M4SC Overview slides - Supply Chain Council

M4SC Overview: Getting Started 

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | 2013 M4SC – Getting Started | 1 | 22 March 2013 

Joseph Francis, Executive Director SCC

Executive SCM Issues: Three Themes 

Management Upgrade ‘I don’t get no Respect’ 

Get With the/a System ‘Any Process Will Do’ 

Managing Complexity: Islands of Profit in Seas of Red Ink 

© 2010 Supply Chain Council. ALL RIGHTS RESERVED. | 2013 M4SC – Getting Started | 2 | 22 March 2013

Addressing Issues 

• SCC has had an overall four-stage view of supply chain 

management using SCOR since 1996 

› Lacks detail– left up to practitioner 

› Drives 100’s case studies – but no improvable standard 

› Lack of standard key barrier to SCM success for many 

professionals 


Copyright © Supply Chain Council. 2006. All rights reserved. 

Attribute 

Reliability 

Responsiveness 

Flexibility 

Cost 

Assets 

Metric (level 1) 

Perfect Order Fulfillment 

Order Fulfillment Cycle Time 

Ups. Supply Chain Flexibility 

Supply Chain Mgmt Cost 

Cash-to-Cash Cycle Time 



Operations 

Supply Chain 

Purchasing 

Logistics 

Warehousing 

Responsible 

Accountable 

Supported 

Responsible 

Accountable 

Supported 

Responsible 

Accountable 

Supported 

Responsible 

Accountable 

Supported 


S1 

S1 

S1 

Company 

98% 

14 days 

62 days 

10.1% 

22 days 

Parity 

92% 

8 days 

80 days 

10.8% 

45 days 

Adv 

96% 

6 days 

62 days 

10.4% 

30 days 

Our Company 

Shared Insights SCOR Seminar | 

Superior 

98% 

4 days 

40 days 

10.2% 

20 days 

Parity 

Gap 

-6% 

6 days 

-18 days 

-0.7% 

-23 days 

Req 

Gap 

8 days 


80% 


APJ Warehouse US Warehouse EU Warehouse 

D1 

D1 

D1 

SR2 

SR2 

DR2 

DR2 

DR2 

S1 

S1 

S1 

D1 

D1 

D1 

SR2 

SR2 

DR2 

DR2 

DR2 

DR2 

S1 

S1 

S1 

D1 

D1 

D1 

SR2 

SR2 

DR2 

DR2 

DR2 

DR2 


20 

33 

43 

56 


OEM Supplier 

(D1) 

Commercial 

Customer 

(S2) 

Refrigerant 

Supplier 

(D1) 

Commercial 

Distribution 

(P4, D2) 




Controls Plant 

(P3, S1, M1) 

Basic Units 

(P1, P2, P3, S1, 

M1, M2) 

Electronics 

Supplier 

(D1) 

Motor Supplier 

(D1) 

Retail 

Distribution 

(P4, D1) 


Retail 

Customers 

(S1) 




