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Key Decision Making Alignment =

Supply Chain Alignment


How SCOR helps your company to align your supply chains.

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 1

Copyright © Supply Chain Council. 2011. All rights reserved. The marks SCOR®, CCOR™, DCOR™ and SCOR Roadmap™ are the exclusive property of the Supply Chain Council.
Instructor Introduction 2
Herman Estrada
CEO at Calafia BMT S de RL de CV, Supply Chain Management Consultant
herman.estrada@grupocalafia.com

Summary
Herman Estrada is a founding member and CEO of Calafia BMT, also participates as consultant in the areas of Supply Chain
Management, Six Sigma, and Lean Production, for Global accounts such as Pfizer and DHL, as well as national account
such as Grupo Modelo, Fármacos Nacionales and Fabrica de Papel San Francisco. Prior to the founding of the Calafia
BMT, Herman was responsible for leading projects of new Business and Operations Development, Inventory Management,
Product Data Management and consulting in Industrial Engineering, Six Sigma, Lean Production and Supply Chain
Management. Herman publishes articles at CNN Expansion Manufactura, and has been interviewed for opinions in
multiple business journals.

Specialties
Supply Chain Management, Lean, Six Sigma, Process Re-Engineering, Change Management, S&OP
(SOP), Planning, Procurement, Production, Distribution, Return Process, Operational Governance

Experience
CEO at Calafia BMT. May 2005 - Present
Executive Director, The AIT Group Mexico at The AIT Group, Inc.. 2001 - 2005
Engineering Change Manager at Kenworth Mexicana SA de CV. 1995 - 1998

Education
Supply Chain Council SCOR Certified Professional, Supply Chain Management, 2004
Supply Chain Council SCOR Certified Instructor, Supply Chain Management, 2010
The AIT Group, Inc.. Black Belt, Lean Six Sigma, 2001 - 2002
Purdue University. MSIE, Operations Research, Supply Chain Management, 1998 - 2001
CETYS Universidad. IE, Industrial Engineering in Production, 1990 - 1994

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 2
About Supply Chain Council 3

• Formed in 1996 to create and evolve a standard industry process


reference model of the 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
› It can be used to describe supply chains that are very simple or
very complex using a common set of definitions and enabling a
common understanding
› It lets companies quickly determine and compare the performance
of supply chain and related operations within their company or
against other companies
• 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

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 3
Global Scope With Over 800
Member Organizations
Member Distribution Geographic
Australia/New
Zealand
China South Africa
Latin America
Southeast
North
Asia
America
Japan
Member Affiliation

Government
Europe
SME

End User

Also developing chapters in India Enabling Technology

and the Middle East Consultant

Non-Profit/Academic

0% 10% 20% 30% 40% 50%

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 4
Supply Chain 5

• SCOR defines supply chain as: Whether from


Cow to Cone,
“ The processes that plan and execute the Crude to Car or
from Rock to
acquisition of materials, transformation of Ring, SCOR is
not limited by
materials in sellable products, delivery and organizational
boundaries
return of products and services in support
of customer orders ” SCOR can be
applied to supply
Plan chains in any
industry and to
any organization
in the chain
Plan Delive Plan
Deliver Source Make Deliver Source Make Source Make Deliver Source
Return Return Return
r Return Return Return
Return Return
Suppliers’ Customers’
Supplier Supplier Your Organization Customer Customer
Internal or External Internal or External

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 5
Working And Industry Groups

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 6
Working Groups

• Comprised of “volunteers” from global open industry


call under the guidance of Caspar Hunsche, CTO
• Membership not required – open to all
• SCOR 11.0
• DCOR 3.0
• CCOR 2.0
• Best Practices
• Sustainability – GreenSCOR
• Risk Management
• Reverse Logistics
• SCOR Convergence
• SCM Skills – Now, Supply Chain Talent Academic
Initiative

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 7
Industry Groups

• Comprised and managed by “volunteers” from global


open industry call under the guidance of Carolyn
Lawrence, Special Programs Administrator
• Membership not required – open to all
• Aerospace & Defense Industry – SCW-NA 5/24
• Automotive (OEM/Tiered Supplier Segment) Industry
• Automotive Aftermarket Industry Association
• Energy, Oil & Gas Industry
• Hi Tech & Electronics Industry
• Software Industry
• Specialty Equipment Market Association

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 8
Industry Association Member Affiliations

