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CoBI Workshop, 17th IEEE Conference on Business Informatics
13th - 16th July 2015
A REFERENCE MODEL BASED
DESIGN OF SUPPLY...
Outline
• Problem area and objective
• Supply chain design and capabilities
• SCOR to capabilities mapping
• Capability de...
Problem Area
• Supply chain design
• SCOR model
• Transition from supply chain domain to
enterprise applications domain
3
Objective
• SCOR model is a useful source of
information for designing capabilities
• Objective is to identify commonaliti...
Supply Chain Design
• Selection of supply chain units, establishing
links among the units and configuration of
supply chai...
Supply Chain Capabilities
• Capabilities describe abilities possessed
by an organization
– This ability should be achieved...
Capability Modeling
7
class Capability
Capability Goal IndicatorContext
Pattern Process Process Variant
* 1..*
1..*0..*
1....
Supply Chain Reference Model
SCOR defines supply chain processes in a
uniform manner
8
class Asdenca2
Process Performance
...
Mapping
9
SCOR
Level 1 process
Level 3 process
Best practice
Performance
attribute
Metric
Capability
Process
Process varia...
Capability Design Process
Apply patterns to operationalize the process variants
Search patterns
Specify capability indicat...
Example
• Demand fulfillment capability
– Based on the delivery process
– Uses Deliver Stocked Product (D1) and
Deliver Ma...
Demand Fulfillment Capability
12
class Example
Demand fulfillment :Capability
To improve reliability :
Goal
To increase
re...
Patterns
Name Description Process fragment
Single point of
contact
Problem: Customer requests received
through various cha...
Deliver Stocked Products Process
Variant
14
D1.1 Process inquiry & Quote
D1.1 Process Inquiry
& Quote
D1.2 Receive, Enter
...
Conclusion
• SCOR model provide building block for
developing capabilities
• Capabilities allow for contextualiation of
su...
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A Reference Model Based Design of Supply Chain Management Capabilities

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Capabilities define competitive advantages an organization possesses, and attaining desired capabilities is a challenging task. This paper proposes to use reference models as a basis for the capability design, and it focuses on usage of the SCOR model for designing supply chain management capabilities. The paper outlines a method for the reference model based capability design. The method relies on the correspondence among concepts used in capability modeling and concepts used in the SCOR model. The capability is designed by selecting and combining appropriate process categories and metrics from the reference model. Best practices defined in the referenced model are packaged as capability delivery patterns and are also used in capability design as reusable process fragments. The reference model provides sound foundations for the capability design while capability-oriented view of the reference model enriches it with contextual information.
Authors: Jānis Grabis and Solvita Bērziša

Published in: Software
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A Reference Model Based Design of Supply Chain Management Capabilities

  1. 1. CoBI Workshop, 17th IEEE Conference on Business Informatics 13th - 16th July 2015 A REFERENCE MODEL BASED DESIGN OF SUPPLY CHAIN MANAGEMENT CAPABILITIES Jānis Grabis Information Technology Institute, Riga Technical University, Kalku 1, Riga, Latvia grabis@rtu.lv Solvita Bērziša Information Technology Institute, Riga Technical University, Kalku 1, Riga, Latvia solvita.berzisa@rtu.lv
  2. 2. Outline • Problem area and objective • Supply chain design and capabilities • SCOR to capabilities mapping • Capability design process • Example • Conclusion 2
  3. 3. Problem Area • Supply chain design • SCOR model • Transition from supply chain domain to enterprise applications domain 3
  4. 4. Objective • SCOR model is a useful source of information for designing capabilities • Objective is to identify commonalities among the reference model and capability design and to outline the reference model based capability design 4
  5. 5. Supply Chain Design • Selection of supply chain units, establishing links among the units and configuration of supply chain processes – E.g., Huang et al. (2005) • SCOR model defines high level processes according to the source, make, deliver and plan template • Multi-objective design problem – E.g., Melo et al. (2009) • Global operations – E.g., He et al. (2014) 5
  6. 6. Supply Chain Capabilities • Capabilities describe abilities possessed by an organization – This ability should be achieved under specified performance requirements and operating conditions • Supply chain capabilities – Functional capabilities – Service capabilities – Cross-sectional capabilities 6
  7. 7. Capability Modeling 7 class Capability Capability Goal IndicatorContext Pattern Process Process Variant * 1..* 1..*0..* 1..* 1 0..* 1..* 0..* 0..* 1..* 0..* 1 0..* 1..*1..* Contex represents varying supply chain execution circumstances Process variants represent supply chain execution solutions
  8. 8. Supply Chain Reference Model SCOR defines supply chain processes in a uniform manner 8 class Asdenca2 Process Performance Attribute Metric Best Practice Feature Input Output 1..* 0..* 1..* 1..* 1..* 0..*1..* 0..* 1..* 0..* 0..* 1..*
  9. 9. Mapping 9 SCOR Level 1 process Level 3 process Best practice Performance attribute Metric Capability Process Process variant Pattern Goal Indicator
  10. 10. Capability Design Process Apply patterns to operationalize the process variants Search patterns Specify capability indicators Select process variants (Level 3) Select a process (Level 1) supporting capability delivery Context modeling Name capability and define goals 10
  11. 11. Example • Demand fulfillment capability – Based on the delivery process – Uses Deliver Stocked Product (D1) and Deliver Make-to-Order (D2) process variants – Pattern repository contains several capability delivery patterns 11
  12. 12. Demand Fulfillment Capability 12 class Example Demand fulfillment :Capability To improve reliability : Goal To increase responsiveness :Goal To reduce costs :Goal Customer location : Context Destination conditions :Context Inquiry source : Context Customer creditworthiness : Context Deliver :Process Deliver Stocked Product : Process Variant Deliver Make-to-Order Product :Process Variant Apply patterns to operationalize the process variants Search patterns Specify capability indicators Select process variants (Level 3) Select a process (Level 1) supporting capability delivery Context modeling Name capability and define goals
  13. 13. Patterns Name Description Process fragment Single point of contact Problem: Customer requests received through various channels get lost Context: Customer profile, Inquiry source Solution: All request are routed for processing in a single view Tailor offering Problem: Customers should not be offered products, which cannot be delivered Context: Customer location, Destination, Product type Solution: Filter products according the context values Extra insurance Problem: Some shipments are dangerous and require extra precautionary measures Context: Customer location={R1- R5}, Destination conditions={Normal, Hazardous} Solution: Insure high risk shipments 13 Route request Select products Create quotation Display products Multi-channel request is received Filter list Take extra insurance
  14. 14. Deliver Stocked Products Process Variant 14 D1.1 Process inquiry & Quote D1.1 Process Inquiry & Quote D1.2 Receive, Enter & Validate Order D1.3 Reserve Inventory & Determine Delivery Date D1.4 Consolidate Orders D1.5 Plan & Build Loads D1.6 Route Shipments D1.7 Select Carriers & Rate Shipments D1.8 Receive product at warehouse D1.9 Pick Product D1.10 Load Vehicle Generate Ship docs, Verify Credit & Ship Product D1.11 Receive & Verify Product at Customer Site D1.12 Install Product D1.13 Invoice Ctx: Customer location Inquiry source Ctx: Destination conditions Ctx: Customer creditworthiness Customer inquiry received Filter product list CTx: Customer location Display products Select products Create quote Route request CTx: Request source
  15. 15. Conclusion • SCOR model provide building block for developing capabilities • Capabilities allow for contextualiation of supply chain processes • SCOR model provides Level 1-3 specifications while patterns are used for Level 4 15

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