Getting supply chain and business results in parallel, not one at a time
You may be wondering….
How can I get more done in less time?
And not just in the operational levels. How can I adjust my supply chains strategically without waiting so long to finish that the opportunity passes me by?
For this, I use a framework to organize everything from operations up through the tactical processes and into the strategic plan.
The framework integrates people, process, performance (metrics), and practices. But there is more.
It also integrates and targets Lean improvements that lead to customer approval in measurable ROI terms. It easily integrates in the sustainability and resiliency aspects you want and your customers expect.
If I tell you that framework is SCOR, you’ll probably respond saying “Great, another thing to train on in the great din of shouts about what I need to train on”.
But this is different.
Most supply chain solutions are for very specific things for very specific results. You are tied to whatever was designed into the solution. With SCOR, nothing is designed in unless you want it to be.
It is immensely flexible, like Lean is, but on a larger scale and, as I hinted at before, it integrates well with Lean to target top, bottom, and margin line improvements across your entire, extended supply chain.
Sound intriguing?
I can hear the yeses, but also the doubt. Doubt that sounds like…
…what exactly will SCOR do for me?
I’m interested, but what do I get? What does my company get?
You pose great questions. Questions with an answer embedded in providing 30 years of excellence.
Let’s start digging into that excellence.
Here’s a quick study you should know about an organization that used SCOR, SCOR-P learning, and applied both to advantage.
The Brazilian Post Office had a history of accomplishing amazing things.
However
It needed to modernize. The competition was tough. Costs were high. The market was challenging. And its customers constantly expected more.
It knew it needed to do something, and to do it fast.
Competitors were more agile, could adjust their assets faster, and used modern methodologies (and technologies) to get lower costs.
So, just as in all organizations, a list of goals was created.
This is the list:
- Modernize logistics AND reduce costs
- Use supply chain language the SAME way, everywhere
- Increase logistics expertise AND decrease the number of warehouses
- Become excellent at process
- Minimize waste
The Brazilian Post Office was already using supply chain management skills, but it was falling short.
What should it do?
To get every goal attained, it adopted SCOR.
And trained a large core of professionals in SCOR-P (click this link for more). And used a SCOR expert when necessary during the transformation.
So, just what did SCOR adoption by the post office’s supply chain professionals do for the post office?
It provided cost savings of $60 million annually!
What else did it do, you ask?
- Increased delivery accuracy by 25%
- Reduced order fulfillment cycle time by 25%
- Reduced cost of goods sold by 12%
- Reduced the number of warehouses required
And it didn’t take decades to do, either.
You should be interested to know that the post office, in one year,
- Increased the return on supply chain fixed assets 62%
- Reduced direct labor costs by 475%
- Created a common supply chain language across the entire company and all its units
And this is just the beginning.
Because of the common language, metrics are immediately comparable. Metric names are defined to mean specific measurements in SCOR. And everyone uses the metrics the same way.
You can compare what is being done between units, parts of your supply chain, and into your competitor’s supply chains.
Practices are not put in place just because another company uses them. They are put in place because they enhance the unique performance you must provide, even if you are not a gigantic company. This means your internal and extended supply chain can give you performance needed without requiring massive spend.
Sustainable aspects that make sense for your company are embedded into your performance from the start, not as a separate initiative.
Truth is, separate initiatives often get squashed. Embedded aspects grow to showcase your excellence in supply chain, business, and care of the planet and its people.
You can learn more about SCOR and the SCOR-P training at this link: https://processstrategysolutions.lpages.co/virtualscor-p/
You can have the same or even better results than the Brazilian Post Office.
All you have to do is start.
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Cynthia Kalina-Kaminsky helps companies of all sizes successfully create supply chain transformation, digital technology solution integrations, and avoid panic attacks that ruin your customer performance. The above case study is part of the ASCM SCOR library. Process & Strategy provides virtual training including July SCOR-P training with a FREE bonus session on embedding sustainability into supply chains.