SCOR 9.0r

SCOR
Supply Chain Operations

Reference Model
Version 9.0
Copyright 2008 Supply Chain Council Inc.
Supply-Chain Council, 2008. All rights reserved.

The Supply-Chain Council has made every effort to assure the accuracy and usefulness of the information and
metrics contained herein and is provided on an AS IS basis. The Supply-Chain Council makes no warranty, express
or implied, of merchantability, fitness for a particular purpose, or accuracy. The Supply-Chain Council makes no
representation as to the results obtained or obtainable and disclaims all liability for direct, indirect, special or
consequential damage, including lost profits, lost business or the like, whether based in contract, tort (including
negligence), product liability or otherwise.
www.supply-chain.org
SCOR is a registered trademark of the Supply-Chain Council in the United States and Canada. All rights reserved.
The Supply Chain Council, Inc.
SCOR: The Supply Chain Reference
ISBN 0-615-20259-4 (binder)
Printed in the United States of America.
April 2008
Acknowledgments
The following members (alphabetical by company) of the Supply-Chain Council Technical Development
Steering Committee and Project Teams devoted extensive time and/or effort to the development of this
Model SCOR Version 9.0. Also included are those who devoted much time and experience sharing
to develop the section that is now being published separately as a White Paper by the Supply-Chain
Council on Financial Impact of SCOR Metrics and Best Practices.
Name
Gerard McCool
Kevin F. Mansfield
Ben Cromwell
Greg Grehawick
Jrg Nienhaus
Arne Ziegenbein
Moses Muputisi
Kevin Farrington
Robert Mansfield
Kevin McCormack
Lars Magnusson
Charles-Eric Roussel
Sven Verstrepen
Srinivasan Sarangapani
Reinaldo Fioravanti
David Morrow
Changrui Ren
Jin Dong
Gopal Chandrasekaran
John Paul
Hitesh Patel
Anand K. Sundar
Mitul Devendra Shah
Robert Hagan
James Wynn
Taylor Wilkerson
Iain D. Clarke
Ray VanderBok
Melinda Davey
Marc Bartos
Dan Swartwood
Monty Boyle
George Wellock
Caspar Hunsche
Sam Fayez
Tom Janoshalmi
Deanna Yee
Joseph Francis
Enrico Camerinelli
Melinda Spring
Scott Sealing
John Nyere
Sergio Cavalieri
Jac Braat
Nancy Craft
Amy H Buu
Ikhlaq Kashkari
Company
Accenture
Air Products
AIT Group
Booz Allen Hamilton
Bosch
Bosch
BP
Brightstar
CCAT
DRK Research
Ericsson
Essilor France
Flanders Institute for Logistics
Genpact
Hewlett Packard
IBM
IBM China
IBM China
IBM GBS
iCognitive
IDS Scheer
Infinite Strategies, Inc.
Infosys
International Paper
Knowles Electronics
LMI
Molson Coors Brewing Company
NewVectors
NewVectors
PMG Benchmarking
Pragmatek
Pragmatek
Pragmatek
Process Core Group
Productivity Apex
SAP
Satellite Logistics Group
Supply Chain Council
Supply-Chain Council
Supply-Chain Council
United Space Alliance
United States Department of Defense
University of Bergamo
University of Tilburg
Volvo
Westinghouse
Xelocity
Table of Contents
Introduction
Metrics
o Reliability
o Responsiveness
o Agility
o Cost
o Asset Management
Processes
o Plan
o Source
o Make
o Deliver
o Return
o Inputs and Outputs
Best Practices
o SCOR
o GreenSCOR
o Risk Management
Special Applications
o GreenSCOR
1
2
2.1
2.2
2.3
2.4
2.5
3
3.1
3.2
3.3
3.4
3.5
3.6
4
4.1
4.2
4.3
5
5.1
Section 1
Introduction
Introduction
Summary
The Supply-Chain Operations Reference model (SCOR) is the product of the Supply-Chain
Council (SCC) a global non-profit consortium whose methodology, diagnostic and benchmarking tools
help organizations make dramatic and rapid improvements in supply-chain processes. SCC established
the SCOR process reference model for evaluating and comparing supply-chain activities and performance.
The SCOR-model captures the Councils consensus view of supply chain management. It provides a unique
framework that links business process, metrics, best practices and technology into a unified structure to
support communication among supply chain partners and to improve the effectiveness of supply chain
management and related supply chain improvement activities. SCC membership is open to all companies
and organizations interested in applying and advancing the state-of-the-art in supply-chain management
systems and practices.
The SCC was organized in 1996 and initially included 69 practitioner companies meeting in an
informal consortium. Subsequently, the companies of the Council elected to form an independent not
for profit trade association. The majority of the SCCs members are practitioners and represent a broad
cross-section of industries, including manufacturers, distributors, and retailers. Equally important to
the Council and the advancement of the SCOR-model are the technology suppliers and implementers,
the academicians, and the government organizations that participate in Council activities and the
development and maintenance of the Model. At the time of this release, the Council has approximately
800 corporate members worldwide and has established international chapters in Australia/New Zealand,
Latin America, Greater China, Europe, Japan, Southeast Asia, and Southern Africa with additional requests
for regional chapters pending.
The Supply-Chain Council is interested in providing the widest possible dissemination of the
SCOR-model. The wide-spread use of the Model results in better customer-supplier relationships, software
systems that can better support members through the use of common measurements and terms, and the
ability to rapidly recognize and adopt best practice no matter where it originates. SCC requests that all
who use the SCOR-model provide attribution to the Supply-Chain Council. Additionally, members are
encouraged to monitor the members section of the SCC website (www.supply-chain.org) to ensure that
they are using the latest version of SCOR.
This introduction is provided to assist new users of the SCOR-model to begin analytic and
implementation projects. It is intended to remind experienced users of the framework and structure
of the Model when tackling more complex applications of the Model for their businesses. Finally, it is
provided to orient members to the changes between Version 8.0 and Version 9.0.
Version 9.0 of the SCOR-model is the eleventh revision since the Models introduction in 1996.
Revisions of the Model are made when it is determined by Council members that changes should be
made to facilitate the use of the Model in practice. Specific changes in Version 9.0 are outlined later in this
Introduction.
1.1.1
Introduction
SCOR Scope
The SCOR-model has been developed to describe the business activities associated with all
phases of satisfying a customers demand. The Model itself contains several sections and is organized
around the five primary management processes of Plan, Source, Make, Deliver, and Return (shown in
Figure 1). By describing supply chains using these process building blocks, the Model can be used to
describe supply chains that are very simple or very complex using a common set of definitions. As a result,
disparate industries can be linked to describe the depth and breadth of virtually any supply chain. The
Model has been able to successfully describe and provide a basis for supply chain improvement for global
projects as well as site-specific projects.
Plan
Plan
Deliver
Source
Return
Return
Suppliers
Supplier
Make
Deliver
Return
Supplier
Source
Make
Return
Deliver
Return
Your Company
Internal or External
Plan
Source
Return
Make
Deliver
Source
Return
Return
Customer
Internal or External
Customers
Customer
Figure 1 - SCOR is organized around five major management processes.
It spans: all customer interactions (order entry through paid invoice), all physical material
transactions (suppliers supplier to customers customer, including equipment, supplies, spare parts, bulk
product, software, etc.) and all market interactions (from the understanding of aggregate demand to the
fulfillment of each order). It does not attempt to describe every business process or activity. Specifically,
the Model does not address: sales and marketing (demand generation), product development, research
and development, and some elements of post-delivery customer support.
It should be noted that the scope of the Model has changed and is anticipated to change based
on Council member requirements. With the introduction of Return, the Model was extended into the area
of post-delivery customer support (although it does not include all activities in that area).
As shown in Figure 2, the Model is designed and maintained to support supply chains of various
complexities and across multiple industries. The Council has focused on three process levels and does
not attempt to prescribe how a particular organization should conduct its business or tailor its systems /
information flow. Every organization that implements supply chain improvements using the SCOR-model
will need to extend the Model, at least to Level 4, using organization-specific processes, systems, and
practice.
1.2.1
Introduction
The Model is silent in the areas of human resources, training, and quality assurance. Currently,
it is the position of the Council that these horizontal activities are implicit in the Model and there are
other highly qualified organizations that are chiefly concerned with how an organization should train,
retain, organize, and conduct their quality programs. Just as the Council recognized the requirements for
marketing and sales in commercial organizations, the Council is not minimizing the importance of these
activities, but they are currently out of scope for SCOR.
Level
Plan
Top Level
(Process Types)
Source
Make Deliver
Return
Return
Level 1 defines the scope and

content for the Supply-Chain
Operations Reference Model.
Here the basis of competition
performance targets are set.
Configuration Level
(Process Categories)
A companys supply-chain
can be configured-to-order
at Level 2 from core process
categories. Companies
implement their operations
strategy through the
configuration they choose for
their supply-chain.
Process Element Level

(Decompose Processes)
Level 3 defines a companys

ability to compete successfully
in its chosen markets, and
consists of:
t
Process element
definitions
t
Process element
information inputs, and
outputs
t
Process performance
metrics
t
Best practices, where
applicable
t
System capabilities
required to support best
practices
t
Systems/tools
P1.1
Identify, Prioritize, and

Aggregate Supply-Chain
Requirements
P1.2
P1.3
Balance Production
Resources with SupplyChain Requirements
P1.4
Establish and
Communicate
Supply-Chain Plans
Identify, Assess, and

