Supply chain improvement operations reference

An appropriate next step is to separate and display costs according to departments or cost centers. We refer to this level as the "department" level (Column B) in Figure 25.1. This serves two purposes. First, it enables one to discard data that doesn t apply to the supply chain. For example, the cost of the legal department may have little bearing on supply chain operations. If so, it would probably fall outside the scope of SCM. It can be dropped from further consideration—at least in the context of supply chain improvement. 

Nevertheless, improving or even innovating SCM design and operations is a reliable way to boost ROIC and therefore market value, as supply chains link nearly all parts of a company s business system. When Dell developed its radically new supply chain model, it was really thinking out of the box , and probably no one would have believed it would soon become the reference in (and outside) its industry, and one of the biggest and most valuable players in its sector. Similarly, other industries have indicated ways that the chemical industry can take in the near future. 

The supply ehain operations reference (SCOR) model is an industry standard approach to define, design, and improve supply chains (Stewart, 1997). The Supply Chain Council has developed and endorsed the SCOR model as the cross-industry standard for supply chain management. 

Supply-Chain Council (see) A nonprofit association of companies interested in supply chain management (SCM). The Council was incorporated in June 1997 as a not-for-profit trade association. The Council offers members an opportunity to improve the effectiveness of supply chain relationships from the customer s customer to the supplier s supplier. Its primary mission is to develop and maintain its Supply-Chain Operations Reference Model, or SCOR. 

When referring to the application of Poirier s model, one should stress its considerable contribution to the promotion of the supply chain management concept, while simultaneously pointing out its limitations due to the high generality of recommendations and lack of reference to the diversified conditions of supply chain operation. This is particularly important if supply chains operate in unfavourable business or social conditions. In such a situation, the improvement potential of Poirier s model and its credibility in terms of application may prove insufficient. 

Supply Chain Council (2012) SCOR supply chain operations reference model. Revision 11.0 Taylor GD (2007) Logistics engineering handbook. CRC Press, New York Truman T (2011) Health procurement leader turns to Australia s National Product Catalogue to improve tendering. 2010/2011 GSl Healthcare Reference Book Van Horenbeek A, Pintelon L (2014) Development of a maintenance performance measurement framework— using the analytic network process (ANP) for maintenance performance indicator selection. Omega 42(l) 33-46... 

When two or more companies adopt long-term perspective and work together to constmct unique value that none of the partner can attain alone, then such an environment is referred to as supply chain collaboration. Due to intensified competition, individual companies have found it difficult to compete alone but need to align their supply chain partners to achieve collaborative advantage. In a collaborative ethnicity, supply chain partners work together and communicate openly. They share information to improve the supply chain visibility which reduces uncertainty they also share knowledge and expertise in all joint efforts such as joint problem-solving and new products development to smooth the operations and enhance the competitiveness. 

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