PLAN SOURCE MAKE DELIVER RETURN

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SCOR® Model iCognitive Methodology

iCognitive The Leading Company in Supply Chain Management

Prepared by Radouane Hamidi Radouane.hamidi@icognitive.com

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SCOR® Model Through a world-wide recognized methodology covering the end-to-end Supply Chain : SCOR®

2 Supply Chain Consulting

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What is the SCOR® Model

The Supply-Chain Operations Reference-model (SCOR) is a process reference model that has been developed and endorsed by the Supply-Chain Council (non-profit consortium) as the cross-industry standard diagnostic tool for supply-chain management.

This model enables companies to address, improve and communicate supply-chain management practices, spanning from the supplier's supplier to the customer's customer.

As the appointed authority in Asia on the Supply Chain Operations Reference model (SCOR®), we are recognized as a leading SCOR® expert by the Supply Chain Council.

iCognitive has developed a unique SCOR® Model Methodology to improve and optimize the Supply Chain with constant innovations through PLAN, SOURCE, MAKE, DELIVER, RETURN and ENABLE.

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Modeling with SCOR®

• Drivers for modeling: Why do you model

• Business opportunities:

– Strategy Development

– Merger, Acquisition or Divestiture (Companies or Supply Chains)

– Process optimization and Re-engineering

– Standardization, Streamlining and Management alignment

– New business start-up (Company and Supply Chain start-ups)

– Benchmarking

– Process Outsourcing

• Technology services:

– Software implementation (ERP, PLM, QC)

– Workflow & Service Oriented Architecture

4 Supply Chain Consulting

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iCognitive SCOR® Project Implementation Roadmap

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iCognitive SCOR® Project Roadmap

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Re-configuration

As-Is To-Be Implementation

Education

Build SCORcard

and set basis for

competition

Education Design To-Be Model

Develop Prototype

Education As-Is

Modeling Verify Implement

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iCognitive SCOR® Project Roadmap

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As-Is To-Be Implementation

Education

Build SCORcard

and set basis for

competition

Education Design To-Be Model

Develop Prototype

Education As-Is

Modeling Verify Implement

•Project kick-off •SCOR workshop •SCOR executive briefing

•Geo-mapping •Process Lev1-4 Mapping •Financial Flow •Cycle Time •Best practice Analysis •SC Organogram •Supplier & Customer Profile •IT System Overview

•Build Scorecard •Benchmark •Gap analysis •Set basis of competition

•SCOR To-Be Design workshop •SCM impact on Finance workshop

Brainstorm for potential improvement Approach: •Disconnect •Opportunity •Assumption •Business case

Develop a business case for each of the selected To-Be projects

Project management workshop

•Fine tune the business case •Verify it

•Build project team •Initiate project •External monitor •System- SCIPO •Performance analysis service

Confidential

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SCOR® Metrics

Examples of Metrics

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Supply Chain Modeling - Measuring Performance (Metrics)

Measuring how well the supply chain performs is as essential as understanding how it operates

– Measurements must link to business objectives

– Measurements must be repeatable

– Measurements must provide insights into how to manage the supply

chain more effectively

– Measurements must be appropriate for the process activity they are

measuring

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Level 1 Metrics & Supply Chain Performance Attributes

Level 1 Strategic Metrics

Performance Attributes

External -Facing Internal-Facing

Reliability Responsiveness Agility Costs Assets

Perfect Order Fulfillment √

Order Fulfillment Cycle Time √

Upside Supply Chain Flexibility √

Upside Supply Chain Adaptability √

Downside Supply Chain Adaptability √

Overall Value at Risk (VAR) √

Supply Chain Management Cost √

Cost of Goods Sold √

Cash-To-Cash Cycle Time √

Return on Supply Chain Fixed Assets √

Return on Working Capital √

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SCOR® Metrics Example 1:

Perfect Order Fulfillment

• Definition:

– The percentage of orders meeting delivery performance with complete and accurate documentation and no delivery damage.

• Components include

– all items and quantities on-time and in-full

– using customer’s definition of on-time

– documentation - packing slips, bills of lading, invoices, etc.

