Supply and operations management

In this section, it will be performed a literature review for each one of the five categories of the Supply Operations management - Procurement, Manufacturing, Logistics, Customer Service and Senior Management Support. This review allowed identify the DDSC characteristics for each category which was used to develop the five level maturity model. 

Supply and Operations Management refers to the capabilities of the firm to source, produce, store, sell and delivery its products in the market place. It is a critical capability both in terms of cost, due to all fixed and variable costs required to perform the operational activities, and also in terms of customer service, due to the high pressure of customers towards better and customized services. 

Stewart (1997), states that managing supply-chain operations is critical to any company s ability to compete effectively, and that success for many companies now depends on their ability to balance a stream of product and process changes with meeting customer demands for delivery and flexibility. Optimally managing supply-chain operations, has therefore, become critical to companies ability to compete effectively in the global marketplace. 

Still based on (Stewart 1997), to assist companies in increasing the effectiveness of their supply chain, and to support the move to process-based management, two consulting firms - PRTM and Advanced Manufacturing Research (AMR) - set out to consolidate within a process reference model their experience along with a group 

SCOR is designed to enable companies to communicate, compare and develop new or improved supply-chain practices from companies both within and outside of their industry segment. Its key components are  

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A publication in the Business Expert Press Supply and Operations Management collection... 

Supply and Operations Management, which covers aU aspects of providing... 

For the sake of supply and operations management in this book, the supply chain processes proposed by SCOR will be covered, but using a different terminology, as detailed below, in order to be closer to the organization structure names found in most industries. 

In order to move towards a demand driven supply and operations management, it is important to have senior management support and engagement to make the necessary changes in term of tools, processes and organizational culture, as detailed below ... 

Based on the three demand driven components (e.g., demand management, supply and operations management and product lifecycle management) and the categories within each component, identified in the previous chapter, five level maturity model was developed to be used as the basis to perform assessment of an organization current and desired future states. 

Senior Management understands Push Supply and Operations Management and... 

Senior management clearly understands the difference between Push and Pull strategies and its impact into supply and operations management and performance. They provide strong support to implement a hybrid Push and PuU. 

Senior management understands the benefits of becoming a demand driven supply and operations management and uses it to improve customer service, reduce supply chain costs and meet business plan goals. 

Senior management understands and supports the implementation of Pull strategy across the supply chain, and also fosters the collaboration in supply and operations management from suppliers to customers. 

Supply and Operations Management should be the basis due to its large impact in both cost and customer service. 

In the summary results spreadsheet showed in the example of Fig. 6.3, the supply chain director of the country under analysis can visualize the overall score result for his operation, as well as, the score results for each one of the three components of DDSC (e.g.. Demand management, Supply and Operations management, and Product Lifecycle management). 

Regarding Supply and Operations management, Brazil and Uruguay have similar current performance, in a transition from a basic (level 1) to an optimized push operation (level 2), while USA is close to a basic push operation (level 1), as shown in Fig. 7.8. For future performance, both Brazil and USA target to become an optimized Push operation (level 2), where senior management uses supply and... 

Fig. 7.8 Performance of supply and operations management by country for current and future states...

For supply and operations management, it is suggested to focus on Logistics and... 

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