Tactical planning, Basic concepts of tactical supply...

Tactical planning

As a result of studying this chapter, the student must:


• modern technologies for organizing joint planning of activities between participants in supply chains;

be able to

• Optimize and balance plans in the supply chain;


• tools for making agreed decisions within the supply chain.

Basic concepts of supply chain tactical planning

Tactical planning is inextricably linked to strategic planning. Strategic planning determines the objectives of the supply chain and the means to achieve it, and tactical planning allocates these resources (resources) to maximize the achievement of the goal. Thus, tactical planning is understood as planning actions that must represent the most effective ways to achieve strategic goals.

Tactical supply chain planning is associated with the regulation of consumption and resource allocation over the planning period from several months to a year. Within this time frame, the supply chain can not change its resource consumption policy, but it can and should regulate resources according to its needs on average.

The main issue of tactical supply chain planning is minimizing the total logistics costs. When minimizing costs, the tactical planning model should include constraints reflecting long-term factors, such as maintaining an optimal level of customer service or maintaining product quality by creating strategic alliances with key suppliers.

The planning process involves the planning of material flows both within the company and between participants in the supply chain.

In a generalized form, the business planning process can be represented as shown in Fig. 4.1.

Scheme of the tactical planning process

Fig. 4.1. Scheme of the tactical planning process

Demand forecasting involves the process of reconciling the demand forecast of producers and distributors with key customers to level the consequences of the "whip effect".

Demand planning implies, based on the formulated agreed demand forecast, the development of a demand plan, taking into account the factors affecting it (for example, the product life cycle that stimulates marketing activities), as well as the handling of exceptional situations and the analysis of plan implementation. The demand plan is developed with the interaction of all participants in the supply chain (customers, distribution, manufacturers, suppliers).

Sales planning is primarily the creation of a supply plan based on a demand plan, taking into account all production and distribution constraints, as well as the necessary reserve reserves.

Production planning solves the issues of optimizing the use of production capacity, minimizing production costs, accounting production constraints. The advantages of production planning are to increase productivity, reduce production costs, and improve service levels. Production planning is carried out within the framework of cooperation of the production company with suppliers (material resources, capacities, financial resources).

Distribution planning includes the creation of a distribution plan that determines the location of storage, stock levels, requirements for cargo handling and packaging of products. An agreed distribution plan ensures a reduction in inventory, hence a reduction in warehouse costs.

Transportation planning is a product delivery plan developed jointly by the carrier, the supplier and the customer, taking into account the rolling capacity of the rolling stock, the production plan and the plan for its consumption.

Tactical supply chain planning provides the following benefits:

• end-to-end planning of the entire supply chain;

• balancing of demand and supply;

• optimization and distribution of stocks throughout the supply chain;

• Minimization of operating expenses;

• allowance for all restrictions.

The main tasks of tactical planning are:

1) demand forecasting and sales planning;

2) balancing demand and supply (planning sales and operations);

3) planning of distribution and transportation;

4) planning of logistics costs and, as a result, their reduction;

5) planning for innovation and, as a result, increasing market share, increasing sales volumes.

Let's consider in more detail the tasks of tactical planning of the supply chain.

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