• Calculation

– [Total perfect orders] X 100%/ [total number of orders]

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SCOR® Metrics Example 2: Order Fulfillment Cycle Time

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D1.1-

D1.2

Order Fulfillment Cycle Time (MTS)

Order

receipt

Customer acceptance of

order

Deliver

Cycle Time

D1.3 -

D1.14

Level 1

Level 2

M1.1 -

M1.6

Make

Cycle Time

S1.1 -

S1.5

Source

Cycle Time

Order Fulfillment Cycle Time (MTO)

Order

receipt Customer acceptance of

order

Deliver

Cycle Time

D2.3 -

D2.14

Level 1

Level 2

M2.1 -

M2.6

Make

Cycle Time

S2.1 -

S2.5

Source

Cycle Time

D3.1-

D3.2

Order Fulfillment Cycle Time (ETO) Order

receipt Customer acceptance of

order

Deliver

Cycle Time

D3.3 -

D3.14

Level 1

Level 2

M3.1 -

M3.7

Make

Cycle Time

S3.1 -

S3.7

Source

Cycle Time

D2.1-

D2.2

MTS

MTO

ETO

Customer Order signal

Delivered product

Customer Order signal

Delivered product

Customer Order signal

Delivered product

Confidential

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SCOR® Corporate Training

iCognitive Supply Chain Catalogue Training 2014 List

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iCognitive Supply Chain Catalogue Training 2014

Optimizing your supply chain through SCOR® Model

• Introduction to Supply Chain Management Fundamental

• SCOR® Walkthrough: Optimize your End-to-End Supply Chain

• SCOR® 11.0 Navigator

• Building Supply Chain Capabilities to Achieve Operational Excellence

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Training: Nurturing the Future

– Public workshops: Share your experience with other supply chain professionals and the trainer

– In-House workshops: Customized workshops to meet your particular needs

– Training plus Coaching: Master the real execution through knowledge sharing and hands-on support from experienced subject expert

– E-learning courses: Allow your staff to learn in a more individualized and flexible learning pace

15 Supply Chain Training

Click on the picture to view our online SC Training Catalogue 2014

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SCOR® Implementation Case Study

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Successful projects: British American Tobacco

• Challenge: As pressure on margins increased, due to stronger local competition, a need appeared to uncover inefficiencies, and start a Supply Chain Management improvement program for Asia Pacific

• Solution: – Streamline and harmonize supply chain operations across all major Opco’s in

the region by using the SCOR® framework

– Comprehensive Assessment of As-Is: Processes mapping, Performance Measurement & Benchmarking

– Gap Analysis

– Design of improved new supply chain (To-Be)

– Implementation of Quick wins and longer term improvements

• Results: – Total savings: 1.75 M USD

– Total cash release: 6 M USD

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Successful projects: Thales

• Challenge: Sustain the company’s profitability and competitive advantage by boosting efficiency and reducing cost in a context of significant growth

• Solution:

– SCOR® analysis “As-Is”: Mapping of facilities, processes, systems and organizations

– “To-Be”: Identification of strategic opportunities

– Implementation of 21 initiatives (12 Quick Wins and 9 Projects)

• Results :

– The Return on Investment (x19.2) was reached within 12 months

– Savings: 20% of the total IFE revenue

– Reduction of inventory value by 1 million USD within 6 months

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Few words about iCognitive

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About iCognitive

iCognitive is an international consulting firm specialising in supply chain management optimisation, with offices in Asia and Europe. We provide a comprehensive range of supply chain consulting services, in-depth analysis, pragmatic solutions, and a capability to produce practical and measurable results for our customers.

iCognitive offers a range of tailor made services including:

–Supply Chain Management & Consulting.

–Corporate Supply Chain Training & Workshop.

–Benchmarking & Advanced Operational Benchmarking.

–Supply Chain IT Solutions & Technology Consulting.

–Supply Chain Outsourcing Services. 20

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An appointed Authority in Asia on SCOR® Model

Fully committed to measurable performance and improvements for our clients operations, we focus on "solving the right problem"; through a structured end-to-end vision of the supply chain. Our applied research capabilities empower executives to make more effective decisions to optimise their operational strategy. By transferring our supply chain knowledge to the client's team, we ensure that the solution implemented is sustainable long after the project has finished.

