SCMi Supply Chain Management Framework

Processes, Partnerships, Performance

Program Overview

The SCMi Supply Chain Management Framework program focuses on how to implement the eight essential cross-functional, cross-firm, processes that are necessary to create competitive advantage. Examples are provided on how the processes have been implemented by major corporations in order to create the maximum value for their customers, suppliers, shareholders and other stakeholders. The eight processes must be implemented cross-functionally and with key customers and suppliers.

The program includes a session on The Partnership Model that has been used to structure more than 100 business relationships, including The Coca-Cola Company and Cargill, and Wendy’s and Tyson which was the basis for a Harvard Business Review article (click here for HBR article “We’re in this together”).

Also, there is a session on The Collaboration Framework that is being used companies such as restaurant chain Bob Evans Farms and its major food distributor to realise the value of collaboration in real tangible terms (click here for Supply Chain Quarterly article “Co-creating value: The next level in customer-supplier relationships”).

Who Should Attend This Program

Designed specifically for professionals who are striving to achieve cross-functional integration within their organisation and with key customers and suppliers, the SCMi Supply Chain Management Framework program is ideal for Managing Directors, General Managers, Commercial Directors and Supply Chain Practitioners of all levels, as well as their colleagues in Marketing, Sales and Finance.

Why Attend This Program

  • Only entity in Australia to deliver SCMi Executive Education Programs – Supply Chain Coach® – through partnering with the Supply Chain Management Institute (SCMi) in Florida.
  • Hear from leading supply chain expert Dr Douglas M. Lambert, as the lead facilitator of this program, supported by Dr Matias G. Enz, during this special visit to Australia.
  • Learn the methodologies that have increased the value of multi-billion dollar corporations and supply chains in the USA and around the world.
  • Understand how to implement the 8 essential processes within the Supply Chain Management framework to transform your company’s supply chain.
  • Discover real examples implemented by major corporations and the impact to overall financial performance.

SCMi Supply Chain Management Framework

Increasingly, supply chain management is being viewed not as a business function but as a business approach used to transcend traditional functional boundaries. Supply chain management is the management of relationships in the network of organisations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders.

The framework described in the book Supply Chain Management: Processes, Partnerships, Performance and taught in this program, is built on the following eight key business processes:

  • Customer Relationship Management
  • Supplier Relationship Management
  • Customer Service Management
  • Demand Management
  • Order Fulfilment
  • Manufacturing Flow Management
  • Product Development and Commercialisation
  • Returns Management

Click below for any process in the figure above for a short description of the activities included in the process.

Customer Relationship Management

Customer relationship management provides the structure for how the relationships with customers will be developed and maintained. Management identifies key customers and customer groups to be targeted as part of the firm’s business mission. The goal is to segment customers based on their value over time and increase customer loyalty by providing customised products and services. Cross-functional customer teams tailor Product and Service Agreements (PSA) to meet the needs of key accounts and for segments of other customers. The PSAs specify levels of performance. The teams work with key customers to improve processes and eliminate demand variability and non-value added activities. Performance reports are designed to measure the profitability of individual customers as well as the financial impact on the customer.

Supplier Relationship Management

Supplier relationship management is the process that defines how a company interacts with its suppliers. As the name suggests, this is a mirror image of customer relationship management. Just as a company needs to develop relationships with its customers, it also needs to foster relationships with its suppliers. As in the case of customer relationship management, a company will forge close relationships with a small subset of its suppliers, and manage arm-length relationships with others. A PSA is negotiated with each key supplier that defines the terms of the relationship. For segments of less critical suppliers, the PSA is not negotiable. Supplier relationship management is about defining and managing these PSAs. Long-term relationships are developed with a small core group of suppliers. The desired outcome is a win-win relationship where both parties benefit.

Customer Service Management

Customer service management is the firm’s face to the customer. It provides the key point of contact for administering the PSA. Customer service provides the customer with real-time information on promised shipping dates and product availability through interfaces with the firm’s functions such as manufacturing and logistics. The customer service process may also include assisting the customer with product applications.

Demand Management

Demand management is the supply chain management process that balances the customers’ requirements with the capabilities of the supply chain. With the right process in place, management can match supply with demand proactively and execute the plan with minimal disruptions. The process is not limited to forecasting. It includes synchronising supply and demand, increasing flexibility, and reducing demand variability. A good demand management process can enable a company to be more proactive to anticipated demand, and more reactive to unanticipated demand.

