The levels of Planning in SCM are: 

(i) Demand Planning: Demand planning is the foundation stone for the supply chain process that can then be used to decide on optimum inventory and avoid unnecessary costs. Demand planning is done by looking into historical data, projected sales, market conditions and other factors. Today, demand planning is done with the help of advanced technology. Powered by artificial intelligence and machine learning capabilities, advanced supply chain management software can predict demand with precision. It can 'sense' demand by looking at real-time data, market conditions and events and point-of-sale data. The use of predictive analytics for demand forecasting has also increased. This helps to better understand consumer behaviour, buying patterns and other factors that influence demand.

(ii) Supply Planning: The next step is to come up with a supply plan that can synchronise with the demand plan and meet the overall requirements of the business. The supply plan involves sourcing of raw materials, components and other goods needed for production. The goal is planning supply that can meet the demand for the product in the best possible way.

(iii) Production Planning: This involves resource allocation of employees, material and production capacity. The broad objectives of a production plan are reducing waste and only producing what is required to ensure the availability of optimum inventory. The latter of these is realised with a supply chain plan that increases cross-functional visibility through efficient inventory management.

(iv) Sales and Operations Planning (S&OP): Often conducted once a month, sales and operations planning essentially brings diverse business teams working with different objectives on the same page. It helps sales and marketing leaders assess and merge their plans with operations. The all-party meet of different team's aids in the coordination of supply assets and capabilities to meet demand requirements for the short and long term. In some companies, S&OP is performed as part of a broader process called integrated business planning that incorporates plans of other departments, such as finance and HR, in a single, company-wide plan.