• APICS
• Institute for Supply Management (ISM)
• Council of Supply Chain Management Professionals (CSCMP)
• Automotive Aftermarket Industry Association (AAIA)
• GS1 globally
• Specialty Equipment Market Association (SEMA)
• Material Handling Industry of America (MHIA)
• Reverse Logistics Association (RLA)
• Diverse Manufacturing Supply Chain Alliance (DMSCA)
• Women's Business Enterprise National Council (WBENC)
• Industry Partners with most industry conference producers &
publications
The Supply Chain Council Continues to be recognized as the global
industry standard for supply chain process definition, reference, and
resources.
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 9
The Business Landscape

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 10
The Song Remains the Same Across Industry:
Change and Challenge are Constants
Stock Market Volatility, Oil Prices, Labor,
Political Instability, Access to Capital

Reducing Inventory/ Reducing Total Supply


Working Capital/ Asset Chain Costs: Leveraging
Management Technology

Supply Chain Resiliency Competing in a


& Sustainability: Global Market,
Risk Management New Entrants:
(Security/Counterfeiting) Foreign & Internet
& Green
(Product/Supply Chain) Providing Superior & Consistent
Customer Service While Increasing
Revenue & Margin
Business as Usual Has Been Cancelled:
Change is Inevitable, Growth is Optional!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 11
The New Normal?

• Managing, Retaining, and Recruiting Talent Is Increasingly More


Challenging
• Lack of Management Process Standards and Cross Training Inhibits
Succession and Consistency
• Lack of Visibility to Cross-Functional Process Requirements and
Integration an Inhibitor to Collaboration and Orchestration of Supply
Chain Activities
• Poor Daily Forecast Accuracy Results in Extensive “fire fighting” to
Resolve Variation from Plan
• Planners and Schedulers Rely More on Custom Spreadsheets than
Enterprise Planning Systems
• Lack of Visibility to Changes Upstream and Downstream Result in
Frequent Inventory Imbalances
• Inability to Share Information with other Functions and Planners
• Lack of Performance Information and Daily Decision Support Tools
• Inability to Optimize Resources, Inventory and Operations to Maximize
ProfitabilitySupply Chain Management and Operations Excellence
Effective
are Central Pillars for a Competitive Strategy!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 12
Superior Supply Chain Management (SCM) has
Long Been a Source of Competitive Advantage

Supply chain management costs per $1,000 revenue

$180 $168.11
$160

$140

$120

$100 $91.49
$81.32 $80.52
$80 $70.12
$56.36
$60

$40 $29.48
$22.86 $23.98 $24.60 $24.58
$20 $9.75

$0
Consumer Electronics Industrial Products Petroleum/Chemical Retail and Wholesale Services
Products/Packaged
Goods

Best-in-class Companies Outperform Their Median Competitors with


more than a 50% Cost Advantage…
Parity (50th Percentile) 14 of
Superior AMR’s
(90th Percentile) Top 25 are SCC members!

Source: APQC, SCORmark benchmarking database (www.apqc.org/scc)


© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 13
The Ultimate Goal of the Transformation to
Operations Excellence is to Increase Shareholder Value
The Supply Chain All Financial & Shareholder
Impacts . . . Metrics . . . Value
• Improve customer service Liberate
Working
and response Capital
• Optimize inventory flow, Improve
utilization & productivity Capital
Reduce Efficiency
Fixed
• Best-in-class customer Capital
relationships Increase
• Differentiated service Shareholder
Increase
capabilities Revenue Value
and Margin (ROIC)
• Best-in-class strategic Increase
supplier partnerships Profit
• Leverage outsourcing of Optimize
business processes Cost Model
• Unique supply chain models
& Asset Utilization
Effective Supply Chain Management can increase Return on Invested Capital
(ROIC) by 30% and More!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 14
SCOR Index of Publicly Traded Company Members

Companies with a Focus on Supply Chain Improvement


Outperform the Market, Even in Tough Times!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 15
Best Practices Leadership is the Foundation for
Profitable Growth to Attain Market Leadership

LEADERSHIP in
OPERATIONS EXCELLENCE

HIGHER SUPERIOR
MARKET FINANCIAL
SHARE RETURNS

REINVEST AT A
GREATER HIGHER RATE
VALUE THAN
TO CUSTOMERS COMPETITORS

NEW PRODUCTS, SERVICES,


COST IMPROVEMENTS
Competing in the 21st Century Requires New Thinking and Operations
Excellence; no, Operations Innovation!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 16
Traditional Supply Chain Thinking

Sourcing Manufacturing Distribution Point of Sale

Supplier
Manufacturer Distributor Wholesaler Retailer
Consumer

Sales
Sales
Sales

Sales
Time Time Time Time

• Bullwhipped Demand Signals


• Little Collaboration
• Excess Inventory
• High Execution Costs
• Stockouts
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 17
The Supply Chain is Evolving to a
Collaborative Supply Network
Suppliers Wholesale
Distributors
Retailers
Manufacturers