Order Fulfillment

The order fulfillment process involves more than just filling orders. It includes all activities necessary to define customer requirement and to design a network and a process that permits a firm to meet customer requests while minimising the total delivered cost as well as filling customer orders. This is not just the logistics function, but instead needs to be implemented cross-functionally and with the coordination of key suppliers and customers. The objective is to develop a seamless process from the supplier to the organisation and to its various customer segments.

Manufacturing Flow Management

Manufacturing flow management is the supply chain management process that includes all activities necessary to move products through the plants and to obtain, implement and manage manufacturing flexibility in the supply chain. Manufacturing flexibility reflects the ability to make a wide variety of products in a timely manner at the lowest possible cost. To achieve the desired level of manufacturing flexibility, planning and execution must extend beyond the four walls of the manufacturer in the supply chain.

Product Development and Commercialisation

Product development and commercialisation is the supply chain management process that provides the structure for developing and bringing to market products jointly with customers and suppliers. The product development and commercialisation process team must coordinate with customer relationship management to identify customer articulated and unarticulated needs; select materials and suppliers in conjunction with the supplier relationship management process; and, develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination.

Returns Management

Returns management is the supply chain management process by which activities associated with returns, reverse logistics, gatekeeping, and avoidance are managed within the firm and across key members of the supply chain. The correct implementation of this process enables management not only to manage the reverse product flow efficiently, but to identify opportunities to reduce unwanted returns and to control reusable assets such as containers. Effective returns management is an important part of SCM and provides an opportunity to achieve a sustainable competitive advantage.

What The Program Is About

The SCMi Supply Chain Management Framework program is about:

  • how to manage each supply chain management process from a strategic perspective and from an operational perspective, and identifies the strategic and operational activities required
  • how each supply chain management process is connected with the other supply chain management processes
  • how to involve each business function in each supply chain management process (e.g. how Marketing, Sales, R&D, Logistics, Production, Purchasing & Finance are involved in each process)
  • how each supply chain management process affects EVA – Economic Value Added
  • how the supply chain management processes are integrated and managed across the supply chain.

Successful supply chain management requires implementing cross-functional processes within the company and integrating them with key members of the supply chain. Valuable resources are wasted when supply chains are not integrated, appropriately streamlined, and managed. The value of having standard business processes in place is that managers from different organisations in the supply chain can use a common language and can link-up their firms’ processes with other members of the supply chain, as appropriate.

“If you are in supply chain management today then complexity is a cancer that you have to fight, and process management is the weapon. This framework develops a robust model of supply chain management processes and properly defines them so that they can be managed. It has enabled our organization to understand that supply chain management is too important to be just a function. Instead it’s everybody’s job.”
—Tom Blackstock, Vice President, Supply Chain Operations (Retired), Coca-Cola North America

“Much has been written about supply chain management but there is very little practical direction on how to implement or achieve the benefits that have been envisioned. This framework provides a practical way to achieve the promises of supply chain management within and between organizations.”
— Ernie Elliot, Rear Admiral Retired, Supply Corps, USN, Vice President (Retired), Supply Chain, xpedx, an International Paper company

Each process is managed by a cross-functional team including representatives from finance, marketing, logistics, production, purchasing, research and development and sales.

Customer Relationship Management and Supplier Relationship Management form the linkages in the supply chain and the other six processes are coordinated through these linkages.

Watch Dr Douglas M. Lambert speak on the SCMi website about Supply Chain Management & Partnerships

Dr Douglas M Lambert explaining SCM

Read an Interview with Dr Douglas M. Lambert on Supply Chain Management that was published in the University of Auckland Business Review.

Program Benefits

Participants will get:

  • Guidelines and practical ideas on how to implement the eight key supply chain management processes to transform your company’s supply chain.
  • Detailed instructions on how to use the ‘Partnership Model’ and the ‘Collaboration Framework’ to reap the full benefits of collaborating with the right customers and suppliers, and to increase the involvement of other key functions within your firm.
  • A measurement framework that shows how implementing the processes covered in the course affects your firm’s overall financial performance.
  • Assessment tools that will point you towards the main opportunities for increasing your supply chain’s performance.
  • Examples of best-in-class companies in which management has implemented the processes to achieve supply chain excellence.

