A vocabulary which represents the Supply Chain Operations Reference (SCOR) standard.
SCORVoc
University of Bonn
Rheinische Friedrich-Wilhelms-Universität Bonn
ODC Public Domain Dedication and Licence (PDDL) 1.0
A natural, acquired, learned or developed ability to perform a certain kind of work at a
Aptitude
Describes the level or state of qualification to perform a certain role or tasks
Competency
the knowledge or ability acquired by observation or active participation.
Experience
The capacity to deliver pre-determined results with minimal input of time and energy
Skill
Develops a skill or type of behavior through instruction
Training
A practice is a unique way to configure a process or a set of processes
Practice
A process is a unique activity performed to meet predefined outcomes
Process
Best practices are 'current', 'structured' and 'repeatable' practices that have had a proved and positive impact on supply chain performance
Best Practice
Introduce new technology, knowledge or radically different ways of organizing processes
Emerging Practice
How a wide range of companies have historically done business by default or happenstance
Standard Practice
Describes the planning activities associated with operating a supply chain. This includes gathering customer requirements, collecting information on available resources, and balancing requirements and resources to determine planned capabilities and resource gaps. This is followed by identifying the actions required to correct any gaps.
Plan
Order, deliver, receipt and transfer of raw material items, subassemblies, product and/or services
Source
Adds value to products through mixing, separating, forming, machining, and chemical processes
Make
Performs customer-facing order management and order fulfillment activities
Deliver
Moves material from a customer back through the supply chain to address defects in product, ordering, or manufacturing, or to perform upkeep activities
Return
Establishing, maintaining and monitoring information, relationships, resources, assets, business rules, compliance and contracts required to operate the supply chain
Enable
The development and establishment of courses of action over specified time periods that represent a projected appropriation of supply chain resources to meet supply chain requirements for the longest time fence constraints of supply resources
Plan Supply Chain
The development and establishment of courses of action over specified time periods that represent a projected appropriation of material resources to meet supply chain requirements
Plan Source
The development and establishment of courses of action over specified time periods that represent a projected appropriation of production resources to meet production requirements
Plan Make
The development and establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements
Plan Deliver
establish and adjust courses of action or tasks over specified time periods that represent a projected appropriation of return resources and assets to meet anticipated as well as unanticipated return requirements
Plan Return
The process of ordering, receiving and transferring raw material items, sub-assemblies, product and or services based on aggregated demand requirements.
Source Stocked Product
The processes of ordering and receiving product or material that is ordered (and may be configured) only when required by a specific customer order.
Source Make-to-Order Product
The processes of identifying and selecting sources of supply, negotiating, validating, scheduling, ordering and receiving parts, assemblies or specialized products or services that are designed, ordered and/or built based on the requirements or specifications of a specific customer order.
Source Engineer-to-Order Product
The process of manufacturing in a make-to-stock environment adds value to products through mixing, separating, forming, machining, and chemical processes.
Make-to-Stock
The process of manufacturing in a make-to-order environment adds value to products through mixing, separating, forming, machining, and chemical processes for a specific customer order.
Make-to-Order
The process of developing, designing, validating, and ultimately using a manufacturing process to produce products or services based on the requirements of a specific customer.
Engineer-to-Order
Delivers product that is sourced or made based on aggregated customer orders, projected orders/demand and inventory re-ordering parameters
Deliver Stocked Product
Delivers product that is sourced, configured, manufactured, and/or assembled from standard raw materials, parts, ingredients or sub-assemblies, in response to a specific firm customer order
Deliver Make-to-Order Product
Obtaining, responding to, and allocating resources for a customer order that has unique requirements or specifications and delivering a product that is partially or fully designed, redesigned, manufactured, and/or assembled from a bill of materials or recipe that includes one or more custom parts or ingredients
Deliver Engineer-to-Order Product
To acquire, merchandise, and sell finished goods at a retail store
Deliver Retail Product
The receipt and disposition determination of defective products as defined by the warranty claims, product recall, non-conforming product and/or other similar policies including appropriate replacement
Deliver Return Defective Product
The receipt of Maintenance, Repair and Overhaul (MRO) products or company assets for the purpose of servicing, repairing or upgrading it, as defined by Maintenance Plans or the occurrence or anticipation of risk of failure
Deliver Return MRO Product
The receipt of excess or aging inventory or obsolete products as defined by the terms and conditions of a customer/supplier contract
Deliver Return Excess Product
The return of Maintenance, Repair and Overhaul (MRO) products or company assets for the purpose of servicing, repairing or upgrading it, as defined by Maintenance Plans or the occurrence or anticipation of risk of failure
Source Return MRO Product
The return and disposition determination of defective products as defined by the warranty claims, product recall, non-conforming product and/or other similar policies including appropriate replacement
Source Return Defective Product
The return of excess or aging inventory or obsolete products as defined by the terms and conditions of a customer/supplier contract
Source Return Excess Product
Establishing, documenting, communicating and publishing supply chain business rules
Manage Supply Chain Business Rules
Reporting performance, identifying gaps in performance, performing root cause analysis, and developing and launching corrective actions to close gaps in performance
Manage Performance
Collecting, maintaining and publishing data and information required to plan, operate, measure and manage the supply chain
Manage Data and Information
Developing, governing and maintaining an organization of permanent, temporary and outsourced staff, with the right qualifications, in support of the business objects and supply chain goals
Manage Supply Chain Human Resources
Scheduling, maintaining and dispositioning of supply chain assets that operate supply chain processes
Manage Supply Chain Assets
The management and communication of contractual agreements in support of business objectives and supply chain goals
Manage Supply Chain Contracts
Developing, governing and maintaining a network of supply chain assets
Manage Supply Chain Networks
Identifying, collecting, assessing and integrating regulatory compliance requirements in standard supply chain processes, policies and business rules
Manage Regulatory Compliance
Identification and assessment of potential disruptions (risks) in the supply chain and developing a plan to mitigate these threats to operating the supply chain
Manage Supply Chain Risk
Steps are all level 3 processe to be executed to accomplish a level 2 process.
Step
Plan Steps .
Plan Step
Source Return Steps to be exectued for a Source Return level 2 process.
Source Return Step
Source Steps to be exectued for a Source level 2 process.
Source Step
Make Steps to be exectued for a Make level 2 process.
Make Step
Enable Steps to be exectued for a Enable level 2 process.
Enable Step
Deliver Steps to be exectued for a Deliver level 2 process.
Deliver Step
Steps to be exectued for a Plan Supply Chain process.
Plan Supply Chain Step
Steps to be exectued for a Plan Source process.
Plan Source Step
Steps to be exectued for a Plan Make process.
Plan Make Step
Steps to be exectued for a Plan Deliver process.
Plan Deliver Step
Steps to be exectued for a Plan Return process.
Plan Return Step
Steps to be exectued for a Source Return Defective Product process.
Source Return Defective Product Step
Steps to be exectued for a Source Return MRO Product process.
Source Return MRO Product Step
Steps to be exectued for a Deliver Return Defective Product process.
Deliver Return Defective Product Step
Steps to be exectued for a Deliver Return Excess Product process.
Deliver Return Excess Product Step
Deliver Return MRO Product Step
Steps to be exectued for a Source Stocked Product process.
Source Stocked Product Step
Steps to be exectued for a Make to Stock process.
Make to Stock Step
Steps to be exectued for a Make to Order process.
Make to Order Step
Steps to be exectued for a Make to Engineer process.
Make to Engineer Step
Steps to be exectued for a Manage SC Business Rules process.
Manage Supply Chain Business Rules Step
Steps to be exectued for a Manage SC Performance process.
Manage Supply Chain Performance Step
Steps to be exectued for a Manage SC Data and Information process.
Manage Supply Chain Data and Information Step
Steps to be exectued for a Manage SC Human Resource process.
Manage Supply Chain Human Resources Step
Steps to be exectued for a Manage SC Assets process.
Manage Supply Chain Assets Step
Steps to be exectued for a Manage SC Contracts process.
Manage Supply Chain Contracts Step
Steps to be exectued for a Manage SC Network process.
Manage Supply Chain Network Step
Steps to be exectued for a Manage SC Regulatory Compliance process.
Manage Supply Chain Regulatory Compliance Step
Steps to be exectued for a Manage SC Risk process.
Manage Supply Chain Risk Step
Steps to be exectued for a Deliver Stocked Product process.
Deliver Stocked Product Step
Steps to be exectued for a Deliver Make to Order Product process.
Deliver Make to Order Product Step
Steps to be exectued for a Deliver Engineer to Order Product process.
Deliver Engineer to Order Product Step
Steps to be exectued for a Deliver Retail Product process.
Deliver Retail Product Step
The process of identifying, aggregating, and prioritizing, all sources of demand for the integrated supply chain of a product or service at the appropriate level, horizon and interval.
Identify, Prioritize Aggregate Supply Chain Requirements
The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon and interval.
Identify, Prioritize Aggregate Supply Chain Resources
The process of identifying and measuring the gaps and imbalances between demand and resources in order to determine how to best resolve the variances through marketing, pricing, packaging, warehousing, outsource plans or some other action that will optimize service, flexibility, costs, assets, (or other supply chain inconsistencies) in an iterative and collaborative environment.
Balance Supply Chain Resources with SC Requirements
The establishment and communication of courses of action over the appropriate time-defined (long-term, annual, monthly, weekly) planning horizon and interval, representing a projected appropriation of supply-chain resources to meet supply chain requirements.
Establish and Communicate Supply Chain Plans
The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand for a product or service in the supply chain.
Identify, Prioritize and Aggregate Product Requirements
The process of identifying, evaluating, and considering, as a whole with constituent parts, all material and other resources used to add value in the supply chain for a product or services.
Identify, Assess and Aggregate Product Resources
The process of developing a time-phased course of action that commits resources to meet requirements.
Balance Product Resources with Product Requirements
The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet sourcing plan requirements.
Establish Sourcing Plans
The process of identifying, prioritizing, and considering as a whole with constituent parts, all sources of demand in the creation of a product or service.
Identify, Prioritize and Aggregate Production Requirements
The process of identifying, evaluating, and considering, as a whole with constituent parts, all things that add value in the creation of a product or performance of a service.
Identify, Assess and Aggregate Production Resources
The process of developing a time-phased course of action that commits creation and operation resources to meet creation and operation requirements.
Balance Production Resources with Production Requirements
The establishment of courses of action over specified time periods that represent a projected appropriation of supply resources to meet production and operating plan requirements.
Establish Production Plans
The process of identifying, prioritizing, and considering, as a whole with constituent parts, all sources of demand in the delivery of a product or service.
Identify, Prioritize and Aggregate Delivery Requirements
The process of identifying, evaluating, and considering, as a whole with constituent parts, all things that add value in the delivery of a product or service.
Identify, Assess and Aggregate Delivery Resources
The process of developing a time-phased course of action that commits delivery resources to meet delivery requirements.
Balance Delivery Resources and Capabilities with Delivery Requirements
The establishment of courses of action over specified time periods that represent a projected appropriation of delivery resources to meet delivery requirements.
Establish Delivery Plans
The process of identifying, evaluating, and considering, as a whole with constituent parts, all sources of demand for the return of a product.
Assess and Aggregate Return Requirements
The process of identifying, evaluating, and consideration for all resources that add value to, execute, or constrain the processes for the return of a product..
Identify, Assess and Aggregate Return Resources
The process of developing courses of action that make feasible the commitment the appropriate return resources and or assets to satisfy return requirements.
Balance Return Resources with Return Requirements
The establishment and communication of courses of action over specified time periods that represent a projected appropriation of required return resources and or assets to meet return process requirements.
Establish and Communicate Return Plans
Scheduling and managing the execution of the individual deliveries of product against an existing contract or purchase order.
Schedule Product Deliveries (Source Stocked Product)
The process and associated activities of receiving product to contract requirements.
Receive Product (Source Stocked Product)
Verify Product (Source Stocked Product)
The transfer of accepted product to the appropriate stocking location within the supply chain.
Transfer Product (Source Stocked Product)
The process of authorizing payments and paying suppliers for product or services.
Authorize Supplier Payment (Source Stocked Product)
Scheduling and managing the execution of the individual deliveries of product against the contract.
Schedule Product Deliveries (Source Make To Order Product)
Receive Product (Source Make To Order Product)
The process and actions required determining product conformance to requirements and criteria.
Verify Product (Source Make To Order Product)
Transfer Product (Source Make To Order Product)
Supplier Payment (Source Make To Order Product)
The identification and qualification of potential suppliers capable of designing and delivering product that will meet all of the required product specifications.
Identify Sources of Supply
The identification of the final supplier(s) based on the evaluation of RFQs, supplier qualifications and the generation of a contract defining the costs and terms and conditions of product availability.
