Symbios Overview Lean Supply Chain Quality Improvement Customer Satisfaction Productivity Speed Cost
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1 Symbios Overview Lean Supply Chain Quality Improvement Customer Satisfaction Productivity Speed Cost
2 2
3 Company formed in the UK by people from Ford Motor Company and AlliedSignal Brief History of Symbios Portfolio Transitions Symbios Egypt formed
4 Symbios Consulting Egypt Symbios Consulting Egypt is: A branch for Symbios UK Our Partners: PEx Academy UK PDI Japan (member of 20 keys PPORF 55 partners worldwide) ODI South Africa Supply Chain Council- USA eknowtion- Europe Institiue of Business forecasting IBF Pro Serv Jordan Horizons
5 Norwa y Germany Slovenia Moldova Russia England Netherlands Croati a Bulgaria Estonia Georgia China Kor ea Japan United States Egypt Singapore Malaysia Philippines Mexico South Africa Swaziland Australia New Zealand 20 Keys System is implemented in 55 countries 5
6 Some of Our Lean, Six Sigma and Supply Chain Deployment clients Egypt & Romania - ARAD Middle East & North Africa Region 9 Suppliers program & DEA factory Egypt and Jordan 6 Suppliers program
7 Some of Our Lean, Six Sigma and Supply Chain Training Clients:
8 Our team 8
9 % of Revenue Superior Supply Chain Management (SCM) has Long Been a Source of Competitive Advantage Best-in-class Companies Outperform Their Median Competitors with a 50% Cost Advantage Source: PRTM/The Performance Measurement Group 9
10 SCM Improvement Creates Shareholder Value The Supply Chain Impacts... All Financial Metrics... & Shareholder Value Improve customer service and response Optimize inventory flow, utilization & productivity Liberate Working Capital Reduce Improve Capital Efficiency Best-in-class customer relationships Differentiated service capabilities Best-in-class strategic supplier partnerships Leverage of outsourcing of business processes Unique supply chain models Fixed Capital Increase Revenue and Margin Optimize Cost Model Increase Profit Increase Shareholder Value Effective Supply Chain Management can increase a Return on Capital Employed by 30% and More! 10
11 Industry Membership Scope 11
12 SCC membership accelerates a company s use of and benefits from SCOR and related models Reference models, benchmarking, tools research and help from SCOR experts Training, certification, career development and volunteer opportunities Chapters, events and forums to share SCOR and supply chain knowledge and experience 12
13 Supplier processes Supply-Chain Product/Portfolio Management Product Design Sales & Support DCOR CCOR Supply Chain SCOR Customer processes Copyright Supply Chain Council, All rights reserved 13 13
14 Supplier processes What is SCOR? SCOR is a supply chain process reference model containing over 200 process elements, 550 metrics, and 500 best practices including risk and environmental management Organized around the five primary management processes of Plan, Source, Make, Deliver and Return Source Return Supply Chain Plan Make Deliver Return Customer processes Developed by the industry for use as an industry open standard - Any interested organization can participate in its continual development Process, arrow indicates material flow direction Process, no material flow Information flow 14 14
15 The SCOR model a cross-industry open standard The five integrated processes provide a boundary-free view of the true end-to-end Extended Supply Chain Supports intra- and cross-enterprise optimization of arbitrary scale Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Suppliers Supplier Supplier Your Company Customer Customer s Customer Internal or External Internal or External 15
16 SCOR Processes Five Levels of Decomposition Level 1 Level 2 Level 3 Level 4 Level 5 Scope Configuration Activity Workflow Transactions Supply-Chain Source S1 Source Stocked Product S1.2 Receive Product EDI XML Differentiates Business Defines Scope Differentiates Complexity Differentiates Capabilities Names Tasks Sequences Steps Links Transactions Links, Metrics, Tasks and Practices Job Details Details of Automation Sets Strategy First Tier Diagnostics Second Tier Diagnostics Industry or Company Specific Technology Specific Standard SCOR definitions Company/Industry definitions 16
17 Internal Customer Supply Chain Balanced SCORcard Attribute Reliability Responsiveness Agility Cost Assets Standard Strategic (Level 1) Metrics Metric (Strategic) Perfect Order Fulfillment Order Fulfillment Cycle Time Supply Chain Flexibility Supply Chain Adaptability Supply Chain Management Cost Cost of Goods Sold Cash-to-Cash Cycle Time Return on Supply Chain Fixed Assets Return on Working Capital upside and downside adaptability metrics 17
18 Internal Customer Supply Chain Balanced SCORcard Attribute Reliability Responsiveness Agility Cost Assets Standard Strategic (Level 1) Metrics Metric (Strategic) Perfect Order Fulfillment Order Fulfillment Cycle Time Supply Chain Flexibility Supply Chain Adaptability Supply Chain Management Cost Cost of Goods Sold Cash-to-Cash Cycle Time Return on Supply Chain Fixed Assets Return on Working Capital upside and downside adaptability metrics 18