Aggregate Supply-Chain
Requirements
Not in Scope
Comments
Description
Supply-Chain Operations Reference Model
Schematic
Implementation Level
(Decompose Process
Elements)
Companies implement specific

supply-chain management
practices at this level. Level 4
defines practices to achieve
competitive advantage and to
adapt to changing business
conditions.
Figure 2 - SCOR is a hierarchical model with specific boundaries in regard to scope.
1.2.2
Introduction
The SCOR-model is a business process reference model as illustrated in Figure 3. That is, it is a
Model that links process elements, metrics, best practice and the features associated with the execution
of a supply chain in a unique format. The uniqueness and power of the Model and its successful
implementation is chiefly derived from using these four elements together.
It is important to note that this Model describes processes not functions. In other words, the
Model focuses on the activity involved not the person or organizational element that performs the
activity.
Business Process
Reengineering
Benchmarking
Best Practices
Analysis
Capture the as-is

state of a process
and derive the
desired to-be
future state
Process Reference
Model
Capture the as-is
state of a process
and derive the
desired to-be
future state
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on best-inclass results
Quantify the
operational
performance of
similar companies
and establish
internal targets
based on best-inclass results
Characterize the
management
practices and
software solutions
that result in
best-in-class
performance
Characterize the
management
practices and
software solutions
that result in
best-in-class
performance
Figure 3 - SCOR is a business process reference model.
1.2.3
Introduction
SCOR-model Structure
Besides the five basic management processes (Plan, Source, Make, Deliver, and Return) that
provide the organizational structure of the SCOR-model, it is useful to distinguish between the three
process types in the Model: planning, execution, and enable (formerly infrastructure). A planning element
is a process that aligns expected resources to meet expected demand requirements. Planning processes
balance aggregated demand across a consistent planning horizon. Planning processes generally occur at
regular intervals and can contribute to supply chain response time. Execution processes are triggered by
planned or actual demand that changes the state of products. They include scheduling and sequencing,
transforming materials and services, and moving product. Enable processes prepare, maintain, and
manage information or relationships upon which planning and execution processes rely.
A set of standard notation is used throughout the Model. P depicts Plan elements, S depicts
Source elements, M depicts Make elements, D depicts Deliver elements, and R depicts Return elements.
SR = Source Return and DR = Deliver Return. An E preceding any of the others (e.g., EP) indicates that the
process element is an Enable element associated with the Planning or Execution element (in this case, EP
would be an Enable Planning element).
As indicated in Figure 2, the Model is hierarchical with three levels. P1.1 is a notation that
indicates a third level process element. In this case, it is a Plan (P Level 1) element that is concerned
with supply chain planning (1 Level 2) and is specific to identifying, prioritizing, and aggregating supply
chain requirements (.1 Level 3).
The SCOR-model version 9.0 has reorganized the traditional sections into five Chapters:
Introduction, Metrics, Processes (Plan, Source, Make, Deliver, Return), Best Practices, and Special
Applications. For modeling purposes, Return is documented in two locations Source and Deliver.
Those Return processes that connect an organization with its supplier (i.e., the return of raw material) are
documented as Source Return activities. Those processes that connect an organization with its customer
(i.e. the receipt of returned finished goods) are documented as Deliver Return activities. This preserves
the concept that Source connects an organization with its suppliers and Deliver connects an organization
with its customers. The Plan and Execution (Source, Make, Deliver, and Return) sections are the heart of
the Model. The definitions that were listed separately in a Glossary in prior versions are now incorporated
into the sections on Metrics, Processes, and Best Practices. The Special Applications section is used for
approved SCOR additions that have not yet been tested thoroughly for integration into the Model, but
that the SCC believes would be beneficial for SCOR users.
The Metrics Chapter has a new addition of a coding system particularly beneficial for
benchmarking as it is based on the Performance Attributes of the metrics. The Attribute of Flexibility
has been renamed to be Agility to avoid confusion with its subsets Flexibility and Adaptability. The
codes include Reliability RL, Responsiveness RS, Agility AG, Cost CO, and Asset Management AM.
The code also consists of the Level of the metric Level 1 Strategic metrics are numbered within each
Attribute, i.e., Perfect Order Fulfillment is RL.1.1. Level 2s are also numbered within each attribute, so for
example, Perfect Condition is RL.2.4. All Level 3 diagnostic metrics are coded by number just based on
their alphabetical listing within each attribute since there are so many of them, and added ones are just
added onto the end of the list rather than recoding existing metrics. So for example, Direct Material Cost
is CO.3.141.
The Process Chapter includes the Plan, Source, Make, Deliver, and Return sections that are
organized with the standard structure that has been brought back from versions prior to SCOR 8.0.
Workflow Graphics have returned into the main body of the Model as a result of the combination of software
1.2.4
Introduction
redesign and input by IDS Scheer and the professional design of a book publisher. This combination
makes SCOR 9.0 the most usable and readable SCOR model to date. At the beginning of each section,
graphics provide a visual representation of the process elements, their relationships to each other, and
the inputs and outputs that are germane to each process element. Following the graphics are text tables
that identify: 1) the standard name for the process element, 2) the notation for the process element, 3)
SCCs standard definition for the process element, 4) performance attributes that are associated with the
process element, 5) metrics that are associated with the performance attributes, 6) best practices that are
associated with the process (candidates, not necessarily an exhaustive list), and best practice descriptions
that can contribute to heightened performance of the process.
Within the Source, Make and Deliver process elements, a common internal structure has been
agreed upon. The Model focuses on three environments, Make-to-Stock, Make-to-Order, and Engineerto-Order. As a result, S1 becomes Source Make-to-Stock Product, S2 becomes Source Make-to-Order
Product and S3 becomes Source Engineer-to-Order Product. This same convention is used for Make, i.e.
M1 Make-to-Stock, and Deliver, i.e. D2 Deliver Make-to-Order Product. This convention was extended
to Return in Version 5.0. R1 is the Return of Defective Product, R2 is the Return of Maintenance, Repair
or Overhaul (MRO) Product, and R3 is the Return of Excess Product and these are each divided into the
Source Return SR and Deliver Return DR, so we have SR1 and DR1 both representing R1, and so on.
Within each of the planning and execution sections and following the graphic and text
descriptions, the associated Enable elements are described using the same graphic and text formats.
Performance Attributes and Level 1 Strategic Metrics

Level 1 Metrics are primary, high level strategic measures that may cross multiple SCOR processes. Level 1
Metrics do not necessarily relate to a SCOR Level 1 process (PLAN, SOURCE, MAKE, DELIVER, RETURN).
Performance Attributes
Level 1 Strategic Metrics
Customer-Facing
Reliability
Perfect Order Fulfillment
Responsiveness
Internal-Facing
Agility
Costs
Assets
Order Fulfillment Cycle Time

Upside Supply Chain Flexibility
Upside Supply Chain Adaptability
Downside Supply Chain
Adaptability
Supply Chain Management Cost
Cost of Goods Sold
Cash-To-Cash Cycle Time
Return on Supply Chain Fixed
Assets
Return on Working Capital
!
!
!
!
!
!
!
!
!
Figure 4 - SCOR Performance Attributes and Level 1 Metrics

1.2.5
Introduction
The metrics are used in conjunction with performance attributes. In Version 4.0 of the Model,
the Performance Attributes were expanded from four (Supply Chain Reliability, Supply Chain Flexibility
and Responsiveness, Supply Chain Costs, and Supply Chain Asset Management) to five (Supply Chain
Reliability, Supply Chain Responsiveness, Supply Chain Flexibility, Supply Chain Costs, and Supply Chain
Asset Management). In SCOR 9.0, Supply Chain Flexibility has been updated to Supply Chain Agility
to avoid confusion with its subsets Flexibility and Adaptability. The table in Figure 5 defines the
performance attributes and indicates which Level 1 metrics are associated with each attribute.
The Performance Attributes are characteristics of the supply chain that permit it to be analyzed
and evaluated against other supply chains with competing strategies. Just as you would describe a physical
object like a piece of lumber using standard characteristics (e.g., height, width, depth), a supply chain
requires standard characteristics to be described. Without these characteristics it is extremely difficult to
compare an organization that chooses to be the low-cost provider against an organization that chooses
to compete on reliability and performance.
Performance Attributes and Associated Level 1 Metrics

Performance
Attribute
Performance Attribute Definition
Level 1 Strategic Metric
Supply Chain
Reliability
The performance of the supply chain in

delivering: the correct product, to the correct
place, at the correct time, in the correct
condition and packaging, in the correct
quantity, with the correct documentation, to
the correct customer.

(RL.1.1)
Supply Chain
Responsiveness
The speed at which a supply chain provides

products to the customer.

(RS.1.1)
Supply Chain
Agility
The agility of a supply chain in responding

to marketplace changes to gain or maintain
competitive advantage.
Upside Supply Chain

Flexibility (AG.1.1)
Upside Supply Chain
Adaptability (AG.1.2)
Downside Supply Chain
Adaptability (AG.1.3)
Supply Chain
Costs
The costs associated with operating the supply

chain.
Supply Chain Management

Cost (CO.1.1)
Cost of Goods Sold (CO.1.2)
Supply
Chain Asset
Management
The effectiveness of an organization in

managing assets to support demand
satisfaction. This includes the management of
all assets: fixed and working capital.
Cash-to-Cash Cycle Time

