To enable Business Performance Improvement it is important to look at the business processes on an integrated basis.   Typically problems arise as individual departments focus on optimizing their individual fiefdoms without sufficient regard for the processes of their “suppliers” and “customers.”  The Supply Chain Operations Reference (SCOR) model is a standard reference model that breaks up the Supply Chain Activities into a set of work streams.  SCOR and APICS merged in 2014 and you can find a lot of great content and book recommendations at the APICS website.  The SCOR reference model is available as a downloadable APP that conveniently lets you drill into the process details.

The key processes of the SCOR model to support End-to-End Supply Chain Management are:

• Plan: Supports managing demand and supply via a developed Sales, Operations, Inventory, and Financial plan that in turn supports the Supply Chain Strategy and business objectives.
• Source: Processes that locate high-quality, responsible, safe, and responsive ingredients, packaging, finished items, etc within the food supply chain to enable the necessary outputs for the customer in the supply chain.
• Make: Transforms resources and ingredients into goods to be sold to fulfill current or future customer orders.
• Deliver: Captures orders from customers and completes the pick, pack and ship processes.
• Return: Manages the return or food recall of goods for analysis and disposal because of contamination or quality issues.

The SCOR model goes two levels deeper in process granularity to describe the work streams.  Adroit uses a process matrix that captures the third level set of activities from the SCOR model. The matrix intersects the level 3 activities with the key business scenarios by work stream.  We describe how the activity is accomplished and capture process deficiencies into a prioritized list.  The work streams are diagrammed at a higher level to get a good understanding of process variations. 

Some of the key performance metrics to be benchmarked and focused on improving include:

• Plan: Forecast accuracy, Planning Cycle Times, Planning Costs as a percentage of COGS, Number of expedites
• Source: Aka Vendor Metrics – Material availability, On time delivery, Delivery accuracy, Purchase Price Variances, Variation to Quality Standards
• Make: Available capacity, Work in Process Inventory, Change Over Times, Downtimes, Scrap, Yield, Material variances, Rate Variances.
• Deliver: Ship vs Promise Dates, Ship vs Request Dates, Order Management Costs as a percentage of revenue, Transportation costs as a percentage of revenue
• Return: Time to complete scope of recall test, projected recall costs.t