The Supply Chain Council (SCC), www.supply-chain.org, recently introduced a new framework that defines a process to align business strategy, supply chain strategy, physical network, process, and resources. The SCC first introduced Managing for Supply Chain’ (M4SC) in 2012 and is now assembling volunteer teams to help further build out the model.
After absorbing the introductory sessions, I asked a number of SCC members the question, ‘What do you think of M4SC?’ The responses varied depending two factors: 1) Organizational support (value) for supply chain and, 2) Degree with which the organization had utilized the SCOR® model successfully
In spite of different intentions, high support-high utilization and low support-low utilization members (and all those in between) asked the same question, “How do I measure up now?”
To answer that question, I adapted a questionnaire in Supply Chain Excellence Chapter 18: Supply Chain Strategy. The big assessment is comprised of 90 questions divided into categories in the matrix defined below. I have also written and whitepaper and developed a quick assessment tool, and will offer a new webinar to help people get started.
This 1-hour free webinar will help attendees to understand the 18 dimensions that form the basis of effective supply chain strategy. It will then map these dimensions to the Supply Chain Council’s M4SC management framework. It also includes an overview and tools needed to take a quick assessment that will provide attendees with insight about their own organization’s supply chain management maturity – and some ideas on where to begin the process of improving that maturity level under the M4SC framework.
Primary Objective: Provide participants with a quick assessment tool to gain insight into the maturity level of their supply chain strategy.
18 dimensions of Supply Chain Strategy
Overview M4SC(r) Framework
Review the quick assessment
Webinar schedule and registration
The workshop is held on scheduled Fridays at 9 a.m. (Eastern) using the Go To Meeting web-conferencing platform. Attendance is limited to 20 seats per month. Connection information is provided upon registration. Our schedule for this new series is still being finalized. Please check back shortly for updates.
Our M4SC resource center is growing, with new resources being added as they become available. Check it out here.
About the facilitator
Peter Bolstorff is President and CEO of SCE Limited. He is a former technical chair and two-term member of the Board of Directors of the Supply Chain Council. He has been involved with development of SCOR® since its inception in 1996. Bolstorff helped to create – and than taught – the Supply Chain Council’s own SCOR Introduction and SCOR Project courses, and his book Supply Chain Excellence – now in its third edition – has been the defacto handbook on how to identify and implement projects using SCOR®. Since developing the Supply Chain Excellence methodology for using SCOR®, Bolstorff has refined that platform through facilitation of more than 150 projects worldwide. He has also developed partners in Europe, China and New Zealand – adapting the approach to accommodate regional nuances. The Supply Chain Excellence platform is the leading methodology for applying SCOR® in companies of all sizes across all industries. Working with a philosophy that it’s preferable to “teaching a man to fish”, Bolstorff has assembled this experience into the Using SCOR® Workshop Program to help companies get on a pathway for developing supply chain improvement as a core competency.
Please note that this tool is the intellectual property of SCE Ltd. It is intended solely for your use. Instead of passing it along to others, please refer those who may be interested to the Quick Assessment Registration page (http://www.scelimited.com/m4sc-quick-assessment/). Thank you.
What’s the best management style for a supply chain executive?
There is not enough published research in this area. But the starting point for an executive search is to define the requirements of the job in four dimensions:
Relationship with others
Gathering and use of information
Degree of organization for the executive and others.
A good measurement tool like Margerison-McCann Team Management Wheel will summarize a candidate’s individual preferences along these dimensions and identify potential risk areas relative to the expectations of the job.
As part of the team that was involved in the development of SCOR 1.0, and in subsequently using the model in 120-plus projects over the past 17 years, I have the great fortune to see how companies have evolved their use of SCOR to improve their supply chain performance.
One of the most frequent questions (and observations) centers around the SCOR Level 2 processes, including the thread diagram and the geographic map.
SCOR Level 2 processes attempt to define the process strategies for each location in a project scope. For example, a manufacturing location may have Source (both stocked and to-order), Make (only stocked), and Deliver (only stocked). This is commonly notated S1, S2, M1, and D1. After each location is defined, a team then defines the material flow path(s).
The combination of the process and material flow definitions generates a thread diagram (process view) and geographic map (material flow view). These two tools originally were intended to generate strategic and analytic discussion around supply chain flexibility, network strategy and order lead times.
In the past three years, the use of the SCOR Level 2 processes have still provided the platform for strategic supply chain discussions but the thread diagram and geographic map have been replaced by different analytical tools that utilize both product and location data.
