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Supply Chain Process Overview Guide

The document outlines various infrastructure processes related to supply chain management, including the establishment of new materials and sources, vendor contract management, and inventory management. Each process is defined with specific tasks, performance attributes, and best practices to enhance efficiency. Additionally, it details the procurement and delivery of materials tailored to customer specifications, emphasizing the importance of vendor relationships and technological integration.

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tsoh
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0% found this document useful (0 votes)
2 views14 pages

Supply Chain Process Overview Guide

The document outlines various infrastructure processes related to supply chain management, including the establishment of new materials and sources, vendor contract management, and inventory management. Each process is defined with specific tasks, performance attributes, and best practices to enhance efficiency. Additionally, it details the procurement and delivery of materials tailored to customer specifications, emphasizing the importance of vendor relationships and technological integration.

Uploaded by

tsoh
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Process Category Name: Establish New Material Process Number: S0.

1
Infrastructure Process Definition
The establishment of a new item that must be procured. This includes all of the tasks and activities
associated with establishing the item within the system, processing RFQ, selecting a vendor and creating a
contract. The requirements for these items are either established by the product development process or
engineering changes to existing products.

Process Category Name: Establish New Source Process Number: S0.2


Infrastructure Process Definition
The establishment of a new vendor. This includes all of the tasks and activities associated with identifying
and qualifying a new vendor and finalizing on the sourcing terms and conditions.

Process Category Name: Manage Vendor Contracts Process Number: S0.3


Infrastructure Process Definition
The management of existing purchase orders or vendor contracts. This includes managing volume/step
pricing, resolving issues, enforcing terms and conditions and maintaining an accurate status for existing
purchase orders or contracts.

© Copyright Supply-Chain Council 1 SCOR version 3.0


19535 September 21, 1998
Process Category Name: Maintain Source Planning and Execution Data Process Number: S0.4
Infrastructure Process Definition
The day-to-day maintenance of all planning and execution data required to support the sourcing process.

Process Category Name: Manage Incoming Freight Process Number: S0.5


Infrastructure Process Definition
The inbound logistics management of all vendor deliveries. This includes carrier selection, tracking
deliveries and import.

Process Category Name: Manage Vendor Certification Process Number: S0.6


Infrastructure Process Definition
The management of a vendor certification process which includes certifying new vendors and maintaining
the current certification status of existing vendors.

Process Category Name: Manage Sourcing Business Rules Process Number: S0.7
Infrastructure Process Definition

Process Category Name: Authorize Vendor Payment Process Number: S0.8


Infrastructure Process Definition
The process of authorizing payments and paying vendors for material or services. This process includes
invoice collection, invoice matching and the issuance of checks.

Process Category Name: Determine Emerging Supplier Technologies Process Number: S0.9
Infrastructure Process Definition
The identification of emerging vendor technologies and this integration of this information into the product
development process.

Process Category Name: Manage Material Inventory Process Number: S0.10


Infrastructure Process Definition
The management of existing physical inventories and inventory information. This includes warehouse
management, cycle counting, physical inventories and inventory reconciliation.

© Copyright Supply-Chain Council 2 SCOR version 3.0


19535 September 21, 1998
Process Category: Source Purchased Materials Process Number: S1
Process Category Definition
The procurement, delivery, receipt and transfer of raw material items, and subassemblies.
Performance Attributes Metric

Cycle Time Total Source Lead Time

Cost Material Acquisition Costs

Service/Quality Percent defective

Assets Inventory DOS

Best Practices Software Features Required


Joint Service Agreements None Identified

© Copyright Supply-Chain Council 3 SCOR version 3.0


19535 September 21, 1998
Process Element: Schedule Material Deliveries Process Number: S1.1
Process Element Definition
Scheduling and managing the execution of the individual deliveries of material against an existing contract
or purchase order. The requirements for material releases are determined based on the detailed sourcing
plan or other types of material pull signals.
Performance Attributes Metric

Cycle Time Total Source Lead Time

% of EDI Transactions

Cost Materials Management as a % of Materials Acquisitions


Costs

Service/Quality % defective

Assets Raw Material Days of Supply (DOS)

Best Practices Software Features Required


Utilize EDI transactions to reduce cycle time EDI interface for 830, 850, 856 & 862 transactions
and costs

VMI agreements allow suppliers to manage Vendor managed inventories with scheduling interfaces
(replenish) inventory to external vendor systems

Mechanical (Kanban) pull signals are used to Electronic Kanban support


notify suppliers of the need to deliver material

Consignment agreements are used to reduce Consignment inventory management


assets and cycle time while increasing the
availability of critical items

Advanced ship notices allow for tight Blanket order support with scheduling interfaces to
synchronization between source and make external vendor systems
processes

© Copyright Supply-Chain Council 4 SCOR version 3.0


19535 September 21, 1998
Process Element: Receive & Verify Materials Process Number: S1.2
Process Element Definition
The receipt and acceptance of material deliveries. This includes all of the activities associated with
receiving, verifying and accepting material deliveries.
Performance Attributes Metric

