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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
This book presents the different models of supply chain performance evaluation for global supply chains. It describes why it is necessary to evaluate global performance both to assess the contribution of the supply chain to achieve the goals of creating value throughout the chain and also to meet customer requirements in terms of time, responsiveness and reliability.
The author provides an understanding of how evaluation models are chosen according to criteria including the level of maturity of the organization, the level of decision-making and the level of value creation desired.
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Seitenzahl: 149
Veröffentlichungsjahr: 2014
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Contents
List of Figures
List of Tables
Preface
Acknowledgments
Introduction
1 Supply Chain Management Modeling
1.1. Supply chain management
1.2. Supply chain management and modeling
1.3. Supply chain management – performance and value creation
1.4. Maturity models and supply chain performance
1.5. Summary
1.6. Bibliography
2 Value Creation and Supply Chain Performance
2.1. Introduction
2.2. The companies analyzed
2.3. Definition of value creation attributes
2.4. Choice of indicators associated with value creation attributes
2.5. Choice of maturity model
2.6. Analysis of performance and classification
2.7. Summary: supply chain performance and value creation
2.8. Bibliography
3 Help in Choosing Supply Chain Performance Evaluation Models
3.1. Introduction
3.2. The different models of supply chain management performance evaluation
3.3. Use of the models
3.4. Grid summarizing the models studied
3.5. Analysis resulting from the characterization of performance evaluation models
3.6. Summary
3.7. Bibliography
4 Performance Evaluation Model for Value Creation
4.1. Introduction
4.2. Comparison of models in terms of value creation
4.3. Model characteristics
4.4. Performance evaluation
4.5. Maturity matrix – creation of value/frequency of exchanges
4.6. Advocating auditing procedures
4.7. Summary
4.8. Bibliography
5 Case Study
5.1. Introduction
5.2. Presentation of the company
5.3. Use of SCALE model to evaluate the performance of the supply chain
5.4. Overview of performance evaluation and suggestions for improvement
5.5. Summary
5.6. Bibliography
Conclusion
Appendix: List of Companies
Index
First published 2014 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc.
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address:
ISTE Ltd
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London SW19 4EU
UK
www.iste.co.uk
John Wiley & Sons, Inc.
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Hoboken, NJ 07030
USA
www.wiley.com
© ISTE Ltd 2014
The rights of Dominique Estampe to be identified as the author of this work have been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
Library of Congress Control Number: 2014947877
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library
ISSN 2051-2481 (Print)
ISSN 2051-249X (Online)
ISBN 978-1-84821-667-9
List of Figures
1.1. An interorganizational approach [MEN 01b]
1.2. Control model [NOY 07]
1.3. A posteriori performance assessment [BUR 03]
1.4. Categories of indicators (adapted from [LOR 03])
1.5. Value perceived by the customer and causal links [KAP 96]
1.6. The strategic profit model [LAM 00a]
1.7. Supply chain maturity grid
1.8. Evaluating value creation among the actors in the supply chain
2.1. Performance and value creation
2.2. Distribution of companies depending on their activity sector
3.1. Global value creation throughout the chain
3.2. EFQM evaluation of performance
4.1. Number of processes (%) linked to attributes of value creation
4.2. Number of processes (%) linked to aspects of value creation
4.3. Evaluation of the performance of processes by the SCALE model
4.4. Analysis of category 6 processes: assess and monitor the performance of each partner throughout the Supply Chain
5.1. Organization of the supply chain in the agri-food sector
5.2. Organization of flows
5.3. Evaluation of the GEMDIST group’s performance
5.4. Category 5 processes: coordinate the various links in the chain
5.5. Category 7 processes: optimize the supply chain
5.6. Positioning of GEMDIST on the value creation maturity matrix
List of Tables
1.1. Definitions of value [BOG 00, FAB 02]
1.2. Value attributes
2.1. Value creation attributes and supply chain performance drivers [EST 08]
2.2. Classification of companies on the basis of value creation attributes of the chain actors
2.3. Company supply chain maturity
2.4. Classification of companies according to value creating attributes
3.1. Characteristics of the WCL model [EST 98]
3.2. Dimensions taken into account by the BSC
3.3. The levels of the SCOR model [LAV 07]
3.4. ECR indicators
3.5. Comparison of the various performance evaluation models, according to [EST 13]
4.1. Attributes of value creation
4.2. Processes of the SCALE model
4.3. Weighting coefficient for the SCALE model processes
4.4. Maturity matrix – creation of value/frequency of exchanges
5.1. Specificities of retail supply chain adapted from [EUR 03, EUR 05]
5.2. Value creation factors in the agri-food sector
Preface
What is the best way to evaluate supply chain performance? This may seem like a simple question, but the answer to it can be quite complex, given that the supply chain can be regarded from many points of view, such as financial, information, strategic, operational, suppliers, clients, shareholders and societal. The complexity of the systems involved can be best understood through systemic analysis and modeling; in this way, an insight can be gained into all of the interactions in each of the subsystems. Performance evaluation cannot be conducted without the use of modeling or an approach which identifies the values created for all of the supply chain. Performance is linked to value created. This book aims to explain the requirements for modeling, to show how managers can model an organization’s supply chain and, in this way, through the understanding they have gained of value creation and its attributes, they can take the performance evaluation into consideration more effectively.
