Supply Chain Health Check

This assessment interrogates the following supply chain elements:

• Core processes and effectiveness of same – are they sufficiently integrated?
• Structure/organisation – both current and proposed
• Systems – both manual and automated.
• Costs/Performance – internal evaluation and external benchmarking. How do you compare?
• Policies/Procedures – both oral and written. Are they being adhered to?
• Working Capital exposures – what are the root causes?
• Stock inaccuracies and stock outs – are there regular cycle counts?
• ERP and planning effectiveness – online and off-line reports
• Communications and culture – what impact on overall performance?
• Overall risks and exposure – can they be quantified?

What typically can optimised supply chains deliver to enhance shareholder value?

We initially deploy our Supply Chain Healthcheck tool which is a proprietary system for performing an independent review of the current state of your Supply Chain supported by a series of process maps.

The assessment will involve gathering information through interviews and analysing of data provided by the Supply Chain, Finance, Business Units and other relevant functions. Interviews will be conducted with key managers/staff in the supply chain and supporting functions.

Information sought will relate to the overall strategy of the business and future plans; how the supply chain functions and how it has evolved. Managers will also be asked their opinions on the desired level of supply chain performance and recommendations for improvement.

Having compiled the necessary data and observations, a gap analysis will be prepared highlighting differences between actual performance and the desired state.

Approach

The assessment is a holistic systems approach to analysing your SCM processes and systems. It is a process reference model which integrates the well-known concepts of business process reengineering, supply chain cost drivers, benchmarking and process measurement into a cross-functional supply chain portfolio of recommendations and a roadmap.

The main areas to be examined include:

• Operations, planning and control systems
• Demand interpretation/execution
• People and structure
• Supply chain organisation and capability
• Application of systems as they effect the supply chain
• Metrics for above

Methodology