Sustainability framework, the NETWORK perspective.pptx

ECSCIA, European Centre of Supply Chain Information Architecture
Sustainability framework,
the NETWORK perspective

This document focuses on the bricks in the framework that are
central to the NETWORK perspective, i.e. connections between
nodes in value chains.
In their digital representation, NETWORKS are structures of
objects (bricks in the sustainability framework)
Each change to an object in the network structure changes the
overall sustainability weight of the network. Understanding and
managing the network is a key capability to optimize the “3C”s and
achieving network efficiency

Recap section

The sustainability framework illustrates and structures what supply
chain related knowledge that need to be available as formal data
order to digitally manage sustainability.
Each brick in the framework covers one aspect of the data foundation
needed to ensure “sustainability”.
Building a strong sustainability chain requires having data in every
brick under control

Compounds
CO2e
Compliance
The “3C”s “Sustainability”

Compounds
CO2e
Compliance
Sustainability framework, the bricks
Transactions, the execution
Lifecycles, the phases
Value chains, the interaction
“3C”s +
fundamentals
“Sustainability”
Plans and predictions, the choices

Compounds
CO2e
Compliance
Network
efficiency
“3C”s and an “N” “Sustainability”

ECSCIA, European Centre of Supply Chain Information
Architecture
CO2e
Emission
factors
Workload Value chain

Architecture
Compliance
Regulations
Laws
Industry
standards

Architecture
Compounds
Items
BOMs
Substances

Architecture
Network
efficiency
Locations
Routes
Modes of
transport
Operations
Trade & legal
compliance
Plans
Transactions

Portfolio and
Innovation
lifecycle
Design
lifecycle
Supply chain
lifecycle
Operational
lifecycle
Total sustainability lifecycle
Sales
lifecycle
End of life
lifecycle
Extended
ecosystem
Lifecycle(s)
Sustainability lifecycles

Routes ,
Lanes
Modes of
transport
Product
structures,
”Bill of material”
Locations
Value chains
Compound &
substance
structures
Operations
Dimensions
Conditions
Lead times
The sustainability framework; “bricks” (revision 7…)
Partners,
stakeholders
Contracts &
agreements
Items,
catalogues and
launch plans
Resources
Drawings and
specifications
Standard
Operating
Procedures

Entities
(legal and
financial)
The sustainability framework; “bricks” (revision 7…)
Segmentation
hierarchies
Product portfolio
hierarchies
NPI plans Calendars
Trade & legal
compliance rules
Product and
standards
compliance
Sustainability
weight/cost
measures
Emission factors

Transactions (revision 1…)
Quotes
Customer orders
Sales orders
Purchase orders
Manufacturing
orders
Delivery
orders
Movement
orders
RFIs,RFPs and
RFQs
Splits and quotas

Plans and predictions (revision 1…)
Forecast Plan Budget

End recap section

Architecture
Networks,
legal and physical

Two views on networks: Networks as physical and networks as legal/commercial
structures. Both views affect sustainability choices
The physical effort, in it´s simplest form the
distance * mode of transport * emission
factor = CO2 weight
The legal /commercial playing field. The legal
and commercial rules/agreements to be
compliant to.
Physical Legal/commercial

Two views on networks: Networks as physical and networks as legal/commercial
structures. Both views affect sustainability choices
Physical network describes the physical
relation between locations in the value
chain
Legal/commercial network describes the legal
/commercial relation between entities in
the value chain
Routes,
Lanes
Locations
Entities
(legal and
financial)
Partners,
stakeholders

Physical network
Commercial network
Architecture
Locations exist in the physical network and have relations entities in the commercial
network. Optimizing sustainability choices requires facts and consideration of both
physical and commercial perspectives on the location
Supplier
Contract
manufacturer
Factory
Customer
Location
Warehouse
And…..

