The Supply Chain framework describes the business function or Domain that develops, maintains and retires the business assets ('Supply Chain Management') to plan and perform day-to-day supply chain activities ('Supply Chain Operations'). 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.
Supply Chain typically encompasses the following End-to-End process cycles:
The performance of the Supply Chain function is measured by Supply Chain Metrics grouped in 4 attributes:
- Dependability - The ability to deliver products and services, process returns as promised
- Responsiveness - The speed at which the supply chain operates; orders are fulfilled, returns are processed
- Cost - The cost to operate the supply chain, generate revenue and process returns
- Asset Efficiency - 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:
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:
Search Our Complete List of processes, metrics, practices and terms relevant to Supply Chain:
- Plan-to-Product - The cycle starting with plans and completed by the availability of product in stock.
- Source-to-Pay - The cycle starting with the placement of purchase orders or requisitions and completed by submitting payment for products or services received.
- Order-to-Cash - The cycle starting with receiving an order for products or services and completed by receiving payment for products or services delivered.