barcode using vb.net Core Discipline 2: Develop an End-to-End Process Architecture in Software

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CHAPTER 2 Core Discipline 2: Develop an End-to-End Process Architecture
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Focus resources on business priorities. Plan is the supply chain process that balances internal objectives (inventory, cost, and asset utilization) with external objectives (service levels, volume flexibility, etc.) while ensuring that decisions support customerand market-segment priorities. Aim for simplicity. Make your plan processes as simple as possible. Realistic and executable outputs typically require taking into account different views of demand (country, market segment, product, brand, etc.). In addition, different resources (materials, capacity, labor, etc.) across multiple locations (multiple internal plants, partner locations, etc.) need to be considered. Realize that it may become unmanageable, however, to optimize all resources across the supply chain. A focus on critical or bottleneck resources is required. Integrate all supply chain requirements. Source, make, deliver, and return are all interdependent processes, so be sure to create an integrated plan for their individual resource and execution requirements, a plan that extends from the customer s customer to the supplier s supplier. Otherwise, imbalances will occur, adding costs and tying up inventory in the supply chain. For example, if you purchase (source) more materials than production (make) needs, you ll end up with excess raw materials. Create explicit actions and accountabilities. The plan process must create courses of action that are agreed to internally by operations, sales, marketing, and all other internal stakeholders and externally by key suppliers and customers. Performance against these action plans should be visible to all involved and measured as part of an ongoing effort to improve planning quality.
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To achieve your company s business objectives, be sure to integrate planning with other enterprise business processes. For instance, integrate with marketing and sales processes for the best view of customer demand, to get input on customer and market priorities, and to evaluate the need for and impact of promotional activities. Integrate with the technology, product, and service development processes to ensure that key programs have the needed resources. This also will improve time to market and time to volume of new products and services. Integrate plan with the finance process to ensure the quality of financial information. Revenue projections must be based on the most credible information possible, and all supply chain liabilities both internal and external
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Strategic Supply Chain Management
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must be recognized and reported in line with company and regulatory requirements. Figure 2-9 shows the metrics of top performance in the plan process.
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Source
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Using the plan generated by plan source, the supply chain source process procures all needed materials and services, performing the operational activities of purchasing, scheduling, receiving, inspecting, and authorizing supplier payment. The source activity also involves supplier selection and relationship management. Process excellence in source is built on four key principles:
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Aim for the lowest total cost of ownership (TCO). Getting the lowest purchase price on a service or asset is less important than achieving the lowest total cost of ownership. A cheap vehicle, for instance, isn t a bargain if it breaks down more often or has a shorter useful life. Be sure to consider both direct and indirect costs when determining the value of a purchase or contract. Many supply chain costs such as supplier ordering, inspection, payment, and inventory holding are driven by supplier practices, quality, and capability. To reduce TCO, set cost-improvement objectives not just for the product or service but also for total supply chain costs as well. Work with your suppliers to redefine processes with a goal of reducing or eliminating activities that drive up costs. For instance, ready for use products
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F I G U R E 2 9
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Metrics of top performance in plan.
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Best Performer Advantage Over Median/Average Discrete Process Discrete Process Discrete Process 25% more accurate 19% more accurate 9% more accurate 7% more accurate 1/3 the inventory 1/2 the inventory
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