promoting supply chain excellence
Sunday 14 March 2010

21st century supply chains (SC21) > Development and performance

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Development and performance

Achieving improvement in performance that can be measured using common and consistent metrics, across the supply chain, is crucial to achieving the SC21 goals. Signatory companies have agreed to implement four strands of supply chain development and performance processes: these are sustainable improvement, performance metrics, improvement framework and recognition. All four strands need to be implemented by supply chain companies to achieve improvement.

 

Performance metrics

Performance measures are used to assess and evaluate the performance of the supply chain. Performance measurement forms a vital part of the development process, indicating whether actions are achieving the required results and if necessary, highlights where to focus resource.

Diagnostics

There are two diagnostic models used to encourage waste reduction and continuous improvement - manufacturing excellence being focussed on short to long term manufacturing value stream improvements and determining excellence providing a framework for sustainable overall improvement across the organisation.

Sustainable improvement

The continuous sustainable improvement plan sits at the heart of the SC21 process.

A continuous sustainable improvement plan (CSIP) will identify those activities which the supplier intends to undertake in order to improve effectiveness and performance.

A business should have only one improvement plan that incorporates the needs of all customers, regulatory authorities, and its own management team.

Recognition

Sustained performance together with an active continuous improvement programme and associated levels of process maturity will result in recognition through an awards approach to reflect the contribution to the supply chain(s).

Supply chain development & performance storyboard

The supply chain development & performance working group met throughout 2006 to review existing methodologies for supply chain development. Through this process the members of the working group agreed common approaches to supply chain development and performance metrics to be deployed in 2007. The storyboard outlines the key steps and decisions which led to the revised SC21 processes.

SC21 development and performance storyboard (509.6 KB)