(AM.1.1)
Return on Supply Chain Fixed
Assets (AM.1.2)
(AM.1.3)
Figure 5 Definitions for SCOR Performance Attributes and listing of associated Level 1 metrics.
1.2.6
Introduction
Associated with the Performance Attributes are the Level 1 Strategic Metrics. These Level 1
Metrics are the calculations by which an implementing organization can measure how successful it is
in achieving its desired positioning within the competitive market space. While these Performance
Attributes are critical in implementing the Model, formal definitions were not included in the Model until
Version 4.0, and were not able to be included in Version 8.0 due to software used to develop the SCOR
data. In Version 9.0, these have been reincorporated into not only the Model, but also the new metrics
coding identification system.
Many metrics in the Model are hierarchical just as the process elements are hierarchical. Level
1 Metrics are created from lower level calculations. (Level 1 Metrics are strategic, high level measures that
may cross multiple SCOR processes. Level 1 Metrics do not necessarily relate to a SCOR Level 1 process
(PLAN, SOURCE, MAKE, DELIVER, and RETURN). Metrics hierarchy trees are included for metrics that fit this
structure.
Lower level calculations (Level 2 metrics) are generally associated with a narrower subset of
processes. For example, Delivery Performance is calculated as the total number of products delivered
on time and in full based on a commit date. Additionally, even lower level metrics (diagnostics) are used
to diagnose variations in performance against plan. For example, an organization may wish to examine
the correlation between the request date and commit date. Diagnostic metrics are not necessarily
hierarchical.
1.2.7
Introduction
SCOR Version 9.0 Changes
Processes
SCOR 9.0 adds a whole layer of new ENABLE processes for Risk Management. These processes
can be found in the Ex.9 processes. These are completely new processes with new metrics, best practices,
and inputs and outputs as well. The SCOR 8.0 EP.9 (Align Supply Chain Unit Plan with Financial Plan) and
ES.9 (Manage Supplier Agreements) processes have been renumbered to EP.10 and ES.10 respectively.
New process elements have been added in SCOR 9.0 to manage WASTE DISPOSAL processes as
part of the GreenSCOR integration. Make-to-Stock, Make-to-Order and Engineer-to-Order now each have
a Waste Disposal process element: M1.7, M2.7 and M3.8.
Level 2 process descriptions have been updated to improve the differentiation of Make-to-Stock,
Make-to-Order and Engineer-to-Order process categories.
Process
Change summary
EP.9
Renumbered existing EP.9 to EP.10 (to facilitate Risk Management)
EP.9
New process added (Risk Management)
ES.9
Renumbered existing ES.9 to ES.10 (to facilitate Risk Management)
ES.9
M1.7
New process added (GreenSCOR)
M2.7
M3.7
EM.9
ED.9
ER.9
Figure 6, Summary of process number changes
Metrics
The Performance Attribute of Flexibility has been renamed to be Agility to eliminate
confusion with the metrics containing the word Flexibility. The definition of the performance attribute
has not changed. SCOR 9.0 introduces new metrics to support risk management and environmental
(GreenSCOR) programs.
1.3.1
Introduction
In SCOR 9.0 metrics coding is introduced. This will simplify identification, eliminate confusion for
similar-sounding metrics and is particularly beneficial for benchmarking as it is based on the Performance
Attributes of the metrics. The format of the metric ID or number is:
XX.y.z
XX = Performance Attribute. The possible values for XX are:
t RL = Reliability,
t RS = Responsiveness,
t AG = Agility,
t CO = Cost, and
t AM = Asset Management.
y = Level of the metric
z = a unique number
Figure 7, Metrics Coding System
Examples: The metric ID for Perfect Order Fulfillment is RL.1.1. From this you can derive that Perfect Order
Fulfillment is a strategic (Level 1) Reliability metric. An example of a level 2 (diagnostic metric) is RL.2.4:
Perfect Condition. Level 3 diagnostic metrics are coded the same way; the unique number has been
assigned based on the alphabetical listing. Future metric additions will simply receive an incremental
number. An example of a level 3 diagnostic metric is CO.3.141 (Direct Material Cost).
SCOR 9.0 consolidates all metrics in a dedicated section of the reference. Section 2 (Metrics)
organizes all metrics by performance attribute. Within each chapter the metrics are sorted on metric ID,
thus putting the metrics in the following sequence: First level 1 metrics, then level 2 metrics and finally
level 3 metrics.
Best Practices
The Best Practices Glossary and Appendix have been consolidated in the Best Practices Section
(Section 4) to contain the definitions and processes where every best practice can be implemented. Best
practices have been added for GreenSCOR (Chapter 4.2) and Risk Management GreenSCOR (Chapter
4.3).
Reference reorganization
Additional to consolidating both the metrics and the best practices other changes have been made to
the order of information in the reference. Inputs and Outputs are now the last chapter of the process
section. The Workflow Graphics have returned to the process chapters and accompany the processes
they describe once again. The graphics have been reformatted to improve readability.
1.3.2
Introduction
SCOR 8.0
Comment
SCOR 9.0 Section/

Chapter
Section/Chapter
Description
Introduction
Unchanged
Section 1
Introduction
Plan
Section 3, Chapter 1
Plan
Source
Source
Make
Make
Deliver
Deliver
Return
Return
Workflow Graphics
Accompanies the process
Glossary
No longer applicable
Section 3
Process Terms
Section 3
Processes
Metrics
Section 2
Metrics
Best Practices
Section
Best Practices
Inputs and Outputs
Inputs and Outputs
Appendices
No longer applicable
A: Metrics
Consolidated with glossary
Section 2
Metrics
B: Best Practices
Consolidated with glossary
Section 4
Best practices
New
Section 5
Figure 7, Summary of Content Changes in SCOR 9.0
The new Special Applications section allows special interest groups and project groups to present
applications of SCOR that may be under development, not yet generally be accepted, or may require
additional case studies or proof points. The metrics proposed in Chapter 5.1 are an example of metrics
requiring further discussion among practitioners.
1.3.3
Introduction
The Technical Change Process
The SCOR-model is developed and maintained by the voluntary efforts of the Supply Chain
Council (SCC)members. Unlike other organizations with large technical staffs, the Council depends on the
contributions of its members to actively advance the state of knowledge in supply chain by identifying
required Model changes, researching and validating those changes, and developing the consensus
regarding the proposed changes. SCOR-model versions prior to Version 6.0 were developed in a Committee
structure that was focused on developing a stable, usable Model that could be used by experienced
Council members as well as organizations newly introduced to the SCOR concept. In 2002, confident
that the Models stability had been demonstrated with over 5 years of application experience by Council
members, the Supply Chain Council shifted its technical development focus to specific implementation
issues.
The current technical development process relies on project teams composed of volunteers
from Supply Chain Council member organizations. These project teams are short-lived groups that focus
on specific Model challenges. It is expected that the normal term of a project team will be between 3-6
months. The change process and the coordination of the project team activities is led by the Technical
Development Steering Committee (TDSC), a standing body elected by their peers in the Council. Changes
to the Model are normally initiated by a Council member or members (but may be initiated by a Special
Industry Group, an implementation project team, or the Chief Technical Officer). The primary mechanism
for changing the Model is the Project Team. These teams propose areas of investigation, pursue and
develop proposals for Model development and publish research results on the Council website. These
activities are coordinated by the Supply Chain Councils Technical Development Steering Committee,
which is comprised of elected representatives from the Councils membership.
The Model change process is documented on the SCCs website. Essentially, the process consists
of: 1) The Council issues a call for volunteers to work on an identified need for revision or change, 2)
volunteers submit a Charter Proposal to the TDSC outlining the concept, scope of work, schedules and
milestones, and identifying the volunteer resources, 3) the TDSC reviews the proposed Charter and
provides feedback on the proposed changes to the initiating group, 4) upon approval, the Project Team
crafts the details of their scope of work and determines whether it is likely their efforts will lead to a Model
change (which generally includes the modification of SCOR processes, metrics, best practices, and inputs
and outputs) or a research report (white paper), 5) the Project Team proposes how to integrate proposed
changes into the overall Model, 6) after final technical review the TDSC forwards the technical community
recommendations for proposed changes/additions to the SCC Board of Directors, and 7) following the
approval of the Board, the new Model is published for the SCC membership.
1.4.1
1.4.2
Section 2
Metrics
RL.1.1
The percentage of orders meeting delivery performance with complete and accurate
documentation and no delivery damage. Components include all items and quantities ontime using the customers definition of on-time, and documentation packing slips, bills of
lading, invoices, etc.
Qualitative Relationship Description
t
t
t
t
An order is considered perfect if the products ordered are the products provided and the
quantities ordered match the quantities provided (% In Full).
A delivery is considered perfect if the location, specified customer entity and delivery time
ordered is met upon receipt (Delivery Performance to Customer Commit Date).
Documentation supporting the order line is considered perfect if it is all accurate, complete, and
on time (Accurate Documentation).
The product condition is considered perfect if the product is delivered / faultlessly installed (as
applicable) on specification, with the correct configuration, with no damage, customer ready,
and is accepted by the customer (Perfect Condition)
Quantitative Relationship (optional, if calculable)

None Identified
Calculation
[Total Perfect Orders] / [Total Number of Orders] x 100%
Note, an Order is Perfect if the individual line items making up that order are all perfect.
The Perfect Order Fulfillment calculation is based on the performance of each Level 2 component
of the order line to be calculated (product & quantity, date & time & Customer, documentation and
condition). For an order line to be perfect, all of the individual components must be perfect.
The calculation of line item perfect order line fulfillment is based on the Level 2 components:
t Each component receives a score of 1 if it is judged to be perfect.
t It receives a score of 0 if not perfect.
If the sum of the scores equal the number of components (in this case, 4) the order line is perfectly
fulfilled.
Data Collection
Data for the components that are used to drive the calculation of supply chain performance are
primarily taken from Deliver and impact Deliver Enable process elements. These are primarily
associated with the original commitment (Customer Order Processing D1.2, D 2.2, D3.3) and the
satisfaction of that commitment (Receipt and Installation (as appropriate) D1.11, D1.13, D1.14,
D1.15, D2.11, D2.13, D2.14, D2.15, D3.11, D3.13, D3.14, D3.15). In addition, the documents necessary
for support of the supply chain process should be scored across the set of Deliver process elements.
The Enable Deliver Process Element - Assess Delivery Performance (ED.2) should be updated from
metrics derived.
2.1.1
RL.1.1
Discussion
The performance of the supply chain is considered perfect if the original commitment made to a
customer is met through the supply chain.
An order is defined as a collection of one or more order lines representing a request to deliver
specified quantities of goods or to render specific services. The order can further be defined as
a request (with a specific identifier as a reference) to deliver specified items or to render specific
services with specific prices, dates, and quantities. Commitments are made to a customer at the
order line level, where an order line is defined as a line representing a commitment on a sales order.
An order line always references a product or service.
For an order to be considered perfect the following standards must be met:
t Delivered complete; all items on the order line are delivered in the quantities specified
t Delivered on time to the initial commitment date, using the customers definition of on-time
delivery
t Documentation supporting the order including packing slips, bills of lading, invoices, quality
certifications, etc., is complete and accurate
t Faultlessly installed (as applicable), correct configuration, customer-ready and accepted, no
damage, on specification
Orders canceled by the customer are excluded from the metric. Order changes initiated by the
customer and agreed to by the supplier supersede initial commitments and form a new comparative
basis for the metric.
Often for date and quantity issues (and occasionally product), a range rather than a strict value is
used. This is acknowledged as a standard practice; in those situations the standard measured is
considered to be met perfectly if the range specified is satisfied.
The term customer-ready for the perfect condition standard may imply a subjective component
based on the customers satisfaction. Although condition may not be as rigorously measured as
time or quantity it should be considered as a component if available, especially since this attribute
measures performance of the supply chain which is, of course, ultimately measured by its customers.
It should also be noted that a corresponding evaluation of suppliers performances could be
determined by extending these standards to each suppliers ability to source products.
Hierarchical Metric Structure
Level 1
RL.1.1 Perfect Order Fulfillment

