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SECTION I: Describing Your Supply Chain |
1. Several
key business philosophies have been implemented or adopted by firms
over the past several decades. For each of the following please indicate
if you have applied these tools to the following areas. Please check
all that apply
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Using the scale below, please indicate which description best describes
your division or company. There is no right or wrong answers. We realize
that in some cases your division or company might have aspects that fall
into more than box. If that is the case, please check the ONE answer
that BEST describes your company. |
| Product
is “pushed” through the channel based on forecasts
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Demand forecasts are created based on actual usage
of product (current stock levels, or min/max levels, or order
points) and projected sales
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Downstream
Supply Chain Partners provide periodic forecasts to make
the immediate upstream partner aware of requirements
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Product
is “pulled” through the channel based on actual usage data
from upstream Supply Chain partners
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Product
is “pulled” through the channel using consumer demand from
point of sale systems in near real time
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| Supply
Chain partners do not work together to share real or anticipated
demand
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Some
discussions between key Supply Chain (2 or 3) partners to
get better view of products and markets
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Key
Supply Chain partners (2 or 3) maintain regular communication
regarding products and sales statistics
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Most
Supply Chain partners (3 or more) exchange product and sales
data electronically, typically not real time
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Demand
is conveyed upstream to partners in real time from point
of sale. Partners
jointly participate in analyzing demand
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4. Sales & Operations
Planning
| S&OP
are developed internally by unrelated teams
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S&OP
is an integrated cross-functional tool but does not include
Supply Chain Partners
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Key
Supply Chain Partners may be involved in S&OP as part
of a Quarterly Business Review
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S&OP
is a joint effort with all key Supply Chain Partners sharing
data and plans
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S&OP
is a collaborative process using on-line tools available
to all Supply Chain Partners
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5. Inventory
Management Practice
| Purchase
based solely on unit price, without regard to todal cost
(carrying costs, transportation, etc.)
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Inventory
is managed independently and focus is on the cost of the
total purchase
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Supply
Chain Partners collaborate on requirements in an effort to
reduce excess inventory.
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Supply
Chain Partners jointly consider lead time reductions and
postponement strategies
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Supply
Chain Partners have implemented inventory visibility systems
and processes to reduce excess inventory throughout the supply
chain
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6. Planning & Production
Process Standardization
| No
attempts are made to standardize processes internally or
externally
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Processes
may be documented by the operator but may be considered “proprietary” and
are not shared with Supply Chain Partners
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Processes
are documented and general process understanding exists across
the Supply Chain
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Processes
used by the various Supply Chain partners are well understood
by all, though not standardized
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Planning,
production and stock management processes are defined and
standardized across the Supply Chain
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7. Company
Product Standards
| Products
are non standard
No
shared components
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Internal
parties attempt to impose standardization of product components
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Internal
parties agrees to standardize product components
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Actively
look for opportunities to share components during new product
development
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Products
developed have a high proportion of shared parts from other
product lines
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8. Industry
Product Standards
| No
industry standards and products are considered to be “proprietary”
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Individual
partners attempt to set their own standards outside of industry
standards groups
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Partners
make partial use of industry standards in development of
new products
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Partners
agree to standardize products based on standards set by outside
groups
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SC
Partners participate in industry standards bodies Partners
use industry standards in development and manufacture of products
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| Data
is considered to be proprietary and is not shared
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Individual
Supply Chain Partners make information available to key partners
but make no attempt to assist in data conversions
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Key
Supply Chain Partners (2 or 3) jointly develop data mapping
to convert each other’s proprietary formats
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Key
Supply Chain partners (2 or 3) use standardized data formats
for information exchange.
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All
Supply Chain Partners exchange product, availability and
sales related data using global and / or industry standard
data formats
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| Waste
reduction is focused at the functional areas within the company
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Company
analyzes internal processes to minimize waste
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Some
Supply Chain partners are waste conscious but most focus
on cost reduction and profit improvement
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Some
Supply Chain Partners begin working together to eliminate
waste
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All
Supply Chain Partners understand end-to-end processes and
work together to eliminating waste throughout the supply
chain.
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11. Value
Added Activities
| No
clear distinction between value added and non-value added activities
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Individual
Supply Chain aware of Value Add, but have not actively worked
to eliminate non-value added activities
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Individual
Supply Chain members focused on eliminating non-value adding
operations within their own businesses
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Collaborative
practices are being explored with Supply Chain suppliers or
customers to eliminate non-value added activities
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Collaborative
practices are actively being performed with both suppliers
and customers to eliminate non-value added activities
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12. Continuous
Improvement / Change Culture
| No
continuous improvement programs in place
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Informal improvement
projects in place
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The
need to change / improvement has been identified and communicated
to the workforce by top management
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Operational
level "change leaders" have been identified and are
being educated on the need to change and how to effect change
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Management
has a well-developed published vision for all facilities and
has operating objectives that fully support the vision A
continuous improvement culture exists across the supply chain
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| Employees
are viewed as being expendable Most
training is limited to on the job training
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Managers
concerned about employees, but little institutional support
or resources
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Managers
actively work to manage employee turnover Some
support for employee development
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Resources
made available for employee developmentContinuous
improvement culture in place in most departments
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Employees
believe that they are a valued asset Formal improvement
processes in place
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| Little
of no use of process improvement teams Teams
work within a functional department only
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Some
use of cross functional teams within a company
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Team
members at individual Supply Chain member companies actively
work together for internal processes only "What's
In It For Me" (WIIFM) has been addressed at all levels and
is understood and accepted
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Cross
company Supply Chain teams exist to develop an understanding
of how process improvement practices can be implemented across
supply chain partners
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Cross
company Supply Chain teams actively proactively recognize opportunities
and enact positive change for the benefit of the entire supply
chain, even if it means less revenue on behalf of their individual
company
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