Models for evaluating performance are management tools which allow strategic changes to occur [NEE 95]. One of their characteristics is that they show several points of view regarding the organization of the supply chain (financial, strategic, operational, etc.) in order to make analysis over time and space possible. This book presents the different supply chain performance evaluation models. It explains why it is necessary to evaluate the contribution of the supply chain to the value creation objectives throughout the chain, and why this is necessary in order to respond to customer demands in terms of time, responsiveness and reliability. This book shows how to choose an evaluation model as a function of criteria such as the maturity levels of the organization, the decision-making and the value creation required. Finally, this book should help managers to understand how to implement supply chain performance evaluation, through the use of an illustrative case study.
Dominique Estampe
September 2014
Acknowledgments
This book might never have seen the light of day were it not for the support, the advice and the experiments conducted alongside all those who have worked on the subject of this book.
First, I would like to thank Samir Lamouri, Professor at ParisTech Arts et Métiers, for his encouragement and support during my research and Jean Luc Paris, Professor at IFMA, for his expert contributions.
I would also like to thank Michel Favre Bertin, who initiated the SCALE model and has contributed his experience with evaluation frameworks throughout the many years that we have worked together, for helping with the implementation of new supply chain audit approaches and his partnership in conducting company audits.
Next, I would like to thank all the ISLI students at KEDGE Business School, who were involved in the studies designing and implementing the company auditing tools. Through their innovative ideas and capacity for hard work, I gained further insights and ideas, without which this book might not have been possible.
Finally, I would like to offer particular thanks to my wife Laurence and my two sons Théo and Timothé for their unfailing support.
Introduction
Companies define their new internal or external modes of organization using organizational models learned through management experience (empirical models), or gained through predefined concepts and framework (reference models). These reference models are tools for the analysis or creation of processes which offer managers the possibility of implementing various “best practices”. Depending on the management modes, these “best practices” are different for each company.
In this book, we will address supply chain management, which is defined as “the integration of key operational processes from the end user to the original suppliers of products, services and information, which bring added value to customers and other stakeholders” [CSC 98].
“Best practices” for supply chain management are characterized by the quest for improvement in the collaboration between all of the companies. This collaboration usually takes the form of the introduction of common management tools (e.g. Vendor Management Inventory, Collaborative Planning, Forecasting and Replenishment), the use of inter-company information technologies (e.g. Web Data Interchange and Internet of Things), or by sharing experience in product design or in manufacture.
We will return in detail to the definitions of supply chain management and will analyze the notion of performance, using systemic modeling. We will show that supply chain management has its basis in a systemic approach where each sub-element of the system is involved in global optimization.
In order to better understand the notion of performance, we will show that it is maybe situated within a larger vision associated with value creation; we will recall the principles of value creation. Value creation for supply chain management will thus be viewed from the perspective of the chain as a whole.
Reference has often been made to an important question: how can a company identify value creation, and what method can it use to look for it? We suggest a framework for identifying value creation and, through an analysis covering a panel of companies, we will aim to establish correlations between the implementation of supply chain best practices and value creation. This analysis will raise the question of current supply chain performance evaluation systems and how suitable they are for seeking and creating value. To achieve this, we will characterize the various existing models in order to gain a better understanding of their domains of use. We will show that these are not strongly oriented toward value creation for the entire chain, and we will suggest a new model that is focused on this type of value creation. We will identify a general framework for reflection on the implementation of supply chain management performance evaluation models.
Finally, we will suggest a model which identifies not only value creation for a single company, but also a value creation that is associated with all of the actors in the chain.
