Supply Chain Modeling

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Supply Chain Modeling

There are several supply chain models that focus on both the upstream and downstream sides of the supply chain. The SCOR (Supply-Chain Operations Reference) model, developed by the management consulting firm PRTM, now part of PricewaterhouseCoopers LLP (PwC) has been recommended by the Supply-Chain Council (SCC) and has become an accepted diagnostic tool for supply chain management across various industries.

SCOR measures the overall supply chain performance. It is a process reference model for supply-chain management, ranging from the supplier’s supplier to the customer’s customer. It incorporates delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in appraising the total effective performance of a supply chain.

The Global Supply Chain Forum has introduced another supply chain model. This model encompasses eight critical business processes that are both cross-functional and cross-firm in nature. Each process is supervised by a cross-functional team including management from, production, logistics, purchasing, finance, marketing, etc. While each process interrelates with the customers and suppliers, the dynamics of customer relationship management and supplier relationship management form the important connections in the supply chain.

The American Productivity and Quality Center (APQC) Process Classification Framework (PCF) SM is a top-level, industry-neutral enterprise process model that permits organizations to view their business processes from a cross-industry viewpoint. The PCF was developed by APQC and its member organizations as an open standard to encourage improvement through process management and benchmarking, irrespective of the industry size or location. The PCF organizes operating and management processes into 12 enterprise-level categories, including process groups, and over 1,000 processes and related activities.

In the context of public health sector is developing countries, John Snow, Inc. has developed the JSI Framework for Integrated Supply Chain Management in Public Health, which incorporates commercial sector best practices to solve problems in public health supply chains.

The Supply Chain Roadmap was presented in 2013.  This is a process where an organization’s supply chain strategy is evaluated in an organized and methodical way to ensure that the business strategy is streamlined with the supply chain.

The process is considered one of the most significant and recognized theories and practices regarding supply chain strategy and business strategy. The method allows the classification of the supply chain under analysis by 42 factors in a single page view called “The Map”, and allows the assessment of this supply chain with 6-supply chain archetypes (fast, efficient, continuous flow, agile, custom configured, flexible). Consequently, to find disparity between the supply chain under analysis and the most proper supply chain archetype. The method is applied in four steps (scope, understanding, evaluation, and, redesign and deployment).The method was developed by Hernan David Perez, a seasoned supply chain manager with experience in several industrial sectors, professor and an international speaker in supply chain strategy.

 

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