“The assessment of the customer service management process spurred great discussion, brought the value of a cross-functional perspective into the sunlight and identified gaps between our performance and best-in-class. It was the opening dialogue to a company-wide effort that delivered dramatic and measurable service improvements allowing us to move from 3rd to 1st in our industry as measured by our annual customer survey.”
— Brad Barnett, Vice President, Global Operations, Adams Golf

Leading Edge Companies

The development of the SCMi Supply Chain Management Framework was led by Dr Douglas Lambert with a team of researchers and involved executives from the following organisations who contributed to the framework and the content of the book Supply Chain Management: Processes, Partnerships, Performance:

3M; Amazon.com, Inc.; Bob Evans Farms, LLC; BWI Group; Callaway Golf Company; Campbell’s Soup Company; Cargill; Cemex; The Coca-Cola Company; Colgate-Palmolive Company; Defense Logistics Agency; Dow Water and Process Solutions; Fletcher Challenge; The Goodyear Tire & Rubber Company; Gordon Food Service; HAVI Global Solutions; Hewlett-Packard Company; International Paper; Johnson & Johnson; Limited Brands; Lucent Technologies; Masterfoods USA; McDonald’s; Moen Incorporated; S.C. Johnson & Sons, Inc.; Shell Global Solutions International B.V.; TaylorMade-adidas Golf Company; and Wendy’s International.

book-4th-edition-sm“I have employed many of the fundamental building blocks of supply chain management spelled out in this book to transform a supply chain into a competitive weapon. If you want to deliver extraordinary business results in a challenging economic environment, study and apply the principles in this book.”
— Mark Leposky, Senior Vice President, Global Operations, Callaway Golf Company

“This book provides an entry into the opportunities afforded from a more sophisticated approach to supply chain management, covering the theory through to practical application, against the backdrop of 21st century supply chains and the issues they face today.”
— Stuart Lendrum, Head of Sustainable & Ethical Sourcing, Own Brand, Sainsbury’s Supermarkets Ltd

“This book provides a thorough review of supply chain management research interpreted in a practical way. We use this structure and approach with our customers and business units to enhance our collaborative relationship through more effective supply chains.”
— Jenny L. Verner, President, Specialty Canola Oils, Cargill

“In this book, we discovered a framework to help us manage business relationships and make cross-functional integration a reality. We strongly believe that managing relationships both with customers and suppliers represents an opportunity to achieve a competitive advantage in a market where products tend to become commodities.”
— Jorge Vazquez Alessia, Chairman, Teknobayres SA, Argentina


Program Agenda

DAY 1

8:00 am   Registration and Breakfast

8:30 am   Welcome and Introduction

9:00 am   SUPPLY CHAIN MANAGEMENT

  • Importance of supply chain vision
  • Key processes
  • Developing a supply chain perspective
  • Overview of program

10:30 am   Break

11:00 am   MEASURING THE PROFITABILITY OF CUSTOMERS AND SUPPLIERS

  • Major problems with corporate accounting systems
  • Developing profitability reports for customers and suppliers
  • Measuring the impact of supply chain strategies on corporate profitability

12:00 pm   Lunch

1:00 pm   CUSTOMER RELATIONSHIP MANAGEMENT

  • Why Customer Relationship Management (CRM) is so important
  • Valuing the customer relationship
  • Achieving and maintaining strong relationships
  • Challenges and opportunities

2:00 pm   Break

2:15 pm   SUPPLIER RELATIONSHIP MANAGEMENT

  • Supplier segmentation
  • Developing the Product and Service Agreement
  • Developing partnerships with key suppliers
  • Leveraging technologies

3:15 pm   Break

3:30pm   BUILDING HIGH-PERFORMANCE BUSINESS RELATIONSHIPS

  • The importance of partnerships for successful supply chain management
  • The Partnership Model
  • The Collaboration Framework
  • Using the model and framework to tailor business relationships
  • Lessons learned

5:00 pm   End of Day 1

DAY 2

8:00 am   Breakfast

8:30 am   CUSTOMER SERVICE MANAGEMENT

  • The transition from transaction focus to process focus
  • Implementing the Product / Service Agreement
  • The changing role of customer service representatives
  • Keys to success

