Why is there a need to have a supply chain master plan and when is it needed?

Why do we need a master plan?

1- Identifies the best value and opportunities to optimize the current operations

2- Reduce risks

3- Ensure that today's decisions do not compromise or limit future opportunities

When is a master plan is needed?

a master plan should be developed and in place for :

- any new site

- any business acquisition

- significant change to an existing site

- any large capital initiative

Master planning of inventory is required for replenishment, customer demands for good and service supports. Minimize the risk of stock out

There is a need because if your supply chain plan is good it will save you a lot of money and cut your costs. This is always needed in order for businesses to increase profit and grow.