Internet/ Customer
Portals Internet/ Demand
Internet/
Portals
Portals

Virtual
Manufacturers Logistics Info
Providers Goods
Contract
Manufacturers
Companies Must Transform Their Operating Processes To Become
Customer Focused, Demand Responsive, Collaborative, & Profitable
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 18
Technology Drivers of Change
• Cloud Computing
› Supply Chain Visibility
› Software as a Service (SaaS)/On Demand
› Location Based Technology/Mobility/Telematics
› Business Intelligence/Decision Support
• Auto Id/Information
› Beyond RFID
› Voice Recognition/Response
› Intelligent Sensors, Monitors, Devices
• Robotics Extending from Manufacturing to Logistics
› Picking, Packing, Putaway
› Load, Unload
• Internet Transparency & Social Media for Business
› LinkedIn, Twitter, Blogging, Search
› Offers, Location, Orders, Navigation, Behavior

The Convergence of Emerging Technologies will lead to New Applications


for Integrating Planning & Execution!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 19
A New Paradigm is Emerging:
The Smart Supply Network

• Optimization for Visibility & Global Flow Control


• Smart Transactions (Telematics/RFID) Convey Information in
Real Time Across the Supply Network… Paperless!
• Convergence of Planning & Execution - Basis for Demand
Planning/Crossdocking/Outbound Consolidation
• Optimum Supply Network Material Flow through
Collaborative, Synchronized Activity Planning & Scheduling
Smart Information Smart Information

Vendor
Companies must define Crossdockbest
& Customer
Custom Packtheir
& supply chain processes, metrics,
Distribution
practices and
Outbound
talent requirements to leverage a newCenter
Label paradigm in supply chain management to
Consolidation
gain competitive advantage!
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 20
HOW COMPANIES USE SCOR TO
OPTIMIZE SUPPLY CHAIN PERFORMANCE

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 21
What is SCOR®?

• SCOR is a supply chain


process reference model
containing over 200 process Supply Chain
elements, 550 metrics, and

Customer processes
Supplier processes
Plan
500 best practices including
risk and environmental
management and HR SEAT
• Organized around the five Source Make Deliver
primary management
processes of Plan, Source,
Make, Deliver and Return
Return Return
• Developed by the industry
for use as an industry open
standard - Any interested
organization can participate Process, arrow indicates material flow direction
in its continual development Process, no material flow Information flow

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 22
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About SCOR: A Process Framework 23

• Process frameworks deliver the known concepts of


business process reengineering, benchmarking,
best practices and organizational design in a
cross-functional framework
› Standard processes; Plan, Source, Make, Deliver, Return
› Standard metrics: Perfect Order Fulfillment, Cash-to-
Cash Cycle Time, Cost of Goods Sold,..
› Standard practices: EDI, CPFR, S&OP, Cross-Training, ..
› Standard job skills: Lean, Accounting, Solicitation, ..
• Pre-defined relationships between metrics,
processes, practices and skills

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 23
A Process Framework 24

• Combining 4 techniques into a single integrated


approach
Business Process Performance Best Practices Organizational
Re-engineering Benchmarking Analysis Design
Capture the ‘as-is’ Quantify relative Identify the practices Assess skills and
business activity and performance of and software performance needs
design the future similar supply chains solutions that result and align staff and
‘to-be’ state and establish in significantly better staffing needs to
internal targets performance internal targets

Process Reference Framework


Processes Performance Practices People
(metrics) (skills)

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 24
About SCOR: Supply Chain 25

• Viewing a company as processes (domains)

Product/Portfolio
Product/Portfolio
ManagementManagement

Customer processes
Supplier processes

Product & Sales &


Product Design Sales & Support
Process Design Support
DCOR™ CCOR™
DCOR™ CCOR™

Supply Chain
SCOR ®

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 25
Supply Chain visualization

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 26
The What and Why of
Visualization/Modeling

'Modeling' has two major components:


• Gathering process knowledge and
• Presenting process knowledge

Using SCOR, Supply Chains can be rapidly defined,


processes identified, and metrics set in a common and
consistent method across functions.