RL.2.1 % of Orders Delivered in Full
Level 2
RL.2.2 Delivery Performance to Customer Commit Date

RL.2.3 Documentation Accuracy
RL.2.4 Perfect Condition
2.1.2
RL.2.1
% of Orders Delivered In Full
Percentage of orders which all of the items are received by customer in the quantities
committed
An order is considered delivered in full if:
t All items ordered are the items actually provided, and no extra items are provided
t All quantities received by the customer match the order quantities (within mutually agreed
tolerances)
None Identified
Calculation
[Total number of orders delivered in full] / [Total number of orders delivered] x 100%
Data Collection
Data for the components that are used to drive the calculation of % In Full are primarily associated
with the original order processing step of Reserve inventory and Determine Delivery Date (D1.3, D2.3
& D3.3), inventory availability (M1.1, M2.1, M3.1) including inventory location accuracy, (ED.4), and
the satisfaction of that commitment through the shipment and customer receiving processes (D 1.12,
D1.13, D2.12, D.2.13, D3.12, D3.13)
Discussion
Order quantities are based on item / quantity original commitments agreed to by the customer.
Orders canceled by the customer are excluded from the metric. Order changes initiated by
the customer and agreed to by the supplier supersede original commitments and form a new
comparative basis for the metric. This metric has no timing element, such that orders deliberately
split by the supplier should still be considered in full so long as all metric criteria are met. In some
cases, such as for supplying bulk materials, committed quantities refer to a range that is acceptable to
the customer rather than a strict value.
Several SCOR diagnostic metrics exist that can be used to focus % In Full improvement efforts. Some
of these include:
t % Orders Scheduled to Requested Quantity
t Schedule Achievement
t Yield variability
t Planned Shipment Fill Rate (not yet defined)
t % Stock Outs (not yet defined)
t Inventory Cycle Count Accuracy (not yet defined)
Orders may not be filled completely to the customers original request quantity due to the inability to
schedule to the initial request. Breakdown may also occur from the inventory availability (including
stock outs for MTS and schedule achievement for MTO and ETO) and inventory location accuracy.
Lastly, a deviation from the shipment plan may lead to inability to fulfill an order completely.
2.1.3
RL.2.1
Level 1
Level 2
Level 3
2.1.4

RL.2.1 % of Orders Delivered in Full
Delivery Item Accuracy
Delivery Quantity Accuracy
RL.2.2
Delivery Performance to Customer Commit Date
The percentage of orders that are fulfilled on the customers originally scheduled or
committed date
An order is considered delivered to the original Customer commitment date if:
t The order is received on time as defined by the customer
t The delivery is made to the correct location and Customer entity
None Identified
Calculation
[Total number of orders delivered on the original commitment date] / [Total number of orders
delivered] x 100%
Data Collection
Data for the components that are used to drive the calculation of Delivery Performance to Customer
Commit Date are primarily associated with the original order processing step of Reserve inventory
and Determine Delivery date (D1.3, D2.3 & D3.3), and the satisfaction of that commitment through
the shipment and customer receiving processes (D 1.12, D1.13, D2.12, D2.13, D3.12, D3.13).
Discussion
Order delivery performance from a timing perspective is based on original commitments agreed to
by the customer. The acceptable window for delivering on time should be defined in the customer
service level agreement. Orders canceled by the customer are excluded from the metric. Order
changes impacting the timing of a delivery that are initiated by the customer and agreed to by the
supplier supersede original commitments and form a new comparative basis for the metric. The
original commitment date can refer to a range, rather than a strict date and time, that is acceptable
to the customer (e.g. advanced shipments). This metric has no In Full element, such that partial
deliveries can still be considered as meeting the Customer Commit Date so long as all metric criteria
are met. Measuring the frequency of accepting the customers original request date, vs. commit date,
can be an important measure of customer satisfaction.
Several SCOR diagnostic metrics exist that can be used to focus delivery performance improvement
efforts. Some of these include:
t % Orders Scheduled to Request
t % Orders Shipped on time (not yet defined)
t Carrier Performance Reliability (not yet defined)
Orders may not be delivered to the Customer Commit Date due to breakdowns in the order
fulfillment and shipment process (e.g. Transportation availability). Orders may also be delivered late
due to carrier delivery performance / issues.
2.1.5
RL.2.2
Level 1
Level 2
RL.2.2 Delivery Performance to Customer Commit date
Level 3
Customer Commit Date Achievement

Time customer Receiving
Delivery Location Accuracy
2.1.6
RL.2.3
Documentation Accuracy
Percentage of orders with accurate documentation supporting the order, including packing
slips, bills of lading, invoices, etc.
An order is considered to have accurate documentation when the following are accepted by the
customer:
t Shipping documentation
t Payment documentation
t Compliance documentation
t Other required documentation
All documentation must be complete, correct, and readily available when and how expected by the
customer, Government and other supply chain regulatory entities.
None Identified
Calculation
[Total number of orders delivered with accurate documentation] / [Total number of orders delivered]
x 100%
Document supporting the order includes:
t Shipping documentation:
o Packing slips (Customers)
o Bill of lading (Carriers)
o Government or Customs documentation / forms
t Payment Documentation:
o Invoice
o Contractual outline agreement
t Compliance documentation
o Material Safety Data Sheets
t Other required documentation
o Quality certification
Data Collection
Data for the components that are used to drive the calculation of Accurate Documentation are
primarily associated with the Deliver processing step of Load Product & Generate Shipping
Documentation (D1.11, D2.11, D3.11), and Invoice (D1.15, D2.15, D3.15).
The data collection step is part of Assess Delivery Performance (ED2) and Manage Deliver Information
(ED3)
2.1.7
RL.2.3
Discussion
This metric is calculated at the order level. The timeliness and quality of the documentation is
measured from the perspective of the customer, Government, and other regulatory entities.
Documentation may be late or incomplete due to the inability to prepare / process the correct
documentation on time. Inaccurate or late shipping documentation may prevent the product to be
loaded or shipped, increase the customs delay, and delay the customers acceptance of the order.
Inaccurate or late invoices may also lead to the inability to fulfill the customer request.
The definition encompasses On time and Accurate documentation. However, on-time documentation
implies a scheduled ship date and scheduled invoice date.
Accurate documentation metrics are similar to what exists for SOURCE process metrics
Possible diagnostic metrics that can be used to focus Accurate Documentation improvement efforts
include:
t % orders documentation (shipping and invoice) processed on time
t % faultless invoices
Level 1
Level 2
Level 3

RL.2.3 Documentation Accuracy
Shipping Documentation Accuracy
Compliance Documentation Accuracy
Other Required Documentation Accuracy
Payment Documentation Accuracy
2.1.8
RL.2.4
Perfect Condition
Percentage of orders delivered in an undamaged state that meet specification, have the
correct configuration, are faultlessly installed (as applicable), and accepted by the customer
An order is considered to be delivered in perfect condition if all items meet the following criteria:
t Undamaged
t Meet specification and has correct configuration (as applicable)
t Faultlessly installed (as applicable) and accepted by the customer
t Not returned for repair or replacement (within the warranty period)
None Identified
Calculation
[ Number of orders delivered in Perfect Condition ] / [Number of orders delivered ] x 100%
Data Collection
Data for the components that are used to drive the calculation of Perfect Condition are primarily
associated with the receipt, installation (as applicable) and satisfaction of the order commitment
(D1.13, D1.14, D2.13, D2.14, D3.13, D3.14). The Enable Deliver Process Element - Assess Delivery
Performance (ED.2) should be updated to reflect this metric and its components.
This data is typically available from a complaints, claims, or warranty/returns database.
Discussion
This metric, calculated at the order level, assesses the quality of products delivered through the
supply chain from the customers perspective. Justified and non-justified product quality issues,
claims and returns within the warranty period are included and count against this metric. Improving
this metric lowers the supply chain cost associated with claims and returns.
Several SCOR diagnostic metrics exist that can be used to focus Perfect Condition improvement
efforts. Some of these include:
t Cost of Noncompliance
t Damage and Shrinkage
t Scrap Expense
t Warranty Costs
t Yield Variability
2.1.9
RL.2.4
Level 1
Level 2

RL.2.4 Perfect Condition
Orders Delivered Damage Free Conformane
Orders Delivered Defect Free Conformane
Level 3
% Orders Received Damage Free

