SCC R

1
SCC RD Strategy

• Update
• SCW NA 2002
• GWB 4/21/02

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Agenda

• RD Strategy Committee Goals and Objectives
• Environmental Scan for SC Development
• Current view on using SCOR
• Framework for Research
• Process focus
• Best use of our current budget

3
Research Strategies Committee
Major tasks

• To identify and prioritize the major research
  issues and opportunities, the investigation of
  which will bring value to Council members and
  Technical Committees.
• In pursuit of this task, RSC members will consult
  with the SCORboard, Technical Committee members,
  and other knowledgeable sources
• To recommend to the SCORboard areas of potential
  research that the Council should research.
• To match SCORboard approved research requirements
  with individuals or organizations who will
  perform the research
• To administer research projects supported by the
  Council.

4
Supply Chains are Dynamic Networks
Internet speed is driving change which implies
need for rapid translation of business ideas into
supply chain changes and rapidly flow supply
chain changes into transactional systems.
This requires that we integrate tools to deliver
on optimization and facilitate consistent and
timely implementation of changes in information
systems supporting the supply chain.
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ROI lies in End-to-End Synchronization

• Automating existing business processes in the
  extended Supply Network has limited ROI
• Interaction - Extend applications to partners in
  internet channel
• Internal Integration - Automate and connect
  internal systems through to the internet channel
• Business-to-Business Integration Integrate
  trading partner business systems/processes
• Business-to-business integration requires drastic
  reduction in business cycle time to take
  advantage of real-time data

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Four-Step Supply Chain Strategy Development
Framework
Strategic Impact on Business
4. Get Organization Ready
Future
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1. As-Is State e-Supply Chain Stages
Supply Chain Impact
4. e-Business Optimization

• Supply Chain Visibility
• SC Event Management
• SC Keiretsu
• Virtual Manufacturing/ Distribution

1. Supply Chain Optimization

• TMS/WMS
• Inv. Mgmt.
• APS
• SOP

Time
Build Advantage
Get House In Order
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1. As-Is State Baseline

• Supply Chain Optimization?
• Advanced SCM?
• Leveraging e-Commerce?
• e-Business Optimization?

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View from the RD Workshop

• Input on Business Drivers
• Support for dynamic relationships
• Support virtual SC address issues of
  fragmentation in extended SC
• Enable trust and partnership
• Make SC stronger through process representations
  for relationship/interfaces
• e-Business collaboration impact on out-sourcing
  relationships
• Framework to identify choices available for
  partnerships/ collaborations best practices/
  starter kits/templates
• Align SC applications/systems with consistent
  process representations map SCOR to
  transactional processes

• Define global planning and planning information
  needed
• Address effect of time compression on business
  process change
• Protect information assets for use and access
• Protect SC infrastructure plan for SC business
  recovery
• Enable high velocity SC by delivering information
  with integrity and certainty
• Clarify and minimize information flow in virtual
  SC
• Responsiveness to customers
• Cost Control Efficiency Alignment
• Use model to plan business expansion

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Functional Roles
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Traditional Models
OEM buys Direct From the Enterprise
End User
Enterprise
Enterprise Sells through Distribution
Reseller
End User
Enterprise
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OEM/Subcon Model
Enterprise
End User
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OEM/End Customer Model
Enterprise
End User
14
Enterprise/SubCon Model
Enterprise
OEM
End User
15
Disti/Reseller Channel
End User
Reseller
Enterprise
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Reseller Model
End User
Reseller
Enterprise
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Customer Landscape
Increasing use of BTO
Increasing use of Subcons to build core products
Increasing global view
Competitive environment
Desire to keep level playing field will extend
implication to other accounts

• Later decision on where to receive product
• Increased flexibility for push-outs pull-ins
• Ts and Cs concessions
• Progressively integrate subcon
• Product specificity decreases out in time

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Build Models
Build to Plan
Build to Backlog
Build to Replenishment
Build according to plan designed to meet
strategic objectives Used when manufacturer has
high market segment power Maximizes revenue,
simplifies planning Can expose manufacturer to
inventory risk
Build to aggregated orders Production lead-time
must be lt backlog visibility Drives factory
responsiveness delivery performance, reduces
inventory risk Need guidelines to manage
execution to backlog
Builds are triggered by depletion of downstream
inventory Used as a tool to help secure
maintain business Responsive delivery, low
inventory risk to customer Can reduce planning
execution costs, but systems are complex

• Larger customers are pushing to characteristics
  of Build to Backlog/Build to Replenishment
• No one model satisfies all business conditions
• Flexibility is required

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Framework for Research
Process Scenarios in Community of Business
Associated Business Objectives
Clarify Information Flow/Events
Patterns  Process Models involved in Process
Scenario with Details Of Information
Flow/Events/Timing
Applicable Metrics
Open Delivery of Process Models and All Variances
Business (Best) Practice Analysis
Processes at levels of Maturity
Link to Other Standards
Identify New Model Elements
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Practical Next Steps Stage 1(Supply Chain
Optimization)
Processes

• TMS / WMS
• Inventory Management
• APS
• Sales and Operations Planning

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Practical Next StepsStage 2 (Advanced Supply
Chain)
Processes

• CPFR/CTM
• Supplier Synch.
• VMI/CRP
• Collaborative planning
• ATP/CTP

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Practical Next StepsStage 3 (Leveraging
e-Commerce)
Processes

• Supply Chain Outsourcing
• Internet Procurement
• Support Web stores

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Practical Next StepsStage 4 (e-Business
Optimization)
Processes

• Supply Chain Visibility
• SC Event Management
• SC Keiretsu
• Virtual manufacturing/ distribution

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Tasks for each Process Area

• Identify process scenarios within communities of
  business that can be reused within supply chain
  configurations
• Define business objectives applicable to selected
  process scenarios
• Document information flow within SCOR process
  model at level III and show process
  synchronization patterns within the scope of the
  process scenario
• Define and model process scenarios to form model
  patterns with descriptions and related
  metrics/benchmarks
• Use best practice analysis to refine each model
  pattern representing a process scenario thereby
  identifying versions that represent different
  levels of supply chain maturity
• Map process elements within scenario model
  patterns to other model standards representing
  the underlying process interaction protocols
• Deliver SCOR information in semantic model format
  through standard protocol that can be supported
  by commercial tools.

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Added to Ensure Reuse

• Develop and deliver a training package on how to
  apply and reuse process scenario patterns within
  an extended supply chain
• Extend SCOR methodology to incorporate additional
  strategic planning methodologies which
  effectively drive analysis and selection reusable
  process scenarios
• Pilot process scenario patterns within an
  extended supply chain

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Follow up After Workshop

• Take action plan to SCORboard for support
• Draft/Review/Complete RFQ after the workshop
• Promote within Practitioner companies
• Set final scope
• Distribute at large
• Commit and plan

• The SCORboard supports face-to-face engagement to
  flesh out process scenarios on which to focus.
• We will hold two SCC RSC Workshops dedicated to
  the research agenda and completion of RFQ
• One in Europe, one in US timing ASAP
• Coordinate with Technical Dev. and Academic groups