18 

1 

50 

62 

D1 

Electronics 

Supplier 

D2.1 

Process Inquiry 

& Quote 

Supply- 

Chain 

Big Air 

Small 

Air 

Comm’l 

Overall 

Rating 

120 

180 

300 


D1 

Motor 

Supplier 

Supplier 

D1 

OEM 

Supplier 

D1 

Ref rigerant 

Supplier 


D2.2 

Receive, 

Configure, 

Enter and 

Validate Order 

M2.1 

Schedule 

Production 

Activities 

D2.3 

Reserve 

Resources & 

Determine 

Delivery Date 

D2.15 

Invoice 


Perfect Order 

Fulfillment 


Criteria 

Weight 

P2 

S1 

M2.2 

Revenue 

& Rank 

1 

2 

3 

Issue 

Sourced/In-‐Process 

Product 

D2.4 

20% 

Basic Units 

Consolidate Orders 

D2.14 

Install Product 

0.2 

0.4 

0.6 

P1 

P3 

M1 

M2 

Order Fulfillment 

Cycle Time 

S1.4 

M2.3 

Gross 

Margin 

& Rank 

2 

1 

3 

Transfer Product 

20% 

P4 

Produce and Test 

D2.5 

Build Loads 

D2.13 

Receive & Verify 

Product by 

Customer 

D2 

0.4 

0.2 

0.6 

Commercial 

Distribution 

Our Company 


Flexibility 

Number of 

SKU’s & 

Rank 

1 

2 

3 

S1 

M2.4 

Package 

D2.6 

Route 

Shipments 

D2.12 

Ship Product 

20% 

0.2 

0.4 

0.6 

Controls Plant 

Unit 

Volume & 

Rank 

1 

2 

3 

20% 

0.2 

0.4 

0.6 

Strategic 

Value 

& Rank 

0.6 


P3 

M1 

P4 

D1 

Retail 

Distribution 

1 

2 

3 

S2 

20% 

Commercial 

Customer 

0.2 

0.4 

Customer 


M2.5 

Stage Finished 

Product 

D2.7 

Select Carriers 

& Rate 

Shipments 

D2.11 

Load Product & 

Generate 

Shipping 

Documentation 

M2.6 

Release 

Finished 

Product to 

Deliver 

D2.9 

Pick Product 

D2.10 

Pack Product 



Mgmt Cost 

Cash-to-Cash 

Cycle Time 


S1 

19 

Retail 

Customers 

D2.8 

Receive 

Product from 

Source or 

Make 

37 

51 

68 

Attribute 

Reliability 


Flexibility 

Cost 

Assets 

Metric (level 1) 

Perfect Order Fulfillment 

Order Fulfillment Cycle Time 

Ups. Supply Chain Flexibility 

Supply Chain Mgmt Cost 

Cash-to-Cash Cycle Time 





Company Parity Adv 

98% 

14 days 

62 days 

10.1% 

22 days 

Superior 

Parity 

Gap 

Req 

Gap 





28 

40 

60 

70 

Reliability 


Flexibility 

Cost 

Asset 

Management 

Big 

Airco 




Scope 

Migration 

Approach 

Timing 

Project Risks & 

C omplexity 

Cost 

Value 

Processes supported 

• S1, D1 

• Immediate 

• Medium Risk 

• Medium Complexity 

• $500K 


Small 

Airco 

Business Groups 

• FH9: _x__ 

• FM: _x__ 

• FD: ____ 

Comm’l 

Objectives 

• Reduce Cycle time by direct shipping from factory to commercial customers 

Analysis Issue 

• Order Cycle Time, SCM Cost % Revenue 

• Complete Critical Direct inbound links 

• Create local DC 

• Move new procurement to store at local DC 

• Drain Regional DC 

• Close/Sell Assets 

Geography 

• Sweden: _x__ 

• Belgium: _x__ 

• France: _x__ 

• Eliminates a net 1.5% of SC M cost as % of revenue; 2 Days OC T 




Functions/Groups 

Integrated Logistics 

Integrated Procurement 


32 

42 

55 

71 

Resolving Issues: the “Project” 

Project Charter Outline 

Example: ComfyCo 

Supply Chain Priority: ComfyCo 

Scorecard 

Identify Competitive Requirements 

Section Subsection 

Content/Reason 

Introduction Context 

Understanding of Document 

Overview Scope 

Supply-Chains Considered 

Business Objectives Metrics 

Project Objectives Five-Phase Deliverables 

Project Methodology 

SCOR Project Roadmap 

Approach 

Schedule 

Timeline, Meetings 

Deliverables 

Detailed Deliverables 

Risk 

Level 

Program Management Key Areas 

1 

Budget 

Cost 

Organization 

Chart and Responsibilities 

Benefits 

Measures of Success, Analysis 

Communication Who, How, Why, What, When 

Parity, Advantage, Superior 

minus 

equals 

Level 2 

We now link strategy, 

Parity Median of 

performance, and benchmark 

Statistical Sample 

to identify performance 

Advantage Midpoint of Parity 

required of strategy 

and Superior 

Superior 90 th percentile of 

population 

• Continuing Information on our Example Company, what are 

the distinct supply-chains 

Geography – Customer or Market Channel 

Supply-Chain 

Retail 

Commercial 

Definition Matrix 

Big-Box 

Internet 

Commercial 

Commercial 

Retailer 

Direct 

Building 

Major Acct 

Product 

Basic 

Geographic 

Context 

Big AirCo 

x x 

Small Airco x x 

Custom 

Industrial 

x 

Standard 

Industrial 

x x 

Geo Map of ComfyCo (US) 

ComfyCo 

Major Level 2 

Entities 

processes 

Major 

Suppliers 

Basic Flow 

Indication 

Customer 

Entities 

Supply-Chain Selection Decision Matrix 

Competitive • Procedure 

Performance Requirements 

• Prioritize supply chain 

Attribute or 

Category 

performance requirements 

for each relevant 

customer/market channel 

S A S 

• Within a channel you get 1 

superior (S), 1 advantage 

(A), and two parity (P) 

Process Team 

• Each unique combination of 

• The ComfyCo “Commercial” Supply-Chain has been 

A P A 

ratings defines Your Supply 

Chain Strategy for the 

prioritized by sponsor for improvement. 

