02. Definitions of Dimensions

Dean Strausl: 02. Definitions of Dimensions

Dean Strausl — Fri, 19 May 2006 22:46:33 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

h2. Supply Chain Business Objectives & Metrics

The Business piece of this is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.

Objectives may change over time depending on the business cycle and should be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Theoretically, risk is a function of impact multiplied by probability. However, risk also has a heavy component of perception, emotion, and trust. For example, people may perceive air travel to be more risk than road travel, while the opposite is mathematically correct.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Dean Strausl: 02. Definitions of Dimensions

Dean Strausl — Fri, 19 May 2006 22:45:47 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

~~h2. Supply~~ h2.Supply Chain Business Objectives & Metrics

The Business piece of this is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.

Objectives may change over time depending on the business cycle and should be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Dean Strausl: 02. Definitions of Dimensions

Dean Strausl — Fri, 19 May 2006 22:45:13 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

h2.~~h2.Supply~~ Supply Chain Business Objectives & Metrics

The Business piece of this is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.

Objectives may change over time depending on the business cycle and should be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Dean Strausl: 02. Definitions of Dimensions

Dean Strausl — Fri, 19 May 2006 22:44:00 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

~~h2.~~~~Supply~~ h2.Supply Chain Business Objectives & Metrics

The Business piece of this is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.

Objectives may change over time depending on the business cycle and should be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Dean Strausl: 02. Definitions of Dimensions

Dean Strausl — Fri, 19 May 2006 21:22:03 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

~~h2.Supply~~

Business and Supply Chain Business Objectives & Metrics

The Business piece of this is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.

Objectives may change over time depending on the business cycle and should be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Paul Fox: 02. Definitions of Dimensions

Paul Fox — Tue, 02 May 2006 20:17:27 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

Business and Supply Chain Objectives & Metrics

~~The Business piece of this~~ This is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

~~The Supply Chain side are the activities that support the business objectives and in the early progression steps are largely stand alone as are the metrics that measure them.~~

Objectives may change over time depending on the business cycle and ~~should~~ shuld be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Paul Fox: 2. Definitions of Dimensions

Paul Fox — Fri, 28 Apr 2006 17:50:31 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

Business and Supply Chain Objectives & Metrics

This is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

Objectives may change over time depending on the business cycle and shuld be periodically reviewed.

Related concepts:

Balanced Scorecard
Holistic financial objectives, i.e. supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic/Relevant, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Quality
Inventory (excess or obsolete)
Capacity
Assurance of Supply
Intelectual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
Regulatory, e.g. SOX, RoHS, WEEE

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

Risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration
Financial controls
Holding inventory where cost of capital is lowest

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

Another important concept is that of the role of the Expert and wether that role should lie with the Owner or the Provider.

Related concepts:

Definition of accounatbility and roles
Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We need a a suitable organization and well prepared people to support good processes.

Related Concepts:

Leadership
Organizational design & structure, e.g what happens if you make transport and trade part of purchasing?
Definition of roles & accountability
Training & Development
Skills and competencies
Collaboration skills
Cross functional teams
Culture both organizational and national (e.g. different approach in Japan)
Culture of continuous improvement.

Information & Data Management

These are the tools that support the processes and people. IT must be designed based on knowledge of process and people.

Good data integfrity is the foundation of good planning and collaboration.

This dimension has been divided into these categories:

Applications (including their integration)
Communications (e.g. EDI, XML, Rosettanet, flat-file)
Data Management & Data integrity policies.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we continuously improve.
Examples of closed loop na d double loop learning.

Paul Fox: 2. Definitions of Dimensions

Paul Fox — Fri, 28 Apr 2006 17:26:50 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

Business and Supply Chain Business Objectives & Metrics

This is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

~~Objectives may change over time depending on the business cycle and shuld be periodically reviewed.~~

Related concepts:

Balanced Scorecard
Holistic financial ~~objectives, i.e. supply~~ objectives—supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, ~~Realistic/Relevant,~~ Realistic, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
~~Quality~~
~~Inventory (excess or obsolete)~~Inventory
Capacity
~~Assurance of Supply~~
~~Intelectual~~ Intelelctual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)
~~Regulatory, e.g.~~ ~~SOX, RoHS,~~ ~~WEEE~~

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

~~Risk~~ As a rule, risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Collaboration is dependend on Trust which is highly relalted to perceived risk. e.g. do I belive that you have the capacity you say you have? Trust is earned and can be supported by monitoring tools, but excessive monitoring and supervision can destroy trust. Moreover, if every participant in the supplychain was entirely “honest” about their status and capacity at each point in time, the supply chain would grind to a halt due to fear. Therefore there must be an allowance for flexible reporting.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
~~Collaboration~~Collaboration & Trust
Financial controls
~~Holding inventory where cost of capital is lowest~~

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

This relates specifically to the processes for managing outsourced relationships.

Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!

~~Another~~ Anothe important concept is that of the role of the Expert ~~and wether that role should lie with~~ vs the Owner ~~or the~~ and Provider.

Related concepts:

~~Definition of accounatbility and roles~~

Reserve, Release Replenish and other operational processes

Remarks:

Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We ~~need a~~ cannot support good processes without a suitable organization and well prepared ~~people to support good processes.~~people.

~~Leadership~~
Organizational ~~design & structure, e.g what happens if you make transport and trade part of purchasing?~~design.
Definition of ~~roles & accountability~~roles.
Training & Development
~~Skills and competencies~~
~~Collaboration skills~~
~~Cross functional teams~~
Culture both ~~organizational~~ organisational and national (e.g. different approach in Japan)
~~Culture of continuous improvement.~~

Information & Data Management

These are the tools that support the processes and ~~people.~~ people.

