To effectively execute the food supply chain, food and beverage companies need to have the correct organization structure with clearly defined roles and responsibilities and the right people in the right seats. Too often organizations evolve based on point needs and the capabilities of individuals. This ultimately results in lack of clarity and lack of accountability.
Adroit utilizes a process matrix that contains the process requirements as outlined in the SCOR model to organize which processes require support. We find that RACI charts are a good approach to document who is currently doing what. RACI stands for Responsible, Accountable, Consulted and Informed. Through this process overlaps and gaps become clear.
There are three organizational structures to consider. Centralized, Decentralized, and Outsourced. Start with the Level One SCOR Activities intersected with the business scenarios and determine which structure makes sense at that level. Centralized tends to leverage scale and enables tight control of demand, inventory, and supply management but may not take into account localized needs and in periods of high activity may not be as responsive. Decentralized tends to be organizationally more expensive but enables a greater degree of flexibility and local responsiveness. Outsourcing decisions should consider segmentation of planning vs execution.
When considering whether the right people are in the organization, start with the core values of the company. Make a list of all the people and outsourced organizations and put the core values across the top. Give each one of three ratings:
+ He, she, they exhibit that core value most of the time
+/- Sometimes he, she, they exhibits the core value and sometimes they don’t
– He, she, they rarely exhibit the core value.
Those that pass the core value test are then considered for seats within the Food Supply Chain organization. For each level 1 workstream pick one or two key performance metrics and then assign accountability for those to those responsible within the RACI.