Physical network
Architecture
Compliance
Regulations
Laws
Industry
standards
Routes,
Lanes
Locations
Entities
(legal and
financial)
Partners,
stakeholders
Commercial/legal network
Items,
catalogues and
launch plans
Product
structures,
Compound &
substance
structures
Trade & legal
compliance rules

Although both the physical and legal/commercial NETWORK has to interact to
find the right option from a sustainability perspective, they are still distinctly
different from a “master” data perspective and have different process origin.
Routes,
Lanes
Locations
Entities
(legal and
financial)
Partners,
stakeholders
Legal/commercial data
Physical Network data
Don´t mix
“Master”
data,
Get each one
right on it´s
own merits
first
Then combine them for optimum sustainability

Architecture
Networks,
Lifecycles & versions

Networks exist in versions:
The physical network as IT WAS : Historical actuals
The network as IT IS : Execution
The network TO BE, as it is designed for the future : The agreed planned network
and the simulated alternative scenario network
Routes,
Lanes
Locations
Routes,
Lanes
Locations
Routes,
Lanes
Locations
As was As is To be/Could be

Architecture
SNT
Sustainability Network Tuning

Architecture
SNT Stakeholders:
Who is the Network being
tuned for?
SNT focus:
What sustainability objectives
are in focus for the tuning?
SNT goals:
What sustainability goals are in
focus for the tuning?
SNT plan:
How will the tuning be
performed and how will results
be implemented

“Sustainability Network Tuning” :
Sense, analyse, design, implement and master the network to balance/optimize
network efficiency and sustainability objectives.
Sustainability tuning toolbox
Orchestration/Execution
Planning Simulation
Automation
Analytics
As was As is To be/Could be
Network master (repository)
Analyse sustainability impact of network
Adjust network for
sustainability

Architecture
Sustainability monitoring

Architecture
Classify network events
from sustainability
perspective
Monitor/Observe Alert/Discover Analyse/Review
Is this an event
with sustainability
impact. What are
the sustainability
classification
criteria?
Observe the digital
flow through the
value chain.
Did any event
classified as having
sustainability
impact occur?
What does that
mean to
sustainability
performance, is
action needed?
Sustainability monitoring

Architecture
Locations

Location, the nodes in the physical network master.
“Locations” represents physical places. They might be named after and
inherit some attributes from legal entities but they are not the same as legal
entities. Again : don´t mix physical and legal meaning into one and the same
data element. Keep them linked but apart!
Location Location
Locations
Entities
(legal and
financial)

Architecture
Routes and lanes

Routes and lanes in the physical network master.
A lane describes a s specific way of moving between two locations. It associated with a
specific mode of transport and a specific forwarder. (forwarder as a associated
specification, a “attribute”, not embedded into the lane itself).
A route describes a collection of lanes and locations that make up a complete transport.
Location Location
Routes ,
Lanes
Lane Location
Lane Lane Location
Modes of
transport
Partners,
stakeholders
Route
Mode of transport
Forwarder
Mode of transport
Forwarder
Mode of transport
Forwarder

Architecture
Lead times

Architecture
Locations
Lead times affect sustainability optimization in terms of how products are
acquired, transformed and moved.
Key sustainability framework bricks supporting that are:
Partners,
stakeholders
Contracts &
agreements
Acquire Transform Move
Product
structures,
Compound &
substance
structures
Operations Dimensions
Resources
Drawings and
specifications
Standard
Operating
Procedures
Routes ,
Lanes
Modes of
transport
Conditions
Trade & legal
compliance rules
Product and
standards
compliance
Key data bricks
Source Make Deliver

Location Location
Lane
Transport
lead time
Supply
lead time
Receival
Lead time
Total lead time
+ + =
The “weight” for this route
option expressed as time. A
criteria criteria in the overall
sustainability decision process
Lead time weight in the network master
Lead time is a key component of sustainability optimization since lead times determine how fast the buyer
can obtain the product. “Time is money…” and money is a parameter in supply chain sustainability
optimization.

Lead times in the network master.
Lead times are challenging since they are aspired to be agreed, stable and predictable but in reality are
dependent of situation and require constant collaboration/renegotiation
Transport
lead time
Supply
lead time
Receival
Lead time
Total lead time
+ + =
In each step, stakeholders need to consider and agree on aspects like :
-With or without forecast? With our without reserved capacity?
-With what restrictions, dependencies and visibility into preceding value chain?
-With our without commitment to actually execute (pay…)?
-On what product hierarchy level? In what quantity, in what time window?
Before a lead time can be set

Lead times in the network master
Determining a lead time for a step is challenging since it is dependent on what happens within the step
and relations to other steps. It also depends on what agreements that has been made and
what information that has been shared .
Step
Lead time
Is material
available without
lead time?
Is there competition for
material? How is
competition prioritized
Is there competition for
capacity? How is capacity
prioritized
What prerequisites
have been agreed?
What information
has been shared
What level of detail
is information
stated? Is
translation
needed?