19 Drivers for Modeling with SCOR Business opportunities: Strategy Development Merger, Acquisition or Divestiture Standardization and streamlining Optimization and Re-engineering Management alignment New business start-up Benchmarking Process Outsourcing Technology services: Software implementation (ERP, PLM, QC) Workflow & Service Oriented Architecture 19
20 Methodologies & Tools Approaches to Process Change Process Management being the Foundation or Platform by SCOR Directed at creating standardised processes and methods with the creation on simple, visible and common process performance metrics. 20
21 The Supply Chain SCOR Project Roadmap Phase Name Deliverable Resolves ORGANIZE Organizational Support Who is the sponsor? I DISCOVER Supply-Chain Definition Supply-Chain Priorities Project Charter What will the program cover? II ANALYZE Scorecard Benchmark Competitive Requirements What are the strategic requirements of your supplychain? III MATERIAL Geo Map Thread Diagram Disconnect Analysis Initial Analysis where are the problems? IV WORK Transactions Level 3, Level 4 Processes Best Practices Analysis Final Analysis where are the solutions? V IMPLEMENT Opportunity Analysis Project Definition Deployment Organization How to deploy? Copyright Supply Chain Council, All rights reserved
22 SCORmark 1. Select supply chain metrics 2. Determine the required performance 3. Enter the relevant data into the secure, confidential benchmarking portal. See SCORmark Sample Report file in Other Resources folder 4. APQC validates the data and produces a report including An executive scorecard A detailed analysis for each specific metric selected 22
23 SCOR Roadmap: Analyze Example Templates Competitive Requirements Scorecard and Benchmark Performance Attribute Supply Chain A B C Metric Actual Parity Adv Reliability S A S Responsiveness A A A Agility A P A Cost P S P Assets P P P Perfect Order Fulfillment 98% 92% 96% Order Fulfillment Cycle Time 14 days 8 days 6 days Ups. Supply Chain Flexibility 62 days 80 days 62 days Total Supply Chain Mgt Cost 10.1% 10.8% 10.4% Cash-to-Cash Cycle Time 22 days 45 days 30 days Within a supply chain (i.e. per column) assign: 1 superior (S), 2 advantage (A), and 2 parity (P) Think of the rating as a desired state, NOT where you want to improve the most For each metric: Calculate your supply chain performance (Actual) Calculate Superior, Advantage and Parity values Copy requirements from competitive requirements table (highlight value for each metric) Calculate gap between actual and requirement Highlight metric that have a gap Copyright Supply Chain Council, All rights reserved 23 23
24 SCOR Roadmap: Material Example Templates Geographic Map Affinity Diagram Metric: Order Fulfillment Cycle Time Entry Delays Build Issues Shipping Delays Thread Diagram Result: Cause & Effect Diagram The metric is the head The column headers are the major bones
25 Low Return High Return Best Practice Selection Are all best practices needed? SCOR contains over 200 best practices today - do you need all? Implement a best practice IF it makes sense for your specific processes, business, or industry. Low Risk High Risk How to determine fit? For each best practice quick wins sponsor issue Determine risk Determine return Push a pin in the resulting quadrant for each practice nice to have consider carefully Some pins may not make the table at all: Not appropriate for your supply chain, product, business or industry Copyright Supply Chain Council, All rights reserved 25 25
26 Low Return High Return SCOR Roadmap: Implement Example Templates 2 x 2 Prioritization Matrix Portfolio Reviews/Governance Low Risk & Cost High Risk & Cost Program FTE Cost OFC Return Notes Change in few processes 80/20: high impact Inexpensive Change Easy to back out Quick Deployment Change in few processes 80/20: low impact area Very Expensive Easy to back out Quick Deployment Quick Wins Nice to Have Change in many processes 80/20: high impact Expensive Change Difficult to back out Long Deployment Change in many processes 80/20: low impact Expensive Change Difficult to back out Long Deployment Sponsor Issue Consider Carefully DC Closure d 1200 Labor Issues Forwarder P d -125 Cost increase RFID d 0 Strategic S&OP d 0 Neutral Statistical Forecasting d 100 Knowledge Gap Demand P d $250 Sponsor Deployment Planning Copyright Supply Chain Council, All rights reserved 26 26
27 Force of the Basic Expectations Quality, Cost, Differentiation, Delivery Responsiveness etc. Process Redesign provides transformational improvements in the business Revenue 3 2 Profit 1 Cost Force of the Differentiation through unique product offerings and value add services. 27
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