Supply Chain Excellence Where does your Organization really need to be? Best in Class Supply Chain is not a requirement for all organizations. Understand where you need to be based on your ROI, market, competitors. People and process in place before technology What sigma level do you need to be at?

1. Stephen Ross
Principal
Albemarle Supply Chain
albermarlesc@outlook.com
Supply Chain Excellence
Where does your Organization really need to be?

2. • The Concept
▫ Best in Class Supply Chain is not a requirement for all organizations.
 Understand where you need to be based on your ROI, market, competitors.
 People and process in place before technology
 What sigma level do you need to be at?
Executive Summary

3. • Contract Management
• Logistics
• Demand Planning
• Inventory management
• Warehouse Management
• Procurement
• Master Data Management
Supply Chain Excellence Components

4. Level Process
S0 No Processes
S1 Few Processes
S2 Below Standard
S3 Industry Benchmark
S4 Above Standard
S5 World Class
Definition of levels

5. • Your organization should be able to reach “S3” without any help from
Technology.
• Technology is usually required to reach “S4, S5”
Technology

6. Level Process
S0 No contracts in place.
S1 Less than 80% of spend under contract
S2 Greater than 80% of spend under contract, no contract system in place.
S3 Contract system in place, managing greater than 80% spend
S4 Contract system in place that forecasts expiring contracts
Warns when terms are near completion
S5 Contract system in place that prompts suppliers of pending RFP
Forecasts spend at risk
Contract Management

7. Level Process
S0 Logistics costs not tracked.
S1 Logistics cost tracked.
S2 Logistics defaulted to vendors.
S3 Logistics managed, standards in place
Shipping terms negotiated
S4 Logistic strategies in place (3PL, in house, LTL, Distribution, shipping channels)
S5 Logistics points and routing networks optimized through constantly analyzing key inputs
Logistics

8. Level Process
S0 No forecasts in place.
S1 Yearly forecast based on history driven by operations.
S2 Quarterly rolling forecast from sales
S3 Collaborative demand plan inputs and agreement from Sales, customers, operations and suppliers.
S4 Dynamic closed loop collaborative demand plan adjusted on actuals, new data.
S5 Real time Supply/demand data contributing to the dynamic closed loop Collaborative demand plan
adjusted on actuals, new data.
Demand Management

9. Level Process
S0 Reorder points, inventory parameters not managed by Supply Chain
S1 Inventory managed when minimum broken
S2 Inventory managed using MIN, MAX
S3 Other inventory parameters incorporated besides MIN, MAX
Inventory strategies in place , lead time managed
S4 Inventory optimized using “what if” simulation tools, ability to promise
S5 Inventory visibility into complete supply Chain (Vendors, distribution)
Inventory Management

10. Level Process
S0 Anyone in company can act as an officer of the company and place an purchase order
S1 Materials & Services sourced through requisition only, managed by procurement process professionals
S2 Requisitions executed as “one offs” no long term strategy to manage vendors or repeat purchases.
S3 Purchasing policies in place, Vendor performance tracked
S4 TCO “Total cost of Ownership” process in place
S5 Automatic replenishment in place
Procurement

11. Level Process
S0 All employees have access to Item Master and can make entries.
S1 Access restricted to few individuals , but no standards in place
S2 Standards and process in place to manage Item Master
S3 Item master/BOM strategy in place to support the organizational strategy.
S4 Automatically update Master Data with lead time, pricing, part number updates.
S5 One Global Centralized Master data organization and process
Changes pushed and pulled to all regions impacted.
Master Data Management

12. • Complete baseline review of Supply Chain components.
• Identify Level requirements to support the business.
• Identify gaps in reaching level requirements.
• The creation of a Strategic roadmap and business plan to address the Gaps that have the biggest
impact on the business.
• The execution of the strategic plan by engaging and influencing stakeholders through workshops one
on one coaching in the development and implementation that will drive business results.
• Supporting the execution through change management, mentoring, process, training, staffing, KPI's
and senior leadership support.
The Methodology

13. • A successful and progressive career in providing a global and national supply chain
vision and direction to diverse industries from aerospace to pharmaceutical that has
been struggling with lack of processes, standards and technologies.
• A rare breadth and depth of supply chain expertise from global end to end Supply
chain strategies, supply chain transformation, continuous improvement. I have a
proven track record of success with all aspects of supply chain regardless of the
initial process maturity levels of the organizations and geographical locations.
• Leadership positions with top manufacturing firms GE, Honeywell, Barrick Gold.
• Six sigma black belt, Certified In production and inventory control.
The Expertise