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Performance Management
Greg Gilbert | Supply Chain Solution Principal
2010 Supply Chain Council. ALL RIGHTS RESERVED. |
Slide 0
11 February 2011
Agenda
1.
2.
3
3.
4.
SAP 2010 / 1
94%
Ford
93%
Conoco
90%
Wal Mart
Wal-Mart
90%
Chevron
88%
IBM
77%
Exxon
75%
GE
63%
Supply Chain
Costs
Reduce
Working Capital
Supply Chain
Reliability
CEO / CFO
Effectiveness = ???
Inter-enterprise
end-to-end
processes
DESIGN
SOURCE
MAKE
STORE
MOVE
SELL
SERVICE
Strategic
Collaborative Demand and Supply Planning
VP Supply Chain
T ti l
Tactical
Efficiency = 5
Logistics Manager
Execution
Manufacturing
M
f t i Network
N t
k
Planning & Execution
Logistics and
Fulfillment management
SC Analyst
SAP 2010 / 3
Supply Chain
Performance
Management
Supply Chain
Costs
Reduce
Working Capital
CEO / CFO
financial impact
strategic impact
Inter-enterprise
end-to-end
processes
Supply Chain
Reliability
DESIGN
SOURCE
MAKE
compliance impact
STORE
MOVE
SELL
SERVICE
Strategic
Collaborative Demand and Supply Planning
VP Supply Chain
T ti l
Tactical
Logistics Manager
Execution
Manufacturing Network
Planning & Execution
Logistics and
Fulfillment management
SC Analyst
SAP 2010 / 4
Agenda
1.
2.
3
3.
4.
SAP 2010 / 5
SAP 2010 / 6
Foundation: SCOR
Supply Chain Operations Reference model
SCPM 1st Level KPIs
Cash to Cash
Cycle Time
Order
Fulfillment
F
lfill
t
Cycle Time
Perfect Order
Fulfillment
Cost of Goods
Sold
Supply Chain
M
Management
t
Costs
Return on
W ki
Working
Capital
PLAN
SOURCE
http://www.supply-chain.org/
SAP 2010 / 7
MAKE
DELIVER
RETURN
Return on
Supply
S
l Chain
Ch i
Fixed Assets
Perfect
P
f tO
Order
d
Fulfillment
+
VP Supply Chain
Order
Management Cost
-
Material
Acquisition Cost
Outbound
Transportation Cost
Finished Goods
Warehouse Cost
Customer
Service Cost
Express Freight
Returns
Logistics Manager
SC Analyst
Fuel Cost
SAP 2010 / 8
Invoices Outstanding
Planning and
Finance Cost
Agenda
1.
2.
3
3.
4.
SAP 2010 / 9
SAP BusinessObjects
Supply Chain Performance Management
Demo
SAP 2010 / 10
SAP 2010 / 11
C
Custom-built
b il approach
h iis expensive,
i
risky,
i k not sustainable
i bl
SAP 2010 / 12
1.
2.
3.
4.
SAP 2010 / 13
Agenda
1.
2.
3
3.
4.
SAP 2010 / 14
Time and
C tS
Cost
Savings
i
Build
SAP 2010 / 15
Packaged
g Application
pp
(like SAP BO SCPM)
SCOR based
Best practices
Self-defined
SAP 2010 / 16
Forecast
Accuracy
Perfect Order
Fulfillment
Delivery
Performance
Order
Fulfillment
Cycle Time
Return
R
t
on
working
Capital
Supply
S
l Chain
Ch i
Management
Costs
Cash To Cash
Cycle
Cost of Goods
Sold
Th
The Opportunity
O
t it Improving
I
i
Performance
P f
on Enterprise
E t
i Centric
C ti
Metrics
The VP of Supply Chains tracks increasing supply chain costs over some time
time.
Upon further investigation, he learns that the cost of transportation has been
increasing.
A further drill down into the data shows that for one customer, the sales team has
been demanding air freight, impacting costs.
Further analysis shows that one late shipment drove the unofficial mode change.
Evaluate
and
Improve
Identify and
Analyze
At any time,
time know your operational and related
financial performance, and understand operational
drivers affecting performance
Model and
Understand
C
Collect
SAP 2010 / 19
SAP 2010 / 20
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