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 27
SCOR Supported Model Types

Business activity Diagram Type Description


Identify Supply Definition Matrix Identify and Prioritize Supply
Chains Chains
Managing supply Geographic map Standard view for supply chain
chains owners/managers (what is
sourced, stored and/or goes
where)
Managing supply Thread diagram Level 2 process decisions.
chain configurations Replace, reposition and/or
eliminate processes
Managing processes Workflow Level 3 and 4 process decisions.
Outline process disconnects,
missing information

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 28
Supply chain definition

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 29
Supply-Chain Definition

• Supply Chains are the Totality of processes spanning


operations from supplier to end-customer, focused on
material, work, human, cash and information flow
• We use a tool called the Supply Chain Definition
Matrix to define the supply-chains within an enterprise
• The Supply Chain Definition (i/o Matrix) Matrix helps
determine the number and size of supply chains
• Columns: Customers (Output)
• Rows: Products (Input)
• The intersection of each column and row – if the
goods or services flow to the customer – is a supply
chain

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 30
The Matrix

• We now place the customer list as column headings


repeating until finished
• And then the products list as row headings repeating until
finished
• For each product that flows to a customer, we put an “X” in
the cell
• It’s that simple.

Group 1 Group 2

Customer A Customer B Customer C Customer D

Product 1 X X
Business 1
Product 2 X X
Product 3 X X
Business 2
Product 4 X

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 31
SCOR Defines the First 3 Levels of Details
Level 1 Level 2 Level 3 Level 4 Level 5
Scope Configuration Activity Workflow Transactions

S1 EDI
Supply-Chain S1.2
Source
Source
Receive Product
XML
Stocked Product

Differentiates Differentiates Names Tasks Sequences Steps Links


Business Complexity Transactions
Defines Scope: Differentiates Links, Metrics, Job Details: Details of
The Basis for Capabilities: Tasks and Defines practices Automation:
Competitive Companies Practices: to achieve Defines “process
Performance implement their Companies “fine competitive gates” and
Targets are set operations tune” their advantage and to integration points/
strategy based on operations adapt to changing requirements
unique SC strategy business
configuration conditions
Framework Framework Framework Industry or Technology
Language Language Language Company Specific
Specific Language
Language

Standard SCOR definitions


© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 32 Company/Industry definitions
Best Practices

Best practice: "A current, structured, proven and repeatable


method for making a positive impact on desired operational
results."
• Current
Must not be emerging and can not be antiquated
• Structured
Has clearly stated Goal, Scope, Process, and Procedure
• Proven
Success has been demonstrated in a working
environment and can be linked to key metrics
• Repeatable
The practice has been proven in multiple environments.

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 33
P1 Plan Supply Chain
Metrics Best Practices
Cash-to-Cash Cycle Time Capability to run What-if simulations
Change in Demand signal instantaneously
Cost to Plan SC “reconfigures” Production and Supply Plans
Order Fulfillment Cycle
Time CPFR
Plan Cycle Time On-line visibility of demand
Return on SC Fixed Assets Re-balancing on full-stream supply and
demand
Return on Working Capital Supply/Demand Processes are fully
integrated
S&OP
Tools support balanced decision making

VMI
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 34
Best Practices – What does it take to improve?

SCOR contains over 200 best practices today


• Do you need to implement all 200+ in your company?

Low Risk High Risk How to determine fit?


• For each best practice
High Return

› Determine risk
quick sponsor
wins issue › Determine return
• Pin in the quadrant
Low Return

consider
nice to have
carefully

• Implement a best practice IF it makes sense for your specific


processes, business, or industry.

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 35
Supply chain performance

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 36
Supply Chain Prioritization

• We use a tool called the Supply Chain Prioritization


Matrix to order the supply-chains according to
relevance
• Each supply chain can be ranked by a number of
features
• We suggest:
› size (revenue, volume, and margin),
› complexity (# SKUs)
› strategic importance
• You can also look at them by
› Cash Consumption
› Risk
› Volume variability
› Etc.

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 37
Supply Chain Priority

• Each supply chain is given a rank in each


category
• The total of the values gives the final overall
ranking
• Weightings and other criteria may apply

Gross Unit Strategic


Revenue # of SKUs Rank
Margin % Volume Value

Business 1 3 2 2 2 2 11

Business 2 2 1 3 3 1 10

Business 3 1 3 1 1 3 9

1=low
3=high
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 38
Supply Chain Strategy

• We use a tool called the Supply Chain


Strategy Matrix to Identify priority strategic
features or attributes of supply-chains.
• Each supply chain strategy is indicated by a
collection of ranked features:
Reliability On time? Complete? Undamaged?
Responsiveness From Customer Request to final acceptance
Flexibility How long to scale up? How expensive to scale down?
Cost Cost of Processes? Cost of Goods Sold?
Assets Working Capital? Return on Investments?

