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Methodology Supply Chain Council SCOR and SCORmark Supply Chain Operational Reference model

Widely Used ByA small example

Science Applications International

Whirlpool Corporation Volvo United Technologies United Parcel Service United Defence Industries Unisys Corporation Unilever Toshiba Corporation TMP Worldwide, Inc. The Walt Disney Company The Home Depot, Inc. Textron Inc. Teradyne, Inc. Target Corporation Sun Microsystems, Inc. SPX Corporation Sprint Communications Sony Sonoco Products Company Snap-On Incorporated Siemens Corporation Shell Schering-Plough SAP AG

Quantum PSS World Medical, Inc. Progress Energy, Inc. PPG Industries, Inc. Pioneer Philips Pharmacia Corporation Pfizer Inc. PepsiCo, Inc. PeopleSoft, Inc. Owens Corning Oracle Corporation Northrop Grumman Nortel Networks NCR Japan, Ltd. National Semiconductor Nabisco, Inc. Millennium Chemicals Inc. Microsoft Corporation Merck & Co., Inc. Medtronic, Inc. MeadWestvaco Corporation McKesson Corporation Lucent Technologies LSI Logic Corporation

C.R. Bard, Inc. Brown-Forman Boeing Becton Dickinson Bayer AG Bausch & Lomb Banta Global Turnkey Avnet, Inc. ArvinMeritor, Inc. Arrow Electronics, Inc American Greetings Corp. American Electric Power AMD Amazon.com Air Products & Chemicals Agilent Technologies Inc. Abbott Laboratories 3M

Lockheed Martin Corporation Lockheed Martin Lennox International, Inc. KPMG Consulting, Inc. Johnson & Johnson International Paper Company Intel Corporation IBM Corp. Ryder Rockwell International 3M Honeywell International Inc. Hewlett-Packard Company Hershey Foods Corporation Genzyme Corporation General Motors Corporation GE FedEx Exxon Mobil Corporation Entergy Corporation Eastman Kodak Company Dow Chemical Cytec Industries Colgate Palmolive Co. Coca-Cola Company Cisco Systems, Inc. Canon

Assumptions

Basic Steps in Benchmarking

Benchmark strategy We use a tool called the SUPPLY CHAIN STRATEGY

MATRIX to identify priority strategic features or attributes of supply-chains

Each supply chain is indicated by a collection of ranked key attributes

Reliability Responsiveness Flexibility Cost Assets

Benchmark Strategy cont. The system allows for:

1 x “Superior” (S) feature 2 x “Advantage” (A) features 2 x “Parity” (P) features

As targets

Superior = performance in the top 10% of all supply chains studied

Advantage = performance at the midpoint between the top 10% and the median of all supply chains studied

Parity = the median of all supply chainsstudied

Metrics

Metrics 1

Metrics 2

Sources of data Financial Data

Company annual reports, Cost Centre reports

Non Financial Data Customers

Delivery performance Total Cycle-time Performance

IT Systems Process to Process transactions Planning system parameters (Lead Times)

Suppliers 3PL providers Competitors

SCORmark

Once the SCORcard is defined, and the data for most metrics are gathered

Data is submitted electronically to the system An electronic report is returned with the results of

comparison against selected demographic groups The principle function of the Benchmark is to determine

the gap between actual performance and performance corresponding to desired strategic positioning

Interpreting the Benchmark

Used for choosing target performance Critical to understand Performance in a particular

Demographic Aligns Strategy, Performance and Performance Goals