Cycle Time Source Cycle Time

Cost Receiving costs as a % of Material Acquisition Costs

Service/Quality Supplier On Time Delivery Performance/ % defective

Assets None identified

Best Practices Software Features Required


Supplier certification programs are used to Skip lot/sampling inspection logic
reduce (skip lot) or eliminate receiving
inspection

Bar coding is used to minimize handling time Bar code interface for data collection devices
and maximize data accuracy
Generate bar coded receiving documents

Deliveries are balanced throughout each None identified


working day and throughout the week

Supplier delivers directly to None identified


point of use

Process Element: Transfer Material Process Number: S1.3


Process Element Definition
The transfer of accepted material to the appropriate stocking location within the supply chain. This includes
all of the activities associated with repackaging, staging, transferring and stocking material.
Performance Attributes Metric

Cycle Time None Identified

Cost Receiving & material storage costs as a % of Material


Acquisition Costs

Service/Quality None Identified

Assets None Identified

Best Practices Software Features Required


Drive deliveries directly to stock or point-of-use Pay on receipt
in manufacturing to reduce costs and cycle
time Specify delivery location and time (to the minute)

Specify delivery sequence

© Copyright Supply-Chain Council 5 SCOR version 3.0


19535 September 21, 1998
Process Category: Source Make to Order Materials Process Number: S2
Process Category Definition
The procurement and deliver of materials that are built to a specific design or configured based on the
requirements of a particular customer order.
Performance Attributes Metric

Cycle Time Total Source Lead Time

Cost Material Acquisition Costs

Service/Quality None

Assets Inventory DOS

Best Practices Software Features Required


Joint Service Agreements None Identified

Automated Statistical Process Control (SPC) None Identified

© Copyright Supply-Chain Council 6 SCOR version 3.0


19535 September 21, 1998
Process Element: Schedule Material Deliveries Process Number: S2.1
Process Element Definition
Scheduling and managing the execution of the individual deliveries of material against the contract. The
requirements for material deliveries are determined based on the detailed sourcing plan. This includes all
aspects of managing the contract schedule including prototypes and qualifications.
Performance Attributes Metric

Cycle Time Total Source Lead Time

% of EDI Transactions

Cost Materials Management as a % of Materials Acquisitions


Costs

Service/Quality None

Assets Raw Material Days of Supply (DOS)

Best Practices Software Features Required


Utilize EDI transactions to reduce cycle time EDI interface for 830, 850, 856 & 862 transactions
and costs

VMI agreements allow suppliers to manage Vendor managed inventories with scheduling interfaces
(replenish) inventory to external vendor systems

Mechanical (Kanban) pull signals are used to Electronic Kanban support


notify suppliers of the need to deliver material

Consignment agreements are used to reduce Consignment inventory management


assets and cycle time while increasing the
availability of critical items

Advanced ship notices allow for tight Blanket order support with scheduling interfaces to
synchronization between source and make external vendor systems
processes

© Copyright Supply-Chain Council 7 SCOR version 3.0


19535 September 21, 1998
Process Element: Receive & Verify Materials Process Number: S2.2
Process Element Definition
The receipt and acceptance of material deliveries against the contract requirements. This includes all of
the activities associated with receiving, qualifying, verifying, and accepting material deliveries.
Performance Attributes Metric

Cycle Time Source Cycle Time

Cost Receiving costs as a % of Material Acquisition Costs

Service/Quality Supplier On Time Delivery Performance/ % defective

Assets None Identified

Best Practices Software Features Required


Supplier certification programs are used to Skip lot/sampling inspection logic
reduce (skip lot) or eliminate receiving
inspection

Bar coding is used to minimize handling time Bar code interface for data collection devices
and maximize data accuracy
Generate bar coded receiving documents

Deliveries are balanced throughout each None Identified


working day and throughout the week

Supplier delivers directly to None Identified


point of use

Process Element: Transfer Material Process Number: S2.3


Process Element Definition
The transfer of accepted material to the appropriate stocking location within the supply chain. This includes
all of the activities associated with repackaging, staging, transferring, and stocking material.
Performance Attributes Metric

Cycle Time None identified

Cost Receiving & material storage costs as a % of Material


Acquisition Costs

Service/Quality None identified

Assets None identified

Best Practices Software Features Required


Drive deliveries directly to stock or point-of-use Pay on receipt
in manufacturing to reduce costs and cycle
time Specify delivery location and time (to the minute)

Specify delivery sequence

© Copyright Supply-Chain Council 8 SCOR version 3.0


19535 September 21, 1998
Process Category: Source Engineer to Order Materials Process Number: S3
Process Category Definition
The negotiation, procurement and delivery of engineer-to-order assemblies that are designed and built
based on the requirements or specifications of a particular customer order or contract.
Performance Attributes Metric

