What We’ll Unpack in this Article (TL;DR)
How to choose supply planning software that reduces stockouts, improves forecasting, and streamlines replenishment. We’ll walk through must-have features like AI-driven demand planning, inventory optimization, and supplier performance tracking—plus what to avoid when replacing spreadsheets or outdated tools. Whether you’re scaling up or refining your process, this guide helps you find a system built for growth and accuracy.
In the modern supply chain ecosystem, supply planning software is the backbone of an optimized, revenue-generating organization. That’s because, in these environments, the difference between meeting demand and disappointing customers often comes down to accurate, real-time planning. In 2025 and beyond, businesses that still rely on spreadsheets, outdated ERP systems, or gut instinct alone can often find themselves stuck in a cycle of stockouts, excess inventory, and firefighting.
Supply planning software offers a better way forward, giving planners the visibility, automation, and forecasting power they need to balance supply and demand with confidence. But choosing the right software can be tricky, and landing on the wrong one can be just as damaging as sticking with your current solution.
This article walks you through evaluating supply planning software effectively, whether you’re upgrading from a legacy system or adopting dedicated demand planning software for the first time.
Are you ready to implement a Supply Planning Software?
Before you start diving into supply planning software features or demos, first step back and map out what you actually need the system to do. Are you one of the nearly 70% of businesses that still use manual methods or spreadsheets? You’ll likely need a solution that’s robust but also user-friendly. Are you already using a solution but want to see better results? You’ll need to clearly define your needs.
Use these steps to determine what you need – and should look for – in a supply planning software:
1. Map your planning process
Start by outlining the key steps in your supply planning cycle. This might include demand forecasting, inventory replenishment, production scheduling, or supplier collaboration, for example. Clarifying your workflows will help you pinpoint where planning technology can add value.
2. Identify pain points
Be honest where your current approach is falling short, and get specific. Are you constantly overstocking slow-moving items? Missing sales due to stockouts? These pain points should guide your evaluation, instead of a generic feature “wish list.”
3. Set measurable goals
Your selection criteria should be tied directly to business outcomes. Example goals might include reducing stockouts by 20% within 12 months or cutting excess inventory by 15% (without hurting service levels).
This framework ensures you’re choosing a tool that directly addresses your real-world challenges and supports long-term goals.
What features should you look for in Supply Planning Software?
Once you’ve defined your supply planning software needs, it’s time to dig into the capabilities that separate a basic, generic planning tool from a platform that can truly optimize your supply chain and improve your margins.
While your exact priorities will depend on your business needs, model, and structure, most companies should look for these essentials:
1. Forecasting & demand planning
Accurately predicting future demand is critical for informing stocking decisions, meeting customer expectations, and avoiding stockouts (which cost retailers nearly $1 trillion a year). When it comes to your software, look for a tool that goes beyond basic trend analysis.The best supply planning software:
- Uses statistical models, artificial intelligence, and machine learning, to factor in seasonality, promotions, and external market data.
- Allows you to compare forecast scenarios side-by-side.
- Provides transparency into how forecasts are generated.
- Includes features like real-time monitoring, promotion planning, and forecast customization based on your needs (such as bottom-up, top-down, or middle out forecasting).
2. Inventory analysis/optimization
Your system should help you constantly strike the right balance between too much and too little stock, with inventory analysis and optimization features. For example, it should:
- Automatically calculating safety stock and reorder points to save you time and improve accuracy.
- Optimizing across multiple locations or distribution centers.
- Highlighting slow moving or obsolete inventory so you can take action.
3. Supplier collaboration
Supplier collaboration can be challenging – businesses need to coordinate deliveries, monitor lead times, and ultimately, choose suppliers who are effective and collaborative – even if the supply chain becomes volatile. To support supplier relations, look for planning software that tracks supplier performance and supports engagement. For example, how often are your suppliers delivering orders early, on time, or late? How long are their lead times? Your tool should present these critical insights at-a-glance, and also send you alerts for key moments (such as if orders are late).
4. Replenishment planning
The right supply planning software should give you peace of mind when it comes to replenishment planning, improve accuracy, and even automate certain aspects of the process. For example, it should do things like automate purchase orders, support multi-tier replenishment for complex supply networks, and dynamically adjust when demand patterns shift.
Focusing on these core capabilities ensures you’re evaluating tools that can handle both everyday planning needs – and the inevitable supply chain curveballs.
What else should you consider?
Aside from core features, there are other elements that set certain supply planning software solutions ahead of the rest. Here are some other considerations to keep in mind, to ensure your solution seamlessly integrates, is leveraging advanced technology, and is prepared to grow as your business does.
System integrations:
It’s critical to take your current software infrastructure into consideration. If you choose a planning software that doesn’t fit (or doesn’t easily integrate), it can cause more harm than good (such as adding complicated workflows).
With that in mind, remember that your planning solution should exchange information easily with your ERP, warehouse management system (WMS), and your sales systems (such as your point-of-sale system).
Artificial intelligence:
AI and machine learning are transforming supply chain management. By choosing a planning software with these technologies, you can expect benefits such as enhanced visibility, accuracy, and speed. For example, AI in demand forecasting can improve forecast accuracy by detecting subtle relationships between external events (like weather patterns) and product sales.
It can also flag unusual sales or outlier events (and offer you the option to exclude them from your forecast), and automate time-consuming processes (like data cleansing and order generation). Overall, studies show that AI in the supply chain can significantly reduce forecasting errors, warehouse costs, and administrative costs.
Scalability:
Your supply planning software should support not only where your business is today, but also where it’s heading in the future.
This means it should keep your planning processes accurate, speedy, and agile, even as your business changes or expands. With that in mind, look for a platform that supports expansions (such as new warehouse locations), can handle increasing data volume & product lines, and can adapt to organizational changes (such as new distribution challenges).
StockIQ: The Supply Planning Software Your Business Deserves
Selecting the right supply planning software isn’t just an IT decision: it’s a strategic investment in how your business serves customers, manages risk, and drives growth. If you’re ready to choose a solution that improves your planning processes while fueling growth, let’s talk. We’re StockIQ, a supply chain planning suite built for businesses like yours that uses advanced technologies to help you streamline your supply planning process, including your software and strategies.
Our user-friendly system enables you to control inventory, simplify ordering, and enhance forecasting with AI-powered tools and sophisticated machine-learning algorithms.
Are you interested in learning how StockIQ can help you (realistically) leverage the potential of artificial intelligence? Contact us today or request a StockIQ demo.