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1
Supply Chain Strategy and Performance
Measures
Cost
Service
Order delivery lead time
Responsiveness
Delivery reliability
Product variety
Low High
Service Level
3 to 4
Pantaloon Retail (India) Ltd.*
4 to 6
Trent Ltd.*
Subhiksha Trading** 20 to 25
The automaker not only produced too many cars and trucks but
also made the wrong mix. The automaker pushed feature-laden
vehicles that dealers are hesitant to buy. But the dealers already
have enough cars and trucks on their lots to last 80 to 126 days
The dealers say: "The bean counters said, 'This is the mix you
need to sell to hit targets for profitability.' They ended up with a
huge sales bank of cars, a mix we as dealers wouldn't order.
Inefficient Practices
.
Existing Position
Cost
Low High
Service Level
60%
4.9%
5.0%
40%
20%
0% 0.0%
Median BIC Median BIC
50.0
30.0
40.0
0.0 0.0
Median BIC Median BIC
1. Nokia 1. Dell
4. IBM 4. N0kia
8. TESCO 8. Wal-Mart
Supply
Business
Chain
Performance
Performance
Supply
Chain
Initiative
Plan
Source
Make
Deliver
Return
Return
Return
products,
post-delivery
customer
support
1
8/19/2017 Supply Chain Management_Janat Shah
0
SCOR Model (Cont.)
2
8/19/2017 Supply Chain Management_Janat Shah
1
Process Reference Models
Process reference models integrate the well-known concepts of business
process reengineering, benchmarking, and process measurement into a cross-
functional framework
Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
SCOR Model
Customers
S1 Source Stocked Products M1 Make-to-Stock D1 Deliver Stocked Products
Return Return
Source Deliver
Enable
AS IS Geographic Map
Configure AS IS Thread Diagram
supply chain Material Flow Design Specifications
TO BE Thread Diagram
SCOR Level 2
TO BE Geographic Map
Align
Performance
AS IS Level 2, 3, and 4 Maps
Levels, Practices, Information Disconnects
and Systems and Work Flow Design Specifications
SCOR Level 3
TO BE Level 2, 3, and 4 Maps
Pharmacies,
Hospitals,
Doctors Make Deliver
Deliver Source Make Deliver
Source Source Make Deliver Source
Customers
Suppliers Supplier Your Company Customer Customer
Supplier
Make Deliver
Source
Sales
Deliver Source Make Deliver Source Make Deliver Source
Customers
Suppliers Supplier Your Company Customer Customer
Supplier
Plan
Internal or External Internal or External
Distribution Suppliers
Supplier
Supplier Your Company Customer
Customers
Customer
2
8/19/2017 Supply Chain Management_Janat Shah
9
SC Performance Measurement Systems
Carbon footprint-
Supply chains evaluate design configurations and various options for
reducing total carbon emissions
Supply Chain Order fulfillment Number of days from order receipt to customer
Responsiveness lead time delivery
Supply Chain Supply chain Number of days for supply chain to respond to
Flexibility response time an unplanned significant change in demand
without a cost penalty
Production Number of days to achieve an unplanned 20%
flexibility change in orders without a cost penalty
8/19/2017 Supply Chain Management_Janat Shah
SCOR: Internal Facing
Supply
Business
chain
performance
performance