Fig. 1: Advantages of the High Performance Supply Chain
a) Separation of strategic development and day-to-day business
The separation of strategic considerations and day-to-day business enables a quantum leap towards high performance SCM. Strategic procurement and logistics planning defines the necessary foundations that enable smooth operations in operational procurement and logistics.
b) Consistent responsibility for availability and costs
Clearly assigned end-to-end responsibilities are elementary for effective SCM processes. Procurement and logistics are responsible for the availability and costs of the purchased goods, coordinated with production. They are measured against this using clearly defined metrics.
c) Relevant skills along the SCM processes
The business processes of procurement and logistics are characterised by clear capabilities to meet the requirements along the process and to enable an optimal division of tasks. Tasks, responsibilities and capabilities are in harmony.
d) Clear interfaces between the business processes
There are clear principal/contractor relationships between production and procurement as well as between procurement and logistics. The same applies to the interfaces with suppliers.
e) Strategic and operational impact monitoring
Strategic impact controls are anchored in "develop", operational impact controls in "run". Closed learning loops, both within and between "develop" and "run", ensure full exploitation of the potential for further development. They form the basis for a learning organisation.
Fig. 2: Design criteria supply chain management
Fig. 3: Four steps to high performance supply chain management