7Managing the Supply Chain

Purpose

To build and manage an adaptable Supply Chain and organizational capability that plans, integrates, and shapes the Supply Planning and Execution processes. The Supply Chain will deliver customer value, optimal performance aligned to the Strategic Plan, and sustainable competitive advantage.

Positioning

Process maturity improves over time through education, committed leadership, expert guidance, and a focused effort to attain key business milestones.

After embarking on the path to improvement, Internal and External Supply capabilities, including logistics and distribution, are routinely at a minimum of 95 percent performance. A Class A Planning and Control Milestone has been secured, positioning the business at the top of Phase 1 of Business Maturity (see Foundation, Figure I.1). Advanced Planning Systems are being deployed to provide selected Network Planning in the Supply Chain.

From this Class A Milestone vantage point, we introduce this next level of maturity in the seventh edition of The Oliver Wight Class A Standard for Business Excellence.

The scope for Supply Chain Management is two Nodes forward, for example, customer and consumer, and two Nodes back, supplier and supplier's supplier, including all internal processing and physical activities. Planning and Execution are integrated and optimized across adjacent Nodes of the Supply Chain, so plans and performance are optimized not just within each Node. Please note a Node is also referred ...

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