What is essential when planning supply to meet demand?

Making realistic plans that align with organizational resources is essential when planning supply to meet demand because it ensures that the strategy is achievable and grounded in the company's actual capabilities. This approach takes into account the limitations of resources, such as workforce availability, production capacity, and inventory levels, allowing for a balanced and feasible plan.

Effective supply planning also requires an understanding of the internal processes and capabilities of the organization. When plans are realistic, this facilitates better decision-making and resource allocation, minimizing the risk of overcommitting or overstretching the company’s capabilities, which can lead to operational failures or unmet demands.

Moreover, by aligning plans with what the organization can realistically achieve, companies can foster more reliable customer service, maintain efficiency, and ultimately enhance their competitive edge. This alignment is crucial for sustainable growth and helps in building trust with stakeholders.