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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

ActivityDeliverableInputs
1. Meetings with Senior Leadership TeamReceive feedback from key stakeholders to identify SCM process capability/maturityFace to Face Interviews
2. Physical Plant Assessment / ObservationDetailed overview of SCM operationsStaff resources familiar with the overall SCM process
3. Review of P&L and Balance SheetIdentification of Supply Chain Costs as input to key SCM MetricsYTD management A/Cs & Year on Year comparisons
4. 1 on 1 meetings with key SCM StaffDetailed feedback on areas of highest exposure and opportunities for improvement within the Supply ChainStaff availability
5. Complete Process Mapping of Current StateDefinition of both information and physical flow of SCM activities with relevant metricsAccess to all key contributors/stakeholders
6. Benchmark key MetricsBenchmark against key industry metricsCompany metrics
7. Review Service Level AgreementsOverview of performance to expectation re: main SLAsAll current SLAs
8. Develop Cost ModelCosting of SCM activities based on output of process mappingProcess map and detailed cost elements
9. Map the Desired Supply Chain ModelProposed future state map – process, structure, systems, organisationAll inputs to date
10. Complete Gap AnalysisIdentify gaps and disconnectsAll inputs to date
11. Present SCM Healthcheck highlighting gaps, and recommendations.Validate and agree findingsSenior Leadership Team
12. Publish Supply Chain Healthcheck Report.Fully costed supply chain modelHealthcheck findings and gap analysisBenchmark resultsPortfolio of recommendationsProposed SCM Future State and strategic direction.All of above

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