Order planning

What is order planning?

Die Order planning includes all processes that ensure that goods and materials timely and in line with requirements are available. The aim is to to make production and operational processes efficientto reduce costs and avoid bottlenecks.

Order planning tasks at a glance

A well-organized ordering system is decisive for profitability in companies. Order planning typically includes the following steps:

• Needs analysis: Determination of material requirements based on sales forecasts, inventories and consumption data
• Determining the optimal order quantity: Consideration of economic order quantities, minimum quantities and storage costs
• Plan when to order: Defining the ideal time to place an order in order to avoid inventory bottlenecks and high inventory costs
• Selecting suppliers: Selection of reliable delivery partners based on price, quality, delivery time and reliability
• Place an order: Preparation and transmission of the order in compliance with all specifications

Factors influencing order planning

Various internal and external factors have an impact on efficient order planning. These include:

• Demand development and sales data
• Seasonal fluctuations and market trends
• weather conditions (e.g. in the food sector)
• Delivery times and replacement time
• production capacities
• Product availability and stocks

These factors should be continuously analysed in order to to optimize ordering.

Optimum order time: Why timing is crucial

The right time to order is a central element of every order planning. It defines when an order should be placed in order to ensure optimal inventory.

Methods for determining the optimal time to order:

• Reporting inventory: As soon as a defined minimum inventory is reached, an order is triggered. This inventory covers demand during delivery time.
• Take replenishment time into account: The time that a supplier needs for delivery flows directly into planning — in order to avoid production downtimes.
• Seasonal fluctuations and market trends: Forecasts help to identify increased demand at an early stage and to react in good time.
• Dynamic adjustment via system: Modern planning tools analyse in real time when to order, and Automatically adjust the order time.

Optimize ordering processes with artificial intelligence

The use of Artificial intelligence (AI) It makes it possible to to improve ordering and to make the entire order planning process more intelligent.

AI-powered systems:

• Analyze historical and current data
• Take into account external influences (e.g. weather, events, holidays)
• Determine the optimal order quantity and the exact order time
• Avoid excess inventory and reduce food waste
• Support in doing so Optimize ordering processes efficiently

The result: more efficiency, less waste of resources and a significantly more stable supply chain.