understanding your tier where do you fit in?
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Mike Skorija Supply Chain & Operational Resources, LLC. Understanding your Tier Where do you fit in?. A Supply Chain is defined as: Strategic and physical actions necessary to define and execute: Purchasing Planning Scheduling Order Entry Receiving Shipping Inventory activities - PowerPoint PPT PresentationTRANSCRIPT
Understanding your TierWhere do you fit in?
Mike SkorijaSupply Chain & Operational
Resources, LLC
SCOR Supply Chain & Operational Resources
• A Supply Chain is defined as:• Strategic and physical actions necessary to define and execute:
• Purchasing• Planning• Scheduling• Order Entry• Receiving• Shipping• Inventory activities• Logistics
• Actions and processes from your suppliers supplier through to your customers customer.
• Metrics to define and sustain desired performance.
What is a supply chain?
SCOR Supply Chain & Operational Resources
Tier 1
Make DeliverSource
Return Return
SCOR is Based on Five Distinct Management Process
Plan
AirbusTier 2Tier 3 Customers’Customer
Supply-Chain Operational Reference-model
SCOR Supply Chain & Operational Resources SCOR Processes
• Plan: Demand/Supply Planning and Management• Balance resources with requirements and establish/communicate plans.
• Management of business rules, supply chain performance metrics, inventory, planning configuration.
• Align the supply chain unit plan with the financial plan.
• Source: Stocked, Make-to-Order, and Engineer-to-Order Product• Identify, qualify and select strategic supply sources.
• Manage business rules, assess supplier performance and maintain qualification scorecard.
• Manage deliveries to meet production plan, receive, verify and authorize supplier payments.
• Manage inventory, supplier network, import/export requirements and supplier agreements.
• Make: Make-to-Stock, Make-to-Order, and Engineer-to-Order Product• Schedule production activities, issue product documentation and release product to deliver.
• Align execution with production plan and manufacturing capabilities.
• Manage rules, performance, data, in-process products (WIP), equipment and facilities, production network, and compliance for production.
• Deliver: Order Fulfillment, Warehouse, Transportation, and Installation Management .• All order management steps from processing customer inquiries and quotes to routing shipments.
• Warehouse management from receiving and picking product to load and ship product.
• Receive and verify product at customer site and install, if necessary.
• Manage business rules, performance, information, transportation, product life cycle, and import/export requirements.
• Return: of Raw Materials and Receipt of Returns of Finished Goods
SCOR Supply Chain & Operational Resources
Tier 3
Airbus
Tier Level requirements
Customer driven Full Responsibility, Quality, Delivery, Price.
Forecasted requirements Supply Chain management & development Tier 1 driven PO’s Qualification and Documentation
Supportive flow down structure Documentation & Technology requirements Supply Chain Management & development. Design engineering and innovation
Build to print PO Order release Qualification
Tier 2
Tier 1
SCOR Supply Chain & Operational Resources
Tier 1Tier 1 Tier 1
Airbus
Ex: Supply chain opportunity
Tier 2
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3
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3
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Tier
3Tier 2 Tier 2 Tier 2 Tier 2
Tier 2Tier 3
Tier 2
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3
SCOR Supply Chain & Operational Resources
• Direct data exchange upstream and downstream.
• Reduced Cycle times due to better process understanding. “CBMR”
• Lower Inventory / MWC generating cash flow.
• Lower logistics costs resulting from rationalized shipments.
• Single point of contact for OEM and their subcontractors.
• Centralized electronic data retention e.g. test certs remotely accessible.
• Automated, program specific metrics available.
Integrated Supply Benefits
SCOR Supply Chain & Operational Resources
• Understand the full scope of your Supply Chains.
• Create transparency of materials in process across multiple Tier’s.
• Collaborate with key supply chain partners for better forecasting & planning.
• Define program specific metrics that all can benefit from.
Realize the benefits of Integration and achieve affordability.
Summary
SCOR Supply Chain & Operational Resources
Questions?
SCOR Supply Chain & Operational Resources
Questions?