1. Supply-Chain Council - Benchmarking with SCOR Copyright
Supply Chain Council. 2006. All rights reserved. |
2. Supply-Chain Council Independent, not-for-profit, global
corporation with membership open to all companies and organizations
interested in applying and advancing state-of-the-art supply chain
management systems and practices: o Founded in 1996; o Approaching
900 global Members; o Cross-industry representation; The
Supply-Chain Council (SCC) has developed and endorsed the Supply
Chain Operations Reference model (SCOR) as the cross-industry
standard for supply chain management. Copyright Supply Chain
Council. 2006. All rights reserved. |
3. SCC Global Reach Copyright Supply Chain Council. 2006. All
rights reserved. |
4. Global Members... Copyright Supply Chain Council. 2006. All
rights reserved. |
5. In Brasil... Copyright Supply Chain Council. 2006. All
rights reserved. |
6. ... And in Latin America Copyright Supply Chain Council.
2006. All rights reserved. |
7. The CFO Language Operating Cycle DII + DSO The number of
days it takes to convert inventory & receivables to cash
Cash-to-cash Cycle DII + DSO - DPO The number of days expired
between canceling a payable and generating cash EVA NOPAT
(CoC*Capital) The amount by which earnings exceed or fall short of
the required minimum rate of return that shareholders and lenders
could get by investing in other securities of comparable Copyright
Supply Chain Council. 2006. All rights reserved. |
8. EVA Tree the CFOs BOM $ Sales P&L $ Operating $ Gross
Margin - - $ COGS Profit Profit margin % $ Total $ Variable $ Sales
Cost Costs + $ Fixed Costs Return on assets Supply Chain Management
impacts all components $ Inventory $ Sales + $ Accounts Capital $
Current turnover Assets Receivable $ Total Assets + + $ Other $
Fixed Current Balance Sheet Assets Assets Copyright Supply Chain
Council. 2006. All rights reserved. |
9. SCM Environment Costs (transportation, warehousing)
Flexibility Delivery Quality/Reliability/ To customers From
suppliers Performance: Inventory levels (RM, WIP, FG) Forecast/
Planning Accuracy Fulfillment/ Replenishment times Only cost cutter
Lead time reduction Seen as the problem SC Manager problems: Board
room enemies (Sales & MKT) Copyright Supply Chain Council.
2006. All rights reserved. |
10. SCM The CFOs perspective CFO beginning to understand that
effective SCM plays an integral role in financial success, but: SCM
is unsatisfactory to CFOs, because SC managers ... lack financial
rigor ... lag in management efficiency ... do not provide clear
visibility into SC financials Therefore: 34% of CFOs have taken
more of a leadership role in SCM 49% planning next 2 years
Copyright Supply Chain Council. 2006. All rights reserved. |
11. A Bit of History: 1930-1950 o Bank Robber Slick Willie
Sutton o When asked why he robbed banks, Sutton simply replied o
quot;Because that's where the money isquot; Copyright Supply Chain
Council. 2006. All rights reserved. | 10
12. Where the Money Is Supply-chain generally accounts for
between 60% and 90% of all company costs1 2% improvement in SCM
process efficiency has 30,000-50,000% the impact of a 2%
improvement in efficiency for IT, HR, Finance, Sales Any surprise
most Process Methodologies or techniques had their origin primarily
in SCM? Six-Sigma Lean BPR ERP ISO MRP-II TQM Fortune-10 Company
Supply-Chain Cost % Total Costs2 Wal- GM Ford Conoco Chevron IBM
Exxon GE Citi1 AIG1 Mart 94% 93% 90% 90% 88% 77% 75% 63% 0% 0% 1
Exclusive of Financial Services companies 2 Source: Hoovers 2006
Financial Data, Supply-Chain Council 2006 SCM Benchmark data on SCM
cost for discrete & process industries Copyright Supply Chain
Council. 2006. All rights reserved. | 11
13. The Impact of SCOR Companies with SCOR process management.
Are over 780% more profitable on average than peers. Exhibit
greater share growth than leading market indicators. Copyright
Supply Chain Council. 2006. All rights reserved. |
14. Benchmarking with SCOR Copyright Supply Chain Council.
2006. All rights reserved. |
15. Why Benchmark? Set reasonable performance goals Understand
market performance demand Dont be you own competitor Calculate
performance gaps Use Strategic priorities Compare theoretical
limits and actual needs Develop roadmaps for success Identify over
- and under - investment Linking into the SCOR Roadmap Copyright
Supply Chain Council. 2006. All rights reserved. |
16. The SCORmarksm Process Copyright Supply Chain Council.
2006. All rights reserved. |
17. Benchmarking Made Easy 1. Select supply chain goals and
metrics Use SCOR Roadmap Phase 2 to identify critical Supply-chains
Use SCOR menu of metrics to characterize 2. Determine desired
target performance Select Demographic Sets Identify Strategic
Priorities 3. Enter relevant data via confidential, secure portal
4. Receive a custom benchmark report within days of validation
Copyright Supply Chain Council. 2006. All rights reserved. |
18. Survey - Metrics Copyright Supply Chain Council. 2006. All
rights reserved. |
19. Survey - Data Copyright Supply Chain Council. 2006. All
rights reserved. |
20. Report - Demographics Copyright Supply Chain Council. 2006.
All rights reserved. |
21. Report - Benchmark Copyright Supply Chain Council. 2006.
All rights reserved. |
22. Report Summary SCORcard Copyright Supply Chain Council.
2006. All rights reserved. |
23. Further information: www.supply-chain.org Elcio Grassia
LATAM Chapter Chair [email protected] Copyright Supply Chain
Council. 2006. All rights reserved. |