Supply Chain Performance Management using SCM Control™
Building supply chain management on a “broad” foundation to maximize the impact on its performance Supply Chain Management (SCM) comprises many disciplines and often covers various elements and scopes across different companies. Supply Chain Management (SCM) comprises many disciplines and often covers various elements and scopes across different companies. Sometimes SCM solely covers the physical handling of the supply chain (SC) with inbound logistics, production and outbound logistics.
In other cases, it includes the entire planning process from “Sales & Operations Planning” to “Throughput Planning” (Production Planning & Scheduling) or additionally the “Strategic Network Planning” as a basis for location decisions.
In any case, setting up the SC always involves the balancing act of dealing with competing targets, e.g. inventory vs. fulfillment, lot size vs. flexibility:
- optimization potentials are controlled according to the currently valid target values and
- changing objectives can be implemented immediately throughout the entire supply chain.
This further increases the company’s ability to steer and control SC performance relevant factors.
The B&C Approach: Enabling Supply Chain Management with SCM Control™ to target business objectives and ensure maximum responsiveness and control.
To achieve this, Supply Chain Management requires an integrated approach consisting of a tool set
- to identify,
- to evaluate and
- to track the effects of SC activities and initiated improvement measures and – if necessary – to adjust.
For this purpose, we use the B&C SCM Control™ Suite with our customers. SCM Control™ creates a “digital twin” and thus enables a holistic view on the entire supply chain. We see this as the starting point for controlling and optimizing the supply chain.
Based on our experience, the following success factors have been identifi ed to ensure a successful and efficient application of SCM Control™:
- Process and data transparency,
- Competence in analysis & methods,
- High reach and leverage of Supply Chain Management department and
- Management commitment
Case study: Optimizing supply chain performance with the SCM Control™ Suite
A supply chain manager should always have the full control of his supply chain and oversee all daily events. SCM Control™ enables this view by combining all SC data at different levels of aggregation. From track-and-trace of single items to management dashboards that bring all data together and aggregate it to relevant control KPIs.
Built-in dynamic reports allow indepth root cause analyses to identify weak points in short time, to take the right improvement measures and afterwards to check the resulting effects. Thus, the SCM Control™ Suite fully supports the control processes for SC performance optimization. This process is outlined in the following figure: