Supply chain planning as a service (SCPaaS) is a model in which a provider runs a company’s planning processes, such as demand forecasting, supply and inventory planning and sales and operations planning (S&OP), on a cloud platform with its own planning experts, for a recurring fee instead of an in-house build.
As global supply chains evolve and become multi-layered and non-linear,supply chain planning has become a complex subject for supply chain managers. Rising input costs, shifting limitations, time-sensitive processes, and evolving opportunities and capabilities make supply chain planning challenging for businesses. But getting the math right is imperative to ensure that these dynamic aspects integrate with the decision-making process. Here’s where supply chain planning as a service (SCPaaS) becomes a choice for business leaders.
What is supply chain planning?
The effort to coordinate among supply chain partners—suppliers, manufacturers, distributors, and retailers—to balance supply and demand effectively and strategically is referred to as supply chain planning.It involves synergising processes, technology, materials, and organisational capabilities to optimise the supply network, schedule production, forecast demand, and S&OP (sales and operations planning).
Key capabilities of supply chain planning systems
Supply chain planning systems help in the real-time balancing of supply and demand. They use demand forecasts and other tools to draw strategies for driving supply plans, optimising inventory, and managing logistics and distribution. Core capabilities include:
- Demand forecasting: Statistical and machine learning (ML) models that predict demand by product, channel and location
- Supply and capacity planning: Matching supply, production capacity and supplier lead times to the demand plan
- Inventory optimisation: Setting safety stock and reorder points to balance service levels and working capital
- Scenario planning: Testing what-if cases such as supplier delays or demand spikes before they happen
- S&OP support: a single plan that finance, sales and operations agree on each month
For more on the stock side, read our guide to inventory management in supply chain management
However, traditional in-house supply chain planning solutions involving high investment in technology and human resources now have an alternative in the form of supply chain planning as a service.
What do supply chain planning services include?
Supply chain planning services combine people, process and technology so the planning cycle runs reliably every week and month. Typical scope includes:
- Demand planning: Building and refining the forecast, and cleaning sales history
- Supply planning: Turning the forecast into purchase, production and distribution plans
- Inventory planning: Monitoring stock health and recommending rebalancing
- S&OP and integrated business planning support: Preparing data, scenarios and reports for monthly reviews
- Planning operations and master data support: Keeping planning parameters, lead times and product data accurate
Under the as-a-service model, the provider also hosts and maintains the planning platform, so the business pays for outcomes rather than software and headcount.
Why should you choose supply chain planning as a service?
In the world of on-demand logistics, building supply chain resilience is essential for growth of a successful business. Recent years have shown how quickly events can disrupt the supply chain. Hence, to optimise the network, your business will need access to dependable supply chain infrastructure, technology, and planning expertise that can prepare your business for challenges.
Choosing to outsource the supply chain planning process through supply chain managed services helps your business stay lean and agile without worrying about maintaining additional infrastructure and human resources. A supply chain planning software powered by AI can easily integrate your supply chain’s complexities, save time and costs, and provide valuable business insights.
Choosing to outsource the supply chain planning process helps your business stay lean and agile without worrying about maintaining additional infrastructure and human resources. A supply chain planning software powered by AI can easily integrate your supply chain’s complexities, save time and costs, and provide valuable business insights.
The benefits of supply chain planning as a service
SCPaaS uses technology and automation to improve the forecast, visibility, speed, and accuracy of planning in supply chain management. Here are some of the benefits of SCPaaS.
- Rapid deployment: Your business will not need additional investment in maintaining and managing all IT-related aspects of the supply chain planning system.
- Connected data: A shared cloud platform removes the silo effect of legacy, on-site software, so data and processes stay connected.
- Higher adoption: A well-designed SCPaaS is intuitive and easy to use, encouraging higher user adoption.
- Lower cost: The costs of SCPaaS are lower than maintaining an in-house IT infrastructure and staff.
- Faster value: It can be configured to meet your specific business needs. As it is purpose-built, it drives faster time to benefits and higher return on investment (ROI).
- Better forecasts: SCPaaS solutions provide better demand forecasting. AI- and ML-based systems help map demand and supply sides faster and identify loopholes while delivering solutions.
- Shorter planning cycles: Supply chain planning software reduces planning cycle times and improves the accuracy of forecasts, thus ultimately helping in streamlining the entire supply chain network.
How is AI changing supply chain planning?
AI in supply chain planning moves teams from monthly, spreadsheet-led cycles to continuous planning: machine learning refines forecasts as new signals arrive, and AI agents flag exceptions and suggest actions for planners to approve. Supply chain planning of the future consolidates all aspects of planning into a single integrated planning hub. Such an approach helps in creating a unified plan using a common platform for collaboration with all partners in the supply chain. A futuristic planning model can create an integrated hub that allows your business to use advanced analytics to improve planning and optimise the supply chain. It transforms the supply chain planning process and makes it collaborative to allow simultaneous planning by stakeholders and execution backed by data and technology. The integrated planning approach is known to directly impact operational metrics, such as reducing operational costs, improving working capital, improving reliability and risk resilience, and enhancing turn around time (TAT). See how this fits into wider digital supply chain management transformation.
This blog was first published on Silicon India.
How can Infosys BPM help with supply chain planning?
Infosys BPM supply chain management services combine planning expertise, automation and AI, with up to 25% improvement in forecast accuracy and faster planning cycles through automation and data harmonisation. For a European aerospace manufacturer, Infosys BPM consolidated supply operations into regional hubs, cutting missing parts by 36% and on-hand inventory by 10%, with 12-month stock visibility.
Frequently asked questions
Managed planning services make sense when forecast accuracy or service levels keep missing targets, planning talent is hard to hire or retain, the business is growing into new markets or channels, or a planning platform upgrade is due and the company would rather buy outcomes than build in-house capability.
It depends on the number of products, sites and data sources. A typical approach starts with a pilot for one region or product family, connects data feeds and sets planning parameters, then expands in phases once forecast accuracy and service levels improve.
Most programmes start with sales history, open orders, inventory positions, product and location master data, supplier lead times and production capacity. Data quality matters more than volume, so cleansing and harmonising this data is usually the first step.
Common measures are forecast accuracy and bias, on-time in-full (OTIF) delivery, inventory turns or days of supply, planning cycle time and the share of exceptions handled automatically. Tracking them against a baseline shows whether the planning model is paying off.
