Introduction: Large organizations know that they can create competitive advantage by leveraging the power of their supply chains where 1st and 2nd tier suppliers can constitute 80% of value. They demand data-driven insights that give them information to uncover, understand, and address such supply chain challenges as:
• Delivering products on time and with complete orders
• Optimizing product portfolios and managing SKUs
• Managing inventory to increase working capital
• Managing supply chain costs
• Creating a supply chain resilience
• Capturing supplier innovation
The context for supplier development and supply chain excellence training is their methodical engagement in the CMP Education and Training System during which time suppliers generate quantitative and qualitative performance benchmarking data necessary to align their performance and maturity requirements with that of its customers’ supply chain strategies. Towards alignment, suppliers focus on their development of five (5) supply chain strategies:
Quantitative Supply Chain Performance
Quantitative Metrics are the key performance metrics of the supply chain and span end-to-end supply chain functions across Plan-Source-Make -Deliver- Enable process elements based on the APICS Supply Chain Council Supply Chain Operation Reference (SCOR) model. This model includes 250 SCOR metrics organized in a hierarchical (and codified) structure from organization level 1 to process level 2 to a diagnostic level 3.
Following CMP performance benchmarking training, customer data sharing, and production of a Performance Benchmarking Report generated by PriceWaterhouseCooper (PwC), the circled metrics are an illustration of a supplier’s performance improvement path that aligns with its customer’s (or global competitors’) unique supply performance levels. The last column represents the supplier’s performance gaps that the suppliers must close through applying identified leading, emerging, and best practice solutions. When customer input data is not available, the reports conveys a supplier’s relative global competitiveness.
Qualitative Cross-enterprise Operational Maturity
An industry group customizable on-line Supplier and Customer Cross-enterprise operational maturity assessment (OMA) tool gauges suppliers’ cross-enterprise operational maturity within 12 operational areas and sub-areas such as commitment to continuous improvement 5 five levels of maturity within sub-areas. The gap between the customer’s required level of maturity and that of the supplier represent the supplier’s maturity improvement development path. For each level of maturity, the system collectively defines the 53 operational practices that suppliers can adopt to close the maturity gaps. Note that Industry Groups may use this platform to develop a pre-CMP simplified tool to vet suppliers before forma engagement .
Qualitative Cross-enterprise Sustainability (Carbon Footprint Metrics)
As a subset of a comprehensive sustainability strategy, qualitative cross-enterprise carbon footprint metrics measure the maturity of practices across overall supply chain elements, including plan-source-make- deliver-return-enable. As illustrated in the accompanying graphic, operational performance areas benchmarked by a DMSCA partner organization are Carbon Emissions, Air Pollutant Emissions, quid Waste Generated, Solid Waste Generated, and % Recycled Waste.
DMSCA partners with third-party organizations to support supplier training and integration of technology enablement solutions (Big Data, Industrial Internet of Things, Artificial Intelligence, Predictive Analytics, Blockchain Smart Contracts, etc.) that address four strategic requirements:
- Technical Assistance
Talent Identification and Workforce Training
The demands of Industry 4.0 driven supply chains, changing workforce demographics, acute skills shortages and ongoing economic uncertainties compel both suppliers and customers to rethink traditional approaches to talent management and workforce training requirements. Assurance of having the right people with the right skills in the right place at the right time to sustain competitiveness is integral to supplier development. While DMSCA may partner with third-party organizations to support talent acquisition and workforce training requirements, the Corporate Mentoring Program (CMP) development and supply chain excellence training system begins with “organizational assessment”. DMSCA adopts four steps to addressing talent and workforce training need:
- Assess Current Organizational Talent
- Develop Business Strategy
- Determine and Align Supply Chain Resources
- Manage Training Requirements