% Faultless Installations
Warranty & Returns
2.1.10
RL
Level 3 Reliability Metrics
Metric ID
Metric Name
Metric Definition
Process
RL.3.1
# of complaints
regarding missing
environmental
documentation
The number of products released

without proper environmental
documentation as a percent of total
products released
M1.6: Release Product to Deliver
RL.3.2
# of
recordkeeping
related NOVs
The number of recordkeeping related

regulatory violations received per year
RL.3.3
# of staff-related
environmental
violations
The number of environmental

violations per year that are a result of
personnel error or improper training
EM.2: Manage Production

Performance
RL.3.4
% correct material
documentation
The percent of total shipments that

include the correct environmental
documentation
D1.10: Pack Product

D2.9: Pick Product
D3.8: Receive Product from Source
or Make
RL.3.5
% Error-free
Returns Shipped
% Error-free
Returns Shipped
SR2.5: Return MRO Product

SR1.5: Return Defective Product
SR3.5: Return Excess Product
RL.3.6
% Identified MRO
Products
Returned
To Service
% Identified MRO
Products Returned
To Service
SR2.2: Disposition MRO Product
RL.3.7
% Item Location
Accuracy
% Item Location
Accuracy
D4.5: Fill Shopping Cart
RL.3.8
% of assets in
compliance
with scheduled
maintenance
requirements
The percent of capital equipment that

is in compliance with manufacturer
recommended maintenance
requirements or maintenance best
practice requirements.
ES.5: Manage Capital Assets
RL.3.9
% of employees
trained on
environmental
requirements
The number of employees trained

on environmental requirements as a
percent of total Make employees
EM.8: Manage Make Regulatory

Environment
RL.3.10
% of Excess
Product Returns
Delivered
Complete to
the Designated
Return Center
Correct destination, according to the

schedule, with the correct part and
documentation
DR3: Deliver Return Excess Product

SR3: Source Return Excess Product
2.1.11
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.11
% of Faultless
Invoices
The number of invoices processed

without issues and or errors divided by
the total number of invoices. Examples
of potential invoice defects are: Change
from customer purchase order without
proper customer involvement Wrong
Customer Information (e.g., name,
address, telephone number) Wrong
Product Information (e.g., part number,
product description) Wrong Price (e.g.,
discounts not applied) Wrong Quantity
or Wrong Terms or Wrong Date
D1.15: Invoice
D2.15: Invoice
D3.15: Invoice
RL.3.12
% Of Faultless
Installations
Number of Faultless Installations

divided by Total Number of Units
Installed.
D1.14: Install Product

RL.3.13
% of MRO returns
delivered to the
correct service
provider location
% of MRO returns delivered to the

correct service provider location, within
schedule, with the correct part and
documentation
DR2: Deliver Return MRO Product
RL.3.14
% of products
meeting specified
environmental
performance
requirements
The number of products that meet

desired environmental performance
specifications as a per cent of total
products produced
M2.6: Release Finished Product to

Deliver
RL.3.15
% of products
with proper
environmental
labeling (if
required)
The number of products with proper

environmental labels in place as a per
cent of total products produced

Deliver
RL.3.16
% of suppliers
meeting
environmental
metrics/criteria
Number of suppliers that completely

meet agreement environmental
criteria divided by the total number of
suppliers used.
ES.7: Manage Supplier Network

ES.2: Assess Supplier Performance
D2.7: Select Carriers and Rate
Shipments
ES.10: Manage Supplier
Agreements
Shipments
RL.3.17
% of suppliers
with an EMS
or ISO 14001
certification
Percent of suppliers used that have a

validated Environmental Management
System or ISO 14000 certification
S3.2: Select Final Supplier (S) and

Negotiate
S3.1: Identify Sources of Supply
RL.3.18
% Orders/ Lines
Processed
Complete
The number of orders / lines that are

processed complete divided by the
total orders / lines processed within the
measurement period
S2.2: Receive Product

2.1.12
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.19
% Orders/ Lines
Received Defect
Free

received defect free divided by the
total orders / lines processed in the
measurement period.
S1.3: Verify Product

RL.3.20
% Orders/ Lines
Received OnTime To Demand
Requirement
The number of orders / lines that

are received on-time to the demand
requirements divided by the total
orders / lines for the demand
requirements in the measurement
period

RL.3.21
% Orders/ lines
received with
correct content
Percent of orders or lines received that

have the correct material content as
specified in the product design specs
and supplier agreements.

RL.3.22
% Orders/ lines
received with
correct packaging
Percent of orders or lines received

that are packaged correctly with the
right type and quantity of packaging
material.

RL.3.23
% Orders/ Lines
Received with
Correct Shipping
Documents

received on-time with correct shipping
documents divided by the total orders
/ lines processed in the measurement
period

RL.3.24
% Orders/ lines
received damage
free

processed damage free divided by the
total orders / lines processed in the
measurement period

RL.3.25
% Product
Transferred OnTime to Demand
Requirement
The number of product orders /

lines that are transferred on-time to
demand requirements divided by the
total orders / lines transferred in the
measurement period
S1.4: Transfer Product

RL.3.26
% Product
Transferred
without
Transaction Errors
The number of transactions processed

without error divided by the total
transactions processed in the
measurement period.

RL.3.27
% Schedules
Changed within
Suppliers Lead
Time
The number of schedules that are

changed within the suppliers leadtime divided by the total number
of schedules generated within the
measurement period
S1.1: Schedule Product Deliveries

2.1.13
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.28
% Shipping
Schedules
that Support
Customer
Required Return
by Date
% Shipping Schedules that Support

Customer Required Return by Date
SR1.4: Schedule Defective Product

Shipment
SR2.4: Schedule MRO Shipment
SR3.4: Schedule Excess Product
Shipment
RL.3.29
Age of Product
/ Customer Risk
Data (months)
The age in months of the product

of customer risk data i.e. audit age,
assessments, performance, etc.
ES.9: Manage Supply Chain Source

Risk
EM.9: Manage Supply Chain Make
Risk
ED.9: Manage Supply Chain Deliver
Risk
ER.9: Manage Supply Chain Return
Risk
RL.3.30
Age of Supplier
Risk Data
(months)
The age in months of the supplier

risk data i.e. audit age, assessments,
performance, etc.

Risk
Risk
Risk
Risk
RL.3.31
Compliance
Documentation
Accuracy
Percentage of compliance
documentations are complete, correct,
and readily available when and how
expected by customer, Government
and other supply chain regulatory
entities. Compliance documentations
includes material safety data sheets
D1.11: Load Vehicle & Generate

Shipping Documentation
D2.11: Load Product & Generate
Shipping Documents
M1.4: Package
M2.4: Package
M3.5: Package
RL.3.32
Customer
Commit Date
Achievement
Time Customer
Receiving
Percentage of orders which is received

on time as defined by the customer
D1.13: Receive & Verify Product by

Customer
Customer
Customer
2.1.14
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.33
Delivery Item
Accuracy
Percentage of orders in which all items

ordered are the items actually provided,
and no extra items are provided
D1.2: Receive, Enter & Validate

Order
D1.4: Consolidate Orders
D1.12: Ship Product
Customer
D2.2: Receive, Configure, Enter &
Validate Order
D2.12: Ship Product
Customer
D3.3: Enter Order, Commit
Resources & Launch Program
D3.6: Route Shipments
Shipping Documents
D3.12: Ship Product
Customer
RL.3.34
Delivery Location
Accuracy
Percentage of orders which is delivered

to the correct location and customer
entity

Order
D1.12: Ship Product
Customer
Validate Order
D2.12: Ship Product
Customer
Shipping Documents
D3.12: Ship Product
Customer
2.1.15
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.35
Delivery Quantity
Accuracy
Percentage of orders in which all

quantities received by the customer
match the order quantities (within
mutually agreed tolerances)

Order
D1.12: Ship Product
Customer
Validate Order
D2.12: Ship Product
Customer
Shipping Documents
D3.12: Ship Product
Customer
RL.3.36
Fill Rate
The percentage of ship-from-stock

orders shipped within 24 hours of order
receipt. For services, this metric is the
proportion for services that are filled so
that the service is completed within 24
hours
P1.3: Balance Supply Chain

Resources with SC Requirements
P4.4: Establish Delivery Plans
M1.3: Produce and Test
D1.3: Reserve Inventory and
Determine Delivery Date
D1.9: Pick Product
RL.3.37
Forecast Accuracy
Forecast accuracy is calculated

for products and/or families for
arkets/distribution channels, in unit
measurement. Common calculation
(Sum Actuals - Sum of Variance) / Sum
Actuals to determine percentage error.
*monitoring the delta of Forecast
Accuracy over measured time periods
can determine success rates.
P1.1: Identify, Prioritize and

Aggregate SC Requirements
Aggregate Product Requirements
P3.1: Identify, Prioritize
and Aggregate Production
Requirements
Aggregate Delivery Requirements
P4.2: Identify, Assess and Aggregate
Delivery Resources
EP.4: Manage Integrated Supply
Chain Inventory
Chain Capital Assets
Chain Transportation
EP.7: Manage Planning
Configuration
2.1.16
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.38
Number of
notices of
violation received
Number of violations issued by

regulatory authorities per 12 month
period
EP.8: Manage Plan Regulatory

Requirements and Compliance
RL.3.40
Number of
occurrences
where excessive
inventory is
returned and
followed
Number of occurences where excessive

inventory is returned and followed
SR3.1: Identify Excess Product

Condition
RL.3.41
Orders Delivered
Damage Free
Conformance

without damage
D1.13: Receive and Verify Product

by Customer
by Customer
by Customer
RL.3.42
Orders Delivered
Defect Free
Conformance

without defect

by Customer
by Customer
by Customer
RL.3.43
Other Required
Documentation
Accuracy
Percentage of other required

documentations (besides of
compliance documentation, payment
documentation and shipping
documentation) are complete, correct,
entities. This kind of documentations
includes quality certification

Shipping Documents
RL.3.44
Package
Cycle Time
The average time associated with

Package
M1.4: Package
RL.3.45
Payment
Documentation
Accuracy
Percentage of payment
entities. Payment documentations
includes invoice, contractual outline
agreement

Shipping Documents
RL.3.46
Reportable
Release Incidents
Number of reportable air, water, or solid

waste accidental releases per year
ED.5: Manage Deliver Capital

Assets
RL.3.47
Return Shipments
Shipped on
Time
Return Shipments Shipped on Time

2.1.17
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.48
Risk Mitigation
Plan
% of sources with documented

contingency plans and % of sourced
items with alternate or redundant
sources
EP.9: Manage Supply Chain Plan

Risk
Risk
Risk
Risk
Risk
RL.3.49
Schedule
Achievement
The percentage of time that a plant

achieves its production schedule. This
calculation is based on the number of
scheduled end-items or total volume
for a specific period. Note: overshipments do not make up for undershipments.
M1.1: Schedule Production

Activities
Activities
Activities
RL.3.50
Shipping
Documentation
Accuracy
Percentage of shipping
entities. Shipping documentations
includes packing slips (customers), bill
of lading (carriers) and government or
customs documentation / forms

Shipping Documents
RL.3.51
Supplier
Mitigation Plans
Implemented
(percent)
The percent of mitigation plans

implemented for supplier risk.