9:30 am   Break

9:45 am  DEMAND MANAGEMENT

  • Demand Management vision
  • Sales & Operational Planning
  • Managing uncertainty in demand
  • Collaborative Planning, Forecasting and Replenishment

10:45 am   Break

11:00 am   ORDER FULFILMENT

  • Modelling the Order Fulfilment Process
  • Evaluating logistics networks
  • Order fulfilment performance metrics
  • Innovation in order fulfilment

11:45 am   Lunch

12:45 pm   MANUFACTURING FLOW MANAGEMENT

  • New strategies for Manufacturing Flow Management
  • The manufacturer’s role in reducing supply chain inventory
  • How logistics organisations create value

1:45 pm   Break

2:00 pm   PRODUCT DEVELOPMENT AND COMMERCIALISATION

  • Idea generation and screening processes
  • Developing cross-functional teams
  • Product rollout
  • Product development and commercialisation metrics

3:00 pm   Break

3:15 pm   RETURNS MANAGEMENT

  • Strategic value of goods returns management
  • Returns metrics
  • Returns and reverse logistics
  • Environmental and legal issues
  • Avoidance, gatekeeping, and reducing disposition cycle time

4:15 pm   Break

4:30 pm   CONDUCTING ASSESSMENTS OF THE SUPPLY CHAIN MANAGEMENT PROCESSES

  • Benchmark management practices in the firm
  • Identify where to start with the implementation process
  • Access improvements over time as the implementation unfolds

5:15 pm   End of Day 2

DAY 3

8:00 am   Breakfast

8:30 am   DEVELOPING SUPPLY CHAIN METRICS

  • Developing supply chain metrics
  • Linking process metrics to shareholder value and the strategic plan
  • Measuring performance across the supply chain

10:00 am   Break

10:15 am   SUPPLY CHAIN MAPPING

  • Relationship-based maps
  • Activity-based maps
  • Facilitating the development of relationship-based maps

11:45 am   Lunch

12:45 pm   IMPLEMENTING AND SUSTAINING THE SUPPLY CHAIN MANAGEMENT PROCESSES

  • Implementing the supply chain management processes across organisations with different management methods and structures
  • The structure and behavioural management components
  • Process implementation and maintenance
  • Accessing performance

1:45 pm   Break

2:00 pm   LEAN THINKING AND SUPPLY CHAIN MANAGEMENT

  • What it means to be lean
  • Lean thinking benefits and tools
  • Lean manufacturing vs lean supply chain
  • Wastes from a business perspective

2:45 pm   Break

3:00 pm   CO-CREATING VALUE: THE NEXT LEVEL IN CUSTOMER – SUPPLIER RELATIONSHIPS

  • The importance of cross-functional involvement for value co-creation
  • Financial measurements change perception of value
  • How to develop relationships that co-create value

4:00 pm   MAXIMISE EDUCATION RETURN ON INVESTMENT

  • We will close the program by focusing on how to start implementing the SCMi Supply Chain Management Framework in ways that will generate rapid success.

4:30 pm   Program Evaluation & Close


Program Resources

  • Book: Supply Chain Management: Processes, Partnerships, Performance
  • Program materials
  • Certificate of Attendance

Continuing Professional Development (CPD) Points

CPL CPD 19 pointsEarn 19 CPD points

The Transport and Logistics Certification Council has agreed that the completion of this program will allow you to earn 19 points towards retention of your Certified Professional Logistician (CPL) status.

The Australasian Supply Chain Institute (ASCI) has agreed that the completion of this program will allow you to earn 19 points towards maintaining APICS or DDI Institute certification.

Program Registration

Click here to register interest in this program.

Enquiries: 1300 572 329 or education@supplychaincoach.com.au

SCMi License

Supply Chain Coach® is an agency of LSC Solutions Pty Ltd – the only company in the world to partner with the Supply Chain Management Institute (SCMi) in Florida www.scm-institute.org. This collaboration allows LSC Solutions Pty Ltd via its agency Supply Chain Coach® to deliver SCMi Executive Education Programs using the methodologies that have increased the value of multi-billion dollar corporations and supply chains in the USA and around the world.