As the appointed authority in Asia on the Supply Chain Operations Reference model (SCOR®), we are recognized as a leading SCOR® expert by the Supply Chain Council.

Over 70 projects implemented in Supply Chain Management and over 30 projects using the unique iCognitive SCOR® Model Methodology

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Pr. John Paul

• John Paul (PhD, MBA, MSc, BEng) is an expert in supply chain management and operational improvement for manufacturing and services. He has over 25 years experience in supply chain management working as a top executive in, then later as consultant

to, global corporations. • Since 2003, he runs iCognitive, international, a dynamic, innovative consultancy company offering excellence in Supply chain services in

South East Asia region (Singapore, Malaysia, China), and in Europe (France). Clients are worldwide based.

• John Paul is currently a Professor and Research fellow at BEM - KEDGE (Bordeaux Ecole de Management – KEDGE, France) and visiting Professor at ESSEC Asian Campus in Singapore.

• John Paul has written the unique SCOR®Model Application in Chinese, Bahasa and French version and numerous SCM-articles. He has been lecturing in different European Universities and Nanyang Technological University Singapore.

• Founder and current Secretary of the South East Asia Chapter of the Supply Chain Council, John is a member of the Technical Development Committee of the Supply Chain Council. He is a qualified SCOR® instructor certified by the supply chain council and has trained over 3000 Supply Chain executives from 200 different companies in the region.

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An international team • Thinking Globally and Acting Locally

• Multicultural and experienced team

• Experienced consultants in Asia-Pacific and Europe

•

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FRANCE

iCognitive Europe

Paris La Défense

France

CHINA

iCognitive China

Hangzhou

China

MALAYSIA

iCognitive Malaysia

Kuala Lumpur

Malaysia

SINGAPORE

iCognitive Singapore

HQ - Singapore

iCognitive Africa

Coming Soon

Consulting Benchmark Training & Workshop Technology Research

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An integrated service offering

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CONSULTING

BENCHMARKING

TRAINING

TECHNOLOGY

RESEARCH IN SUPPLY CHAIN

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We support our clients in…

• Aligning their Supply Chain with their corporate strategy

• Improving their visibility through supply chain integration

• Reducing their costs

• Maximizing their cash flow

• Increasing their flexibility and responsiveness with an agile supply

chain

• Measuring and improving their performance (service level)

• Implementing a green Supply Chain

25 Supply Chain Consulting

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With a wide variety of services

• Supply Chain Flash Audit

• SCOR Implementation

• Supply Chain Performance

Measurement

• Logistics and distribution network

design

• Supply Chain strategy

• Supply Chain risk and continuity

assessment

• S&OP implementation

• Forecasting / Demand management

improvement

• Supply chain Intelligence

• Supply Chain Technology Assessment

• Supply Chain Analytics

• Supply Chain Training

• …

26 Supply Chain Consulting

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Our clients… our success

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iCognitive Publication First SCOR® Book published in Chinese and French

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On sale on: http://www.icognitive.com/estore/

French version

French Version, 2nd Edition Chinese version

Chinese Version 2nd Edition

Coming soon Bahasa Version

Coming soon

www.icognitive.com www.icognitive.com www.icognitive.com © 2

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iCognitive China Room 101- 201, A unit,

3rd building No.4028 Nan Huan Road

Hangzhou 310053 China (PRC)

Phone: 86 - 571 2689 2730

iCognitive Europe 7C, place du Dôme

Immeuble Elysées La Défense Paris La Défense

92056 France Tel:+33 (0)1 72 75 72 30 Fax:+33 (0)1 72 75 72 99

iCognitive HQ & APAC 13 Ann Siang Road

#02-01 Singapore 069693

Phone +65 63252810 Fax +65 62200690

www.icognitive.com info@icognitive.com

iCognitive Malaysia 10th Floor, Wisma Havela

Thakardas No.1, Jalan Tiong Nam,

Off Jalan Raja Laut Kuala Lumpur

50350 Malaysia Phone: +65 6325 2810

Fax:+65 6220 0690