Select Final Supplier and Negotiate
Schedule Product Deliveries (Source Engineer To Order Product)
Receive Product (Source Engineer To Order Product)
Verify Product (Source Engineer To Order Product)
Transfer Product (Source Engineer To Order Product)
The process of authorizing payments and paying suppliers for product or services. This process includes invoice collection, invoice matching and the issuance of checks.
Authorize Supplier Payment (Source Engineer To Order Product)
Given plans for the production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans.
Schedule Production Activities (Make To Stock)
The selection and physical movement of sourced/in-process product (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location.
Issue Material
The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value.
Produce and Test (Make To Stock)
The series of activities that containerize completed products for storage or sale to end-users.
Package (Make To Stock)
The movement of packaged products into a temporary holding location to await movement to a finished goods location.
Stage Product
Activities associated with post-production documentation, stable, or certification required prior to delivery of finished product to customer.
Release Product to Deliver (Make To Stock)
Activities associated with collecting and managing waste produced during the produce and test process including scrap material and non-conforming product.
Waste Disposal (Make To Stock)
Given plans for the production of specific parts, products, or formulations in specific quantities and planned availability of required sourced products, the scheduling of the operations to be preformed in accordance with these plans.
Schedule Production Activities (Make To Order)
The selection and physical movement of sourced/in-process products (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location.
Issue Sourced In-Process Product (Make To Order)
Produce and Test (Make to Order)
Package (Make To Order)
Stage Finished Product (Make To Order)
Release Finished Product to Deliver
Waste Disposal (Make To Order)
Engineering activities required after acceptance of order, but before product can be produced. May include generation and delivery of final drawings, specifications, formulas, part programs, etc.
Finalize Production Engineering
Given plans for the production of specific parts, products, or formulations in specified quantities and planned availability of required sourced products, the scheduling of the operations to be performed in accordance with these plans
Schedule Production Activities (Engineer To Order)
The selection and physical movement of sourced/in-process products (e.g., raw materials, fabricated components, subassemblies, required ingredients or intermediate formulations) from a stocking location (e.g., stockroom, a location on the production floor, a supplier) to a specific point of use location
Issue Sourced In-Process Product (Engineer To Order)
The series of activities performed upon sourced/in-process product to convert it from the raw or semi-finished state to a state of completion and greater value
Produce and Test (Engineer to Order)
Package (Engineer To Order)
Stage Finished Product (Engineer To Order)
Release Product to Deliver (Engineer To Order)
Waste Disposal (Engineer To Order)
Receive and respond to general customer inquiries and requests for quotes.
Process Inquiry and Quote (Deliver Stocked Product)
Receive orders from the customer and enter them into a company's order processing system.
Receive, Enter, and Validate Order
Inventory (both on hand and scheduled) is identified and reserved for specific orders and a delivery date is committed and scheduled.
Reserve Inventory and Determine Delivery Date (Deliver Stocked Product)
The process of analyzing orders to determine the groupings that result in least cost/best service fulfillment and transportation.
Consolidate Orders (Deliver Stocked Product)
Transportation modes are selected and efficient loads are built.
Build Loads (Deliver Stocked Product)
Loads are consolidated and routed by mode, lane and location.
Route Shipments (Deliver Stocked Product)
Specific carriers are selected by lowest cost per route and shipments are rated and tendered.
Select Carriers and Rate Shipments (Deliver Stocked Product)
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own warehouses.
Receive Product from Source or Make (Deliver Stocked Product)
The series of activities including retrieving orders to pick, determining inventory availability, building the pick wave, picking the product, recording the pick and delivering product to shipping in response to an order.
Pick Product (Deliver Stocked Product)
The activities such as sorting / combining the products, packing / kitting the products, paste labels, barcodes etc. and delivering the products to the shipping area for loading.
Pack Product (Deliver Stocked Product)
The series of tasks including placing/loading product onto modes of transportation, and generating the documentation necessary to meet internal, customer, carrier and government needs.
Load Vehicle and Generate Shipping Documents
The process of shipping the product to the customer site.
Ship Product (Deliver Stocked Product)
The process of receiving the shipment by the customer (either at customer site or at shipping area in case of self-collection) and verifying that the order was shipped complete and that the product meets delivery terms.
Receive and verify Product by Customer (Deliver Stocked Product)
the process of preparing, stable and installing the product at the customer site. The product is fully functional upon completion.
Install Product (Deliver Stocked Product)
A signal is sent to the financial organization that the order has been shipped and that the billing process should begin and payment be received or be closed out if payment has already been received.
Invoice (Deliver Stocked Product)
Process Inquiry and Quote (Deliver Make To Order Product)
Receive, Configure, Enter and Validate Order
Inventory and/or planned capacity is identified and reserved for specific orders, and a delivery date is committed and scheduled.
Reserve Inventory and Determine Delivery Date (Deliver Make To Order Product)
Consolidate Orders (Deliver Make To Order Product)
Build Loads (Deliver Make To Order Product)
Loads are consolidated and routed by mode, lane, and location.
Route Shipments (Deliver Make To Order Product)
Select Carriers and Rate Shipments (Deliver Make To Order Product)
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location for goods received from either Make or Source.
Receive Product from Source or Make (Deliver Make To Order Product)
The series of activities including retrieving orders to pick, verifying inventory availability, building the pick wave, picking the product, recording the pick and delivering product to packing area in response to an order.
Pick Product (Deliver Make To Order Product)
Pack Product (Make To Order Product)
Load Product Generate Shipping Docs
Ship Product (Deliver Make To Order Product)
The process of receiving the shipment at the customer (either at customer site or at shipping area in case of self-collection) and verifying that the order was shipped complete and that the product meets delivery terms.
Receive and verify Product by Customer (Deliver Make To Order Product)
the process of preparing, stable and installing the product at the customer site.
Install Product (Deliver Make To Order Product)
Invoice (Deliver Make To Order Product)
The process of receiving a request for proposal or request for quote, evaluating the request (estimating the schedule, developing costs estimates, establishing price), and responding to the potential customer.
Obtain and Respond to RFP-RFQ
The process of negotiating order details with customer (e.g., price, schedule, product performance) and finalizing the contract.
Negotiate and Receive Contract
The process of entering/finalizing the customers order, approving the planned resources (e.g., engineering, manufacturing, etc.) and officially launching the program.
Enter Order, Commit Resources Launch Program
The process of evaluating the design and build schedules relative to customer requested installation date to determine installation schedule.
Schedule Installation
Build Loads (Deliver Engineer To Order Product)
Route Shipments (Deliver Engineer To Order Product)
Select Carriers Rate Shipments
Receive Product from Source or Make (Deliver Engineer To Order Product)
Pick Product (Deliver Engineer To Order Product)
Pack Product (Deliver Engineer To Order Product)
Load Product and Generate Shipping Docs
Ship Product
The process of receiving the shipment (either at customer site or at shipping area in case of self-collection) and verifying that the order was shipped complete and that the product meets delivery terms.
Receive and verify Product by Customer (Deliver Engineer To Order Product)
The process of preparing, stable and installing the product at the customer site. The product is fully functional upon completion.
Install Product (Deliver Engineer To Order Product)
Invoice (Deliver Engineer To Order Product)
The process of scheduling resources to support item-stocking requirements.
Generate Stocking Schedule
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting away and recording location that a company performs at its own stores.
Receive Product at Store
The process of retrieving restocking orders to pick, determining inventory availability, building a pick wave, picking item and quantity from a designated backroom warehouse location, recording the resulting inventory transaction, and delivering the product to point of stock.
Pick Product from backroom
For restocks, the tasks associated with identifying the item location, stocking the shelf according to merchandise plans, and recording the appropriate inventory transaction.
Stock Shelf
Typical set of tasks associated with product selection, storage and movement through to checkout.
Fill Shopping Cart
The processes and tasks associated with product checkout including scanning, method of payment, credit application and approval, service agreement, order confirmation, and/or invoice or receipt.
Checkout
The process of preparing and installing the product at the customer site. The product is fully functional upon completion.
Deliver and/or install
The process where the customer utilizes planned policies, business rules and product operating conditions inspection as criteria to identify and confirm that material is excess to requirements defective.
Identify Defective Product Condition
The process of the customer determining whether to return the defective item and the appropriate source contact for a return authorization.
Disposition Defective Product
The process of a customer requesting and obtaining authorization, from last known holder or designated return center, for the return of defective product. Additionally, the customer and last known holder or designated return center would discuss enabling conditions such as return replacement or credit, packaging, handling, transportation and import / export requirements to facilitate the efficient return of the defective product.
Request Defective Product Return Authorization
The process where the customer develops the schedule for a carrier to pick-up for delivery of the defective product. Activities include selecting the carrier and rates, preparing the item for transfer, preparing scheduling documentation and managing overall scheduling administration.
Schedule Defective Product Shipment
The process where the customer packages, and handles the defective product in preparation for shipping in accord with pre-determined conditions. The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the last known holder or designated return center.
Return Defective Product
The process where the last known holder or designated return center receives a defective product return authorization request from a customer, determines if the item can be accepted and communicates decision to the customer. Accepting the request would include negotiating the conditions of the return with the customer, including authorizing return replacement or credit. Rejecting the request would include providing a reason for the rejection to the customer.
Authorize Defective Product Return
The process where the last known holder or designated return center evaluates the defective product handling requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the product. The scheduling activity would also inform Receiving when to expect the shipment and where to send the product, for disposition, upon receipt.
Schedule Defective Return Receipt
The process where the last known holder or designated return center receives and verifies the returned defective product against the return authorization and other documentation and prepares the item for transfer.
Receive Defective Product
The process where the last known holder or designated return center transfers the defective product to the appropriate process to implement the disposition decision.
Transfer Defective Product
The process where the customer utilizes pre-determined MRO policies, business rules and product operating conditions as criteria to identify and confirm that an item requires maintenance, repair, overhaul or disposal. Includes operating failures and planned maintenance requirements.
Identify MRO Product Condition
The process of the customer determining whether to service the item, what service is required, and who the appropriate service provider would be to service the item. Outputs include a decision to: (1) send a return authorization request to a service provider, (2) send the product back into service without requiring a return authorization request, or (3) discard the item.
Disposition MRO Product
The process of a customer requesting and obtaining authorization, from a service provider, for the return of an MRO product. In addition to discussing the MRO issue, the customer and service provider would discuss enabling conditions such as return replacement or credit, packaging, handling, transportation and import / export requirements to facilitate the efficient return of the MRO product to the service provider. The customer may need to go through several return authorization iterations with multiple service providers before authorization is received.
Request MRO Return Authorization
The process where the customer develops the schedule for a carrier to pick-up and deliver the MRO product. Activities include selecting the carrier and rates, preparing the item for transfer, preparing scheduling documentation and managing overall scheduling administration.
Schedule MRO Shipment
The process where the customer packages, and handles the MRO product in preparation for shipping in accord with pre-determined conditions. The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the service provider.
Return MRO Shipment
The process where a service provider receives an MRO product return authorization request from a customer, determines if the item can be accepted for MRO and communicates their decision to the customer. Accepting the request would include negotiating the conditions of the return with the customer, including authorizing return replacement or credit. Rejecting the request would include providing a reason for the rejection to the customer.
Authorize MRO Product Return
The process where the service provider evaluates the MRO service requirements including negotiated conditions and develops a schedule that tells the Customer when to ship the part. The scheduling activity would also inform Receiving when to expect the shipment and where to send the part, for induction or storage, upon receipt.
Schedule MRO Return Receipt
The process where the service provider receives and verifies the returned MRO item against the return authorization and other documentation and prepares the item for transfer.
Receive MRO Product
The process where the service provider transfers the MRO product to the appropriate process to implement the disposition decision.
Transfer MRO Product
The process where the customer utilizes planned policies, business rules and product inspection as criteria to identify and confirm that material is in excess of the current requirements.
Identify Excess Product Condition
The process of the customer determining whether to return the excess material and identification of a designated return center a return authorization.
Disposition Excess Product
The process of a customer requesting and obtaining authorization, from the designated return center, for the return of excess product. Additionally, the customer and designated return center would negotiate enabling conditions such as return credit or cash discount, packaging, handling, transportation and import / export requirements to facilitate the efficient return of the excess product.
Request Excess Product Return Authorization
The process where the customer develops the schedule for a carrier to pick-up the excess product. Activities include selecting the carrier and rates, preparing the item for transfer, preparing scheduling documentation and managing overall scheduling administration.
Schedule Excess Product Shipment
The process where the customer packages, and handles the excess product in preparation for shipping in accord with pre-determined conditions. The product is then provided by the customer to the carrier who physically transports the product and its associated documentation to the last known holder or designated return center.
Return Excess Product
The process where the designated return center receives an excess product return authorization request from a customer, determines if the item can be accepted and communicates their decision to the customer. Accepting the request would include negotiating the conditions of the return with the customer, including authorizing credit or cash discount. Rejecting the request would include providing a reason for the rejection to the customer.
