SCOR: Open Measures for Inventory network Administration.

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Make standard procedures and normal data frameworks crosswise over specialty units ... Set out on SCOR pilot task handling issue region to show advantages and ...
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SCOR: Open Standards for Supply Chain Management Supply Chain Council, Inc.

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What Keeps You Up at Night? Securities exchange Volatility, Oil Prices, Labor, Political Instability, Security Reducing Inventory/Working Capital/Asset Management Reducing Total Supply Chain Costs Supply Chain Resiliency & Sustainability: Risk Management & Green Competing in a Global Market Providing Superior & Consistent Customer Service While Increasing Revenue & Margin Business As Usual Has Been Canceled… Now What? SCC & SCOR HRdergi Conference 2010

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Superior Supply Chain Management (SCM) has Long Been a Source of Competitive Advantage % of Revenue Best-in-class Companies\' Outperform Their Median Competitors with a half Cost Advantage Source: PRTM/The Performance Measurement Group SCC & SCOR HRdergi Conference 2010

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But SCM is Paramount in Times of Economic Uncertainty In 2007, US business coordinations costs rose to a record-breaking high of $1.4 trillion (10.1% of US ostensible Gross Domestic Product ) 3 Supply-chain for the most part records for somewhere around 60% and 90% of all organization costs 1 A 2% change in procedure productivity for store network forms has 3000% - 5000% the effect of a 2% change in proficiency for… IT… HR… Finance 1 … Sales… 1 Exclusive of Financial Services organizations 2 Source: Hoovers 2006 Financial Data, Supply-Chain Council 2006 SCM Benchmark information on SCM cost for discrete & process ventures 3 CSCMP 19 th Annual State of the Logistics Industry Focused activities in Supply Chain Management can bring about 30-35% cost diminishments, freedom of working capital, and income increments of 3-5%! SCC & SCOR HRdergi Conference 2010

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And SCM Improvement Creates Shareholder Value The Supply Chain Impacts . . . Every single Financial Metric . . . & Shareholder Value Liberate Working Capital Improve client administration and reaction Optimize stock stream, use & profitability Improve Capital Efficiency Reduce Fixed Capital Best-in-class client connections Differentiated administration capacities Increase Shareholder Value Increase Revenue and Margin Increase Profit Best-in-class vital supplier associations Leverage of outsourcing of business procedures Unique production network models Optimize Cost Model Effective Supply Chain Management can expand a Return on Capital Employed by 30% and that\'s only the tip of the iceberg! SCC & SCOR HRdergi Conference 2010

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What is a Supply Chain? SCC & SCOR HRdergi Conference 2010

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What is a Supply Chain Supplier forms Product Management Customer forms Product Design DCOR™ Sales & Support CCOR ™ Supply Chain SCOR™ SCC & SCOR HRdergi Conference 2010

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Plan What is SCOR ® ? Inventory network Supply Chain Process, bolt demonstrates material stream course Process, no material stream Information stream Source Make Deliver Supplier forms Customer forms Customer forms Supplier forms Return SCOR is a production network process reference model containing more than 200 procedure components , 550 measurements , and 500 best works on including hazard and natural administration Organized around the five essential administration procedures of Plan, Source, Make, Deliver and Return Developed by the business for use as an industry open standard - Any intrigued association can partake in its ceaseless advancement 9 SCC & SCOR HRdergi Conference 2010

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The SCOR ® model – a cross-industry open standard Plan Return Source Deliver Return The five coordinated procedures give a limit free perspective of the genuine end-to-end Extended Supply Chain Supports intra-and cross-undertaking streamlining of subjective scale Make Deliver Source Make Deliver Source Deliver Make Source\'s Customer Your Company Supplier Customer Suppliers\' Supplier Internal or External Internal or External SCC & SCOR HRdergi Conference 2010

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SCOR Processes – Five Levels of Decomposition EDI Supply-Chain Source S1 Source Stocked Product S1.2 Receive Product XML Standard SCOR definitions Company/Industry definitions SCC & SCOR HRdergi Conference 2010

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Supply Chain Balanced SCORcard Standard Strategic (Level 1) Metrics Customer Internal † upside and drawback flexibility measurements SCC & SCOR HRdergi Conference 2010

