Supply Chain Modeling- the real possibilities
The chains of habits are too weak to be felt until they are too strong to be broken.
Can Existing Supply Chains be Modeled for Results?
There are a variety of supply chain models, which address both the upstream and downstream processes. The SCOR is one such model.
The SCOR or Supply Chain Operations Reference model, developed by the Supply Chain Council, measures total supply chain performance. It is a process reference model for supply-chain management, spanning from the supplier's supplier to the customer's customer.It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain.
The Global Supply Chain Forum (GSCF) introduced another Supply Chain Model. This framework is built on 8 key business processes that are both cross-functional and cross-enterprise in nature. Each process is managed by a cross-functional team, including representatives from finance, logistics, production, purchasing, finance, marketing and research and development. While each process will interface with key customers and suppliers, the customer relationship management and supplier relationship management processes form the critical linkages in the supply chain.
Supply chain leaders must investigate current business processes and practices for fitment to SCOR. When Supply chains can be measured in terms of dollars and units, metrics and parameters - modeling for results and cross-functional collaboration happen.
Performance is a function of defined process, its constraints and outcomes. Consistent results and lost opportunities must be recorded for sustaining benefits. Modeling is just the begining of a journey to create a successful and un-surprising Supply chain. Changes to behavior in decision-making is the point when one can be certain that their Supply chain model is working.