Production Planning and Scheduling

Table of Contents

Get the latest e-commerce industry news, best practices, and product updates!

What is Production Planning and Scheduling?

Production planning and scheduling is the process of planning, organizing, and scheduling the activities involved in goods and services production. It consists of coordinating activities and resources in the production process to deliver products efficiently and cost-effectively. It includes scheduling production resources (such as labor, materials, and machines) and planning the production process (including what and when to produce). 

Significance of Production Planning and Scheduling in Logistics and E-commerce

Production planning ensures that the right products are produced at the right time and in the correct quantity per the planning. Read on to learn the benefits of the process.

1. It allows for better inventory management and cost control by managing the inventory effectively.

2. It reduces downtime and increases efficiency by opting for rigorous planning.

3. It increases customer satisfaction as orders are fulfilled on time.

4. It lowers lead times, enhancing faster delivery of products.

5. It saves costs through better forecasting, planning, and scheduling.

6. It improves communication and collaboration between logistics and e-commerce departments.

Prerequisites of Production Planning and Scheduling and How It Works

The planning and scheduling of production work in these ways:

1. Firstly, the production plan is based on customer demand, inventory levels, and raw materials and components availability.

2. The production plan is then broken down into a schedule detailing the time and quantity of each product that needs to be produced.

3. Resources are allocated to production based on the schedule.

4. Finally, the plan and schedule are monitored and adjusted to meet customer demand.

Use Cases of Production Planning and Scheduling

One example of production planning and scheduling in the logistics industry is using a transportation management system (TMS). A TMS is a software-based system used by logistics companies to plan and execute the delivery of goods. With a TMS, logistics companies can easily plan, schedule, and track shipments to ensure that goods arrive at their destination on time.

Read more

Get the latest industry news, best practices, and product updates!

Up to $250K USD Credits for Locad Customers!

Sign up today and accelerate your growth with Locad’s Partners. Unlock deals across SaaS, Agencies and more.

Exclusive benefits to ace your e-commerce game this 2023 with Locad’s desk calendar!