Authorize Excess Product Return
The process where the l designated return center evaluates an authorized excess material return toolsdetermine packaging and handling requirements. This assessment will lead to the development of a return disposition decision and a return schedule with terms and conditions that will tell the Customer how and when to ship the product. The scheduling activity would also inform the Return Center?s Receiving department when to expect the shipment and where to send the product, for disposition, upon receipt.
Schedule Excess Return Receipt
The process where the designated return center receives and verifies the returned excess product and associated documentation against the return authorization and other documentation and prepares the item for transfer. Administrate any discrepancies that arise.
Receive Excess Product
The process where the designated return center transfers the excess product to the appropriate process to implement the disposition decision.
Transfer Excess Product
The process of collecting, organizing, prioritizing and scheduling policies and directives requiring new supply chain business rules, changes to business rules or discontinuation of business rules. This may include scheduling and assigning activities to responsible individuals, groups or organizations.
Gather Business Rule Requirements
The process of determining how the policy or directive impacts supply chain processes, technology and business rules. This includes reviewing existing business rules and determining the need to add, change or delete business rules. The outcome is one or more of the following: (1) Request to Add a Business Rule (2) Request to Change a Business Rule (3) Request to Delete or Archive a Business Rule. The purpose of this step is to identify the type of activities required and routing the request if required.
Interpret Business Rule Requirement
The process of writing the business rule in the appropriate system of record. This includes adding, editing and deleting policy and process documentation. A business rule includes a directive or policy, scope and effective date. Updates to existing business rules may include discontinuation information. The final activity of Document Business Rule is obtaining formal approval. The output of this process step is a fully documented business rule that is signed off by the responsible function.
Document Business Rules
The process of creating awareness in the relevant organization and/or staff of the upcoming changes. This may include communications, training and education programs. For small or incremental changes a notice maybe sufficient.
Communicate Business Rules
The process of activating the business rule. Business rules release may be time-phased --e.g. Bill of Materials release for newer revisions. This may include activiation of a business rule in a software algorithm and starting to use a new or updated standard operating procedure. For large impact business rule changes this may include updating external websites, formal announcements, etc.
Release and Publish Business Rule
The process of de-activating the business rule. Business rules retirement may be time-phased --e.g. Bill of Materials replaced by newer revisions. This may include archiving the business rule in the associated software to avoid users from inadvertently using it or in order to comply to regulatory requirements or policies.
Retire Business Rule
The process of scheduling, running reports, collecting and aggregating perfomance data. This includes running standard (pre-defined) reports as well as adhoc reporting. Ad hoc reporting includes developing a data collection plan and organizing data collection through: (1) Inspections (2) Measurement (e.g. stopwatch to measure duration of activities) (3) Sampling (4) Self assessements (e.g. Baldridge Self Assessment). Note: Today reports may be delivered (pushed) to the user by electronic media. This process step represents the delivery of reports to the user in such scenarios.
Initiate Reporting
The process of reviewing the reported performance. This includes comparing actual performance and trends to targets set for each metric. Identify metrics that require root cause analysis and notification/scheduling of process owners or 'root cause analysis' resources.
Analyze Reports
The process of analyzing the gaps in performance. Example root cause finding methods and techniques include: (1) Adding commentary to reported data (2) Metrics decomposition using diagnostic relationships of (SCOR) metrics (3) Time studies, sampling, audits, cycle counting (4) 5-Whys/Cause and Effect analysis (5) Statistical Analysis Techniques: e.g. Histogram, Scatter Plots, ANOVA. All root causes are documented and quantified. Quantification is the calculation or estimation of the relative contribution to the gap in performance.
Find Root Causes
The process of sorting root causes by relative contribution and prioritizing root causes. This includes assigning root causes to resources and scheduling development of corrective actions.
Prioritize Root Causes
The process of identifying, documenting and stable corrective actions to address the root cause in order to close the performance gap. Corrections actions include: (1) Organizational changes (hiring, redeployment) (2) Policy changes (business rules) (3) Process improvements (work instructions, training) (4) Production equipment repairs/calibration (5) Supply chain network reconfiguration (6) Software algorithm changes (e.g. planning or scheduling logic) (7) Technology introduction (new equipment, tools, software). Note: This list of corrective actions is a general characterization for example purposes only. Different root causes may require different corrective actions.
Develope Corrective Actions
The process of obtaining approvals, prioritizing, communicating and launching the corrective actions.
Approve And Launch
The process of receiving, validating and logging the request for information, configuration or system functionality maintenance. Maintenance request types: (1) Add data - creation of new record/document (includes duplicating existing records/documents) (2) Change data - modification of an existing record/document (3) Delete data - deletion of an existing record (includes archiving and unpublishing existing records/documents) (4) Change configuration (includes creating and maintaining user access) (5) Add code - (includes installing software updates and security updates) (6) Change code (modification of software code) (7) Delete code. This process may include assigning a ticket, tracking or order number and routing the request to the appropriate resource.
The activities associated with determining the activities required to perform the requested maintenance. The requestor may be contacted for additinal information. Complex requests may be setup as projects with appropriate work breakdown structure, milestones, acceptance criteria and deliverable schedules. This process may include routing the request to the appropriate resource.
Determine/Scope Work
The process of formatting, entering, loading, editing or deleting the information, software updates and code changes requested. This includes verification of changes as needed (unit and integration stable). Typical changes included are: (1) Data record maintenance (such as bills-of-materials, shipping routes) (2) Configuration (system parameter) changes (such as activating and disabling system functionality) (3) Loading/installing software updates (e.g. code changes from vendors or development groups) (4) Loading/installing security updates. This process is not a placeholder for complex software engineering processes. Such processes would lay outside of the SCOR process framework.
Maintain Content/Code
The process of establishing, changing or removing access rights for users.
Maintain Access
The process of activating the changes to information, configuration and/or code and populating the information to dependent systems, where applicable. For data record maintenance this is the activation of the new data and populating dependent systems with the new data. For example activating a bill-of-materials (BOM) in the system-of-record* and populating the BOM to dependent systems that require a copy of this data. This process may be manual, automated or a combination. *system-of-record = the information storage system, which is the authoritative data source for a given data element or piece of information.
Publish Information
The process of verifying the information is properly recorded in the system of record and populated to dependent systems. This includes verifying information is accessible to users.
Verfy Information
The activities associated with the collection of the required skills to operate (part of) the supply chain. Examples of this process are planning meetings, periodic performance reviews, reorganizations. The data collected should list the required skills and/or number of resources and is generally organized by entity (supply chain node, department, function or a combination of these).
Identify Skills and Resource Requirement
The activities associated with the collection of skills/resources currently available in the supply chain. Generally this information is collected and organized by entity (supply chain node, department, function or a combination of these). Examples of this process include data collection for standard headcount reports, but should include temporary staff and outsourced resources.
Identify available Skills and Resource Requirement
The activities associated with the matching of skills or resource demand with the available skills/ resources. The purpose of this process is to determine which skill/resource requirements (demand) can be met using existing resources, determine which skill/resource requirements are not supported by current available skills/resources (gap) and determine the skills/resources for which no demand exists (excess) For each skill/resource gap or excess, one or more actions need to be identified to close the gap or address the excess: (1) Training/Cross-training (add skills to existing resources) (2) Hiring (add resources with existing skills) (3) Redeployment (moving staff to different organizations or layoff. It is important to consider the lead-time of these actions, scarce skills may have longer leadtimes for example. Hiring includes temporary workers and all types of outsourced staff.
Match Skills/Resources
The activities associated with identification of sources of new hires or sources/destinations for redeployment. The purpose of this process step includes assessing the feasibility of hiring the required skills/resources within the required time period, assessing the feasibility of redeploying the excess employees (resources) and assessing the feasibility and impact of possible layoff of employees. Note: At this stage this is a planning activity. The actual hiring process is not documented in SCOR as this is a Human Resources Management (HR) process. Employee in this context includes temporary workers and employees of service providers.
Determine Hiring/Redeployment
The activities associated with the identification of training and education programs to ensure existing (and newly hired) employees will have the appropriate skills to perform the work allocated to each individual employee. Employee in this definition may include temporary workers and employees of service providers.
Determine Training/Education
The activities associated with obtaining approvals for hiring, redeployment, training and education plans, prioritizing and executing these plans. Additional resources and skills will become available over time, adjusting the labor component of capacity in Plan, Source, Make, Deliver, Return and/or Enable processes.
Approve, Prioritize and Launch
The activities associated with receiving maintenance requests, receiving repair/replacement/installation requests, maintaining preventive/regular maintenance tasks, scheduling individual mainentance tasks and assigning resources to individual maintenance tasks. Scheduling may include incorporating production and delivery plans and schedules and communication of maintenance schedules to production and delivery planning and scheduling processes.
Schedule Assets Management Activities
The activities associated with the preparation of the maintenance tasks. In general terms this mean the asset or equipment needs to be stopped or put into maintenance mode. Safety precautions need to be made to ensure the equipment cannot be restarted during mainentance without active approval of the maintenance operators/engineers. This may include installing safety barriers, transporting the asset/equipment to a location where the maintenance will take place, removing deposits/materials from production equipment (cleaning), unloading transportation equipment and backing up data from the equipment and associated automation systems.
Take Asset Off-line
The activities associated with assessing the overall status of the equipment, performing standard inspection and detailed troublshooting if required. This includes identification of repairs, upgrades and maintenance tasks in order to bring the asset/equipment in optimal or acceptable working condition. This process may be the identification of readiness for installing new hardware or software and preparing (documenting) the steps of decommissioning and dispositioning for equipment/assets installation or de-installation and disposal.
Inspect and Troubleshoot
The activities associated with the installation of new hardware, software or functionality (equipment/ assets). This includes installation and initial stable of the new hardware, software or functionality. The general purpose of installation is to increase capacity or add/improve capabilities. Note: This process step may trigger a separate supply chain (depending on the scale of the installation) building and installing new supply chain assets.
Install and Configure
The activities associated with the cleaning, replacement of parts, reconditioning of the equipment/ asset. (The general purpose of this process step is to bring the equipment/asset back in optimal/ acceptable operating condition). This may include measuring and stable of the equipment. Note: This is a Make process for the function performing the maintenance/repair activities.
Clean, Maintain and Repair
The activities associated with the de-installation and disposal of existing hardware, software or functionality (equipment/assets). This includes physical removal from the original point of use. The general purpose of installation is to replace capacity or remove outdated capabilities.
Decommission and Dispose
The activities associated with the inspection of the maintenance work performed. This may include performing test runs to assess whether new capacity or functionality is meeting expectations. This includes documentation of any inspection data, recording any inspection errors and obtaining approvals. The purpose of Inspect Mainentance is to verify the effectiveness/success of the maintenance activities.
Inspect Maintenance
The activities associated with completion of the maintenance work and preparing the equipment/ asset to be brought 'on-line'. The general purpose of this process step is to make the asset available for 'production' (add to capacity). This includes closing work orders and receiving and approving payment of invoices for work performed by external resources. Upon completion of this process step the asset is expected to be in full working condition.
Reinstate Asset
The activities associated with receiving new contracts or changes to existing contracts. These contract updates may originate in Sales and Support processes (customer contracts) or in Product and Process Design processes (for material supplier or services providers such as transportation services, equipment maintenance services, IT services). This includes validation of contracts against criteria (business rules). A contract needs to include information such as effective date and duration, customer or supplier address and payment terms and may not be in conflict with business rules (and regulatory requirements).
Receive Contract Updates
The activities associated with entering contractual information in document management systems and ERP systems. This includes the 'translation' of contractual language/information into a format that the system can comprehend. A final step in this process is to distribute the contract or updates to an existing contract to the appropriate processes/functions.
Enter and Distribute Contract
The activities associated with activation or de-activation and archiving the contract. This may include updating statuses of information in document management systems or ERP systems. This activity may be triggered and performed by the document management system or ERP system based on parameters entered as part of sE6.2 Enter and Distribute Contract
Activate or Archive Contract
The activities associated with reviewing the performance of contractual parties (both supplier and customer). This includes comparing the contractual service level agreements with the actual service levels. This process may be triggered by a calendar event - such as annual or quarterly quality reviews or actual performance issues identified in daily supply chain processes.
Review Contractual Performance
The activities associated with identifying and prioritization of key performance issues or areas of ongoing process improvement. This includes notifying contractual partners of non-conformance to contractual agreements or agreed service level agreements. This process addresses both the non-compliance issues (severe) as well as areas of continuous improvement (non-severe, common interest).
Identify Performance Issues/Opportunities
The activities associated with identifying ways to address the non-compliance or how to implement performance improvements. For non-compliance this process may have one or a combination of outcomes: (1) Terminate the contract (2) Pay/Collect Penalties (3) Update contract (service levels, quality levels, terms and conditions) (4) Continue as-is (internal process, policy or business rule changes). Litigation or mediation may be considered in this process. Litigation or mediation is not part of supply chain processes.