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 39
Comparative Ranking

• We advocate using a simple ranking system for


industry comparison
• Each rank corresponds to a specific percentile in
industry performance
• We do not use averages or other statistical tests
• Our key ranks:

Performance Percentile Choices Interpretation


Superior 90th 1 “Top 10” performer
Advantage 75th 2 “Top Half” performer
Parity 50th 2 “Half better/Half worse”

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 40
Supply-Chain Strategy Matrix

Supply-Chain
Strategy Matrix
Business Business Business
1 2 3
• Each unique
combination of ratings
Reliability P S defines Your Supply
Chain Strategy for the
External

Responsiveness P A channel
• Think of the rating as
Flexibility A A a desired state, NOT
where you want to
Cost A P improve the most
Internal

Assets S P

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 41
The SCORcard

• We use a tool called the


Supply Chain SCORcard™
to Identify performance
characteristics of supply-
chains.
• Each SCORcard™ is built
from a subset of hundreds
of SCOR metrics.
• For supply-chain
benchmarking we generally
use only Level 1, 2 and 3
metrics
• The SCOR Manual provides
all necessary definitions

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 42
Supply Chain Balanced SCORcard

Standard Strategic (Level 1) Metrics


Attribute Metric (Strategic)
Reliability Perfect Order Fulfillment
Customer

Responsiveness Order Fulfillment Cycle Time


Agility Supply Chain Flexibility
Supply Chain Adaptability†
Cost Supply Chain Management Cost
Cost of Goods Sold
Internal

Assets Cash-to-Cash Cycle Time


Return on Supply Chain Fixed Assets
Return on Working Capital

† upside and downside adaptability metrics

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 43
SCORmark Benchmarking – Diagnoses the Areas Most
in Need of Improvement

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 44
Benchmark to Identify Process
Parity, Advantage, or Superiority

Parity Req
Attribute Metric (level 1) Company Parity Adv Superior
Gap Gap

Reliability Perfect Order Fulfillment 98% 92% 96% 98% -6%

Responsiveness Order Fulfillment Cycle Time 14 days 8 days 6 days 4 days 6 days 8 days

Flexibility Ups. Supply Chain Flexibility 62 days 80 days 62 days 40 days -18 days

Cost Supply Chain Mgmt Cost 10.1% 10.8% 10.4% 10.2% -0.7%

Assets Cash-to-Cash Cycle Time 22 days 45 days 30 days 20 days -23 days

Scoping Identifies one or more Parity Median of


targeted metrics for Statistical Sample
improvement Advantage Midpoint of Parity
and Superior
Potential Improvement Superior 90th percentile of
Opportunity population

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 45
The SCOR® framework –
a cross-industry open standard
• The five integrated processes provide a boundary-free view of the true
end-to-end Extended Supply Chain
• Achieve Operations Excellence, Supply Chain Transformation, and
Continuous Innovation using Supply Chain Council frameworks &
resources
Plan

Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source

Return Return Return Return Return


Return Return Return

Your Company Customer’s


Suppliers’ Supplier Customer
Customer
Supplier
Internal or External Internal or External

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 46
WRAP UP:
WHY & HOW DO WE CHANGE?

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 47
A “Game Plan” for Transformation

Why Should We Change?


• Assess Current Operations – Set Objectives
• Determine Market Benchmarks, Environment & Challenges
How Do We Change?
• Create Strategy and “Vision” for the Future
• Map “As Is” & “To Be” Business Processes & Systems
What is the Value of Changing?
• Determine Critical Success Factors & “Windows of Opportunity”
• Calculate Return on Investment
Getting Management Buy In & Investment
• Present “Solution” Plan to Management
Getting Operations Buy In & Commitment
• Pilot Implementation “Proof of Concept”… Rapid Results
Everyone Jumps on the Band Wagon
• Deploy Transformation Plan Across the Enterprise

The World is Flat: Companies that leverage technology and the SCC’s
Resources to connect & collaborate will lead the 21st Century!

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 48
September 2012
Supply Chain Council
Mexico & CENAM Chapter

© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 49
Additional Benefits by Mexico & CENAM
Chapter

• Establish & Professionalize the Practice of Supply Chain


Management in the Region, locally adapted to situations and
language
› Models
› Implementation Strategies
› Training & Events
• Participate in Best Practices Development Project and other SCC
Programs so regional input is included.
• Host regional meetings for local networking and support.
• Establish the Basis for competition in the Region.
› KPI’s
› Benchmarking
• Establish the Best Practices in Business Management for the
Supply Chain area.
• Membership and training fees will be adjusted for regional
economy. Anticipated reduction of 25-40%
© 2011 Supply Chain Council. ALL RIGHTS RESERVED. | SCOR Framework | Slide 50

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