Best practices supply chain processes

The first- and second-generation pioneers were much like these blind men of Indostan. They defined supply chain processes based on their experiences. However, they were blind. Each only saw his own function and set of experiences. These were adopted and passed on as best practices. As we have discussed in this book, much has changed, ft is now time to question the status quo. Many of these process definitions are inadequate. 

Chapter 22 identified two missions for process improvement (1) process evaluation and (2) process redesign. This chapter describes industry-developed process tools that support the first mission, evaluating supply chain processes. The two tools have assembled best practices in SCM. They are products from two SCM business associations, the Supply-Chain Council and the Council of Supply Chain Management Professionals (CSCMP), formerly the Council of Logistics Management (CLM). The CSCMP, in the cited quotation, supplies the reason for describing these models. 

Members of the Supply-Chain Council developed and now maintain SCOR. Developers include teams of industry practitioners, consultants, and software companies. SCOR incorporates supply chain architectures, performance measures, and best practices for supply chain processes. The model is updated continuously, so new releases occur frequently. 

The CSCMP standards target users who want to quickly assess their supply chain practices, perhaps as a first cut at identifying needs for improvement. A user of these standards assesses where they stand on a 1 to 5 scale, ranging from Below Minimum to Best Practice. Because the process standards document what are already widely adopted practices, adopting these standards does not ensure improved competitive position. 

Consumers expectations about the safety of products such as poultry meat and eggs have never been higher. The need to improve food safety has led to renewed attention on controlling contamination at all stages of the supply chain from farm to fork . This collection reviews the latest research and best practice in ensuring the safety of poultry meat and eggs, both on the farm and in subsequent processing operations. 

While companies attempted to implement best practices over the last 30 years, they are now grappling with the fact that many Y2K projects built an efficient supply chain without resiliency. These investments made the supply chain strong, but not agile. Today, most companies have processes that can respond, but cannot adapt. They are too rigid. They cannot sense and adapt to market shifts. This is the basis of the drive to create market-driven value networks. 

Companies will need to summon courage to question what is believed to be supply chain best practices. It is time. Nearly 60 percent of all corporate quality and process improvement initiatives have failed to meet their stated objectives. The satisfaction rate with current supply chain technologies has never been lower. The failure rates are too high. Yet, companies continue in the same patterns. We do not have "best practices." Instead, we have "evolving practices" that must be shaped and molded by the leadership team. 

Definition of best practices for process Definition of supply chain metrics Supply chain planning Inventory strategies Facilitation of horizontal processes, like S OP Evaluation of new technologies Network design Establishment of goals Supplier development Other... 

Business process benchmarking and the selection of best practices are identified as the tools for supply chain improvement. The SCOR model provides a list of best-in-class practices for each process element. However, SCOR best-in-class practices are generic lists. A best practice that has a significant effect on the performance of a certain... 

Selecting software packages for supply chain management support requires an in-depth knowledge of business and IT applications. To obtain the best fit at the lowest price in the minimum time requires knowledge of the latest software packages, plus the application of smart buying practices. A sound selection process will ... 

McCormack, Kevin P., Johnson, William C., and Walker, William T., Supply Chain Networks and Business Process Orientation Advanced Strategies and Best Practices, Boca Raton, FL AP1CS/St. Lucie Press, 2003. 

Fig. 9.10 Supply chain best practice management processes, referring to SCOR 10.0...

At Level 3 in SeOR development, the model consists of standard process documentation for each of the Level 2 environments. The documentation includes process definition, metrics, best practices, required systems capabilities, and system tools by vendor. Level 4 is implementation each supply chain or individual company is seen to implement tailored actions based on the goals of the effort and the performance gaps they have to fill. 

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