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© 2014 Supply Chain Council. ALL RIGHTS RESERVED. | Outcome Driven Business Transformations | 0 | 3 June 2014

Achieve an Outcome-Driven

Transformation with SCOR and M4SC

Caspar Hunsche – Research Director, SCC

Valerian Harris – Vice President, IGATE

Speakers:


Supply Chain Council to Merge with APICS

Combination Creates Global Leader in Supply Chain

Research, Education and Certification Programs

APICS is the leading professional association for

supply chain and operations management

Premier provider of research, education and certification

programs that elevate end-to-end supply chain

excellence, innovation and resilience.

Over 37,000 members and more than 250 international

partners, APICS is transforming the way people do

business, drive growth and reach global customers.

Supply Chain Council (SCC) is a global nonprofit organization that is known for its SCOR framework, training, certification and benchmarking tools

Since 1996, SCC has developed and trained thousands of supply chain professionals at over 1,000 companies on six continents.

SCC has created a growing international community of supply chain professionals that are changing the way industries deliver products and services to customers

• The merger unites two industry leaders with complementary offerings to

create the premier global provider of supply chain research, education and

certification programs.

• Together, SCC and APICS offer a single-source solution for individuals and

corporations looking to evaluate and improve supply chain performance.

• Both APICS and SCC believe that this combination creates a global leader

in supply chain solutions, poised to benefit members, customers, partners

and employees


“95% of our transformation projects are

implemented successfully, yet

only 30% of projects add business value”

Fortune 500 CIO chief of staff


Transformations

Functionality driven

• Best practice

• Opinions-based

• Standardization

• Success = Implementation

Outcome driven

• Aligned to business strategy

• Metrics-based

• Prioritization

• Success = Improvement

0% 25% 50% 75% 100%

Adding BusinessValue (count)

SuccessfulImplementations

=


Outcome-Driven Transformation

Key Questions

1. What supply chains do I need?

2. What performance do I need for each supply chain?

3. Can my supply chain meet performance needs?

4. What are the network constraints/opportunities?

5. Which processes do not meet performance goals?

6. How can I improve performance of critical processes?

7. Where are my resource constraints?

8. What resource changes can I make?


Outcome-Driven Transformation – A Framework

Supply Chain

Resources Feedback

Drives Supply Chain

Processes Feedback

Drives

Business

Strategy

Supply Chain

Network Feedback

Drives Supply Chain

Strategy

Drives

Feedback

Segment business into supply

chains, determine performance

Optimize network for strategic

performance requirements

Manage processes towards

strategic network goals

Continuously align resources

to meet process goals


• Segment customers/products, Set performance goals

› All customers are NOT equal

› We keep our promises to all customers, but the promises differ

› Differentiate on performance goals

Replacement parts for core products

• Availability (up-time of asset)

• Low cost, high volume

• Stock-out = lost opportunity

Core product for core customers

• Configurable products

• Value added services

• Reliability key decision factor

Reliability

Responsiveness

Agility

Cost

Asset Management Efficiency

Align Strategy

Reliability

Responsiveness

Agility

Cost

Asset Management Efficiency

parity advantage superior


• Align supply chain configuration to performance goals

› Different goals may require different configurations

› Material flows, high level process capabilities differ

› Standardize shared processes where possible


• Make-to-stock

• Distributed inventory at/near customers

• By-products for subset of products

Align Network


• Make-to-order processes

• Postponement

• Consignment inventory (raw materials)

Suppliers Our operations Customers

Suppliers Our operations Customers


Align Processes

• Align process performance to network configuration

› All processes are NOT equal

› Network changes drive process level goals and changes

› Standardize processes where possible


• Make-to-stock finished goods, weekly pull based

• Source-to-stock finished goods, weekly pull based

• Zero/low raw materials inventory (consignment)


• Zero-finished goods inventory

• Run-rate based semi-finished goods

• Zero/low raw materials inventory (consignment)

Inte

gra

ted

su

pp

ly c

ha

in

pla

nn

ing

Raw

ma

teria

l

so

urc

ing

Ma

ke

-to

-

ord

er

Ma

ke

-to

-sto

ck

Finished goods

sourcing Sa

me

-day

(sto

ck)

de

live

ry

Facto

ry

dire

ct

de

live

ry


Align Resources

• Maintain resources to support optimized processes

› Hire, develop, allocate and redeploy staff

› Acquire, maintain, retire technology resources

› Plan and deploy program resources


• Inspection and quality ownership by all

• New order expeditor position/processes

• VMI for buy goods: reduction of 1 buyer


• Make-to-order goods planning expertize

• Product quality: Parts genealogy

• Merge-in-transit for large projects

•H

ire

: p

lann

er

w/m

ake

-to-

ord

er

exp

erie

nce

•P

lann

ing

co

nce

pts

tra

inin

g

•S

up

plie

r m

essa

gin

g

pro

ject

•G

en

ea

log

y

tra

ckin

g

pro

ject

•F

ork

lift/co

nve

yo

r

lease p

roje

ct

•F

ork

lift tr

ain

ing

• Inspection training

• Redeploy: 1 buyer •In

ve

nto

ry

accu

racy

pro

ject

•Q

ua

lity

tra

inin

g

•H

ire: ord

er

exp

ed

ito

r

•M

erg

e-i

n-

tra

nsit

pro

ject


SCOR and M4SC

M4SC™ – Management for Supply Chain framework

• Developed from experiences of companies that do this well

• Standard repeatable processes – predictable outcomes

• Adopted by supply chain business community

SCOR® – Supply Chain Operations Reference framework

• Developed by and for companies that operate supply chains

• The de-facto standard to describe supply chain performance,

processes, practices and skills

• Adopted by supply chain business and IT communities, implemented

in software solutions


Conclusions

• Most companies have the ability to implement change

• Most companies struggle with identifying what and how to change

› Functionality driven

› Difficulty linking transformations to performance

• Most companies struggle with prioritization

› Focus on the transaction

› Missing the big opportunities

• M4SC and SCOR can help

› M4SC™ – Standard processes to determine supply chain

strategy, configuration, processes and priorities

› SCOR® – Standard language to describe strategy, configuration,

processes and priorities

© 2014 IGATE TECHNOLOGIES INC. | Outcome Driven Business Transformations | 12 | 3 June 2014

Visit us at Booth No. 317 to learn more about

Transforming your Supply Chains to Demand Networks

Benchmarking your business to identify improvement opportunities

Implementing Supply Chain Solutions from SAP

achieve an outcome-driven transformation with scor and...

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