM group to obtain “SUPPLY” in the anticipated NEED quantity, mix and appropriate timeliness
  3. This is a constant monitoring practice of balancing to ensure the demand (actual need) is happening as well as the availability of the planned supply, IN ORDER TO to ensure satisfaction of the customers desires.


  • PIM is an organization that acts as a monitoring and measurement entity
  • They must respond to CHANGE IN demand & supply and availability of inventory
  • Interaction with the supply functions of manufacturing and/or procurement as well as customer demand (via Marketing & Sales) necessitates continuous measurement & analysis
    • Along with corrective action to get back on the plans track.