The Supply Chain framework describes the business function or Domain that develops, maintains and retires the business assets ('SCM') to plan and perform day-to-day supply chain activities ('SCO'). The primary objective of the Supply Chain domain is to fulfill orders of any kind, within defined service levels and cost efficiency and asset utilization objectives. This includes material flow from supplier to customer.
The performance of the Supply Chain function is measured by SCPM grouped in 4 attributes:
- DP - The ability to deliver products and services, process returns as promised
- RS - The speed at which the supply chain operates; orders are fulfilled, returns are processed
- CO - The cost to operate the supply chain, generate revenue and process returns
- AE - The utilization of supply chain assets in support of revenue generation
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The daily operational activities performed by the Supply Chain function are grouped in 4 level-1 Processes:
- Plan - The planning of resources to support forecasted and/or actual demand
- Source - The ordering and receipt of materials and services required at a facility
- Make - The production, remanufacturing, repair, recycling of products
- Deliver - The management and fulfillment of orders
OpenReference recognizes 4 major supply chain configuration strategies:
- MTS - Plan/forecast driven, replenishment
- MTO - Order driven, menu-customization, postponement
- Engineer-To-Order - Order engineering, project-customization
- RL - Maintenance, repair and overhaul
The Source, Make and Deliver processes each have level-2 processes to support these strategies.
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The management activities performed by the Supply Chain function are grouped in 2 level-1 Processes:
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