Planning Horizon

Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

The planning horizon is how long an organization plans to look into the far future when setting up a strategic management plan. Many commercial businesses use a one-year planning horizon, while others use a five-year planning horizon. In either case, any company that wishes to be successful in this industry needs to have an adequate number of key factors in place before the planning phase even begins.

One of the key components to consider is the total cost of acquiring and building the warehouse, packing dock, or palletizing unit. This includes the costs for purchasing materials, labor, and other overhead costs associated with the operation. In some cases, the overhead may include special truck expenses for loading and unloading products, and it may also include insurance premiums. It may also include travel time for management consultants, and any other costs associated with preparing for a major new product or new market entry.

Another key factor that must be considered is what strategic plans will be required in a year, six month, or one year's time. This is an area where several business owners will disagree. Some managers feel that the only time a strategic plan is needed is when the company is about to embark on a major expansion initiative. Other managers feel that strategic planning should be reviewed periodically as the company grows, but not to the point of becoming redundant. To decide which group you should follow, you can divide the managers into those who believe more strongly in monthly reviews, those who believe a strategic planning meeting should occur only every three years, and those who feel a strategic planning meeting should occur at least once a year. These strategies should be discussed with your sales force and other key personnel executives to make sure they are on board with the long-term planning horizon.