Supply Chain Process Performance Standards

 

 

SUGGESTED MINIMUM PROCESS STANDARD

TYPICAL BEST-PRACTICE PROCESS

2.0 SOURCE

2.1 STRATEGIC SOURCING

2.1.1

Cost Analysis

• Quality and price are considered the key components of cost, but other variables, such as lead-time variability, assured source of supply, etc., are also considered

• Analysis of price includes logistics costs, including inventory-carrying costs

• Analysis of total supply chain optimizes total cost of acquisition across all related processes

• Full analysis of total cost impact of supplier in all cost reduction initiatives, including: unit cost, quantity breakpoints, lead time, and lead-time variability

• Consideration of cost impact of supplier services, e.g., consignment, ...

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