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Supply Chain

Supply Chain

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.

SCPM

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

View our metrics or download  our supply chain Quick Reference Card.

Processes

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.

View our processes or download  our supply chain Quick Reference Card.

Management

The management activities performed by the Supply Chain function are grouped in 2 level-1 Processes:

Terms

Search Our Complete List of processes, metrics, practices and terms relevant to Supply Chain.

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Supply Chain, Management, Operations, Make-To-Stock, Make-To-Order, Engineer-To-Order, Reverse Logistics, Industry, Neutral, Process, Framework, Metric, Performance, Practice, Framework, Standard, Reference, Model The management and operation of Make-To-Stock, Make-To-Order, Engineer-To-Order and Reverse Logistics supply chains

File:2017 SCO Quick Reference Card.pdf