Cycle Time Total Source Lead Time

Cost Material Acquisition Costs

Service/Quality % defective

Assets Inventory DOS

Best Practices Software Features Required


Joint Service Agreements None Identified

© Copyright Supply-Chain Council 9 SCOR version 3.0


19535 September 21, 1998
Process Element: Identify Sources of Supply Process Number: S3.1
Process Element Definition
The identification of potential suppliers capable of designing and delivering material that will meet all of the
required product specifications.
Performance Attributes Metric

Cycle Time Total Source Lead Time

Purchased Material by Geography

Cost Material Process Engineering as a % of Material


Acquisition Costs

Service/Quality None Identified

Assets None Identified

Best Practices Software Features Required


Product Data Management & Electronic None Identified
Document Management are used to manage
technical documents and requirements for
engineer to order materials

Electronic data interchange is used to send None Identified


technical information to and from potential
suppliers

On line RFQ processes linked into the None Identified


document management process reduces cycle
time and material management costs

Concurrent engineering is used to tightly link None Identified


sourcing into the product development process

Supplier development programs are used to None Identified


get local suppliers to invest in developing new
technologies

© Copyright Supply-Chain Council 10 SCOR version 3.0


19535 September 21, 1998
Process Element: Select Final Supplier(s) and Negotiate Process Number: S3.2
Process Element Definition
The identification of the final supplier(s) based on the evaluation of RFQ’s, supplier qualifications and the
generation of a contract defining the costs and terms and conditions of material availability.
Performance Attributes Metric

Cycle Time Total Source Lead Time

Cost Materials Management as a % of Materials Acquisitions


Costs

Service/Quality None Identified

Assets Raw Material Days of Supply (DOS)

Best Practices Software Features Required


Electronic data interchange is used to send None Identified
RFQ’s and technical information to and from
potential suppliers

On line RFQ processes linked into the None Identified


document management process reduces cycle
time and material management costs

Supplier certification programs can reduce the None Identified


cycle time for certifying existing suppliers to
provide new technologies

Utilize concurrent engineering with suppliers to None Identified


allow them to provide engineering and product
performance test data

On line document management and automated None Identified


vendor approval processes can reduce the
cycle time and costs associated with managing
supplier evaluations

© Copyright Supply-Chain Council 11 SCOR version 3.0


19535 September 21, 1998
Process Element: Schedule Material Deliveries Process Number: S3.3
Process Element Definition
Scheduling and managing the execution of the individual deliveries of material against the contract. The
requirements for material deliveries are determined based on the detailed sourcing plan. This includes all
aspects of managing the contract schedule including prototypes and qualifications.
Performance Attributes Metric

Cycle Time Total Source Lead Time

% of EDI Transactions

Cost Materials Management as a % of Materials Acquisitions


Costs

Service/Quality None Identified

Assets Raw Material Days of Supply (DOS)

Best Practices Software Features Required


Utilize EDI transactions to reduce cycle time EDI interface for 830, 850, 856 & 862 transactions
and costs

VMI agreements allow suppliers to manage Vendor managed inventories with scheduling interfaces
(replenish) inventory to external vendor systems

Mechanical (Kanban) pull signals are used to Electronic Kanban support


notify suppliers of the need to deliver material

Consignment agreements are used to reduce Consignment inventory management


assets and cycle time while increasing the
availability of critical items

Advanced ship notices allow for tight Blanket order support with scheduling interfaces to
synchronization between source and make external vendor systems
processes

© Copyright Supply-Chain Council 12 SCOR version 3.0


19535 September 21, 1998
Process Element: Receive & Verify Materials Process Number: S3.4
Process Element Definition
The receipt and acceptance of material deliveries against the contract requirements. This includes all of
the activities associated with receiving, qualifying, verifying, and accepting material deliveries.
Performance Attributes Metric

Cycle Time Source Cycle Time

Cost Receiving costs as a % of Material Acquisition Costs

Service/Quality Supplier On Time Delivery Performance / % defective

Assets None Identified

Best Practices Software Features Required


Supplier certification programs are used to Skip lot/sampling inspection logic
reduce (skip lot) or eliminate receiving
inspection

Bar coding is used to minimize handling time Bar code interface for data collection devices
and maximize data accuracy
Generate bar coded receiving documents

Deliveries are balanced throughout each None Identified


working day and throughout the week

Supplier delivers directly to None Identified


point of use

© Copyright Supply-Chain Council 13 SCOR version 3.0


19535 September 21, 1998
Process Element: Transfer Material Process Number: S3.5
Process Element Definition
The transfer of accepted material to the appropriate stocking location within the supply chain. This includes
all of the activities associated with repackaging, staging, transferring, and stocking material.
Performance Attributes Metric

Cycle Time None Identified

Cost Receiving & material storage costs as a % of Material


Acquisition Costs

Service/Quality None Identified

Assets None Identified

Best Practices Software Features Required


Utilize EDI transactions to reduce cycle time EDI interface for 830, 850, 856, & 862 transactions
and costs

Drive deliveries directly to stock or point-of-use Pay on receipt


in manufacturing to reduce costs and cycle
time Specify delivery location and time (to the minute)

Specify delivery sequence

© Copyright Supply-Chain Council 14 SCOR version 3.0


19535 September 21, 1998

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