Lead times in the network master : Translation of levels
Contractual
Agreement
Forecast Delivery plan
Capacity object
Discrete
item/part
Order
Order
confirmation
Date
Item Location
Discrete
value
Discrete at
some level in
product
dimension
Discrete at
some level in
location
dimension
Range of
values
Range in
Product
dimension
Range in
location
dimension
Objects the lead
time is placed om
The preparation
perspective
The execution
perspective
Prepare = discrete values
Execute = Date
Exact or indicative
objects

Architecture
Lead time quality goes down the drain if the objects lead
time is placed on does not allow for connecting the
preparation step to the execution step.
If objects do not connect, automation and performance
feedback becomes impossible
Objects the lead
time is placed om
The preparation
perspective
The execution
perspective

Lead times in the network master : objects and levels of detail
Resources
Product
structures,
NPI plans
Items,
catalogues and
launch plans
What to secure lead times
for
Partners,
stakeholders
Segmentation
hierarchies
Product portfolio
hierarchies
Object lead
time is
placed om
Operations

Architecture
(Object)
Translation

Preparation, expressed as contracts, forecast and plans might be specified on discrete objects at higher level in
hierarchy and/or on ranges . These objects and ranges aren´t necessarily the same as used in execution which
is operates runs on exact, discrete objects. Translation between the to introduces risk reducing accuracy
of the lead time and thus affect sustainability optimization calculation
Contracts &
agreements
Forecast Plan Quotes
Customer orders
Sales orders
Purchase orders
High
level/ranges
Preparation Execution
Lowest
level/
Discrete
object

Lead times in the network master : Translation of object levels : Impact on sustainability calculation 
Sustainability calculation requires an Object Configuration Standard (OCS)
Preparation Execution
Contracts &
agreements
Forecast Plan Quotes
Customer
orders
Sales orders
Purchase
orders
High
level/ranges
from the
OCS
Lowest
level/
discrete
object from
the OCS
“Indicative”
lead time
“Exact” lead
time
Lead time weight in sustainability optimization calculation
Interpretation
Translation
Interpretation
Object
configuration
standard
Object
configuration
standard
Object
configuration
standard

Architecture
Collaboration

Lead times are challenging since they are aspired to be agreed, stable and predictable
but in reality are dependent of situation and require constant
collaboration/renegotiation. Lead time is set in context of factors that
dynamically affect the number
Transport
lead time
Supply
lead time
Receival
Lead time
Context Context Context
Context
The accuracy when calculating sustainability weight is dependent of the level of
understanding of and control over the factors that affect the lead time number

Compliance Compounds
CO2
Value chain collaboration to support reaching sustainability targets
Collaborate on product design
Collaborate on portfolio
Collaborate on forecast and planning
(Network design and dimensioning)
Collaborate on strategic sourcing
Collaborate on SC execution
Partners,
stakeholders
Partners,
stakeholders
Network
efficiency

Lead times in the network master.
Agreed standard lead
time framework
Predicted conditions
Actual lead time
Planned lead time
Rules
Agreed standard lead
time
Actual conditions
Prepare
Plan
Execute
+

Architecture
Calendars

Lead time in the network master, date conversion, the role of calendars
Transport
lead time
Supply
lead time
Receival
Lead time
Calendars
Availability date
Location Location
Shipping date Receival date Availability date
Calendar
Arrival date
Lane
Calendar Calendar Calendar

Architecture
Rules and regulations

Relations in the commercial/legal network master.
Partners,
stakeholders
Trade & legal
compliance rules
The commercial/legal network describes how entities relate to each other from a company and
partner perspective. It describes and determines who can do business with whom.
The commercial /legal network determines how money flow (buyer-seller) and where
obligation to ensure compliance as well as the risk of being punished for breaches resides.
The impact of the relations in the commercial/legal network needs to be taken into account
when optimizing sustainability in the the physical network.
Buyer Seller
Legal entity Legal entity
Rules
Relations

Architecture
SuS_R

Architecture
“DELIVER” is a FROM-TO activity. “Sustainability Scope
for ROUTE” (SuS_R) Is the scope of facts that affect
sustainability for a specific route
SuS_R

Physical networks offers OPTIONS. It is possible to move things between two
locations in different ways, with different sustainability impact, different SuS_R
Routes
Locations
Modes of
transport
SuS_R

Architecture
And be good….

Sustainability requires identifying NETWORK that respects rules and regulations
and operates ethically (Activities aren´t ethically right just because they are legal)
Social
Environmental Economic

Sustainability framework, the NETWORK perspective.pptx

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