Transcript Supply Chain Management Survey

Overview Presentation
Supply Chain
Operations Reference-model
(SCOR)
June 2003
1
• The SCC is an independent, not-for-profit, global corporation with
membership open to all companies and organizations interested in
applying and advancing state-of-the-art supply chain management
systems and practices.
• Over 800 Company Members
• Cross-industry representation
• Chapters in Australia/New Zealand, Brazil, Europe, Japan,
North America, Southern Africa, and South East Asia with
petitions for additional chapters pending.
•The Supply-Chain Council (SCC) has developed and endorsed the
Supply Chain Operations Reference-model (SCOR) as the crossindustry standard for supply chain management
SCOR Overview
July 2004
2
What is a process reference model?

Process reference models integrate the well-known
concepts of business process reengineering,
benchmarking, and process measurement into a crossfunctional framework
Business Process
Reengineering
Capture the “as-is”
state of a process
and derive the
desired “to-be”
future state
SCOR Overview
July 2004
Best Practices
Analysis
Benchmarking
Process Reference
Model
Capture the “as-is” state
of a process and derive
the desired “to-be” future
state
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on “best-inclass” results
Characterize the
management
practices and
software solutions
that result in “bestin-class”
performance
3
Quantify the operational
performance of similar
companies and establish
internal targets based on
“best-in-class” results
Characterize the
management
practices and
software solutions
that result in “best-inclass” performance
SCOR is structured around five distinct
management processes
Plan
Deliver
Return
Suppliers’
Supplier
Source
Make
Return
Deliver
Return
Source
Make
Return
Deliver
Return
Source
Return
Your Company
Supplier
Deliver
Source
Return
Return
Customer
Internal or External
Internal or External
SCOR Model
Building Block Approach
SCOR Overview
July 2004
Make
Processes
Metrics
Best Practice
Technology
4
Customer’s
Customer
Supply-Chain Operations Reference-model
(SCOR) 6.1 - Processes
Plan
P1 Plan Supply Chain
Source
S1 Source Stocked Products
S2 Source MTO Products
S3 Source ETO Products
P4 Plan Deliver
P3 Plan Make
Make
M1 Make-to-Stock
M2 Make-to-Order
M3 Engineer-to-Order
P5 Plan Returns
Deliver
D1 Deliver Stocked Products
D2 Deliver MTO Products
D3 Deliver ETO Products
D4 Deliver Retail Products
Return
Deliver
Return
Source
Enable
SCOR Overview
July 2004
5
Customers
Suppliers
P2 Plan Source
SCOR Boundaries

SCOR Spans:
• All supplier / customer interactions
 Order entry through paid invoice
• All physical material transactions
 From your supplier’s supplier to your customer’s
customer, including equipment, supplies, spare parts,
bulk product, software, etc.
• All market interactions
 From the understanding of aggregate demand to the
fulfillment of each order
• Returns
SCOR Overview
July 2004
6
SCOR Project Roadmap
Analyze Basis
of
Competition
Configure
supply chain
Align
Performance
Levels, Practices,
and Systems
Operations
Strategy
•Competitive Performance Requirements
•Performance Metrics
•Supply Chain Scorecard
•Scorecard Gap Analysis
•Project Plan
Material Flow
•AS IS Geographic Map
•AS IS Thread Diagram
•Design Specifications
•TO BE Thread Diagram
•TO BE Geographic Map
Information
and Work Flow
Implement
supply chain
Processes and
Systems
SCOR Overview
July 2004
SCOR Level 1
•AS IS Level 2, 3, and 4 Maps
•Disconnects
•Design Specifications
•TO BE Level 2, 3, and 4 Maps
Develop,
Test, and Roll
Out
7
SCOR Level 2
•Organization
•Technology
•Process
•People
SCOR Level 3
Mapping material flow
(S1, D1)
(SR1,DR1,DR3)
Manufacturing
Warehouse
(S1, S2, M1, D1)
(SR1,,DR1)
Customer
(S1)
(SR1,SR3)
Warehouse
(S1, D1)
(SR1,DR1,DR3)
Other Suppliers
(D1)
Warehouse
(S1, D1)
(SR1, DR3)
Latin American
Suppliers
(D1)
Customer
Warehouse
(S1, D1)
(SR1,DR1,DR3)
SCOR Overview
July 2004
Customer
(S1)
(SR1,SR3)
(S1)
(SR1,SR3)
8
Customer
European Supplier
(S1)
(D2)
(SR1,SR3)
(DR1)
Mapping the execution processes
Americas
Distributors
S1
SR1
European
RM Supplier
S2
M2
D2
SR3
S2
M1
DR1
D1
S1
D1
S1
SR1
DR1
SR1
DR1
SR1
DR3
SR3
DR3
SR3
S1
Key Other
RM
Suppliers
S1
M1
D1
RM
Suppliers
SCOR Overview
July 2004
ALPHA
9
Alpha
Regional
Warehouses
Distributors
Identifying Plan Activities
P1
P1
P1
P3
P2
P
4
P
3
P
2
P
4
P2
European
RM Supplier
Key Other
RM
Suppliers
S2
M2
S1
M1
P
4
D2
S2
M1
D1
S1
D1
S1
D1
S1
RM
Suppliers
SCOR Overview
July 2004
ALPHA
10
Alpha
Regional
Warehouses
Consumer
Distributors
Supply Chain Scorecard & Gap Analysis
Supply Chain SCORcard
Overview Metrics SCOR Level 1 Metrics
EXTERNAL
Supply
Chain
Reliability
Actual
Parity
Advantage
Superior
Delivery Performance to
Commit Date
50%
85%
90%
95%
Fill Rates
63%
94%
96%
98%
Perfect Order Fulfillment
0%
80%
85%
90%
7 days
5 days
3 days
Responsiveness Order Fulfillment Lead times
Flexibility
INTERNAL
$30M Revenue
Key enabler to cost and
asset improvements
82 days
55 days
13 days
Production Flexibility
45 days
30 days
25 days
20 days
19%
13%
8%
Warranty Cost
NA
NA
NA
NA
NA
Value Added Employee
Productivity
NA
$156K
$306K
$460K
NA
119 days
55 days
38 days
22 days
NA
196 days
80 days
46 days
28 days
2.2 turns
8 turns
12 turns
19 turns
Cash-to-Cash Cycle Time
Net Asset Turns (Working
Capital)
SCOR Overview
July 2004
$30M Revenue
97 days
Inventory Days of Supply
Assets
35 days
Value from Improvements
Supply Chain
Response Time
Total SCM Management
Cost
Cost
Performance Versus Competitive Population
11
3%
$30M Indirect Cost
$7 M Capital Charge
NA
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