Identify Resolutions/Improvements
The activities associated with selecting, obtaining approvals and prioritizing the appropriate issue resolution and distributing the resolution to the appropriate processes/functions. Litigation or mediation may be the result of decisions made in this process. Litigation or mediation is not part of supply chain processes.
Select, Prioritize and Distribute Resolutions
The activities associated with determining what part of the supply chain network will be assessed (the scope). Organizations that manage the supply chain network as a project structure will need to establish a project organization. Organization selection includes identification and securing availability of sponsor, stakeholders and data/information providers as well as selecting project team members.
Select Scope and Organization
The activities associated with identification of the objective of the supply chain ('what strategy does the supply chain need to support') and collection of data required to describe (model) the supply chain at the required level. Data collected includes: facilities costs, capacity and locations, transportation cost, capacity and lead times, customer volumes, order frequency and size and customer locations.
Gather Input and Data
The activities associated with the development of scenarios (what-if) in support of different strategies and projections. Scenarios may be developed for different detailed strategies, requirements and potential internal/external changes. Activities include management interview, external transportation and warehousing studies. Initial review of developed scenarios may result in rejection of the scenario or proceeding to simulation.
Develope Scenarios
The activities associated with the development of models and/or simulation models to run 'what-if' scenarios through a validation process. Simulation models may use automation, but conference room pilots or walk-throughs may also serve this purpose. The purpose of simulation is to validat feasibility of each scenario and find possible network/process design flaws. Automated simulation tools may also predict the performance of the new network/processes by simulating the processing of large numbers of orders.
Model/Simulate Scenarios
The activities associated with estimating the effort, risks, results of implementing the scenario. effort includes the estimating the risks and duration and the funding, staffing and skills required for implementing the scenario. Risks includes estimating the impact on the Value-at-Risk for the supply chain. Results includes determining the changes to the performance of the supply chain on all relevant metrics.
Project Impact
The activities associated with recommending and obtaining approvals for proposed supply chain network/configuration changes. This includes reviewing the 'what-if' scenarios and impact/benefit results with key stakeholders. The objective of this process is to identify the optimal solution and present this recommendation to sponsor and stakeholders and obtain approval to develop network change program.
Select and Approve
The activities associated with developing the roadmap for change. This includes identifying the steps (or projects) required to implement changes to facilities, contracted parties, staffing, automation an process. Specific changes are assigned to unique owners. This includes reviewing the specific change/projects with key stakeholders. The objective of this process is to obtain approval to launch change projects.
Develop Change Program
The activities associated with coordinating, starting and monitoring the inidividual change projects. This includes support the establishment of change projects, coordinate launch dates and communicate reporting requirements. Steps may include archiving the supply chain network/ configuration project documentation for future reference and dissolving the project team. Dissolving the project team requires transfer of responsibilities to monitor progress to appropriate organizations.
Launch Change Program
The activities associated with identification regulatory publications, subscribing to publications, receiving and registering publications of relevant regulatory entities (e.g. goverment agencies).
Monitor Regulatory Entities
The activities associated with reading, interpreting and researching policies, laws, rules and regulations. This includes determining if and how these regulatory requirements apply to the supply chain.
Assess Regulatory Publications
The activities associated with identification of past, current and future regulatory requirements that are not or can not be met using existing processes, business rules and policies. This includes notification of deficiency status to impacted organizations.
Identify Regulatory Deficiencies
The activities associated with identification remediation alternatives, selecting and documenting processes, policies and business rules and setting documentation requirements to remediate a deficiency.
Define Remediation
The activities asscoiated with verification of the remediation strategy with controlling entities and/or obtaining a license certifying compliance by the controlling entity.
Verify/Obtain License
The activities asscoiated with approving and implementing changes to processes, policies and business rules. This may include distributing certification documentation to relevant organizations in the supply chain.
Publish Remediation
The process of defining and documenting the objectives and scope (internal and external) for managing risk. This includes developing/maintaining understanding of the internal and external relationships, internal and external factors that influence the supply chain's ability to achieve it's objectives, and defining and maintaining a risk management organization -- stakeholders, governance structure, procedures and schedule
Establish Context
The process of identifying, collecting and documenting all potential risk events that may impact the organization from meeting its goals. This includes identification of sources of risks, identification and discovery of risk events. This process generates a comprehensive list of all risks that may disrupt the supply chain, including information which processes in the supply chain will be directly and indirectly impacted by the occurance of the risk event. A broad classification of risk types includes: (1) Disruptions in demand - e.g. customers going out of business (2) Disruptions in supply - e.g. suppliers going out of business, supplier quality/performance issues (3) Environmental disruptions - e.g. weather, flooding, earthquakes (4) Financial disruptions - e.g. availability of credit, investors (5) Fraud, theft and mismanagement - lack of risk mitigation (6) Labor disruption - e.g. employee strikes, availability of qualified staff (7) Terrorism and cyber attacks. The number of risks within these types may differ by industry.
Identify Risk Events
The process of collecting and documenting for each potential risk the causes, probability and consequences. The standard metric for quantification of risk is Value at Risk (VaR): VaR = Probability of Occurance x Monetary Impact of Occurance This process generates a comprehensive list of the monetary impact for all risks that may disrupt th supply chain. For certain types of risk events probability information may be available through government agencies, insurance companies or research firms. The monetary impact is determined based on the projected monetary impact for each supply chain for each risk event. For example: (1) For a single sourced material the supplier going out of business means the product manufactured using this material can not be produced until a new supplier has been identified, qualified and integrated in the supply chain. The manetary impact would be the loss of the projected revenue for these products during the qualification and integration process of a new supplier. (2) For a dual sourced material one of the two suppliers going out of business means the product manufactured using this material can only be produced for the percentage the remaining supplier may be able to support until a new supplier has been identified, qualified and integrated or until the remaining supplier can support 100% of the project revenue. Different risk events may have different monetary impacts: reduction of revenue vs. increase of cost.
Quantify Risks
The process of prioritizing risk events by VaR and determining for each risk whether mitigation actions are required or the risk is acceptable ('risk of doing business').
Evaluate Risks
The process of determining the actions required to eliminate, reduce or accept and monitor the risks - creating, approving, communicating and launching the 'Risk Mitigation Plan'.
Mitigate Risk
An ordered list of all process steps involved in the Plan Supply Chain process.
An ordered list of all process steps involved in the Plan Source process.
An ordered list of all process steps involved in the Plan Make process.
An ordered list of all process steps involved in the Plan Deliver process.
An ordered list of all process steps involved in the Plan Return process.
An ordered list of all process steps involved in the Source Return Defective Product process.
An ordered list of all process steps involved in the Source Return MRO Product process.
An ordered list of all process steps involved in the Source Return Excess Product process.
An ordered list of all process steps involved in the Deliver Return Defective Product process.
An ordered list of all process steps involved in the Deliver Return MRO Product process.
An ordered list of all process steps involved in the Deliver Return Excess Product process.
An ordered list of all process steps involved in the Source Stocked Product process.
An ordered list of all process steps involved in the Source Make-to-Order process.
An ordered list of all process steps involved in the Source Engineer-to-Order process.
An ordered list of all process steps involved in the Make-to-Stock process.
An ordered list of all process steps involved in the Make-to-Order process.
An ordered list of all process steps involved in the Engineer-to-Order process.
Manage Supply Chain Business Rules Steps
An ordered list of all process steps involved in the Manage Supply Chain Business Rules process.
An ordered list of all process steps involved in the Manage Supply Chain Performance process.
Manage Supply Chain Data and Information Steps
An ordered list of all process steps involved in the Manage Supply Chain Data and Information process.
Manage Supply Chain Human Resources Steps
An ordered list of all process steps involved in the Manage Supply Chain Human Resources process.
An ordered list of all process steps involved in the Manage Supply Chain Assets process.
An ordered list of all process steps involved in the Manage Supply Chain Contracts process.
An ordered list of all process steps involved in the Manage Supply Chain Networks process.
Manage Supply Chain Regulatory Compliance Steps
An ordered list of all process steps involved in the Manage Supply Chain Regulatory Compliance process.
An ordered list of all process steps involved in the Manage Supply Chain Risk process.
An ordered list of all process steps involved in the Deliver Stocked Product process.
An ordered list of all process steps involved in the Deliver Make-to-Order Product process.
An ordered list of all process steps involved in the Deliver Retail Product process.
is Step of
Step which belongs to a specific process
has default steps
A list of default steps for a specific class of processes. A particular instance of the class can override this by using scor:hasSteps.
has Step List
A list of steps for certain processes
An aptitude required for certain skills
has Aptitude
has Experience
An Experience required for certain skills
has Skill
A Skill of a Person
has Training
A Training required to gain a skill
A Meric related to Processes
has Metric
A reliability metric related to Processes
has reliability metric
A responsiveness metric related to Processes
has responsiveness metric
A agility metric related to Processes
has agility metric
A cost metric related to Processes
has cost metric
An asset management efficiency metric related to Processes
has asset management efficiency metric
# of complaints regarding missing environmental documentation
The number of products released without proper environmental documentation as a percent of total products released
# of recordkeeping related NOVs
The number of recordkeeping related regulatory violations received per year
% correct material documentation
The percent of total shipments that include the correct environmental documentation
% Error-freeReturns Shipped
Percentage of Error-free Returns Shipped
% Identified MROProducts ReturnedTo Service
Percentage Identified MROProducts ReturnedTo Service
Item Location Accuracy
Percentage of items delivered at the correct Location
% of Excess Product Returns Delivered Complete to the Designated Return Center
Correct destination, according to the schedule, with the correct part and documentation
% of Faultless Invoices
The number of invoices processed without issues and or errors divided by the total number of invoices. Examples of potential invoice defects are: Change from customer purchase order without proper customer involvement Wrong Customer Information (e.g., name, address, telephone number) Wrong Product Information (e.g., part number, product description) Wrong Price (e.g., discounts not applied) Wrong Quantity or Wrong Terms or Wrong Date
% Of Faultless Installations
Number of Faultless Installations divided by Total Number of Units Installed.
% of MRO returnsdelivered to the correct service provider location
% of MRO returns delivered to the correct service provider location, within schedule, with the correct part and documentation
% of products meeting specified environmental performance requirements
The number of products that meet desired environmental performance specifications as a percent of total products produced
% of products with proper environmental labeling (if required)
The number of products with proper environmental labels in place as a per cent of total products produced
% of suppliers meeting environmental metrics/ criteria
Number of suppliers that completely meet agreement environmental criteria divided by the total number of suppliers used.
% of suppliers with an EMS or ISO 14001 certification
Percent of suppliers used that have a validated Environmental Management System or ISO 14000 certification
% Orders/ Lines Processed Complete
The number of orders / lines that are processed complete divided by the total orders / lines processed within the measurement period
% Orders/ Lines Received Defect Free
The number of orders / lines that are received defect free divided by the total orders / lines processed in the measurement period.
% Orders/ Lines Received On-Time To Demand Requirement
The number of orders / lines that are received on- time to the demand requirements divided by the total orders / lines for the demand requirements in the measurement period
% Orders/ lines received with correct content
Percent of orders or lines received that have the correct material content as specified in the product design specs and supplier agreements.
% Orders/ lines received with correct packaging
Percent of orders or lines received that are packaged correctly with the right type and quantity of packaging material.
% Orders/ Lines Received with Correct Shipping Documents
The number of orders / lines that are received on- time with correct shipping documents divided by the total orders / lines processed in the measurement period
% Orders/lines received damage free
The number of orders / lines that are processed damage free divided by the total orders / Lines processed in the measurement period
% Product Transferred On-Time to Demand Requirement
The number of product orders / lines that are transferred on-time to demand requirements divided by the total orders / lines transferred in the measurement period
% Product Transferred without Transaction Errors
The number of transactions processed without error divided by the total transactions processed in the measurement period.
% Schedules Changed within Supplier's Lead Time
The number of schedules that are changed within the suppliers lead-time divided by the total number Deliveries of schedules generated within the measurement period
% Shipping Schedules that Support Customer Required Return by Date
Percentage Shipping Schedules that Support Customer Required Return by Date
Compliance Documentation Accuracy
Percentage of compliance documentations are complete, correct, and readily available when and how expected by customer, Government and other supply chain regulatory entities. Compliance documentation includes material safety data sheets.