channel 

P S P • Think of the rating as a 

desired state, NOT where 

Tiger Team 

you want to improve the 

P P P 

most 

SWAT Team 

ComfyCo Thread Diagram 

Optimization 

Example Issues 

Team 

Fishbone 

1. Multiple Product touch factory to Warehouse 22. No visibility on order load when replenishing 

Planning 

2. Highly variable demand from channels 

inventory 

Level 2 

Notation 

3. Channel config constantly changes 

23. No demand visibility to reflect to suppliers 

Processes 

4. One chance per day to ship 

for critical parts 

5. Channel not ready for delivery 

24. Not understanding what are priority build 

orders 

6. Losing priority shipments 

25. Configuration errors by customer 

7. Takes a lot of time to enter channel orders 

Basic 

26. No visibility to channel of inventory for sales 

8. Duplicate effort entering channel orders 

Process Flow 

w/channel 

27. Inventory too high AND too low because 

forecasting errors 

9. Factory locks schedule for 3 days, no 

flexibility for demand change 

28. Ability to expedite critical parts for key 

customers 

10. Multiple-touch on OEM material from Asia 

29. Long transit time from factory to warehouse 

11. Logistics providers not aligned to our 

priorities 

30. Losing inventory in warehouse for key 

customers 

12. Factory doesn’t always build to plan, 

sometimes to capacity 

31. Uneven workload on warehouse staff – high 

in AM, idle rest of day 

Problem 

Business 

is, there 

13. Selling what we don’t 

is 

have, and not selling 

already a Problem 

Key Entities 

Context 

what we do 

32. Damage to material receiving at warehouse 

during peak shipping 

14. Takes forever to schedule an order to 

inventory 

33. Duplicate builds if boxes not tagged 

correctly to end-cust 

Basic 

15. No visibility on inbound material for order 

planning 

34. Poor scheduling of staff for shipping – 

sometimes too many, sometimes too few 

16. Chasing down inventory for order planning 

Problem 

takes a long time – manual 

35. Factory adherence to schedule builds 

17. Inventory picture for order planning not 

36. Some products run out of inventory 

always accurate 

locations at WHSE – overbuild 

Partitioning 

18. Configuration of Airco unit – can’t always 

37. Supplier complaints about inaccurate 

manufacturing and must ’çlean’orders 

forecasting 

19. Only one person in order management who 

38. Extra costs due to excess RAW in 

understands configuration rules 

demurrage 

20. Errors in re-keying quotes to orders 

39. Too few key workers in factory for complex 

configurations 

21. Time taken to re-key quote to to order 

40. No way to get orders dropped when factory 

idle 

Weighted Result 

Ranking 

Pareto 

Process Worksheet 1 

Interviewees: 

Accountable 

Companies don’t manage with Projects 

Captured SCOR Level-3 Model 

Practices Benchmarking 

Transaction Productivity Analysis 

Status SCOR 

Efficiency Yield Practices Vol Time Elapsed 

RASCI Analysis 

Level 

And Subsequent 

3 

Identification of nextstep 

Analysis Focus 

Level 4 

Input(s) - Highlight Primary Input 

Step 

1 

2 

3 

4 

Process Steps (>4 

5 

and

M4SC: Layered Management 

Business 

Strategy 

Feedback 

Drives 


Strategy 

Segment business into supply 

chains, determine 

performance 

Drives 

Feedback 

Optimize network for strategic 



Network 

Feedback 

Drives 


Process 

Manage processes towards 

strategic network goals 

Drives 

Feedback 


Resources 

Continuously align resources 

to meet process goals 


M4SC: Layered Management 

Business 

Strategy 

Feedback 

Drives 


Strategy 

Segment business into supply 

chains, determine 

performance 

Drives 

What’s the best way to 

have an effective, 

strategically managed 

supply chain organization 

Feedback 

Optimize network for strategic 



Network 

Feedback 

Design a the organization 

to be integrated and 

manageable. 

Drives 

Manage processes towards 

strategic network goals 


Drives 

We Process propose M4SC to be 

that “off the shelf” system 

using SCOR to Supply be the Chain 

integrating 

Feedback 

resource. Resources 

Continuously align resources 

to meet process goals 


Simplification & Organization through Layering 

• Creates visibility and 

accountability for key 

decision areas 

• Optimizing resources across 

organizations 

• Avoids “boil the ocean” 

approaches 

• Natural boundaries 

• Identifies key communication 

paths which result in… 

• Integration 


M4SC Structure 

• Strategy Layer 

› 13-15 Process Elements (like SCOR process elements) 

› Input from Business Planning, Business Environment 

› Output to Business Planning, Network Layer 

› Analyzes and creates context, definition, and goals for supply 

chains 

› “Supply Chain Strategy”, “Supply Chain Definition”, “Benchmarking”, 

etc. 

