3 Step Beginner Guide to Supply Chain Planning

There’s a seemingly endless supply of information out there on supply chain planning, but a lot of it seems to assume you’re already an expert. But what if you’re just starting out? Or what if your business is just now at the stage where you need a comprehensive strategy rather than a “keep-doing-what-works-until-it-doesn’t” approach? If you need a crash course in Supply Chain Planning 101, we’ve got you covered.

Supply chain management is a big topic. If you’re approaching it for the first time, it may help to divide your planning process into three categories: strategy, tactics, and operations.

1. Strategic Planning 

Strategic planning involves big-picture, long-term decisions. Strategic supply chain planning asks the overarching questions like, “Where are we going? Why? And how are we going to get there?” At its most basic level, strategy is why everyone in the supply chain shows up every day. Some of the decisions made at the strategic level include: 

• Where will you locate your facilities, and why? What will each facility do, and why?
• Will you perform all functions in-house, or will you outsource some of them? If so, which ones?
• Who will be your supply chain partners: vendors, transporters, logistic handlers, consolidators, importers and exporters, etc.? What will your criteria be? Which things will be deal-breakers, and which are negotiable?
• What are your customers’ long-term goals? What will they need in the future, and how will you deliver it?
• What will your priorities be throughout your supply chain? Cost management? Inventory levels? On-time deliveries?
• Where will you invest your resources, and why?
• Which metrics will you use to determine success? Why?

Why Strategic Planning Really Means

Strategic supply chain planning is the foundation everything else is built on. It’s where organizations define long-term objectives, design their supply chain network, and establish the metrics that will determine success over time. Decisions made at this level shape how your supply chain operates for years, not just quarters.

These big-picture choices influence every downstream activity, from how you select vendors and structure partnerships to how quickly products move through the network and reach customers. Facility locations, sourcing models, transportation lanes, and inventory strategies all stem from strategic planning decisions.

Most importantly, strategic planning forces organizations to think beyond today’s challenges. It requires anticipating future customer demand, evaluating growth opportunities, accounting for sustainability goals, and preparing for market or regulatory changes before they become disruptive.

Pro Tip: Align Strategy With Business Goals

The most effective supply chain strategies are tightly aligned with broader business objectives. Growth plans, digital transformation initiatives, risk mitigation goals, and ESG commitments should all be reflected in how your supply chain is designed and managed.

For example, if your organization is working to reduce carbon emissions, that goal should influence supplier selection, transportation methods, and network design. If scalability is a priority, flexibility and vendor diversification may matter more than short-term cost savings. When supply chain strategy and business strategy move in sync, the entire organization becomes more resilient and efficient.

2. Tactical Planning

Once you’ve identified what you need to do, the next step is figuring out how. Decisions made at this level include:

• Hammering out the contracts with your supply chain partners
• Determining capacity needs and production schedules
• Establishing quality, safety, compliance, and sustainability guidelines
• Making decisions about things like contingency planning, technology solutions, labor practices, etc.
• Evaluating the efficacy of things like drop shipments and direct store delivery
• Establishing goals/standards for the metrics by which you’ll measure success
• Deciding which, if any, technology to invest in
  
  

What Happens at the Tactical Level

Tactical supply chain planning translates long-term strategy into actionable plans. This is where organizations determine how to allocate resources, structure partnerships, and set timelines to ensure the strategic vision can be executed efficiently.

Tactical planning acts as the bridge between high-level goals and daily operations. It focuses on optimizing performance while staying flexible enough to respond to changes in demand, capacity, or market conditions. When done well, tactical planning reduces risk, improves coordination, and keeps operations aligned with strategic priorities.

Core Tactical Planning Functions

At the tactical level, organizations focus on decisions that directly support execution, including:

• Negotiating and managing supplier contracts
• Setting production schedules and capacity planning
• Establishing standards for quality, safety, and compliance
• Planning technology and automation investments
• Creating contingency plans for supply disruptions
• Measuring supplier performance and logistics KPIs
  
  

These decisions ensure the supply chain is prepared to perform consistently while adapting to inevitable change.

3. Operational Planning 

The operational level focuses on how you’re going to perform the strategies and tactics determined in the other levels. It’s the level where you get down to the nitty-gritty details. It’s the level where the actual work gets done every day.

Smaller businesses can sometimes get away with jumping straight to the operational level, but neglecting the strategic and tactical levels can be catastrophic for larger, more complex models. Operational planning functions include:

• Forecasting (daily, weekly, etc.)
• Scheduling (of both processes and labor)
• Reporting structures
• Oversight of vendor contract compliance
• Resolving disputes with vendors, logistics providers, transportation partners, etc.
• Managing functions like receiving, shipping, inventory control, and returns
• Determining the processes for gathering and evaluating the data used for measurement
  
  

There’s always more to learn when it comes to supply chain planning. Benchmarks and metrics move all the time, and, when they do, new best practices set the groundwork for how to get there. New technologies make things possible that were just wishful thinking six months ago. Regulatory requirements change. Supply chain partners go out of business, and new ones enter the arena. Your organization’s goals change and your supply chain has to change with them. 

Even the most experienced supply chain professionals aren’t shielded from the barrage of constant change. What enables them to adapt – and what will enable you to adapt – is a thorough understanding of the fundamentals of supply chain planning. In other words, strategies, tactics, and operations.

Defining Operational Planning

Operational planning is where strategy and tactics come to life. It focuses on the day-to-day management of inventory, logistics, people, and performance. This level is responsible for executing plans efficiently, resolving issues quickly, and keeping operations running smoothly.

Operational excellence depends heavily on the groundwork laid by strategic and tactical planning. When those foundations are strong, daily decisions become clearer, performance is easier to manage, and teams can focus on continuous improvement instead of constant firefighting.

Core Operational Tasks

Operational supply chain planning typically includes:

• Demand forecasting and inventory control
• Scheduling production and labor
• Managing inbound/outbound shipments
• Ensuring vendor compliance
• Handling disputes or disruptions
• Data gathering for performance metrics and continuous improvement

These activities happen every day, and small inefficiencies at this level can quickly scale into larger problems without the right structure and visibility.

Adapting and Evolving Your Supply Chain Plan 

Supply chain planning is not a one-time exercise. Markets shift, technologies evolve, regulations change, and customer expectations continue to rise. To stay competitive, organizations must treat supply chain planning as an ongoing process, not a static document.

The most successful supply chains foster agility and continuous learning. They regularly revisit strategy, refine tactics, and optimize operations using real-time data and performance insights. Modern, data-driven tools make it easier to identify risks early, uncover efficiencies, and adapt quickly when conditions change.

How AFFLINK Helps You Strengthen and Simplify Your Supply Chain

AFFLINK helps organizations move beyond reactive supply chain management toward a more strategic, data-driven approach. By combining deep industry expertise, advanced procurement technology, and a powerful network of supplier partnerships, AFFLINK enables businesses to plan smarter, operate more efficiently, and adapt with confidence.

Whether you’re building a supply chain strategy from the ground up or refining an existing one, AFFLINK provides the insights, tools, and connections needed to align strategy, tactics, and operations so your supply chain can support growth today and well into the future.