Customer Commit Date Achievement Time
Percentage of orders which is received on time as defined by the custome
Delivery Item Accuracy
Percentage of orders in which all items ordered are the items actually provided, and no extra items are provided
Delivery Location Accuracy
Percentage of orders which is delivered to the correct location and customer entity
Delivery Quantity Accuracy
Percentage of orders in which all quantities received by the customer match the order quantities (within mutually agreed tolerances)
Fill Rate
The percentage of ship-from-stock orders shipped within 24 hours of order receipt. For services, this metric is the proportion for services that are filled so that the service is completed within 24 hours
Forecast Accuracy
Forecast accuracy is calculated for products and/or families for markets/distribution channels, in unit measurement. Common calculation (Sum Actuals - Sum of Variance) / Sum Actuals to determine percentage error. *monitoring the delta of Forecast Accuracy over measured time periods can determine success rates.
# of occurrences of incorrect designated return center
Number of occurrences of incorrect designated return center
# occurrences where excessive inventory is returned and followed
Number of occurrences where excessive inventory is returned and followed
Orders Delivered Damage Free Conformance
Percentage of orders which is delivered without damage.
Orders Delivered Defect Free Conformance
Percentage of orders which is delivered without defect
Other Required Documentation Accuracy
Percentage of other required documentations (besides of compliance documentation, payment documentation and shipping documentation) are complete, correct, and readily available when and how expected by customer, Government and other supply chain regulatory entities. This kind of documentations includes quality certification
Payment Documentation Accuracy
Percentage of payment documentations are complete, correct, and readily available when and how expected by customer, Government and other supply chain regulatory entities. Payment documentations includes invoice, contractual outline agreement
Return Shipments on Time
Percentage of return shipments on Time
Schedule Achievement
The percentage of time that a plant achieves its production schedule. This calculation is based on the number of scheduled end-items or total volume for a specific period. Note: over-shipments do not make up for under-shipments.
Shipping Documentation Accuracy
Percentage of shipping documentations are complete, correct, and readily available when and how expected by customer, Government and other supply chain regulatory entities. Shipping documentations includes packing slips (customers), bill of lading (carriers) and government or customs documentation/forms
Warranty and Returns
Warranty costs include materials, labor and problem diagnosis for product defects.
Warranty Costs
Waste Processing Errors
Number of errors in waste transactions as percent of total waste transactions
Yield
The ratio of usable output from a process to its input.
Yield Availability
The condition that occurs when the output of a process is not consistently repeatable either in quantity, quality, or combination of these.
Assess Delivery Performance Cycle Time
The average time associated with assessing the performance of deliver processes.
Assess Supplier Performance Cycle Time
Asset Turns
Total gross product revenue / Total net assets.
Authorize Defective Product Return Cycle Time
The average time associated with authorizing the return of defective product.
Authorize Excess Product Return Cycle Time
The average time associated with authorizing the turn of excess product.
Authorize MRO Product Return Cycle Time
The average time associated with authorizing the turn of MRO product.
Authorize Supplier Payment Cycle Time
The average time associated with authorizing payment to suppliers.
Average Days per Engineering Change
# of days each engineering change impacts the delivery date divided by the total # of changes.
Average Days per Schedule Change
# of days each schedule change impacts the delivery date divided by the total # of changes.
Average Release Cycle of Changes
Cycle time for implementing change notices divided by total number of changes.
Balance Product Resources with Product Requirements Cycle Time
The average time associated with balancing the product resources and product requirements.
Balance Production Resources with Product Requirements Cycle Time
The average time associated with identifying, prioritizing, and aggregating product requirements.
Balance Return Resources with Return Requirements Cycle Time
The average time associated with balancing return resources and return requirements.
The average time associated with balancing supply chain resources and supply chain requirements requirements.
Build Loads Cycle Time
The average time associated with building shipment loads.
Checkout Cycle Time
The average time required for customer checkout.
Consolidate Orders Cycle Time
The average time required for customer order consolidation.
Current customer return order cycle time
Current return order cycle time, including customer return order processing cycle time, transit time, return processing and disposition cycle time, etc.
Current logistics order cycle time
Current logistics order cycle time, including customer order processing cycle time, dock-to-stock cycle time, pick-to-ship cycle, transit time, etc.
Current manufacturing order cycle time
Current manufacturing cycle time
Current supplier return order cycle time
Current supplier return cycle time, including supplier return order processing cycle time, pick-to-shop time, transit time etc.
Deliver and/or Install Cycle Time
The average time required to deliver and install product.
Enter Order, Commmit Resources and Launch Program Cycle Time
The average time associated with entering an order, committing resources and program launch.
Establish and Communicate Return Plans Cycle Time
Establish Delivery Plans Cycle Time
The average time associated with establish and communicating deliver plans
Establish Production Plans Cycle Time
The average time associated with establish and communicating production plans
Establish Sourcing Plans Cycle Time
The average time associated with establishing and communicating source plans
Establish Supply Chain Plans Cycle Time
Five point annual average of the sum of all gross inventories (raw materials and WIP, plant FG, field FG, fiels samples, other) / (COGS / 365). Total gross value of iventory at standard cost before reservers for excess and obsolescence. Only includes inventory on company books, future liabilities should not be included
Fill Shopping Cart Cycle Time
The average time associated with 'filling the shopping cart'.
Finalize Production Engineering Cycle Time
The average time associated with the finalization of production engineering.
Generate Stocking Schedule Cycle Time
The average time associated with the generation of the stocking schedlule.
Identify Sources and Supply Cycle Time
The average time associated with the generation of the stocking schedule.
Identify, Assess and Aggregate Production
The average time associated with the identifying, prioritizing and aggregating of product requirements.
Identify, Assess and Aggregate Delivery Resources Cycle Time
The average time associated with the identifying, prioritizing and aggregating delivery resource availability.
Identify, Assess and Aggregate Product Resources Cycle Time
The average time associated with the identifying, prioritizing and aggregating product resource availability.
Identify, Assess and Aggregate Supply Chain Cycle Time
The average time associated with the identifying, prioritizing and aggregating supply chain resource availibity.
Identify, Assess and Aggregate Delivery Requirements Cycle Time
The average time associated with the identifying, prioritizing and aggregating delivery requirements availibity.
Identify, Assess and Aggregate Product Requirements Cycle Time
The average time associated with the identifying, prioritizing and aggregating product requirements.
Identify, Assess and Aggregate Return Requirements Cycle Time
The average time associated with the identifying, prioritizing and aggregating return requirements.
Identify, Assess and Aggregate Supply Chain Requirements Cycle Time
The average time associated with the identifying, prioritizing and aggregating supply chain requirements.
Install Product Cycle Time
The average time associated with product installation.
In-stock %
Percentage of materials, components, or finished goods that are there when needed.
Invoice Cycle Time
The average time associated with the generation and issuance of an invoice.
Issue Material Cycle Time
The average time associated with the issuance of material to production.
Issue Sourced/In-Process Product Cycle Time
Load and Generate Shipping Documentation Cycle Time
The average time associated with the product loading and the generation of shipping documentation.
Maintain Source Cycle Time
The average time associated with with maintaining source data.
Manage Business Rules for PLAN Processes Cycle Time
The average time associated with managing plan business rules.
Manage Capital Assets Cycle Time
The average time associated with managing capital assets.
Manage Deliver Business Rules Cycle Time
The average time associated with managing deliver business rules.
Manage Deliver Capital Assets Cycle Time
The average time associated with managing deliver capital assets.
Manage Deliver Information Cycle Time
The average time associated with managing deliver information.
Manage Import/Export Requirements Cycle Time
The average time associated with managing import/export requirements.
Manage Integrated Supply Chain Capital Assets Cycle Time
The average time associated with managing integrated supply chain capital assets.
Manage Integrated Supply Chain Inventory Cycle Time
The average time associated with managing integrated supply chain inventory.
Manage Integrated Supply Chain Transportation Cycle Time
The average time associated with managing integrated supply chain transportation.
Manage MAKE Equipment and Facilities Cycle Time
The average time associated with managing production equipment and facilities.
Manage MAKE Information Cycle Time
The average time associated with managing production information.
Manage Performance of Return Cycle Time
The average time associated with managing the performance of return activities.
Manage Performance of Supply Chain Cycle Time
The average time associated with managing the performance of supply chain activities.
Manage PLAN Data Collection Cycle Time
The average time associated with collecting plan data
Manage Planning Configuration Cycle Time
The average time associated with managing the planning of the supply chain configuration
Manage Production Network Cycle Time
The average time associated with managing the production network.
Manage Production Performance Cycle Time
The average time associated with managing the production performance.
Manage Production Rules Cycle Time
The average time associated with managing the production rules.
Manage Return Capital Assets Cycle Time
The average time associated with managing return capital assets.
Manage Return Data Collection Cycle Time
The average time associated with managing the return data collection.
Manage Return Network Configuration Cycle Time
The average time associated with managing the return network configuration.
Manage Return Transportation Cycle Time
The average time associated with managing return transportation.
Manage Sourcing Business Rules Cycle Time
The average time associated with managing of source business rules.
Manage Supplier Agreements Cycle Time
The average time associated with managing of supplier agreements.
Manage Supplier Network Cycle Time
The average time associated with managing of the supplier network.
Manage Transportation (WIP) Cycle Time
The average time associated with managing (WIP) transportation.
Manage Transportation Cycle Time
The average time associated with managing transportation.
Negotiate and Receive Contract Cycle Time
The average time associated with negotiating and receing contract.
Obtain and Respond to Request for Quote (RFQ) / Request for Proposal (RFP) Cycle time
The average time associated with obtaining and responding to RFQs/RFPs.
Order Fulfillment Dwell Time
Any lead time during the order fulfillment process where no activity takes place , which is imposed by customer requirements. Not that this dwell time is different from idle-time or non-value-add lead time, which is cause by inefficiencies in the organizations processes and therefore ultimately under responsibility of the organization. This kind of idle time should not be deducted from Order Fulfillment Cycle Time.
Pack Product Cycle Time
The average time associated with packing a product for shipment.
Pick Product Cycle Time
The average time associated with product pick.
Pick Product from Backroom Cycle Time
The average time associated with product pick from backroom.
Plan Cycle Time
The average time associated with Plan Processes
Plan Source Cycle Time
The average time associated with planning source activities.
Plan Inquiry and Quote Cycle Time
The average time associated with processing inquiries and quotes.
Produce and Test Cycle Time
The average time associated with production and test.
Receive and Verify Product by Customer Cycle Time
The average time associated with receiving and verifying an order at the customer site.
Receive and Verify Product Cycle Time
The average time associated with receiving and verifying an order.
Receive Defective Product Cycle Time
The average time associated with receiving defective product returns from the customer.
Receive Excess Product Cycle Time
The average time associated with receiving excess product returns from the customer.
Receive MRO Product Cycle Time
The average time associated with receiving MRO product returns from the customer.
Receive Product Cycle Time
The average time associated with receiving a product.
Receive Product form Make/Source Cycle Time
The average time associated with receiving a product from Make/Source.
Receive Product at Store Cycle Time
The average time associated with receiving a product at the customer store.
Receive Product from Source or Make Cycle Time
The average time associated with receiving transfer of product to deliver processes from source or make.
Receive, Configure, Enter and Validate Order Cycle Time
The average time associated with receiving and verifying and order at the customer site.
Receive, Enter and Validate Order Cycle Time
The average time associated with receiving, entering and verifying an order at the customer site.
Receiving Product Cycle Time
Total elapsed time from the time the product is received to time it is passed to next process.
Release Finished Product to Deliver Cycle Time
The average time associated with releasing finished product to deliver.
Resever Inventory and Determine Data Cycle Time
The average time associated with reserving inventory and determining a delivery date.
Reserve Resources and Determine Delivery Date Cycle Time
The average time associated with reserving resources and determining delivery date.
Route Shipments Cycle Time
The average time associated with routing shipments.
Schedule Defective Return Receipt Cycle Time
The average time associated with scheduling the receipt of the return of defective product.
Schedule Excess Return Receipt Cycle Time
The average time associated with scheduling the receipt of the return excess product.
Schedule Installation Cycle Time
The average time associated with scheduling the installation of the product.
Schedule MRO Return Receipt Cycle Time
The average time associated with scheduling the receipt of the return MRO product.
Schedule Product Deliveries Cycle Time
The average time associated with scheduling the shipment of the return MRO product.
Schedule Production Activities Cycle Time.
The average time associated with scheudling production activities.
Select Carriers and Rate Shipments Cycle Time
The average time associated with selecting carriers and rating shipments.
Select Supplier and Negotiate Cycle Time
The average time associated with selecting a supplier and negotiating.
Ship Product Cycle Time
The average time associated with shipping the product.
Source Return Cycle Time
The average time associated with Sourcing Return.
Stage Finished Product Cycle Time
The average time associated with staging the finished product.
Stock Shelf Cycle Time
The average time associated with stocking shelves.
Transfer Defective Product Cycle Time
The average time associated transfer until the product is moved to the next process. (Defective)
Transfer Excess Product Cycle Time
The average time associated transfer until the product is moved to the next process. (Excess)
Transfer MRO Product Cycle Time
The average time associated transfer until the product is moved to the next process. (MRO)
Transfer Product Cycle Time
The average time associated transfer until the product is moved to the next process.
