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Strategic Supply Chain Management - Supply Chain Online

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CHAPTER 2 Core Discipline 2: Develop an End-to-End Process Architecture 77<br />

beginning of a promotion and oversupply at the end. The team realized<br />

that major changes would be required to planning, including the introduction<br />

of collaborative planning with suppliers during promotions and new<br />

product introductions.<br />

Making the change to the plan process would have a major impact<br />

on existing information systems. And gaining full acceptance of the new<br />

process architecture would require involvement of a broader team.<br />

Following its initial work using SCOR level 3, the company initiated an<br />

enterprise project involving both business managers and information systems<br />

managers to further develop the new process and information<br />

systems architecture.<br />

As can be seen by these examples, SCOR provides a structured<br />

approach to developing a supply chain architecture. SCOR’s top-down<br />

approach, which moves progressively into more detail, allows you to see<br />

the big picture before moving into greater levels of detail. And the model’s<br />

hierarchical structure, which breaks down processes into subprocesses and<br />

activities, means that companies can see how changes will affect the existing<br />

supply chain operations. This helps to clarify risks, needed resources,<br />

and implementation timelines. For typical benefits of using SCOR, see<br />

Figure 2-8.<br />

FIGURE 2–8<br />

Benefits of using each level of SCOR.<br />

<strong>Supply</strong> <strong>Chain</strong> Scope<br />

<strong>Supply</strong> <strong>Chain</strong> Strategy<br />

SCOR Level 1<br />

Align process architecture with<br />

business structure and set priorities<br />

SCOR Level 2<br />

Align process architecture with<br />

strategy and infrastructure<br />

SCOR Level 3<br />

Define detailed process and<br />

applications architecture<br />

Roadmap for Change<br />

and Implementation<br />

Typical Benefits<br />

• Cross-business unit<br />

synergies<br />

• Agreement on performance<br />

priorities<br />

• Shared vision for supply<br />

chain process internally and<br />

with customers and<br />

suppliers<br />

• <strong>Supply</strong> chain simplification<br />

• Processes with best<br />

practices<br />

• Process-information<br />

systems alignment<br />

• Measurable operational<br />

objectives

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