Supply Chain Management Process Standards

The CSCMP has produced its six-volume Supply Chain Management Process Standards. These standards closely follow the SCOR process structure with separate volumes about 50 pages in length for high-level processes that are identical to SCOR PLAN, SOURCE, MAKE, DELIVER, RETURN, and ENABLE. 

TABLE 23.2 Supply Chain Management Process Standards from the CSCMP... 

Council of Supply Chain Management Professionals, Supply Chain Management Process Standards, Council of Supply Chain Management Professionals, 2004. The standards are in six volumes Plan Processes, Source Processes, Make Processes, Deliver Processes, Return Processes, Enable Processes. 

In the evolution of supply chain management, the first horizontal processes were transactional. They were billing systems created to automate the order-to-cash and procure-to-pay processes. These systems of record were implemented using standard out of the box functionality in enterprise resource planning. However, for these new horizontal processes, there is no standard out of the box system for implementation. 

Integrated supply chain processes would transform this disjoint string of activities into streamlined, cost effective processes characterized by substantial standardization, integration, and optimal service placement (Brennan 1998). In order to successfully integrate the supply chain processes, five supply chain management areas need to be met or exceeded, as per the results of study published by Pricewaterhouse Coopers (cf. Chandra and Kachhal 2004), and summarized in Table 15.1. 

Supply Chain Operations Reference model (SCOR ) It is a process reference model that has been developed and endorsed by the Supply Chain Council as the cross-industry standard diagnostic tool for supply chain management. 

A standard, open-ended interview guide was developed and pre-tested with academic reviewers (from supply chain management, information technology, and criminal justice disciplines) and with industry practitioners familiar with supply chain security issues. The interview guide was stractured, but allowed for the researchers to explore new issues raised during the interview process. 

AMR argues that one of the successful factors of the AMR TOP 25 Supply Chain companies is excellence in innovation. Being quick to market with profitable products that are in high demand is a core competence of a DDSN strategy. For DDSN leaders, innovation excellence is a key to success, and it is infused into all supply chain processes. AMR research shows that 75% of new products fail, and 42% of companies lack a common set of internal standards for managing New Product Development and Introduction process. 

The SCOR process reference model was established by the Supply Chain Council (SCC) in 1996 for standardization purposes. The model describes, characterizes, and evaluates acomplex management process. Such a model builds on the concepts of business process reengineering (BPR), benchmarking, and process measurement by integrating these techniques into a cross-functional framework. 

In summary, the primary purpose of using the SCORmodel in the first step ofthe SC BPI procedure isto take advantage ofprocess standardization. When all supply chain participants standardize their processes using SCOR, they can manage the communication between them which leads to improved coordination of the entire chain. 

Mapping the processes forthe supply chain is proposed as the second step ofthe eSCM-1 procedure after standardization because companies have an overwhelming number of processes that require integration. The purpose of business process modeling is also to analyze processes, manage supply chain interdependencies, and define the functionality and behavior of supply chain pro-... 

The eSCM-I procedure uses the SCOR model for purposes of process standardization. This standardization step plays an essential role as a coordination mechanism to manage interdependencies within a supply chain network. 

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