Verify Product Cycle Time
The average time associated transfer with verifying raw material products.
Waste accumulation Cycle Time
The time required to collect and properly store production waste.
Package Cycle Time
The average time associated transfer with packaging the product in the Make process.
% of labor used in logistics, not used in direct activity
Percent of labor used in logistics, not used in direct activity
% of labor used in manufacturing, not used in direct activity
Percent of labor used in manufacturing, not used in direct activity
Additional deliver return volume
Additional customer return volume
Additional Delivery volume
Additional delivery volume
Additional source volumes obtained in 30 days
Additional source volume to be determined given ramped up resources
Current Deliver Return Volume
Current Return volume, number of orders returned
Current Delivery Volume
Number of orders shipped
Current Make Volume
Amount of each item which are manufactured
Current Purchase Order Cycle Times
Sum of time to place a purchase order and supplier lead time
Current source return volume
Current return volume, number of orders returned
Current Source Volume
Amount of each item which are purchased
Customer return order cycle time reestablished and sustained in 30 days
Customer return order cycle time reestablished and sustained for increased quantities returned from customer given 30 days, including customer return order processing cycle time, transit time, return processing and disposition cycle time, etc.
Demand sourcing-supplier constraints
Percentage of orders with on time and accurate documentation supporting the order, including packing slips, bills of lading, invoices, etc. [Total number of orders delivered with correct and timely documentation] / [Total number of orders delivered] x 100%.
Planning Labor Cost
The costs associated with the personnel performing the tasks associated with supply and demand planning in support of operating the supply chain.
Planning Automation Cost
The costs associated with automation (software, hardware, maintenance and consumable materials) of supply chain processes.
Planning Property, Plant, and Equipment Cost
The costs associated with the (fixed) assets designated to support supply chain planning processes. PP and E costs include the cost of leases, rents, acquisition, depreciation, maintenance and disposition of land, buildings, and equipment and labor cost and expenses of internal and/or external maintenance and support staff.
Planning GRC and Overhead Cost
The governance, risk management, compliance and overhead costs allocated to supply chain planning processes. This may include cost of supporting organizations, e.g. Human Resources department, Legal department, Quality Department, as well as office supplies and other indirect cost.
Sourcing Labor Cost
The labor costs associated with the personnel performing the ordering, receiving, processing and storing purchased materials.
Sourcing Automation Cost
The costs associated with the automation (software, hardware, maintenance and consumable materials) in support of the acquisition of materials and services.
Sourcing Property, Plant and Equipment Cost
The costs associated with the (fixed) assets designated to support the aquisition of materials, products, merchandise and services. PP and E costs include the cost of leases, rents, acquisition, depreciation, maintenance and disposition of land, buildings, and equipment and labor cost and expenses of internal and/or external maintenance and support staff.
Sourcing GRC, Inventory and Overhead Cost
The governnance, risk management, compliance, inventory and overhead costs allocated to aquisition processes (the ordering, receiving, inspecting, processing and storage of purchased materials, merchandise and services).
Purchased Materials Cost
The total cost of the materials, merchandise and services purchased to produce the final product or for resale. Purchased Materials Cost is reported at purchase price net of any discounts.
Material Transportation Cost
The costs associated with the physical transportation of purchased materials to the location-of-use. Transportation costs include the transportation equipment ownership -- depreciation, equipment insurance, license and registration, financing -- and equipment operating costs (also known as the costs of driving): fuel, electricity, load insurance, maintenance and parking, tolls, and other trip specific costs.
Material Customs, Duties, Taxes and Tariffs Cost
The costs of import/export duties, taxes and tariffs, including the costs of third party services enabling customs, clearance.
Material Risk and Compliance Cost
The costs associated with acquiring purchased materials (and services). Example costs included in Material Risk and Compliance Cost are: (1) Cost of theft, fraud, depreciation and shrinkage of in-transit goods (2) C-TPAT program costs (3) Carbon footprint mandate compliance costs (4) Cost of mitigation of potential risk of supply disruption (5) Cost of compliance to Health, Safety and Environmental legislation
Production (Direct) Labor Cost
The total cost associated with the personnel performing the activities of Make (producing, manufacturing, re-manufacturing, refurbishment, MRO, repair, and/or recycling).
Production Automation Cost
The costs associated with the automation (software, hardware, maintenance and consumable materials) of production processes.
Production Property, Plant, Equipment Cost
The costs associated with the assets designated to support the production, manufacturing, assembly, remanufacturing, refurbishment, repair and overhaul of goods. PP and E costs include the cost of leases, rents, asquisition, depreciation, maintenance, and disposition of land, buildings, and eqipment and labor cost and expenses of internal maintenance and support staff.
Production GRC, Inventory and Overhead Cost
The governance, risk management, compliance, inventory and overhead costs allocated to the production processes (manufacturing, re-manufacturing, refurbishment, repairs, maintenance, and overhaul).
Order Management Labor Cost
The costs associated with the personnel performing the order management tasks of customer order entry, maintenance and scheduling of deliveries.
Order Management Automation Cost
The costs associated with the automation (software, hardware, maintenance and consumable materials) of order management processes.
Order Management Property, Plant and Equipment Cost
The costs associated with the (fixed) assets designated to support order management processes. PP and E costs include the cost of leases, rents, aquisition, depreciation, maintenance and disposition of land, buildings and equipment and labor cost and expenses of internal and/or external maintenance and support staff.
Order Management GRC, Inventory and Overhead Cost
The governance, risk management, compliance, inventory and overhead costs allocated to order management processes (managing customer data, entry, maintenance, scheduling, prioritizion, and expedition of customer orders, invoicing and collections).
Transportation Cost
The costs associated with the physical transportation of goods between supply chain nodes.
Fulfillment Customs, Duties, Taxes and Tariffs Cost
The costs of import/export duties, taxes and tariffs, including the costs of third party services enabling customs, clearance. Internal personnel cost related to customs and duties are reported in the Order Management Labor Cost and should therefore not be reported in the Customs and Duties Cost.
Fulfillment Labor Cost
The costs associated with the personnel performing the order fulfillment tasks of picking, packing and shipping.
Fulfillment Automation Cost
The costs associated with the automation (software, hardware, maintenance and consumable materials) of phyiscal order fulfillment.
Fulfillment Property, Plant and Equipment Cost
The costs associated with the (fixed) assets designated to support fulfillment of customer oders. PP and E costs include the cost of leases, rents, aquisition, depreciation, maintenance and disposition of land, buildings and equipment and labor cost and expenses of internal and/or external maintenance and support staff.
Fulfillment GRC, Inventory and Overhead Cost
The governance, risk management, compliance, inventory and overhead costs allocated to the fulfillment processes to customer orders (phyiscal handling of the product, such as storage, picking, packing and shipping).
Discounts and Refunds Cost
The costs associated with the settlement of a return or defect claim. This may include the net cost of discounts offered for damaged goods, refunding of purchase price for returned goods.
Disposition Cost
Return GRC, Inventory and Overhead Cost
The governance, risk management, compliance, inventory and overhead costs allocated to return processes.
% of material that has a valid
% of the product content that has a supplier take- back program for recycling or reuse.
% of materials that are recyclable/ reusable
% of the product content that is recyclable or reusable
% of packaging/shipping materials reused internally
The percent of scrap from packaging that is immediately reused in the packaging process
% of production materials reused
The percent of scrap from production that is immediately reused in the production process
% of products consisting of previously used components
the weight of recycled material in the product as a percent of total product weight
Average age of Excess Inventory
Average age of Excess Inventory in days
Capacity Utilization
A measure of how intensively a resource is being used to produce a good or service. Some factors that should be considered are internal manufacturing capacity, constraining processes,direct labor availability and key components/ materials availability.
Deliver Return Cycle Time
The average time associated with returns.
Hazardous materials used during production process as a % of all materials
The % of material (by weight) issued for production that is classified as hazardous material
Hazardous waste as % of total waste
The % of waste (by weight) generated from production that is classified as hazardous material
Inventory Days of Supply - Raw Material
Value of raw materials / (COGS / 365) in days.
Inventory Days of Supply - WIP
Total value of Work in Process / (COGS / 365) in days. WIP = Work In Process.
Packaging as % of total material
The % by weight of packaging material to total raw material weight
Rebuild or recycle rate
Number of returned products that are rebuilt or recycled as a percent of the total number of products returned
Recyclable waste as % of total waste
The % of waste (by weight) generated from production that is recyclable.
Return for Recycle Rate
Number of returns that are for recycling or re use as a per cent of the total number of products returned
Return Rate
Weight of products returned divided by the weight of product shipped
Percentage Defencitve Inventory
The value of defective product inventory as a percentage of the value of total inventory (%) Calculation [Total Defective Product Inventory Value] / [Total Inventory Value] x 100%
Percentage Defective Inventory in Disposition
The value of defective product awaiting a disposition decision as a percentage of the value of the total defective product inventory (%) Calculation [Value of Defective Inventory in Disposition Stage] / [Total Inventory Value] x 100%
Percentage Defective Inventory in Return Authorization
The value of defective product awaiting return authorization as a percentage of the total defectiv product inventory value (%) Calculation [Value of Defective Product Inventory in Request Return Authorization Stage] / [Total Defective Product Inventory Value] x 100%
Percentage Defective Inventory in Return Transportation
The value of defective product inventory in transportation as a percentage of total defective product inventory (%) Calculation [Value of Defective Product Inventory in Physical Return and Transportation Stage] / [Total Defective Product Inventory Value] x 100%
Percentage Defective Product Inventory in Scheduling
he value of defective product inventory awaiting scheduling as a percentage of the total defective product inventory value (%) Calculation [Value of Defective Product in Scheduling Stage] / [Total Defective Product Inventory Value] x 100%
Percentage Excess Inventory in Disposition
Inventory Awaiting Return in the disposition decision stage. Calculation [Excess Inventory in Disposition Stage] / [Total Inventory Value] x 100%
Percentage Excess Inventory in Transportation
Excess process in physcial return and transportation stage as a percentage of total excess product inventory (%) Calculation [Value of excess product inventory in physcial return and transportation stage] / [Total excess inventory value] x 100%
Percentage Excess Inventory in Request Return Authorization
Inventory Awaiting Return Authorization (%) Calculation [Value of excess product in request return authorization stage] / [Value of total excess inventory] x 100%
Percentage Excess Inventory in Identification
Inventory awaiting return in the identification stage as a percentage of total excess inventory (%) Calculation [Value of Excess Inventory in Identification Stage] / [Total Inventory Value] x 100%
Percentage Excess Inventory
Percentage Excess Inventory in Scheduling
Percentage of excess inventory awaiting scheduling the return (%) Calculation [Value of Excess Product Inventory in Scheduling Stage] / [Total Excess Product Inventory Value] x 100%
Percentage Unserviceable MRO Inventory in Disposition
The value of unserviceable MRO Inventory in disposition stage as a percentage of total MRO inventory value (%) Calculation [Value of Unserviceable MRO Inventory in Disposition Stage] /[ Total MRO Inventory Value] x 100%
The value of unserviceable MRO inventory in transportation as a percentage of the total MRO inventory value (%) Calculation [Value of Unserviceable MRO Inventory in Physical Return and Transportation Stage] / [Total MRO Inventory Value] x 100%
Percentage Unserviceable MRO Inventory in Return Authorization
The value of unserviceable MRO inventory awaiting return authorization as a percentage of the total MRO inventory value (%) Calculation [Value of Unserviceable MRO Inventory in Request Return Authorization Stage] / Total MRO Inventory Value] x 100%
Percentage Unserviceable MRO Inventory in Identification
The value of unserviceable MRO Inventory awaiting identification as a percentage of total MRO inventory value (%) Calculation [Value of Unserviceable MRO Inventory in Identification Stage] / [Total MRO Inventory Value] x 100%
Percentage Unserviceable MRO Inventory in Scheduling
The value of unserviceable MRO inventory awaiting scheduling as a percentage of the total MRO inventory value (%) Calculation [Value of Unserviceable MRO inventory in Scheduling Stage] / [Total MRO Inventory Value] x 100%
Inventory Days of Supply - Finished Goods
Finished goods inventory days of supply are calculated as gross finished goods inventory / (value of transfers / 365 days) in days.
