OpenReference

Supply Chain

The Management and Operation of Make-to-Stock, Make-to-Order, Engineer-to-Order and Reverse Logistics supply chains

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Supply Chain

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 level, 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:

• Forecast-to-Plan
• Source-to-Pay
• Plan-to-Produce
• Plan-to-Move
• Order-to-Cash

Supply Chain Metrics

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 or 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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Operational 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 5 major supply chain configuration strategies:

• Make-to-Stock - Plan/forecast driven, replenishment
• Make-to-Order - Order driven, menu-customization, postponement
• Engineer-to-Order - Order engineering, project-customization
• Reverse Logistics - Return, maintain, repair, overhaul and/or dispose
• Circular Economics - Outbound, return and regeneration integration - new

The Source, Make and Deliver processes each have level-2 processes to support these strategies.

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Management Processes

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

• Align - The establishment and maintenance of the structure of Goals, Objectives, Network, Processes, Assets And Resources to Plan, Source, Make and Deliver products and services
• Govern - The oversight of the performance and compliance of the operation of the supply chain network and activities

Terms

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

• Plan-to-Produce - 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.

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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, Plan-to-Product, Source-to-Pay, Order-to-Cash The management and operation of Make-To-Stock, Make-To-Order, Engineer-To-Order and Reverse Logistics supply chains

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