Risk
Risk
Risk
Risk
RL.3.52
Supplier return
order cycle time
reestablished and
sustained in 30
days
Supplier return order cycle time

reestablished and sustained for
increased quantities produced given
30 days, including supplier return order
processing cycle time, pick-to-ship
cycle, transit time, etc.
ER.5: Manage Return Capital Assets

ER.6: Manage Return
Transportation
ER.7: Manage Return Network
Configuration
RL.3.53
Total # of
Confirmed
MRO Conditions/
Total
# of MRO Service
Requests
Initiated
Total # of Confirmed MRO Conditions/

Total # of MRO Service Requests
Initiated
R2: Return MRO Product
2.1.18
RL
Metric ID
Metric Name
Metric Definition
Process
RL.3.54
VAR of product/
customer
performance -
Value at Risk the sum of the

probability of risk events times the
monetary impact of the events for the
specific product or customer.

Risk
Risk
Risk
Risk
RL.3.55
Warranty and
Returns
Number of returns within the warranty

period. Warranty is a commitment,
either expressed or implied that a
certain fact regarding the subject
matter of a contract is presently true or
will be true.

M1.4: Package
RL.3.56
Warranty Costs
Warranty costs include materials, labor

and problem diagnosis for product
defects.

M1.4: Package
M2.4: Package
M3.5: Package
RL.3.57
Waste Processing
Errors
Number of errors in waste transactions

as a percent of total waste transactions
M1.7: Waste Disposal

RL.3.58
Yield
The ratio of usable output from a

process to its input.

M1.4: Package
M2.4: Package
M3.5: Package
RL.3.59
Yield Variability
The condition that occurs when the

output of a process is not consistently
repeatable either in quantity, quality, or
combination of these.

2.1.19
2.1.20
RS.1.1
The average actual cycle time consistently achieved to fulfill customer orders. For each individual order, this cycle time starts from the order receipt and ends with customer acceptance
of the order.
None Identified
Order Fulfillment Cycle Time Source Cycle Time + Make Cycle Time + Deliver Cycle Time
Calculation
[Sum Actual Cycle Times For All Orders Delivered] / [Total Number Of Orders Delivered]
Data Collection
Data for the components that are used to drive the calculation of responsiveness are taken from the
Source, Make and Deliver process elements.
Discussion
The order fulfillment cycle time as captured from the moment a customer places the order to the
moment the order is fulfilled is considered to be a gross cycle time. It represents all the time passed
between these two events, regardless of whether this represented cycle time for the activities
performed by the organization to fulfill the order (both value-add and non-value-add) or dwell time
because the order was placed well in advance by the customer. As such, this gross order fulfillment
cycle time does not truly reflect the responsiveness of the organization. Take for example an
organization that needs six days to fulfill a certain customer order. If the customer places the order
one day in advance, the gross order fulfillment cycle time will be seven days. If the customer places
the order 3 months ahead (pre-ordering), the gross fulfillment cycle time will be 96 days. However,
the fact that the customer pre-orders does not reduce the responsiveness of the organization. On the
contrary, one can argue that it may increase the ability of the organization to meet that order as it
allows the organization to plan ahead and fulfill the order in a more optimal way.
The responsiveness of the organization is determined by the cumulative cycle time for all activities
that are required to fulfill the order, but should exclude any dwell time where no activity takes place.
Therefore the definition of Order Fulfillment Cycle Time consists of a gross component and a net
component named Order Fulfillment Process Time, according to the following formula: Order
Fulfillment Cycle Time = Order Fulfillment Process Time + Order Fulfillment Dwell Time. Note that
dwell time will equal 0 for companies who do not utilize this metric, so Order Fulfillment Cycle Time
will equal Order Fulfillment Process Time.
Order fulfillment dwell time is defined as any lead time during the order fulfillment process where no
activity takes place, which is imposed by customer requirements. Note that this dwell time is different
from idle time or non-value-add lead time, which is caused by inefficiencies in the organizations
processes and therefore ultimately under responsibility of the organization. This kind of idle time
should not be deducted from the gross order fulfillment cycle time.
2.2.1
RS.1.1
Discussion cont.
Dwell time is mostly associated with the ordering process, where a customer may place an order in
advance to reserve capacity/materials etc, but where the actual steps in the order fulfillment process
take place later on. It is also common in the delivery process where the organization may be in
principle ready to ship the product/service, but is requested by the customer to wait (for example to
follow a certain shipment schedule).
Note that for those organizations where dwell time does not play a role, the dwell time can be
taken as zero days which results in the net order fulfillment cycle time to be equal to the gross order
fulfillment cycle time.
For benchmarking purposes it is recommended to use the Order Fulfillment Process Time, as this is
the cycle time reflecting most accurately the responsiveness of the organization. It will also ensure
that those organizations in industries where dwell time is a factor can be benchmarked against
organizations in industries where dwell time does not play a role.
The concept of dwell time applies not only to the level 1 metric, but alsoto all lower level metrics. This
means that each lower level metric can have a gross component, consisting of the net component
and dwell time. Because the lower level metrics are heirarchical (the cumulative sum of cycle times at
level 2 or 3 should be equal to the cycle time at level 1.) The cumulative sum of dwell times at level 2
or 3 should total up to the dwell time at level 1.
Level 1
RS.1.1 Order Fulfillment Cycle Time

RS.2.1 Source Cycle Time
Level 2
RS.2.2 Make Cycle time

RS.2.3 Deliver Cycle Time
2.2.2
RS.2.1
Source Cycle Time
The average time associated with Source Processes. (Processes: S1, S2, S3)
None Identified
Source Cycle Time (Identify Sources of Supply Cycle Time + Select Supplier and Negotiate Cycle
Time) + Schedule Product Deliveries Cycle Time + Receive Product Cycle Time + Verify Product Cycle
Time + Transfer Product Cycle Time + Authorize Supplier Payment Cycle Time
Calculation
None Identified
Data Collection
None Identified
Discussion
Metrics in Level 3 that are used to drive the calculation of Source Cycle time are taken from the
Source process elements, depending on the possible strategies deployed by companies to fulfill
orders such as make-to-stock, make-to-order or engineer-to-order. When make-to-stock or make-toorder strategy is deployed, the dashed optional metrics Identify Sources of Supply Cycle Time and
Select Supplier and Negotiate Cycle Time are not used in the calculation.
Level 1
Level 2

RS.2.1 Source Cycle Time
Identify Sources of Supply Cycle Time
Select Supplier and Negotiate Cycle Time
Schedule Product Deliveries Cycle Time
Level 3
Receive Product Cycle Time

Verify Product Cycle Time
Transfer Product Cycle Time
Authorize Supplier Payment Cycle Time
The dashed line boxes represent optional metrics associated with specific level 3 processes.
2.2.3
RS.2.2
Make Cycle Time
The average time associated with Make Processes. (Processes: M1, M2, M3)
None Identified
Make Cycle Time (Finalize Production Engineering Cycle Time) + Schedule Production Activities
Cycle Time + Issue Material/Product Cycle Time + Produce and Test Cycle Time + Package Cycle Time
+ Stage Finished Product Cycle Time + Release Finished Product To Deliver Cycle Time
Calculation
None Identified
Data Collection
None Identified
Discussion
Metrics in Level 3 that are used to drive the calculation of Make Cycle time are taken from the Make
process elements, depending on the possible strategies deployed by companies to fulfill orders
such as make-to-stock, make-to-order or engineer-to-order. When make-to-stock or make-to-order
strategy is deployed, the dashed optional metric Finalize Production Engineering Cycle Time is not
used in the calculation. And also, the data for the calculation of Level 3 metrics may also depends on
different make strategies, e.g., when make-to-stock strategy is deployed, the metric Issue Material/
Product Cycle Time means the time for issuing material; while when make-to-order or engineer-toorder is deployed, it will be a measure for calculating the cycle time for issuing sourced or in-process
product.
In Make Cycle Time, there may be overlaps in the processes, so the least amount of time should be
applied rather than the total sum.
2.2.4
RS.2.2
Level 1
Level 2

RS.2.2 Make Cycle Time
Schedule Production Activities Cycle Time
Issue Material/Product Cycle Time
Produce and Test Cycle Time
Level 3
Package Cycle Time