Knowledge of the process of reconciling invoices with purchase orders and goods received notes in order to authorize payment of invoices
3-way Receiving Match
Working knowledge of Functional and/or Quality Assurance stable of product to ensure it will perform in accordance with its intended contractual agreement for form, fit and function
Acceptance stable
The process of collecting, analyzing, and communicating financial information about a business entity to specified stakeholders
Accounting
Knowledge of effective procurement or business development communication techniques to inform and/or solicit potential suppliers regarding product or service specifications
Advertising Methodologies
The arrangement of workers, machines, and equipment in which the product being assembled passes consecutively from operation to operation until completed
Assembly Process Design
The process (which requires the use of spreadsheets or software) to identify, collect, maintain and track the companies assets
Asset Management
The process of managing and allocating available resources and inventory (at various levels) based on business rules
Availability Management
Basic working knowledge of the concept of applying or incorporating onto/into a product an optical machine-readable representation of data (bar code) and /or using radio waves with radio-frequency identification tags (RFID) for the purpose of the identification and tracking of that product
Bar Code Handling/RFID
Working knowledge and ability to effectively interpret and communicate general financial accounting practices and principles which maintain company and regulatory compliance
Basic Finance
The management of transportation operations of all types, including tracking and managing every aspect of vehicle maintenance
Basic Transportation Management
Working knowledge of the process of capturing and comparing one's own business processes and performance metrics to industry peers and/or best practices from other industries
Benchmarking
Working knowledge of the procurement process for soliciting, issuing and administering open-ended (period for performance) type purchase orders or contracts
Blanket purchase order process
Analyzing a product installation schedule against the constraints and requirements in order to ensure feasibility to effectively and efficiently complete the installation process
Build Schedule Evaluation
The process to use computer technology to aid in the design, analysis, and manufacture of products
CAD/CAM
The process of determining and managing the production capacity needed by an organization to meet changing demands for its products
Capacity Planning/Management
Selection of a transportation mode and service provider in order to meet due dates, cost and service objectives
Carrier Selection
Working knowledge of the procurement process and the ability to clearly disseminate specific contractual or technical requirements which have changed to Sourced contractors, suppliers or vendors
Change Notice Development
Working knowledge of procurement process for requesting and receiving bids/quotes from competing contractors, suppliers, or vendors based on product part numbers, scope, specifications, terms and conditions
Competitive Bidding
Working knowledge of Consignment Agreements which are when one party provides goods/services to another party for sale by that other party
Consignment Agreement Development
Experience in solicitation process, bid/proposal evaluation, contract award and post award administration, and closeout
Contract Management
Awareness of relevant regulations, laws and requirements, whether external or internal, and the ability to devise, implement and document the relevant and necessary controls in order to maintain compliance and successfully pass auditing requirements
Controls and Compliance
Basic financial understanding of analyzing the costs/prices associated with a bid/proposal/quotation for a sourced product for the purpose of attaining best cost/price and/or best value for that product
Cost/Price Analysis
A documented set of basic principles and associated guidelines, formulated and enforced by the governing body or an assigned committee of an organization that direct and limit a company's decisions and actions in pursuit of its objectives
Business Rule/Policy Management
Set of activities to assess and rate the credit risk of a customer, identify/block non-creditworthy customers, manage outstanding balances, process credits, and investigate/pursue overdues
Credit/Collection Management
Basic knowledge of linking, staging and moving received sourced products with/to existing open orders minimizing the need for product inventory or storage
Cross Docking
The process or the work flow associated with the identification, receipt, acceptance, picking, packing, delivery and of the packed item(s) to a shipping carrier
Customer Order Management
Managing a company's relations and interactions with clients and sales prospects, possibly including the synchronization of business processes with the objective of identifying, attracting, and managing new and existing customers
Customer Relationship Management (CRM)
The actions, tasks and responsibilities concerned with the decision to repair all mechanical/electrical out of order/broken products in line with the internal return rules
Customer Repair and Return Policy and Process
Process of transferring customer/supplier information by speech or writing
Customer/Supplier Communication
Working knowledge of the processes required to develop, execute and sustain plans, policies, programs and practices that control, protect, deliver and enhance the value of data and information systems/assets
Data management
Knowledge of techniques, systems, tools and human skills required to establish effective procedures to identify defective and missing product and then report onward, either internally or externally, ensuring closure on reports and improvements to avoid future repetition
Discrepancy Reporting and Resolution
Delivery balancing is one part of Master Scheduling and involves the balancing of deliveries from suppliers against constrained criteria
Delivery Balancing
Basic knowledge of scheduling and managing sourced product deliveries in order to meet the requirements of inventory replenishment or scheduled production plans
Delivery Scheduling
The manufacturing management process by which raw materials and production capacity are optimally allocated to meet demand
Demand Management (Skill)
Analyzing the constraints and requirements of a product design cycle in order to evaluate and ensure the timely availability of the product design for building and installation of a product
Design/Engineering Schedule Development
Ownership of the official, valid (not expired) document stating that the person is authorized and able to drive (a) class/es of vehicles
Driving Certification
The actions, tasks, and responsibilities concerned with the observance and application of the environment, health, and safety rules and standards
EHS regulations
Working awareness of relevant technology that could/can be used to improve the effectiveness or efficiency of operations within Source, but also widely across the Supply Chain or the enterprise
Enabling Technology
The discipline, art and profession of acquiring and applying technical, scientific, and mathematical knowledge to design and implement materials, structures, machines, devices, systems, and processes that safely realize a desired objective or invention
Engineering
The end-to-end (cross-departmental, and often, cross-company) coordination of work activities that create and deliver ultimate value to customers
Enterprise Business Process
Familiarity and understanding of internal and external goals, objectives, rules and laws pertaining to the operation of the Source function within the organization
Environmental Requirements
Working awareness of and conversant with installing and operating appropriate Enterprise Resource Planning (ERP) systems relevant to the organisation concerned
ERP Systems
The process of predicting production requirements to meet estimated sales in a particular forecasting period
Forecasting
Working knowledge and ability to identify and inspect Sourced products for compliance with contractual part numbers, specifications, drawings, etc, including quality requirements and damage-free product receipt
ID and Damage Inspection
The knowledge and understanding of the laws and regulations governing the import and export requirements of materials
Import/Export Regulations
The information, resources and skills requirements to effectively install purchased products as per customer requirements
Installation Requirements
The process of managing requirement and constraints associated with a installation schedule in order to effectively schedule product installation as per customer requirements
Installation Scheduling
Actions, tasks and responsibilities concerned with maintenance and update of info related to the number of units of the company products/platform actually installed and in use around the world
Installed base management
Conversant with and effectively manage Proprietary Data and Intellectual property on behalf of the organization
Intellectual Property/Proprietary Data
The exchange of capital, goods, and services across international borders or territories
International Trade
Basic working knowledge and ability to read, interpret, understand, and effectively communicate technical specifications and/or drawings to support timely design and delivery of products meeting minimum requirements
Interpreting Specifications
The formal management of the timing and quantities of goods to be ordered and stocked by an organization in order that demand can always be satisfied without excess expenditure
Inventory Management
The compilation of all required specifications and details need to generate and communicate an RFP/Q
Issue Proposal/Quote
The ability to understand, interpret and effectively communicate a part master record (item master) or bill of materials (BOM) of parts lists that details description, unit of measure, dimensions, group/ family classification, production or sourcing data, quality requirements and/or restrictions
Item Master/BOM/BoL Interpretation
The process of aggregating and packing all elements belonging to a customer order
Kitting/Packing
Capability of calculating, understanding, reporting on, and if necessary, be able to taking corrective action to control labour costs within one's area of responsibility against budgets or objectives that have been set
Labor Costs Verification
The process of analyzing and validating feasibility of customer required lead-times
Lead-time validation
The process of identifying processes that impede the optimization of production
Lean Manufacturing
Knowledge to manage conformance systems and actions for receiving product and relates to general legislation affecting the product being received as well as the specific standards or specifications that applies to the product
Legislation and Standards
The branch of mathematics concerned with the minimization or maximization of a linear function of several variables and inequalities; used in many branches of industry to minimize costs or maximize production
Linear programming
The process of order consolidation to meet service, cost, delivery and product specification requirements
Load Building
The process for planning, implementing, and controlling the flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements and thus add value for the customer
Logistics Management
The process of planning, implementing, and controlling the flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements
Logistics network modeling
Working knowledge of the management and integration of information, sourced product/material, transportation, inventory, warehousing, material-handling, and packaging, and occasionally security, between the point of origin and the point of consumption in order to meet customer requirements
Logistics/Freight
A framework that identifies opportunities for performance improvement through use of performance measures such as standards and indicators
Performance Management
The efficient and effective allocation of an organization's manufacturing resources and assets with the objective of meeting customer demands/requirements
Manufacturing Resource Commitment
Knowledge of co-ordinating and keeping track of all the different components related to the Source activity
Master Scheduling
The ability to manipulate various types of material handling systems (e.g. forklifts, conveyors, palletizers, etc.) to pick, pack, and store orders and inventory
Material handling equipment usage
Working knowledge of contractual requirements for the authorization of monetary payments for the successful completion of pre-defined development or performance milestones
Milestone/Performance Payments
The techniques used in material requirements planning systems to develop a detailed plan for product manufacturing
MPS Methodologies and Techniques
All actions which have the objective of retaining or restoring an item in or to a state in which it can perform its required function
MRO Management
The process of ensuring materials and products are available for production and delivery to customers, maintaining the lowest possible level of inventory and planning manufacturing activities, delivery schedules and purchasing activities
MRP Systems
Working knowledge and understanding of strict regulatory adherence to health and environmental requirements/restrictions associated with particular products as detailed on Material Safely Data Sheets (MSDS) or Certificates of Compliance CoC
Environmental Interpretation
Familiarity with relevant Office Automation Tools and be able to deploy against financial justification as appropriate taking account of project and change management requirements
Office automation tools
The process of improving various aspects of the business resulting in (such as) increased profits, improved product or greater customer satisfaction
Optimization
Order Management
A company that contracts with another company to provide services that might otherwise be performed by in-house employees
Outsourcing
The processes of coordinating a system of preparing goods for transport, warehousing, logistics, sale, and end use
Packaging
Working knowledge of the processes and policies required for contractual authorization of payments for sourced products and services
Payment Processing
The ability to complete a process through the use of dexterity, strength or other capacities
Physical Capability
The set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer
Physical Distribution Systems
The process of selecting and collecting SKUs and materials in a specified order and quantity with the objective of satisfying customers orders
Picking process / order batching
The process of using a planogram to diagram fixtures and products to illustrate how and where retail products should be displayed, usually on a store shelf in order to increase customer purchases
Planogram usage and strategies
The analysis and setting of prices (on a per unit or volume basis) to meet required characteristics, business rules and/or business performance requirements
Pricing Management
The knowledge and ability to arrange process steps, jobs or orders in queue, or product receipts in the proper sequence in order to meet product/service production and deliveries as scheduled
Prioritization
Working knowledge of the process for acquiring goods and/or services at the best possible total cost of ownership, in the right quantity, quality, at the right time and in the right place, with all required documentation
Procurement
The analysis of stated product and configuration specifications against required and feasible product's performance, functional, and physical requirements
Product and Configuration Validation
The process of removing a product from inventory and exchanging funds for the value of the product in a retail supply chain
Product checkout process
Familiarity and awareness of the Product Development process and its key steps and the interaction with the Source activity
Product Development
The use of software or other tools to capture and maintain information on products and/or services through their life cycle
Product Information Management
The process of using machines, tools, materials and labor to make things for use or sale
Production
Actions, tasks and responsibilities concerned with the planning, scheduling and releasing of production orders in order to satisfy demand while optimizing the available and planned resources/capacity
Production Planning
The organization of source processes where the ownership of materials transfers are based on a signal further down in the supply chain (for example Make or Deliver).
