Good, better, best - how to assess supply chain performance



Gongying chain never 象 become important as today, in the current economic environment, the supply chain, not the company in the market Zhankai Zhao Jing Zheng, supply chain Ruhe implementation of the decision with who wins in the Jing Zheng.In order to derive maximum benefit from the supply chain, the competition among the supply chain a competitive advantage in the supply chain itself must be very good execution, or any results obtained would be short-lived.

However, there are a lot of companies do not realize how their supply chain execution, do not even know what they are in the supply chain.The supply chain is certainly not hopeless, based on the "supply chain excellence" of the six models of detailed evaluation criteria and strategic evaluation of ways to help them, they can determine the implementation of supply chain and propose improvements.

Evaluation criteria: "excellent supply chain" of six model

You test your supply chain, and to judge his performance before, you must understand the "supply chain excellence.""Supply Chain Excellence" is a process that contains six levels, six levels to be achieved step by step, they include:

First floor: General business model.At this level, companies work hard, hoping each business function are doing very well.Each department's goal is to become the best company in the sector.The overall effectiveness of the organization is not the focus of attention, on the contrary, elements of each organization is trying to get their good operation.Each sector in the development and application software also only consider their own strategies.

Second level: the excellent link.If an organization wishes to pursue "supply chain excellence", it must reflect on their own to eliminate the division between departments and functional boundaries, the beginning and ever shall be continuous improvement.In each of the supply chain must try their best to link the development of more efficient, cost-effective, fast response and holistic.When the internal link to the best possible implementation, the supply chain can work better start.Within the more effective, your supply chain will be more effective.

The third layer: visual."Supply Chain Excellence" requires that all link to work.When they share information, you can link to all work better.Visual cornerstone of the establishment of information sharing can eliminate the supply chain do not trust, as the provision of information to connect all parties to understand the process of being implemented supply chain.

Fourth layer: Collaboration.Through the rational application of technology and the establishment of genuine partnership, can achieve the level of collaboration.Through collaboration, supply chain to determine whether its best to meet the market demand, through supply chain collaboration to achieve maximum customer satisfaction and the smallest stocks.

Fifth floor: Comprehensive.Integrated level of the supply chain in a continuous improvement process, the process towards integration of supply chain integration.Comprehensive energy can change to meet continually changing market to ensure customer satisfaction.True "supply chain excellence" from the integrated start up, because it makes the supply chain to achieve unparalleled levels of performance.

Sixth floor: to speed up rate.After summing up the target into the organization or supply chain will be accelerated to a faster rate on.This is a "supply chain excellence," the continuous progress.

"Excellent supply chain" is used to measure the six levels of evaluation as a supply chain elements: technology enabled devices, integrated supply chain degree, warehousing, logistics, manufacturing, organization and optimization, sustainability and quality.With the specific nature of these elements can help you identify where your supply chain level.

Following on with each level of technology-enabled device features an example:

General business model layer: In this level of technology from the legacy system or self generated, these technologies as a response to specific situations to obtain and install, the system is relatively isolated, entities and data duplication is also very confusing.

Excellent link layer: In this layer, each link its own transportation management system, warehouse management systems and order management systems have been upgraded to meet industry standards, internal access to shared information.
Visual layers: the system is integrated in the organizations, TMS, WMS, OMS, and others connected with key partners to share information.Repeat, leaving only a limited entity.

Collaboration Layer: In a direct correlation between partners, information and events and plan the complete sharing of information is integrated into each organization's managers and planning systems, executive information systems to achieve the basic (EIS).

Composite layer: In this layer, directly related to the partners and their networks can work together.EIS is a powerful automated key performance indicators.
Accelerate the rate of layer: This is a complex of, in order to continuously improve the timeliness, quality and quantity, in multiple levels of supply chain partners can share the different forum.

Another example is the supply and its characteristics:

General business model level: only the price level determined according to the sources of supply.

Excellent link layer: According to the transportation, quality and flexibility for the cost of not just the price.

Visible layers: a key supplier partnerships constituted by the cooperation partners to share the needs of current and historical information.

Collaboration Layer: most of the suppliers involved in product design and planning process, the information is visible to all members, through electronic and online forms to transmit information.

Composite layer: there is different levels in the supply chain, interaction design and automatic replenishment, supply chain continuous improvement to the functions of the Commission.

Accelerate the rate of layer; Supply Chain Council online run.

Similar list of elements for the preparation of the other, when the need to apply to the strategic supply chain evaluation method of the time, providing exceptional need to produce a guidance manual.

Evaluation of Supply Chain Strategy

Evaluation of supply chain strategy has seven steps form.Are:

The first step to describe the high level business processes, document information flow, business rules, etc., determine whether they meet the critical business and mission objectives, whether they are self-executing, it can be outsourced to check whether it is appropriate to measure these processes,The key decision matrix.Conclusions should be understood on the strategy, objectives and priorities of the document.

The second step, in-depth mining business processes, observed how the contact between them and what information flows, so that these processes need.Development of a detailed flow chart.This department includes the understanding recorded in your supply chain key performance indicators, from executives to business process enforcement officers obtained a 360-degree feedback, the use of information technology evaluation.

The third step is to draw a map of the current supply chain, showing the relationship between the external supply chain.Identify gaps and linkages, and then develop a sustainable improvement of the structure.

The fourth step, second step to obtain the evaluation data used to evaluate the conclusion.Is likely you will find that some processes were not implemented, some processes are not well documented before, processes are not well reflect your company's goals and tasks, the process can not be run automatically.

The fifth step, raised a number of supply chain options.Identification of supply chain options, from which recommend the best.

The sixth step, use the recommended program development and implementation of plans, the most economical option and decided to return on investment (ROI).Evaluate the availability of internal resources.

Seventh step, to develop detailed, priority implementation plan.For income statement, balance sheet cost drivers, cost of capital and drive past and experience, will enter the strategic network optimization model of these tools, will determine the risk, return, return, and the reality and the recommended best strategic options and strategic direction.

This method can be the supply chain for those who evaluate the completion of the evaluation on a higher level to have the present operating environment and supply chain performance levels and best of practice compared 识别 opportunities for improvement, expected business impact,project to drive increased business performance.This must be thoroughly and the entire supply chain collaboration between all relevant parts.Those who have never been the supply chain assessment shall consider and 有着 supply chain expansion and third party co-evaluation experience to start work effectiveness of this approach need unbiased Remember to document, from those who understand the supply chain performance evaluation processwho recommended the implementation, which will become their core competitiveness.