Stage Finished Product Cycle Time
Release Finished Product to Deliver Cycle Time
Finalize Production Engineering Cycle Time
2.2.5
RS.2.3
Delivery Cycle Time
The average time associated with Deliver Processes. (Processes: D1, D2, D3)
None Identified
Delivery Cycle Time MAX {[Receive, Configure, Enter and Validate Order Cycle Time + Reserve
Resources & Determine Delivery Date Cycle Time + (Consolidate Orders Cycle Time + Schedule
Installation Cycle Time) + Build Loads Cycle Time + Route Shipments Cycle Time + Select Carriers and
Rate Shipments Cycle Time], Receive Product from Make/Source Cycle Time} + Pick Product Cycle
Time + Pack Product Cycle Time + Load Vehicle & Generate Shipping Documentation Cycle Time +
Ship Product Cycle Time + (Receive & Verify Product Cycle Time) + (Install Product Cycle Time)
*The MAX function above is to indicate that Dx.3-Dx.7 may be in parallel with Dx.8and whichever
takes longer should determine the cycle time.
Calculation
None Idetified
Data Collection
None Identified
Discussion
Metrics in Level 3 that are used to drive the calculation of Deliver Cycle time are taken from the
Deliver process elements, depending on the possible strategies deployed by companies to fulfill
orders such as make-to-stock, make-to-order or engineer-to-order. When make-to-stock or maketo-order strategy is deployed, the optional metric Schedule Installation Cycle Time is not used in the
calculation, otherwise the metric Consolidate Orders Cycle Time will not be used.
And also, the data for the calculation of Level 3 metrics may also depends on different make
strategies, e.g., when make-to-stock strategy is deployed, the metric Receive, Configure, Enter and
Validate Order Cycle Time may not include the Configure process.
2.2.6
RS.2.3
Level 1
Level 2

RS.2.3 Delivery Cycle Time
Receive, Configure, Enter & Validate Order Cycle Time
Reserve Resources & Determine delivery Date Cycle
Time
Consolidate Orders Cycle Time
Build Loads Cycle Time
Rout Shipments Cycle Time
Select Carriers and Rage Shipments Cycle Time
Receive Product from Make/Source Cycle Time
Level 3
Install Product Cycle Time

Receive & Verify Product Cycle Time
Ship Product Cycle Time
Load Vehicle & Generate Shipping Documentation
Cycle Time
Pack Product Cycle Time
Pick Product Cycle Time
Schedule Installation Cycle Time
2.2.7
RS.2.4
Delivery Retail Cycle Time
The average cycle time of the processes used to acquire, merchandise, and sell finished
goods at a retail store. (Process: D4)
None Identified
Delivery Retail Cycle Time Generate Stocking Schedule Cycle Time + Receive Product Cycle Time +
Pick Product Cycle Time + Stock Shelf Cycle Time + Fill Shopping Cart Cycle Time + Checkout Cycle
Time + Install Cycle Time
Calculation
None Identified
Data Collection
None Identified
Discussion
None Identified
Level 1
Level 2
RS.2.4 Delivery Retail Cycle Time

Generate Stocking Schedule Cycle Time
Level 3
Stock Shelf Cycle Time

Install Cycle Time
Checkout Cycle Time
Fill Shopping Cart Cycle Time
2.2.8
RS
Level 3 Responsiveness Metrics
Metric ID
Metric Name
Metric Definition
Process
RS.3.1
Align Supply
Chain Unit Plan
with Financial
Plan Cycle Time

aligning the supply chain unit plan with
the financial plan
EP.10: Align Supply Chain Unit Plan

with Financial Plan
RS.3.2
Assess Delivery
Performance
Cycle Time

assessing the performance of deliver
processes.
ED.2: Assess Delivery Performance
RS.3.3
Assess Supplier
Performance
Cycle Time

assessing the performance of supplier
processes.
RS.3.4
Asset Turns
Total gross product revenue Total net

assets
M1.4: Package
M2.4: Package
M3.5: Package
M2.3: Produce and Test,
RS.3.5
Authorize
Defective Product
Return Cycle Time

authorizing the return of defective
product.
DR1.1: Authorize Defective Product

Return
RS.3.6
Authorize Excess
Product Return
Cycle Time

authorizing the return of excess
product.
DR3.1: Authorize Excess Product

Return
RS.3.7
Authorize MRO
Product Return
Cycle Time

authorizing the return of MRO product.
DR2.1: Authorize MRO Product

Return
RS.3.8
Authorize
Supplier Payment
Cycle Time

authorizing payment to suppliers.
S1.5: Authorize Supplier Payment

RS.3.9
Average Days
per Engineering
Change
# of days each engineering change

impacts the delivery date divided by
the total # of changes.

RS.3.10
Average Days per

Schedule Change
# of days each schedule change

impacts the delivery date divided by
the total # of changes.

RS.3.11
Average Release
Cycle of Changes
Cycle time for implementing change

notices divided by total number of
changes.

RS.3.12
Balance Product
Resources
with Product
Requirements
Cycle Time

balancing product resources and
product requirements.
P2.3: Balance Product Resources

with Product Requirements
2.2.9
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.13
Balance
Production
Resources with
Production
Requirements
Cycle Time

the identifying, prioritizing, and
aggregating product requirements.
P3.3: Balance Production Resources

with Production Requirements
RS.3.14
Balance Return
Resources
with Return
Requirements
Cycle Time

balancing return resources and return
requirements.
P5.3: Balance Return Resources

with Return Requirements
P5.2: Identify, Assess, and
Aggregate Return Resources
RS.3.15
Balance Supply
Chain Resources
with Supply Chain
Requirements
Cycle Time

balancing supply chain resources and
supply chain requirements.

RS.3.16
Build Loads Cycle

Time

building shipment loads.
D1.5: Build Loads

D2.5: Build Loads
D3.5: Build Loads
RS.3.17
Checkout Cycle
Time
The average time required for customer

checkout.
D4.6: Checkout
RS.3.18
Consolidate
Orders Cycle Time
The average time required for customer

order consolidation.

RS.3.19
Current customer
return order cycle
time
Current return order cycle time,

including customer return order
processing cycle time, transit time,
return processing and disposition cycle
time, etc.
DR1: Deliver Return Defective

Product,
DR2: Deliver Return MRO Product,
RS.3.20
Current logistics
order cycle time
Current logistics order cycle time,

including customer order processing
cycle time, dock-to-stock cycle time,
pick-to-ship cycle, transit time, etc.
D1: Deliver Stocked Product,

D2: Deliver Make-to-Order Product,
D3: Deliver Engineer-to-Order
Product
RS.3.21
Current
manufacturing
order cycle time
Current manufacturing cycle time
M1: Make-to-Stock,
M2: Make-to-Order,
M3: Engineer-to-Order
RS.3.22
Current supplier
return order cycle
time
Current supplier return order cycle

time, including supplier return order
processing cycle time, pick-to-ship
cycle time, transit time etc.
SR1: Source Return Defective

Product
RS.3.23
Customs
Clearance Cycle
Time

clearing an order through customs
ED.8: Manage Import/Export

Requirements
ES.8: Manage Import/Export
Requirements
RS.3.24
Deliver and/or
Install Cycle Time
The average time required to deliver

and install product.
D4.7: Deliver and/or Install
2.2.10
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.25
Enter Order,
Commit
Resources &
Launch Program
Cycle Time

entering an order, committing
resources and program launch

Resources Launch Program
RS.3.26
Establish and
Communicate
Return Plans
Cycle Time

establishing and communicating return
plans
P5.4: Establish and Communicate

Return Plans
RS.3.27
Establish Delivery
Plans Cycle Time

establishing and communicating
deliver plans
RS.3.28
Establish
Production Plans
Cycle Time

production plans
P3.4: Establish Production Plans
RS.3.29
Establish
Sourcing Plans
Cycle Time

source plans
P2.4: Establish Sourcing Plans
RS.3.30
Establish
Supply Chain
Plans
Cycle Time
Five point annual average of the sum

of all gross inventories (raw materials
& WIP, plant FG, field FG, field samples,
other) (COGS 365). Total gross value
of inventory at standard cost before
reserves for excess and obsolescence.
Only includes inventory on company
books, future liabilities should not be
included.
P1.4: Establish & Communicate

Supply-Chain Plans
RS.3.31
External Event
Response
(average days)
The average response time (in days) to

an external risk event from the time of
the event (included detection lags)

Risk
Risk
Risk
Risk
RS.3.32
Fill Shopping Cart

Cycle Time

filling the shopping cart
RS.3.33
Finalize
Production
Engineering Cycle
Time
The average time associated with the

finalization of production engineering
M3.1: Finalize Production

Engineering
RS.3.34
Generate
Stocking
Schedule Cycle
Time

generating a stocking schedule
D4.1: Generate Stocking Schedule
2.2.11
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.35
Identify Sources
of Supply Cycle
Time

identification of sources of supply
RS.3.36
Identify, Assess
and Aggregate
Production
Resources
Cycle Time

aggregating product requirements.
P3.2: Identify, Assess and

Aggregate Production Resources
RS.3.37
Identify, Assess,
and Aggregate
Delivery
Resources Cycle
Time

identifying, assessing, and aggregating
delivery resource availability

Aggregate Delivery Resources
P4.3: Balance Delivery Resources
and Capabilities with Delivery
Requirements
RS.3.38
Identify, Assess,
and Aggregate
Product
Resources Cycle
Time

product resource availability

Aggregate Product Resources
RS.3.39
Identify, Assess,
and Aggregate
Supply Chain
Resources Cycle
Time

supply chain resource availability

Aggregate SC Resources
RS.3.40
Identify, Prioritize,
and Aggregate
Delivery
Requirements
Cycle Time

aggregating delivery requirements

RS.3.41
and Aggregate
Product
Requirements
Cycle Time

aggregating product requirements

RS.3.42
and Aggregate
Production
Requirements
Cycle Time

aggregating production requirements

Requirements
RS.3.43
Identify,
Prioritize, and
Aggregate Return
Requirements
Cycle Time

aggregating return requirements
P5.1: Assess and Aggregate Return

Requirements
2.2.12
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.44
and Aggregate
Supply Chain
Requirements
Cycle Time

aggregating supply chain requirements

RS.3.46
Install Product
Cycle Time

product installation

RS.3.47
In-stock %
Percentage of materials, components,

or finished goods that are there when
needed.
D4.4: Stock Shelf
RS.3.48
Invoice Cycle
Time

generation and issuance of an invoice
D1.15: Invoice
D3.15: Invoice
RS.3.49
Issue Material
Cycle Time

issuance of material to production
M1.2: Issue Material
RS.3.50
Issue Sourced/InProcess Product