Consignment Inventory
BP.006
Slow-moving inventory is defined as the value of those SKUs whose stock level is higher than the total consumption within the last 12 months
Slow-moving Inventory Monitoring
BP.008
A inventory replenishment technique where a material is replenished based on consumption
Kanban
BP.009
A inventory replenishment practice where purchase requisitions or purchase orders are created when inventory for an item drops below the Minimum inventory level
Min-Max Replenishment
BP.010
The practice of storing information about the history and/or genealogy of a product or material
Lot Tracking
BP.012
Rationalization of inventory at the item/part/SKU number level
Item Rationalization
BP.013
Meet desired customer service levels while maintaining a minimum amount of safety stock
Safety Stock Planning
BP.015
Determine the best short-term strategy to meet demand and to replenish stocking locations
Distribution Planning
BP.017
The ABC classification system is the Pareto analysis of a range of inventory items, into three or four inventory categories
ABC Inventory Classification System
BP.018
Demand Planning is the process used for developing an accurate and comprehensive material forecast
Demand Planning
BP.019
Mid to Long Term supply chain planning practice which seeks to compare the forecast sales plan to the company resources, and analyze where any imbalances to the plan might exist
Sales and Operations Planning
BP.021
A 'plan' scheme of different inventory management practices has been adopted by a company in a mixed model manufacturing environment
MRP I
BP.022
Establish disciplined monthly cross-functional process to increase accuracy of demand management, establish biz inventory policy, and agreement on demand and supply balancing
Improve S and OP process
BP.026
Inventory reduction practice to determine which SKUs that can be terminated t using SKU Cost of Sales Analysis
Stock keeping Unit (SKU) Rationalization/Cost of Sales Analysis
BP.031
Analyze and execute a delay in inbound supplier raw material shipments to reduce raw material costs at summer break, end-of-year or other scheduled plant closure
Delay Inbound Supplier Shipments
BP.045
The practice of analyzing the cost of maintaining inventory vs. the cost of transportation for opportunities to optimize total cost
Expedite Outbound Customer Shipments
BP.046
The Return Authorization (Return Material Authorization/Return Merchandise Authorization/Goods Return Authorization) process provides the inputs into the reverse logistics plan
Return Authorization
BP.135
Rather than manage returns as part of a service organization or operations many companies turn to outsourced service providers including Contract Manufacturers, EMS providers and Third Party Logistics providers for returns management
Outsourced Reverse Logistics
BP.136
The practice of issuing a purchase order for a number of products which are required in the short to mid term
Purchase Order Management
BP.144
the practice of unloading materials from an incoming vehicle and loading these materials directly onto outbound vehicles without putting away into the regular storage locations in a warehouse
Cross-Docking
BP.146
The practice of checking received invoices from suppliers against the quantities received and against the associated Purchase Order, Contract or Vendor Schedule
3-Way Delivery Verification
BP.148
An inventory of serviceable parts that can replace a customers broken part to increase their recovery time
Rotable Spares Pool
BP.168
The practice of assessing items as they are removed for Maintenance, Repair and Overhaul to determine whether repair would cost more than buying a replacement part
Beyond Economic Repair (BER) Management
BP.169
Use state-of-the-art forecasting algorithms for product life-cycle planning and trade promotion planning.
Demand Planning Forecasting
BP.014
Simulate and implement comprehensive tactical planning and sourcing decisions based on a single, globally consistent model.
Supply Network Planning
BP.016
Takes Demand Planning to the next level and integrates the plan up and down the supply chain as well as across the enterprise.
Demand Management (Emerging Practice)
BP.020
Business rules are in a (human-readable) form that are used by, but not embedded in, supply chain systems
Business Rule Management
BP.023
A part of the enterprise strategic plan for leading edge companies
Supply Chain Optimization
BP.024
enables customers and service providers to submit warranty claims over the web, reducing internal validation and processing workload.
Self-Service Warranty Claim Submittal
BP.025
Is performed by supply chain middle and upper level management of an organization.
Business Rule Review
BP.035
Creates real world project plans which robustly model the project from initiation to final delivery.
Lean Planning
BP.049
The practice of refurbishing materials during the receiving processes (i.e. Source processes) for returned materials.
Returns Receiving Refurbishment
BP.073
In order to minimize lost productivity, many companies offer a loaner program for their customers when they need to return a defective product.
Loaner Program
BP.079
Mobile access to information in supply chain means information on status metrics supply and demand are available in the internet smart phones and other similar mobile devices.
Mobile Access of Information
BP.098
The practice of implementing standard procedures and enableing technology to ensure conformance to return policies.
Return Policy Conformance Integration
BP.108
The practice of making disposition decisions for reparable parts/cores/carcasses early in the (Return Material Authorization) RMA process.
Carcass Prepositioning
BP.109
Add additional capability, processes and expertise by embedding specialized packaging, product completion and pack out services on-site from a 3rd party provider.
Embed Specialized Services
BP.117
Outsourcing transportation creates an opportunity for small businesses to combine their transportation spend and get a lower overall tariff rate.
Transportation Management Outsourcing
BP.118
3D printing is a phrase used to describe the process of creating three dimensional objects from digital file using a materials printer, in a manner similar to printing images on paper.
3D Print Rapid Protoyping
BP.120
The use of digital packaging printing to create custom product packaging unique to the customer and the product requirements.
Digital Packaging on Demand
BP.121
Returned Maintenance, Repair, Operations (MRO) items are disassembled to the bill of material level and component parts are tested.
Carcass Disassembly
BP.137
Bar coding is the practice of adding machine readable labels to packaging of goods, in order to increase reading speed and reducing reading errors.
Bar Coding RFID
BP.153
Spend analysis involved collection of data across procures to pay process in an enterprise and slicing and dicing these data into useful information.
Enterprise Level Spend Analysis
BP.161
The Long Term Supplier Agreement/Partnership is a communication framework of buyer and supplier relationship.
Long Term Supplier Agreement Partnership
BP.162
Backflush is a concept where issuing of the material automatically happens once the finished product is ready.
Mixed Mode Reverse Material Issue
BP.171
Effective scheduling should not only include production related attributes (e.g. rated/demonstrated capacity asset loading sequencing changeover constraints etc.) but also other directly and indirectly related processes.
Production Scheduling Optimization Using Tech
BP.172
the systematic identification, assessment and mitigation of potential disruptions in logistics networks
Supply Chain Risk Management
BP.001
Risk management strategies are developed and communicated. Commonly used strategies are Risk Mitigation, Risk Avoidance, Risk Transfer and also Risk Acceptance
Risk Management Strategies
BP.002
The practice of reducing the time it takes to change a production line, equipment or machine from running one product to the next
Single-Minute Exchange of Die (SMED)
BP.003
Network prioritization for risk identification is the process of prioritizing parts of a supply chain for risk analysis based on the overall risk potential in each portion of the supply chain
Network Prioritization for Risk Identification
BP.004
The practice where a customer generates the invoices for the products or services it consumed from a supplier
Self-Invoicing
BP.005
To avoid overstock situations, we regularly review Baseline inventory levels. Baseline inventory is defined as the lowest stock level that a particular SKU actually had during the last 12 months.
Baseline Inventory Monitoring
BP.007
The practice where materials are ordered, shipped, received and/or staged in the same sequence as they will be consumed.
Production Line Sequencing
BP.011
Pull-based (Demand) replenishment is an approach that utilizes customer demand (`pull`) to replace and optimize inventory while reducing total net landed cost.
Pull-Based Inventory Replenishment
BP.027
Use of multi-echelon (simultaneous across all inventory stocking points in supply chain) stochastic (random variability) optimization.
Inventory Optimization
BP.028
Supply chains and supply networks both describe the flow and movement of materials and information, by linking organizations together to serve the end-customer.
Inventory Management Using Supply Chain Network Optimization
BP.029
Establish disciplined monthly process to ensure timely reporting of accurate inventory (physical inventory matches ERP inventory and identify sitting inventory not identified by a SKU) at the manufacturing and terminal locations.
Inventory Record Accuracy
BP.030
Analyze and determine what inventory can be written off due to age, shelf-life, and/or lack of demand.
Reduce / Write-off Slow Moving Inventory
BP.032
Use of more sophisticated qualitative and quantitative forecasting processes and tools to improve customer demand forecast typically at SKU level.
Traditional Demand Forecasting Improvement
BP.033
Collaborative inventory planning can be used as a way to extend supply chain planning with key customers.
Extend Inventory Planning using Collaboration (Key Suppliers)
BP.034
Consignment inventory is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed of the material, usually at the buyer's consumption location (usually a store).
Consignment Inventory with Key Suppliers
BP.036
The practice of shipping products and goods directly from the manufacturing plant to the customer (bypassing consolidation activities in warehouses and/or distribution centers).
Manufacturing Direct/Drop Shipment
BP.037
Use Lean principles to reduce size of manufacturing batch sizes to better match customer demand vs. asset utilization/quality issues.
Batch Size Reduction
BP.038
Use Lean principles to increase frequency/agility of production wheel, or production cycle in order to modify production planning and right-size finished goods and work-in-process inventory.
Right Size Frequency of Production Wheel
BP.039
Evaluate potential to change order fulfillment strategy from Make-To-Stock (MTS) to Make-To-Order (MTO) SKU by SKU to offset need to carry inventory due to infrequent demand or low demand.
MTO Order Fulfillment Strategy
BP.040
Evaluate potential to change inbound/outbound transportation mode to `faster` mode depending on freight terms (FOB, etc.) to accelerate transfer of inventory title to customer and/or better match demand/supply to optimize inventory balances.
Transportation Optimization
BP.041
Regular Review of Procurement Terms and Conditions
BP.042
Analyze potential to reduce consignment inventory commitments. These are typically included as part of the terms and conditions of customer contracts.
Consignment Inventory Reduction
BP.043
Evaluate potential to use external finance company to `purchase inventory` while in-transit or in certain circumstances and sell back to the company prior to delivery to customer.
Inventory Financing Evaluation
BP.044
Provide process to determine and execute optimum placement and volume for Inventory in the Value Stream (Chain). Requires analysis of Value Stream and identification of opportunities for Demand Pooling of materials.
Finished Goods Inventory Postponement
BP.047
Balance cost/value of offering discounts for customers to move forward orders on specific finished good products in inventory.
Inventory incentives / promotions for customers
BP.048
Provide a one time improvement in finished good inventory; Requires analysis of value/cost trade-off to insure proper incentive.
Customer Incentives/Promotions for Large Inventory Purchases
BP.050
Develop method to embed and track specific inventory management goals for the business for all functions within the business due to cross-functional issues associated with inventory vs. service level.
Embed Inventory Management Goals
BP.051
Change new product development process to embed reuse and/or risk assessment around inventory management (e.g., include check off from supply chain of potential inventory management impact of proposed new product development). This could include mandatory end of lifecycle for another product, Commercial`s agreement to potential inventory/working capital exposure, etc.
Design for Logistics (DFL) Management
BP.052
The practice includes use of reliability tools and implementation of work process roles within manufacturing to address manufacturing reliability.
Manufacturing Reliability Improvement
BP.053
This consists of efforts to address manufacturing quality and improving manufacturing cost/capacity and service factor.
Manufacturing Quality Improvements for Return Reduction
BP.054
The practice of formal freight carrier performance reviews to reduce the risk of landed cost budget variances.
Freight Carrier Delivery Performance Evaluation
BP.055
Provide analysis of potential value that could be gained from raw material inventory reduction (in addition to traditional manufacturing quality/capacity and service factors).
Supplier Raw Material Quality Improvement
BP.056
Develop a training curriculum and monitor key employee participation/completion in the areas of inventory management (particularly with schedulers, planners, SC managers) as well as exposure to emerging best practices/technology (e.g., inventory optimization.).
Inventory Management Training
BP.058
Effective inventory management is the result of outstanding inventory control and inventory management.
Employee Incentives for Effective Inventory Management
BP.059
Attaining acceptable delivery performance is the most significant manufacturing challenge faced by many organizations.
Order Lead Time Corrective Action
BP.060
Unsold inventory is not `money in the bank`. A company should identify idle assets by analyzing production records, reviewing stock status reports to isolate inventory that is slow moving or out of balance, and sell/reduce the nonstrategic inventory.
Reduce Non-Strategic Inventory Level
BP.061
Re-validate existing Master Data (order lead times, replenishment times, transit times, etc.) to ensure it matches current operational capabilities and performance.
Master Data Accuracy
Assess potential to change sourcing decisions to local source point (likely the optimal source point) to reduce overall replenishment lead time.
Optimize Sourcing Decisions to Local Source Point
BP.063
Pursue a more aggressive Reorder Point / safety stock target replenishment stance that places more risk on the chance of a stock out.
Safety Stock Reduction
BP.064
What constitutes seasonal varies from organization to organization. From a requirements determination perspective however seasonal items may be classified as items that have less than six months of demand in the preceding 12 months.
Seasonal Packaging Reduction/Removal
BP.065
Evaluate and establish a business returns policy (buyer`s remorse, defectives, warranty, overstock, Root Cause Investigation to determine and eliminate return cause, etc.) including determining its impact to overall inventory management.
Returns Policy to Reduce Returns Inventory
BP.066
Develop a process for efficiently receiving, processing and disposition of returned products.
Returns Inventory Reduction
BP.067
Track and analyze the on time delivery performance for suppliers..
Supplier Delivery Performance Analysis
BP.068
Develop process for efficiently receiving and processing raw materials from suppliers to minimize receipt of raw materials.
Raw Materials Receiving Process
BP.069
Improve employee knowledge of inventory control to increase level of performance in inventory management.
Planning/scheduling inventory training
BP.070
Balance the trade-off between logistics cost reduction and increased capital costs.
Freight Costs and Inventory Stocking Optimization
BP.071
This practice of requiring and enforcing a return shipment is accompanied by a company-issued Return Material (or Merchandise) Authorization (or Agreement) (RMA).
Inbound RMA-enabled Processing
BP.072
Metric alignment refers to the organized and deliberate development of metrics across an organization. The process starts with organizational/business or supply chain metrics then decomposes to organizational processes at level-2, level-3, and further if desired.
Process/Metrics Alignment
BP.074