Supply chain processes operation

During the sustainment phase, the individual agencies want to operate efficiently but may still require assistance such as security info, weather information, sharing of resources, help with breaking up cartels, assistance with persistent problems involving interpretation of laws, and coordination with military. Since many parallel efforts may be in operation, with each agency having its own supply chain processes, it may be appropriate to coordinate by consensus. 

As a result, the focus of supply chain processes is shifting from inside-out to outside-in. To connect a network of smaller networks of suppliers, logistics providers, and third-party manufacturers, there is a shift from a vertical focus or building functional excellence in operations to the building of horizontal processes to connect value networks. In this transition, compaiues learn that they must break... 

To be effective at market sensing, companies have to build strong horizontal processes to connect downstream and upstream data. Traditionally, supply chain processes have evolved from vertical processes. These functional silos—source, make, and deliver—gave birth to supply chain management. However, this silo approach, and a focus on vertical excellence, is both a barrier and an enabler to maximize value and build strong networks. It is a conundrum. Companies need to build strong vertical silos to deliver operational excellence but at some point in their maturity, they must "break the glass" and shift their focus to build horizontal excellence. 

Stories like these gave birth to the evolution of horizontal supply chain processes to drive operational excellence. Building them requires vision, tenacity, and the ability to bridge the gaps of corporate functional processes. This world was driven by the leaders that could fill in the process holes and build new processes in the world of gray. Brick by brick, these horizontal processes bridge the gap between the customer s customer and the supplier s supplier. 

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. 

Supply chain management Design, maintenance, and operation of supply chain processes, including those that make up extended product features, for satisfaction of end-user needs. 

The supply chain contributes greatly to brand image. Specific supply chain operations that contribute to brand image are included in Table 2.1. Each example relies on supply chain processes, at least in part, for its competitive... 

Flexibility specifications are imperative because they drive the design of supply chain processes and shape collaboration with supply chain partners. Static specifications are not acceptable the Upton method makes possible definition of ranges of operations and expectations for customer service. Also, many CEOs seek some kind of visual cockpit for their operations. One based on defined flexibility parameters such as those in the example is an excellent start. 

The quotation above provides reengineering expert Michael Hammer s view of the need for operational improvement. Certainly, these operational improvements include supply chain processes, and our own observation would support Hammer s position that creativity and execution are indeed lacking. One obstacle is the inability to look beyond budgetary cost controls to link supply chain operations with the strategies we use to improve competitive position. The purpose of this chapter is to describe assessment tools to make these links. We cover three types of assessment tool, each of which has a dedicated section in this chapter ... 

A sphere is a market-product-operation combination that provides a way to divide and conquer in developing and implementing supply chain processes that serve customers better. The term sphere derives from the fact that a sphere has three dimensions — markets, products, and operations — described in Table 6.6. Identifying spheres draws boundaries around the supply chain, helps decide what organization model to follow, and defines what customer-serving processes are needed. All three of these are vital to successful SCM. 

The SCOR model from the Supply-Chain Council is an industry-developed reference model that covers a broad spectrum of generic supply chain processes. SCOR is an acronym for the Supply Chain Operations Reference Model. Its application requires considerable effort in understanding the model structure and digging out the details that apply to an individual company s situation. 

Spheres, addressed in Section 6.6 and Chapter 9, are market-product-operations combinations that warrant separate supply chain designs. Spheres are especially important if existing supply chain processes have evolved into one-size-fits-all functional processes. This is quite common having separate supply chains for different market or product needs is relatively rare. 

Clarity, as we define it here, is lost when allocations are made. We want as many raw numbers as we can get without accounting shortcuts and assigned costs. In this way we can better see what we are paying for each supply chain process. An appropriate next step is to separate and display costs according to departments or cost centers. This action discards allocations that do not apply to supply chain operations. For example, the cost of the legal department probably has little bearing on supply chain operations. If so, it should fall outside the scope of SCM and can be dropped from further consideration — at least in the context of supply chain improvement. 

Previous chapters touched on the role of information and associated processes and systems. Chapter 25 described supply chain technology applications. Chapter 23 described the work of the Supply-Chain Council and the Council of Supply Chain Management Professionals (formerly CLM) in promoting supply chain process integration. Within the company. Section 16.3.3 described the S OP (Sales and Operations Planning) process for intermediate-term information exchange between operations and marketing. 

Design team A team, usually of operations managers involved in included supply chain processes, that designs new supply chains. Design teams may be called upon to develop spheres, activity systems, requirements for IT systems, and process improvements. 

SCOR Supply Chain Operations Reference model. An activity model developed by the Supply-Chain Council to standardize descriptions of supply chain processes. 

The cross-enterprise processes involve multiple companies in the executirui of supply chain processes. The important feature of these collaborative processes is that the companies involved are mainly concerned with their inter-conununications rather than with internal operations of each supply chain imit. That simplifies development and execution of complex supply chain processes. The cross-sectional processes involve multiple supply chain problem areas such as sales, purchasing, and logistics. This characteristic implies that supply chain decision-making and process execution cannot be done in isolation and mutual interactions and dependencies among different problem areas should be taken into account... 

Products as well as supply chain processes are increasingly digitized, thus blurring boundaries between the physical and digital products and operations. 

Tendencies towards integration are growing in the economy this can also he seen in supply chain operation. This means, inter alia, that the greatest benefits from supply chain process integration will be gained by those companies that first carry out such initiatives in their sectors. Integration competencies may thus become key factors determining the market success of companies on a modern market. 

Many business processes are shared by entities in the supply chain. The literature on the topic suggests various approaches to recordkeeping. These approaches may be quite sketchy, covering the supply chain operation in just three macro-processes (Chopra and Meindl 2004) or very detailed (Cooper, Lambert and Pagh 1997 Manganelli and Klein 1998 Bovet and Martha 2000). However, without doubt, the most important supply chain processes are the following (Croxton et al. 2001, p. 14 ff.) ... 

Abstract This chapter presents a framework for sustainable operations of food supply chains. A case study approach is used. The data were collected using exploratory interviews and through a structured questionnaire. The sustainable food supply chain involves operational levers of robustness, transparency, traceability and information flow and performance measure for monitoring and control of day-to-day operations for efhciency, flexibility, responsiveness and product quality. New product development, research and development, productivity improvement, entrepreneurial orientation, quality control and conducive policy support across key stages of production, procurement, processing, distribution and consumption of the dairy supply chain emerge as key elements of the sustainable framework. 

SCD Phase 3 includes the aforementioned gap analysis which results from the comparison of the TO-BE and the AS-IS states of the supply chain recorded in the previous two phases in order to identify areas requiring optimization. This comparison is achieved by filling the results from SCD Phase 1 as well as from SCD Phase 2 into a morphological box. This allows for a clear illustration of the deficit arising from the comparison of the TO-BE and AS-IS situation. Based on the analysis of the strategic and operative gap and a KPI benchmarking, suitable corrective actions to all supply chain processes, if necessary, are selected. 

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