Home

> Artikel > Bidang Keahlian > Pengadaan (SCM) >

14 /07 /03 10:55:40

How to Assess Your Supply Chain Performance

Oleh Administrator

Supply chain performance has never been as important as it is today. In an economy where supply chains, and not companies, battle one another, how a supply chain performs determines who will win the battle. To achieve maximum benefit from a supply chain, creating competitive advantage in the supply chain vs. supply chain wars, a supply chain must be performing at its best or anything it has gained will be short lived. !et, many companies are not aware of how their supply chains are performing or even what supply chain they"re in. This is not a disaster for these chains, however. Specific assessment criteria based on the Six #evels of Supply $hain %xcellence and a strategic assessment methodology can help them determine how their supply chain is performing and thus plot a course for improvement. The Assessment Criteria: The Six Levels of Supply Chain Excellence &efore you can examine your supply chain and determine how it"s performing, you must understand Supply $hain %xcellence. Supply $hain %xcellence is a process with six levels that must be attained step by step. These levels are' Level 1: Business as Usual. At this level, a company wor(s hard to maximi)e its individual functions. The goal of individual departments is to be the best department in the company. Organi)ational effectiveness is not the focus. Instead, each organi)ational element attempts to function well on its own. %ach division*department applies its own strategy for applications used. Level 2: Link Excellence. If an organi)ation hopes to pursue Supply $hain %xcellence, it must loo( within itself, eliminate and blur any boundaries between departments and facilities, and begin a never ending +ourney of continuous improvement. Its individual lin( must be evolved to ma(e it the most efficient, effective, responsive and holistic that it can possibly be. Supply chain underta(ings wor( better when the lin(s in them are performing their best. The more effective you are internally, the more effective your supply chain will be. Level 3: Visibility. Supply $hain %xcellence re,uires that all lin(s wor( together. #in(s wor( better when they share information. -isibility establishes the groundwor( for information sharing. It minimi)es supply chain surprises because it provides the information lin(s need to understand ongoing supply chain processes. Level 4: Collaboration. $ollaboration is achieved through the proper application of technology and true partnerships. Through collaboration, the supply chain can determine how best to meet the demands of the mar(etplace. The supply chain wor(s as a whole to maximi)e customer satisfaction while minimi)ing inventories.

14 /07 /03 10:55:40 Oleh Administrator

How to Assess Your Supply Chain Performance

Level 5: Synt esis. Synthesis is a continuous improvement process that integrates and unifies a supply chain. Synthesis harnesses the energy of change to address a turbulent mar(etplace and ensure customer satisfaction. It is from synthesis that true Supply $hain %xcellence is achieved because it enables a supply chain to reach unparalleled levels of performance. Level !: Velocity. After synthesis, the goal becomes accelerating the organi)ation or supply chain to a higher velocity. This is the ongoing acceleration of Supply $hain %xcellence.

The Six #evels of Supply $hain %xcellence are used to measure the components of supply chain assessment criteria' enabling technologies, supply chain synthesis, warehousing, logistics, manufacturing, organi)ational excellence, maintenance, and ,uality. These components have specific characteristics that can help you identify your supply chain"s level or levels. .or example, the characteristics of enabling technologies at each level are' Level 1 The technology at this level consists of legacy and homegrown systems. These are islands of technology ac,uired and installed as a reaction to specific situations. /uplicate entry and databases are rampant. Level 2 At this level, a lin("s transportation management system 0T1S2, warehouse management system 031S2, and order management system 0O1S2 have been recently upgraded to industry standards and information visibility is internal. Level 3 Systems are integrated within and across the organi)ation. The T1S, 31S and O1S lin( to (ey partners to share information. /uplicate entry is limited. Level 4 Information concerning events and plans is freely shared among first tier partners. Information has been integrated into each organi)ation"s execution and planning systems. &asic %xecutive Information Systems 0%IS2 are present. Level 5 At this level, first tier partners networ( with first tier partners to collaborate. A robust %IS is automating (ey erformance indicators 045Is2. Level 6 This is synthesis with a forum for continuously improving timing, ,uality, and ,uantity shared among multiple tiers of channel partners. Another example is supply and its characteristics' Level 1 Sourcing decisions are based almost exclusively on low price. Level 2 $ost of ac,uisition replaces price to include transportation, ,uality and flexibility. Level 3 5artnerships are formed with (ey suppliers, and the partners are sharing current and historical demand information. Level 4 1a+or suppliers participate in product design and planning activities. Information is visible to all, and transactions are electronic and 3eb enabled. Level 5 There is interactive design and*or replenishment over multiple levels of the supply chain. A Supply $hain $ouncil facilitates continuous improvement. Level 6 The Supply $hain $ouncil moves online. Similar lists can be compiled for the other components and ma(e excellent guidelines when it"s time to apply the Strategic Supply $hain Assessment 1ethodology.
14 /07 /03 10:55:40 Oleh Administrator

