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

Area TQM Six Sigma Lean
Manufacturing

Transportation – inbound

Transportation – outbound

Finished goods inventory

Raw materials inventory

Customer management

Forecasting

Warehousing

Order management
 
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. 

2.                        Demand Signal  

Product is “pushed” through the channel based on forecasts

Demand forecasts are created based on actual usage of product  (current stock levels, or min/max levels, or  order points) and projected sales

Downstream Supply Chain Partners provide periodic forecasts to make the immediate upstream partner aware of requirements

    Product is “pulled” through the channel based on actual usage data from upstream Supply Chain partners

Product is “pulled” through the channel using  consumer demand from point of sale systems in near real time
 

3.                        Demand Collaboration

Supply Chain partners do not work together to share real or anticipated demand

Some discussions between key Supply Chain (2 or 3) partners to get better view of products and markets

Key Supply Chain partners (2 or 3) maintain regular communication regarding products and sales statistics

    Most Supply Chain partners (3 or more) exchange product and sales data electronically, typically not real time

Demand is conveyed upstream to partners in real time from point of sale.

Partners jointly participate in analyzing demand

 

4.                        Sales & Operations Planning

S&OP are developed internally by unrelated teams

S&OP is an integrated cross-functional tool but does not include Supply Chain Partners

Key Supply Chain Partners may be involved in S&OP as part of a Quarterly Business Review

    S&OP is a joint effort with all key Supply Chain Partners sharing data and plans

S&OP is a collaborative process using on-line tools available to all Supply Chain Partners
 

5.                        Inventory Management Practice

Purchase based solely on unit price, without regard to todal cost (carrying costs, transportation, etc.)

Inventory is managed independently and focus is on the cost of the total purchase

Supply Chain Partners collaborate on requirements in an effort to reduce excess inventory.

    Supply Chain Partners jointly consider lead time reductions and postponement strategies

Supply Chain Partners have implemented inventory visibility systems and processes to reduce excess inventory throughout the supply chain
 

6.                        Planning & Production Process Standardization

No attempts are made to standardize processes internally or externally

Processes may be documented by the operator but may be considered “proprietary” and are not shared with Supply Chain Partners

Processes are documented and general process understanding exists across the Supply Chain

    Processes used by the various Supply Chain partners are well understood by all, though not standardized

Planning, production and stock management processes are defined and standardized across the Supply Chain
 

7.                        Company Product Standards

Products are non standard

No shared components

Internal parties attempt to impose standardization of product components

Internal parties agrees to standardize product components

    Actively look for opportunities to share components during new product development

Products developed have a high proportion of shared parts from other product lines
 

8.                        Industry Product Standards

No industry standards and products are considered to be “proprietary”

Individual partners attempt to set their own standards outside of industry standards groups

Partners make partial use of industry standards in development of new products

    Partners agree to standardize products based on standards set by outside groups

SC Partners participate in industry standards bodies

Partners use industry standards in development and manufacture of products

 

9.                        Data Standards

Data is considered to be proprietary and is not shared

Individual Supply Chain Partners make information available to key partners but make no attempt to assist in data conversions

Key Supply Chain Partners (2 or 3) jointly develop data mapping to convert each other’s proprietary formats

    Key Supply Chain partners (2 or 3)  use standardized data formats for information exchange.

All Supply Chain Partners exchange product, availability and sales related data using global and / or industry standard data formats
 

10.                    Waste

Waste reduction is focused at the functional areas within the company

Company analyzes internal processes to minimize waste

Some Supply Chain partners are waste conscious but most focus on cost reduction and profit improvement

    Some Supply Chain Partners begin working together to eliminate waste

All Supply Chain Partners understand end-to-end processes and work together to eliminating waste throughout the supply chain.
 

11.                    Value Added Activities

No clear distinction between value added and non-value added activities

Individual Supply Chain aware of Value Add,  but have not actively worked to eliminate non-value added activities

Individual Supply Chain members focused on eliminating non-value adding operations within their own businesses

    Collaborative practices are being explored with Supply Chain suppliers or customers  to eliminate non-value added activities

Collaborative practices are actively being performed with both suppliers and customers  to eliminate non-value added activities
 

12.                    Continuous Improvement / Change Culture

No continuous improvement programs in place

Informal  improvement projects in place

The need to change /   improvement has been identified and communicated to the workforce by top management

    Operational level "change leaders" have been identified and are being educated on the need to change and how to effect change

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

 

13.                     People

Employees are viewed as being expendable

Most training is limited to on the job training

Managers concerned about employees, but little institutional support or resources

Managers actively work to manage employee turnover

Some support for employee development

    Resources made  available for employee development

Continuous improvement culture in place in most departments

Employees believe that they are a valued asset

Formal  improvement processes in place

 

14.                    Teams

Little of no use of process improvement teams

Teams work within a functional department only

Some use of cross functional teams within a company

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

    Cross company Supply Chain teams exist to develop an understanding of how process improvement practices can be implemented across supply chain partners

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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