Many companies use Excel to summarize the defect analysis for upside supply chain flexibility by product. A pivot table can easily illustrate the stacked lead time for each SKU using both planned and actual lead time at each level of the bill of materials. A SCOR Level 2 process is defined for both current and future state and is noted for each component. “What if” scenarios are generated through substituting lead times associated with changing supply locations.
Supply chain optimization tools like IBM’s ILOG LogicNet utilize transportation data and can generate accurate geographic flows that incorporate cost and inventory data. Once a supply chain model is set up, decisions regarding manufacturing, supplier and distribution locations are less risky and more data-based than conceptual geographic maps.
Perfect data structure plus flawless process design plus capable suppliers plus flexible customers equals world class supply chain performance. Right? Wrong. Several recent projects reminded me of the fallacy of this equation. So what is missing? The short answer is people – inclusive of individuals, organization, and culture. Newton’s first law provides an excellent frame to highlight effective change management factors that drive sustained supply chain transformation.
Newton’s first law paraphrased for our purpose says that if you don’t apply a force to individuals, organization, and culture, they will stay the same; supply chains perform the same and/or continue to atrophy. And, when responding to the same force, an individual will change faster than an organization and an organization will change faster than the overall culture. Or thought about another way, changing culture at the same rate as changing a person takes a lot more force. So, what can four successful supply chain transformation initiatives tell us about effective force factors?
Force must be initiated by top leadership at the organization level. This seems to be the most effective starting point for supply chain transformation and is consistent with other significant strategic initiatives.
Force needs to be amplified by clearly communicating a reason for change. The reason must be more compelling for the organization than staying the same and is often called ‘the burning platform’. Customer service levels, risk management, supply capacity, accelerated growth, or system installations are common reasons that can rally an organization.
Force is needs to be further amplified by effectively engaging a core group of influential individuals. Through experience, a cross-functional project team focused on identifying and eliminating barriers to performance builds shared vision and becomes the primary driver of change throughout the organization; a true ‘tipping point’ in affecting the entire culture.
Sustained transformational behavior requires a balanced scorecard focused on balancing internal and external performance requirements. This also provides a feedback loop helping adapt behavior with the competitive environment.
Image courtesy of Stockimages/FreeDigitalPhotos.net
From The Chief Supply Chain Officer Report 2012 by SCM World
Here are 10 quick and meaningful findings from the 2012 Chief Supply Chain Officer Report, released recently by SCM World.
The report represents responses from nearly 1,400 supply chain executives across a full spectrum and is well worth downloading. To access the entire 51-page report directly, click here. It’s free but registration is required.
Reducing operating costs is still the primary mission for supply chain managers.
An increasing number of companies are now focused on aligning SCM in support of business strategy.
As a function of business strategy, the most important contribution of good supply chain management, according to respondents, is by enhancing customer service / loyalty.
Other areas where SCM is most often considered to provide high value are improved supplier relationships, shortened product-development cycles, and business expansion.
The influence of consumers through e-commerce is increasing the complexity and need for agility in major supply chains. And the closer to the end-user you are, the greater the demands will be on your supply chain.
The number of SKUs that consumer-facing supply chains must be able to handle is only going to increase over time, as companies try to monetize the long-tail of consumer preferences.
There is no consensus at this time whether distribution systems are trending toward larger, centralized operations or smaller, localized models.
If you produce consumer products and aren’t already operating a direct-to-consumer channel, there’s a better than 50-50 chance that eventually you will.
For all the noise it makes, social media isn’t yet having much effect on supply chains or business strategy. That finding is consistent with findings among marketers who, at this point, don’t feel that social media advertising is meeting expectations.
Board-level support for sustainability investments is still largely dominated by a desire to curry favor with consumers – as opposed to achieving long-term control over costs and supply lines. However, those more substantive objectives are gaining quickly in terms of attention from the board.
No matter how large or small your company, if you’re interested in gaining control of your supply chain one of the best resources may be the Supply Chain Council‘s Supply Chain Operations Reference model – known as SCOR.
It was designed as a scalable method for developing common definitions across your supply chain, and of managing all of your supply chain’s components for control and mastery of costs, customer service and other key performance indicators.
Over the years, SCOR has been used in more than 2,500 companies, according to the Supply Chain Council. It has been revised, expanded and battle tested as a proven, repeatable and scalable framework for supply chain management. It also happens to form the basis of SCE Ltd.’s own Supply Chain Excellence method for identifying, prioritizing and executing opportunities to improve your supply chain.
Here’s a presentation on how SCOR may apply to your business and how to get the most out of it.