• Network Layer 

› 10-12 Process Elements 

› Input from Strategy, Business Environment 

› Output to Strategy Layer, Process Layer 

› Analyzes needs and creates physical flows in relation to supply 

chain goals 

› “Network Optimization”, “Transportation Optimization” 


M4SC Structure 

• Process Layer 


› Input from Network Planning, Business Environment 

› Output to Resource Planning, Network Layer 

› Analyzes and creates context, definition, and goals for supply 

chain processes 

› “Business Process Optimization”, “Process Re-engineering” 

• Resource Layer 


› Input from Process, Business Environment 

› Output to Process Enablers, Process Layer 

› Analyzes Skills, Automation, Information resources necessary for 

process goals 

› “Skills Assessment”, “Business Requirements Documentation”… 


M4SC VOLUNTEER DRIVEN R&D 

GETTING STARTED 


M4SC Introduction Series 

Webinar 

18-‐Jul 

23-‐Jul 

30-‐Jul 

6-‐Aug 

12-‐Aug 

M4SC Ge4ng Started – Overview, Structure, Program Review 2014, 

ConversaEon 

M4SC Strategic Management Overview – Problems Strategy Layer 

Addresses, Major Components, Drivers, Use, and EvoluEon 

M4SC Network Management Overview – Problems Network Layer 


M4SC Process Management Overview – Problems Process Layer 


REPEAT INTRO 

22-‐Aug 

M4SC Resource Management Overview – Problems Resource Layer 



M4SC Volunteer Formation 

Webinar 

27-‐Aug 

10-‐Sep 

Volunteer Planning – Overview of M4SC Volunteer Research Program: 

OrganizaEon, Focus, EducaEon, Time Involvement, Research & 

Development, Release 

M4SC Network Training – Public/Volunteer – 2 Day Training 

12-‐Sep 

M4SC Process Training – Public/Volunteer – 2 Day Training 

16-‐Sep 

23-‐Sep 

30-‐Sep 

Team OrganizaEon – Strategy, Network, Process, Resource Team Design: 

Leadership, DocumentaEon, CommunicaEon, Planning, Research Groups 

M4SC Strategic Focus – Problems to be resolved in next Research Cycle 

(Goals), Component Drivers to problems, and Agreed methodology 

Planning 2013/2014 – Dates/Times 2013/2014 Virtual, Face-‐to-‐Face 

meeEngs, CommunicaEon Planning, Commitments 

17 Oct M4SC Research TacEcal Focus – Data Repositories, Research InformaEon 

Gathering, Assessment, Conflict ResoluEon, CommunicaEon 


M4SC Volunteer Education & Research Launch 

Webinar 

21-‐Oct 

M4SC Resource Training – Public/Volunteer – 2 Day Training 

28-‐Oct 

4-‐Nov 

11-‐Nov 

18-‐Nov 

Individual Team Research MeeEngs: Detail Review of ExisEng Materials, 

ClarificaEon of Processes, VerificaEon of Baseline Understanding, 

organized by each Strategy, Network, Process, Resource team structure 

ConEnued Review 

Individual Team Research: SWOT Analysis of M4SC in relaEon to Strategic 

Focus; focus on gaps/opportuniEes 

ConEnued Review 

Individual Team Research: PreparaEon for F2F Palm Springs, PrioriEzaEon 

of Issues, Low-‐Hanging Fruit, ConsolidaEon of Research Review 

5-‐Dec SCC Hosted Palm Springs F2F M4SC Global Research Team Integrated 

PresentaEon & Review 

9 –Dec Individual Team Research: Palm Springs Outcomes, and AcEon Plan 2014 

25-‐Nov 

16-‐Dec 

Individual Team Research: Palm Springs Outcomes, and AcEon Plan 2014 


Your Call To Action 

• Complete Review of M4SC Layers Through August – 

Webinar 

• Sign up as Research Volunteer 

› Choose an area that best matches your expertise 

› Assume Leadership position in Team, or in Process Component 

› Review/Feedback on M4SC System 

• Participate in SCC Hosted Palm Springs Event 

› Meet other Research Teams, Join Global Community 

• Drive Meaningful Change 

› Help Create a Useful Global Standard in SCM 

› Help Create a Well-Used Global Standard in SCM 


About Supply Chain Council 

• Formed in 1996 to create and evolve a standard industry 

process reference model for supply chain for the benefit of 

helping companies rapidly and dramatically improve supply chain 

operations 

• SCC has established the supply chain world’s most widely accepted 

framework – the SCOR ® process reference model – for evaluating 

and comparing supply chain activities and their performance 

• SCC continually advances its tools and educates members 

about how companies are capitalizing on those tools 

› With membership open to all interested organizations 

› Global presence, volunteer driven 

• Offering public and in-house trainings and certification 


SCC Resources 

Research 

Director: chunche@supply-chain.org 

M4SC 

Volunteers: mspring@supply-chain.org 

Membership, Training, Certification, Benchmarking, 

Research: 

Website: www.supply-chain.org 

Global: info@supply-chain.org 


MANY THANKS!

M4SC Overview slides - Supply Chain Council

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?