How to Assess Your Supply Chain Performance

Supply Chain Strategic Assessment Methodology The Supply $hain Strategic Assessment 1ethodology is comprised of seven steps. These are' Level 1 1ap current business processes at a high level. /ocument information flows, business rules and so on. /etermine if they meet business and mission critical goals, if they are automated, and if they can be outsourced. $hec( how well these processes are measured and determine (ey matrices. The result should be an understanding and documentation of strategy, ob+ectives and priorities. Level 2 /rill down in the business processes to see how they are lin(ed and what information is flowing or needed by these processes. /evelop a detailed process flow. This step includes understanding and documenting your supply chain"s 45Is, conducting 678 degree feedbac( with executives and business process owners and conducting an assessment of information technology. Level /evelop a current supply chain map showing external supply chain relationships. Identify gaps and lin(s. Then, develop a continuous improvement structure. Level ! Ta(e the assessment data from Step 9, evaluate them and arrive at supply chain conclusions. It is possible that you will discover processes that do not have ownership, processes that are not well documented, processes that do not map well to your company"s goals and mission, and processes that are not automated. Identify supply chain alternatives and recommend the

best alternative and business case. Level " /evelop supply chain process recommendations. Identify supply chain alternatives and, from them, recommend the best alternative and business case. Level # :se the recommended actions to develop implementations, create savings and determine ;OI. Assess the availability of internal resources. /evelop a detailed and prioriti)ed implementation. Ta(e the income statement and balance sheet cost drivers, one time capital and expense drivers and experience and feed them into a strategic networ( optimi)ation modeling tool that will determine ris(, reward, return and reality and recommend the best strategic alternative and strategic direction. This methodology will allow those performing a supply chain assessment to complete a high level evaluation of the supply chain, compare current state operating environment and levels of supply chain performance against best practices, identify improvement opportunities, anticipate business impact and construct a program that drives improved business performance. This must be done thoroughly and with cooperation from all lin(s in the supply chain. Those who have never conducted a supply chain performance assessment should consider wor(ing with a third party with extensive supply chain and assessment experience. The benefits to this approach are unbiased documentation and recommendations performed by those who understand the supply chain performance assessment process and have made it one of their core competencies.
14 /07 /03 10:55:40 Oleh Administrator

How to Assess Your Supply Chain Performance

$%stacles to Colla%oration $ollaboration is critical to completing a successful supply chain assessment. &efore you embar( on an assessment, you should loo( inward at your company and as( two (ey ,uestions' How willing is your company to collaborate How willing are t!e companies in your supply c!ain to collaborate If you poll your company and the other companies, the answers may surprise you. 1any companies are resistant to collaboration for various reasons, including'

Short term financial focus Inability to agree on how to share the costs of implementation Inability to agree on how to share the savings $oncerns over visibility and sharing sensitive information .ear of wea(ened negotiating stance .ear that collaboration creates commitments <istory and culture of adversarial relationships #in(s with competing supply chains.

<ow can you overcome these obstacles= &y going beyond willingness and intention to commitment. $ollaboration re,uires discarding the traditional relationships common between organi)ations today. This can be done by focusing on the opportunity for additional contribution to the growth and profitability of the supply chain. This applies to both a customer loo(ing at its suppliers and a supplier loo(ing at its customers. The focus should be on communicating clearly and adopting a continuous improvement process. 3hat"s important is understanding that your ob+ectives are really the same you want the supply chain to succeed.