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SCOR Benefits Companies SCOR can be utilized to depict supply chains that are extremely straightforward or exceptionally complex utilizing a typical arrangement of definitions and empowering a typical comprehension It helps organizations: Form an incorporated measured methodology which interprets general business destinations plainly and extensively to all operational business substances Create a typical adjusted scorecard by which clients can gauge their execution and by which SCC individuals can quantify suppliers\' execution Compare the execution of store network and related operations inside their organization or against different organizations Determine what procedures to enhance and by the amount to enhance them either wiping out waste, or by enhancing process unwavering quality Guide the solidification of inner supply chains (which brings about critical cost decreases from disposing of duplicative resources) Create standard procedures and normal data frameworks crosswise over specialty units (which produces real cost reserve funds, process duration and quality upgrades) SCC & SCOR HRdergi Conference 2010

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SCOR®: CASE IN POINT SCC & SCOR HRdergi Conference 2010

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ADVA Optical Networking The Challenge €370.2M Revenue Enterprise 1 Rapid development sought after for capacity, voice & information transport Focus on catching this development while keeping up productivity Needed to recognize stock drivers and enhance stock levels to empower ADVA to achieve stock diminishment targets while enhancing consumer loyalty in Order Fulfillment Cycle Time (OFCT) and On-time Delivery (OTD) Created a change plan that would permit ADVA to proactively plan, drive and deal with the stock levels and better accomplish the parity of expense and administration The Solution Using SCOR, ADVA distinguished execution crevices in key measurements amongst flow and required to achieve equality status Also utilizing SCOR, distinguished procedure separates, drivers of stock and activities required for development Grouped and organized proposed ventures in light of potential effect and measure of exertion/danger Agreed to venture list including: New S&OP Process Supplier scorecards and quarterly business audits with suppliers, Information straightforwardness and others Benefits Achieved Gross stock lessened from €59 million to €38 million in 10 months Inventory days of supply decreased 47% from beginning scorecard 1 SCC & SCOR HRdergi Conference 2010

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Core Value 1 Improvement of working consequences of a normal of 3% in the underlying SCOR usage stage by method for cost decrease and change in client administrations Increase in gainfulness (somewhere around 2x and 6x) as to venture speculations costs inside initial 12 months of execution Reduction in IT costs through minimizing framework customization and improving utilization of standard usefulness Continuous completion of procedure change portfolio by nonstop transformation of Supply Chain upgrades with the goal of expanding yearly benefits by 1% to 3% 1 Poluha (2007) Application of the SCOR Model in Supply Chain Management New York, USA SCC & SCOR HRdergi Conference 2010

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Douglas Pharmaceuticals Limited The Challenge Significant development from 2003 to 2007 300% expansion in new item advancement 122% development underway volume 61% development in representatives Created the "ideal tempest" of store network issues Converted to new ERP in August 2006 "Blazing Platform": Customer DIFOT (Export) Down to 20% Product Lead Times Up to 8 months New Product Introduction Lead Times Up to 9 months Stock Turns Down to 2.1x YTD Sales Down 30% Available Spare Capacity Unknown Customer protests affect new authorizing open doors and future income development Impact on 2007/8 profit and shareholder esteem: EBIT (15.9%) Enterprise Value ($25.2M) The Solution "Defining moment" for association – DIY not generally best Board commanded survey at its April 2007 meeting Process set up to assess alternatives SCE program started utilizing SCOR 17 week SCE program amongst May and September 2007 SCC & SCOR HRdergi Conference 2010

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Douglas Pharmaceuticals Limited – proceeded with The Solution Benchmarking and Defect Analysis: Established accentuation on dependability and inventory network cost Confirmed size and relative significance of momentum execution holes Provided early heading on main drivers Generated premise for computing opportunity cost Created quick perceivability over production network execution Built certainty to move onto Phase Two 24 issue ranges affecting unwavering quality and COG Portfolio of 50 enhancements tended to key issue zones "Drive Chain" now shapes premise of an endeavor wide change program Benefits Achieved SCC & SCOR HRdergi Conference 2010

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Typical Potential Improvements 1 Hughes & Michels (1998) Transform your production network. Discharging esteem in business. London, UK SCC & SCOR HRdergi Conference 2010

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SAAB AB Challenge US$3.1B Aerospace Technology Enterprise 1 Three vital business sections: flying, guard and security arrangements, frameworks and items Challenged to execute beneficial and client adjusted coordinations concentrated organizations The level of coordination of coordinations operations very effect Saabs cost level for coordinations Coordination empowers CEL procedures to guarantee conveyance to clients requests Needed to assemble aggressive operation

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