The book is organized into several chapters. In Chapter 1, entitled “Supply Chain Management Modeling”, our goal is to define supply chain management and identify the tools for modeling supply chain management. We suggest a definition for the concept of performance and present the main principles of supply chain management performance. Following this, we will link supply chain management performance with value creation and suggest a definition for the concept of value associated with supply chain management.
In Chapter 2, entitled “Value Creation and Supply Chain Performance”, we will show that the implementation of supply chain management best practices is strongly correlated with value creation. We will first suggest indicators associated with value creation and then will identify the links between supply chain management performance levels and value creation throughout the chain.
In Chapter 3, entitled “Help in Choosing Supply Chain Performance Evaluation Models”, we will compare the various existing supply chain performance evaluation models in order to help companies choose models suitable for their needs. To this end, we will characterize the models using a range of criteria.
We will see that value creation is not always taken into consideration in all the models, and we will provide, in Chapter 4, entitled “Performance Evaluation Model for Value Creation”, a detailed analysis for some models in relation to value creation. In Chapter 5, we suggest a new evaluation model and put it into practice in a case study.
Finally, in the Conclusion, we will suggest other possible useful areas for future study regarding performance evaluation tools.
1
Supply Chain Management Modeling
1.1. Supply chain management
Historically, the management of flows was mainly concerned with internal company processes, aiming to optimize material, information and financial flows. The concept of logistics defined this early stage in the development of the management of flows [COL 96]. With logistics management, the purchasing, production and distribution were not considered separately; they were managed as part of an overall view of flows within the company.
In 1986, the Council of Logistics Management (CLM), which is now the Council of Supply Chain Management Professionals (CSCMP), defined logistics management as “The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished good, and related information flow from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements” [COO 97].
The consideration of distribution points and production plants within the management of flows led to the evolution of the concept of logistics from a company-centered approach toward a more global logistics approach [COL 96].
This marked a turning point in supply chain management: from this time onward, all the partners in the chain were taken into account. They were no longer seen as being independent of each other, but rather as needing to learn to coordinate and synchronize their activities.
Study of the supply chain management has come into being as a result of this need to coordinate the activities of various companies and their flows, from the suppliers’ suppliers to the end customer.
It aims to achieve coherence between the various actors in the chain, even where their end goals do not match.
Forrester has clearly illustrated the intraorganizational nature of logistics: “Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materials, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for anticipating the effects of decisions, policies, organizational forms, and investment choices.” [FOR 61] cited in [MEN 01b].
During the 1990s, supply chain management was seen as being a systemic approach that viewed the chain as one unique whole rather than a set of disparate elements working toward their own individual goals. [MEN 01b] provides a pertinent overview of the different definitions of supply chain management.
“The objective of managing the supply chain is to synchronize the requirements of the customer with the flow of materials from suppliers in order to effect a balance between what are often seen as conflicting goals of high customer service, low inventory management, and low unit cost.” [STE 89].
Supply chain strategic management involves “… two or more firms in a supply chain entering into a long-term agreement; … the development of trust and commitment to the relationship; … the integration of logistics activities involving the sharing of demand and sales data; … the potential for a shift in the locus of control of the logistics process” [LA 94].
Supply chain management is “an integrative philosophy to manage the total flow of a distribution channel from supplier to the ultimate user” [COO 97].
Supply chain management is a concept, “whose primary objective is to integrate and manage the sourcing, flow, and control of materials using a total systems perspective across multiple functions and multiple tiers of suppliers” [MON 98].
Supply chain management is the integration of key business processes from end user through to original suppliers that provides products, services and information that add value for customers and other stakeholders [LAM 00b].
By definition, supply chain management requires companies to [MEN 01b]:
Where companies need to share and integrate processes, this of course implies coplanning, sharing of profits and risks, systematic exchange of information and building bridges between the cultures of the companies involved. To achieve a level of balance between the actors, a relationship needs to become established over a relatively long period [EST 98b]. The initiatives required combine strategic and tactical modifications; successful achievement of these is attained by following three essential stages:
As a result, companies that design value-creating supply chain organizations have generally created common processes with their customers. These companies define jointly shared processes that involve several actors. For example, for Vendor-Managed Inventory (VMI) processes , the actors codefine the procurement process, the inventory levels and the information systems suited to the aims and constraints of each of them. The goal of Collaborative Planning Forecasting (CPFR) is to develop a process of sharing forecasts between the actors in the chain. The collective development of processes by the actors in the chain guarantees perfect synchronization and also mutual exchange of information and/or resources [MEN 01b, EST 98a].