Related Concepts:

Data integrity policies.
Applications.
Tools.
Data exchange formats.

Remarks:

IT must be designed based on knowledge of process and people.

~~Good data integfrity is the foundation of good planning and collaboration.~~
~~This dimension has been divided into these categories:~~
- ~~Applications (including their integration)~~
- ~~Communications (e.g.~~ ~~EDI, XML, Rosettanet, flat-file)~~
- ~~Data Management & Data integrity policies.~~
Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.
Related Concepts
- At any particular time, and organization may use tools or philosophies such as six sigma or lean
- Quarterly business reviews
- Supplier reviewsNot only continuous improvement but also step-change improement
- Also continuously improve how we ~~continuously~~ contriniously improve.
- ~~Examples of closed loop na d double loop learning.~~

Remarks:

Might be useful to break this out to give additional focus.

Paul Fox: 2. Definitions of Dimensions

Paul Fox — Fri, 28 Apr 2006 00:25:24 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

Supply Chain Business Objectives & Metrics

This is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

Related concepts:

Balanced Scorecard
Holistic financial objectives—supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

Risks may fall into the following categories:

Revenue
Inventory
Capacity
Intelelctual Property
Timeliness (e.g the impact of a late order leading to poor service or a cancellation)
Utilization (e.g. the risk of unused fab capacity or empty trucks)
Information risk (the risk that information is incorrect, falsified, corrupted or lost)

Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).

As a rule, risk should be managed and bourne by the party best able to manage it.

Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration & Trust
Financial controls

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

This relates specifically to the processes for managing outsourced relationships.

~~Collaboration is the iterative planning process towards joint agreement on action, the mutal examination of results, interpretation and correction. – this could be a better definition!~~

~~Anothe important concept is that of the role of the Expert vs the Owner and Provider.~~

Related concepts:

Reserve, Release Replenish and other operational processes

Remarks:

Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We cannot support good processes without a suitable organization and well prepared people.

Related Concepts:

Organizational design.
Definition of roles.
Training & Development
Culture both organisational and national (e.g. different approach in Japan)

Information & Data Management

These are the tools that support the processes and people.

Related Concepts:

Data integrity policies.
Applications.
Tools.
Data exchange formats.

Remarks:

IT must be designed based on knowledge of process and people.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we contriniously improve.

Remarks:

Might be useful to break this out to give additional focus.

Paul Fox: 2. Definitions of Dimensions

Paul Fox — Tue, 25 Apr 2006 19:32:34 +0000

Overview

The Dimensions are:

Supply Chain Business Objectives & Metrics
Risk Management & Contractual Relations
Processes & Controls
People & Organization
Information & Data Management
Continuous Improvement in Supply Chain Relationships

Each of these dimensions is highly related. Concepts are grouped under the dimensions based on the logical flow from high-level business objectives down to tactical decisions.

Supply Chain Business Objectives & Metrics

This is what each business wants. Some might be more concerned about missing revenue opportunities due to stock outs, others about minimizing inventories to maximize ROI/ROA.

Related concepts:

Balanced Scorecard
Holistic financial objectives—supply chain-wide costs & benefits
S.M.A.R.T Objectives = Specific, Measurable, Agreed, Realistic, Time-related

Risk Management / Contractual Relations

This is how we define the relationship with a partner to meet each others’ objectives and manage risks to achieving the objectives.

~~Risks may fall into the following categories:~~

~~Revenue~~
~~Inventory~~
~~Capacity~~
~~Intelelctual Property~~
~~Timeliness (e.g the impact of a late order leading to poor service or a cancellation)~~
~~Utilization (e.g. the risk of unused fab capacity or empty trucks)~~
~~Information risk (the risk that information is incorrect, falsified, corrupted or lost)~~

~~Flexibility and inventory policies are means of handling certain kinds of risk (e.g. the risk on missed revenue) that may result in another risk for a partner (e.g. excess inventory write-offs).~~

~~As a rule, risk should be managed and bourne by the party best able to manage it.~~

~~Contractual terms are the key tool used to establish the mechanisms for control of risk.However, process, systems and metrics are needed to support the management of risk.~~

Related Concepts:

Flexibility, lead-time & inventory policies
Risk sharing
Contract templates
Collaboration & Trust
Financial controls

Remarks:

This is where a lot of the important concepts come into play.

Processes & Controls

This is how we operationalize the above two dimensions both in delivering the objectives and managing the risks.

This relates specifically to the processes for managing outsourced relationships.

Related concepts:

Reserve, Release Replenish and other operational processes

Remarks:

Overlaps with SCOR at tactical level.
We have processes within functions, e.g. procurement, logistics, reverse logistics
We have key processes that are cross-functional for most organizations

People, Organization & Culture

We cannot support good processes without a suitable organization and well prepared people.

Related Concepts:

Organizational design.
Definition of roles.
Training & Development
Culture both organisational and national (e.g. different approach in Japan)

Information & Data Management

These are the tools that support the processes and people.

Related Concepts:

Data integrity policies.
Applications.
Tools.
Data exchange formats.

Remarks:

IT must be designed based on knowledge of process and people.

Continuous Improvement in Supply Chain And Relationships

This is where we strive to continually improve performance in each of the above dimensions. We explicitly create double loop learning.

Related Concepts

At any particular time, and organization may use tools or philosophies such as six sigma or lean
Quarterly business reviews
Supplier reviewsNot only continuous improvement but also step-change improement
Also continuously improve how we contriniously improve.

Remarks:

Might be useful to break this out to give additional focus.