What is the Supply Review (SR)?

Definition and Core Objective

The Supply Review (also known as the Supply Management Review or SMR) is the third core step in the monthly Integrated Business Planning (IBP) cycle. It is the formalized process where the supply chain organization articulates its definitive plan to meet the requirements established in the Demand Review.

Its primary objective is to balance commercial ambition with operational reality. The supply team works to agree upon a Constrained Supply Plan that is technically feasible and financially optimal over the rolling 24- to 36-month horizon. It answers the critical question: "How do we cost-effectively support the unconstrained demand plan given our finite resources?"

Process Mechanics: Modeling Constraints

The central task of the Supply Review is a rigorous feasibility check. Planners validate the Unconstrained Demand Plan against the organization's physical and financial limits. Key activities include:

• Capacity Planning: Using tools like Rough-Cut Capacity Planning (RCCP) to assess machinery, labor, warehouse space, and distribution bandwidth.

• Material Constraints: Evaluating supplier capabilities, raw material availability, lead times, and lot sizes.

• Financial Constraints: Reviewing CAPEX requirements and the impact of supply tactics on working capital and cost-to-serve.

The output is the Constrained Supply Plan—a commitment from the supply chain to deliver specific volumes based on these realities. It identifies specific gaps where demand cannot be met and proposes scenarios to close them (e.g., overtime, outsourcing, or inventory pre-builds).

Strategic Context: Demonstrated Capability

A successful Supply Review depends on Demonstrated Capability. Plans must be built on realistic, historical performance data rather than "stretch goals" or aspirational run rates.

For the COO and Supply Chain Director, this review is not just about keeping the lights on; it is the forum for operationalizing strategy. It allows leadership to model the impact of different supply tactics—manufacturing vs. sourcing, inventory buffering vs. agile response—and document the associated Assumptions, Risks, Opportunities (AROs) and vulnerabilities, such as commodity price exposure or FX risk.

The Simulation Advantage

In traditional planning, determining the financial impact of a supply constraint is slow. If the Demand Plan exceeds capacity by 10%, calculating the cost of adding a shift versus outsourcing production is often a manual, offline exercise.

Simulation-based Supply Planning changes this dynamic. It allows supply planners to run multiple "what-if" scenarios against the unconstrained demand in real-time.

• "What is the margin impact of fulfilling this excess demand via air freight?"

• "What is the working capital implication of pre-building inventory to cover the shutdown?"

SIMCEL enables the team to instantly visualize the cost and service implications of every supply option, ensuring the final plan maximizes profit potential, not just utilization.

About SIMCEL

SIMCEL unites your planning processes into one seamless platform. Whether you're optimizing inventory in Supply, refining forecasts in Demand, aligning financial strategy in Finance, or driving sustainability in Carbon—SIMCEL empowers your team to simulate, visualize, and align every decision across the business. Say goodbye to silos and hello to truly integrated, agile planning.