Supply Chain News Bites - Only from SCDigest

-Aug. 6, 2009


Supply Chain Graphic of the Week: A Modern Supply Chain Process Model


New View from IDC Manufacturing Insights Makes some Changes to Traditional Supply Chain Models


By SCDigest Editorial Staff


One thing that many analysts and consultants love to do is develop supply chain process models.

It seems to us in recent years, there hasn't been a whole lot new, and most of us have relied on some version of something like the SCOR Model (Plan, Source, Make, Deliver), and/or one of the also familiar versions that show Stategic, Tactical and Operational Planning, sometimes plus "Execution."

So, we were intrigued when IDC's Manufacturing Insights group released a new model earlier this year of what it called "The Modern Supply Chain," which you will find below.


We like the specific call out of Supply Chain Network Design upfront, and think the addition of a specific "Scheduling" step for manufacturing and logistics, prior to "execution," is also interesting. Manufacturing Insights also specifically adds "Inventory Optimization" as an overarching process that cross both supply and demand planning.

We offer a couple of suggestions:(1) SCDigest would add some step in, or near, planning that reflects the Sales and Operations Planning process and development of a single, consensus forecast; (2) It would be good to include, somehow, the notion of supply chain performance management and feedback loops from execution to planning; and (3) Especially in this era of Green, a reverse logistics step of some kind is probably needed, just as SCOR added a "Return" process a few years ago.

But all that and anything else would make for a fairly busy chart!


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