Cycle Time

issuance of material to production
M2.2: Issue Sourced/In-Process

Product
Product
RS.3.51
Load Product
& Generate
Shipping
Documentation
Cycle Time

product loading and the generation of
shipping documentation

Shipping Documents
RS.3.52
Load Vehicle and

Generate
Shipping
Documentation
Cycle Time

product loading and the generation of
shipping documentation

RS.3.53
Maintain Source
Data Cycle Time

maintaining source data
ES.3: Maintain Source Data
RS.3.54
Manage Business
Rules for PLAN
Processes Cycle
Time

managing plan business rules
EP.1: Manage Business Rules for

Plan Processes
RS.3.55
Manage Business
Rules for Return
Processes Cycle
Time

managing rules for returns
ER.1: Manage Business Rules for

Return Processes
RS.3.56
Manage Capital
Assets Cycle Time

managing capital assets
RS.3.57
Manage Deliver
Business Rules
Cycle Time

managing deliver business rules
ED.1: Manage Deliver Business

Rules
2.2.13
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.58
Manage Deliver
Capital Assets
Cycle Time

managing deliver capital assets

Assets
RS.3.59
Manage Deliver
Information Cycle
Time

managing deliver information
ED.3: Manage Deliver Information
RS.3.60
Manage Finished
Goods Inventories
Cycle Time

managing finished good inventory
ED.4: Manage Finished Goods

Inventories
RS.3.61
Manage
Import/Export
Requirements
Cycle Time

managing import/export requirements

Requirements
Requirements
RS.3.62
Manage Incoming
Product Cycle
Time

managing inbound raw material
ES.6: Manage Incoming Product
RS.3.63
Manage InProcess Products

(WIP) Cycle Time

managing WIP inventory
EM.4: Manage In-Process Products

(WIP)
RS.3.64
Manage
Integrated Supply
Chain Capital
Assets Cycle Time

managing integrated supply chain
capital assets

RS.3.65
Manage
Integrated Supply
Chain Inventory
Cycle Time

inventory

Chain Inventory
RS.3.66
Manage
Integrated
Supply Chain
Transportation
Cycle Time

transportation

RS.3.67
Manage MAKE
Equipment and
Facilities Cycle
Time

managing production equipment and
facilities
EM.5: Manage Make Equipment

and Facilities
RS.3.68
Manage MAKE
Information Cycle
Time

managing production information
EM.3: Manage Make Information
RS.3.69
Manage MAKE
Regulatory
Compliance Cycle
Time

managing compliance to the make
regulatory environment

Environment
2.2.14
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.70
Manage
Performance of
Return Processes
Cycle Time

managing the performance of supply
chain activities
ER.2: Manage Performance of

Return Processes
RS.3.71
Manage
Performance of
Supply Chain
Cycle Time

managing the performance of return
activities
EP.2: Manage Performance of

Supply Chain
RS.3.72
Manage PLAN
Data Collection
Cycle Time

collecting plan data
EP.3: Manage Plan Data Collection
RS.3.73
Manage Plan
Regulatory
Requirements
and Compliance
Cycle Time

managing the planning of regulatory
requirements and compliance

RS.3.74
Manage Planning
Configuration
Cycle Time

managing the planning of the supply
chain configuration

Configuration
RS.3.75
Manage Product
Inventory Cycle
Time

managing raw material inventory
ES.4: Manage Product Inventory
RS.3.76
Manage Product
Life Cycle Time

managing the product life cycle
ED.7: Manage Product Life Cycle
RS.3.77
Manage
Production
Network Cycle
Time

managing the production network
EM.7: Manage Production Network
RS.3.78
Manage
Production
Performance
Cycle Time

managing production performance

Performance
RS.3.79
Manage
Production Rules
Cycle Time

managing production rules
EM.1: Manage Production Rules
RS.3.80
Manage Return
Capital Assets
Cycle Time

managing return capital assets
EM.5: Manage Return CapitalAssets
RS.3.81
Manage Return
Data Collection
Cycle Time

managing return data collection
ER.3: Manage Return Data

Collection
RS.3.82
Manage Return
Inventory Cycle
Time

managing return inventory
ER.4: Manage Return Inventory
2.2.15
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.83
Manage Return
Network
Configuration
Cycle Time

managing the return network
configuration

Configuration
RS.3.84
Manage Return
Regulatory
Requirements
and Compliance
Cycle Time
The average time associated

with compliance and regulatory
requirements for return products

Configuration
RS.3.85
Manage Return
Transportation
Cycle Time

managing return transportation
ER.6: Manage Return

Transportation
RS.3.86
Manage Sourcing
Business Rules
Cycle Time

managing source business rules
ES.1: Manage Sourcing Business

Rules
RS.3.87
Manage Supplier
Agreements Cycle
Time

managing supplier agreements

Agreements
RS.3.88
Manage Supplier
Network Cycle
Time

managing the supplier network
RS.3.89
Manage
Transportation
(WIP) Cycle Time

managing (WIP) transportation
EM.6: Manage Transportation (WIP)
RS.3.90
Manage
Transportation
Cycle Time

managing transportation
ED.6: Manage Transportation
RS.3.91
Manufacturing
cycle time
reestablished and
sustained for 30
days

managing transportation

and Facilities
EM.6: Manage Make Transportation
EM.7: Manage Make Network
RS.3.92
Negotiate &
Receive Contract
Cycle Time

negotiating and receiving a contract
D3.2: Negotiate and Receive

Contract
RS.3.93
Obtain & Respond

to Request for
Quote (RFQ)
/ Request for
Proposal (RFP)
Cycle Time

obtaining and responding to RFQs/RFPs
D3.1: Obtain and Respond to RFP/

RFQ
2.2.16
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.94
Order Fulfillment
Dwell Time
Any lead time during the order

fulfillment process where no activity
takes place, which is imposed by
customer requirements. Note that
this dwell time is different from idle
time or non-value-add lead time,
which is caused by inefficiencies in the
organizations processes and therefore
ultimately under responsibility of the
organization. This kind of idle time
should not be deducted from Order
Fulfillment Cycle Time.
D1.2: Receive, Enter and Validate

Order
D2.2: Receive, Configure, Enter and
Validate Order
RS.3.95
Pack Product
Cycle Time

packing a product for shipment.
D1.10: Pack Product

D2.10: Pack Product
D3.10: Pack Product
RS.3.96
Pick Product
Cycle Time

product pick
D1.9: Pick Product

D2.9: Pick Product
D3.9: Pick Product
RS.3.97
Pick Product from

Backroom Cycle
Time

product pick from backroom
D4.3: Pick Product from Backroom
RS.3.98
Plan Cycle Time
The average time associated with Plan

Processes
P1: Plan Supply Chain
RS.3.99
Plan Source Cycle

Time

planning source activities
P2: Plan Source
RS.3.100
Process Inquiry &

Quote Cycle Time

processing inquiries and quotes
D1.1: Process Inquiry and Quote

RS.3.101
Produce and Test

Cycle Time

production and test

RS.3.102
Receive & Verify

Product by
Customer Cycle
Time

receiving and verifying an order at the
customer site

by Customer
by Customer
by Customer
RS.3.103
Receive and Verify

Product Cycle
Time

customer site

by Customer
by Customer
by Customer
RS.3.104
Receive Defective
Product Cycle
Time

receiving defective product returns
from the customer
DR1.3: Receive Defective Product
2.2.17
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.105
Receive Excess
Product Cycle
Time

receiving excess product returns from
the customer
DR3.3: Receive Excess Product
RS.3.106
Receive MRO
Product Cycle
Time

receiving MRO product returns from
the customer
DR2.3: Receive MRO Product
RS.3.107
Receive Product
Cycle Time

receiving product
D4.2: Receive Product at the Store
RS.3.108
Receive Product
from Make/
Source
Cycle Time

receiving product from Make/Source

or Make
or Make
or Make
RS.3.109
Receive Product
at Store Cycle
Time

receiving product at the customer store
RS.3.110
Receive Product
from Source or
Make Cycle Time

receiving a transfer of product to
deliver processes from source or make

or Make
or Make
or Make
RS.3.111
Receive,
Configure, Enter
& Validate Order
Cycle Time

customer site

Validate Order
RS.3.112
Receive, Enter &

Validate Order
Cycle Time

customer site

Order
RS.3.113
Receiving Product
Cycle Time
Total elapsed time from time product

is received to time it is passed to next
process

RS.3.114
Release Finished
Product to Deliver
Cycle Time

releasing finished product to deliver

Deliver
RS.3.115
Reserve Inventory
& Determine
Delivery Date
Cycle Time

reserving inventory and determining a
delivery date

2.2.18
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.116
Reserve
Resources and
Determine
Delivery Date
Cycle Time

reserving resources and determining a
delivery date

RS.3.117
Route Shipments
Cycle Time

routing shipments

RS.3.118
Schedule
Defective Return
Receipt Cycle
Time

scheduling the receipt of the return of
defective product
DR1.2: Schedule Defective Return

Receipt
RS.3.119
Schedule Excess
Return Receipt
Cycle Time

excess product
DR3.2: Schedule Excess Return

Receipt
RS.3.120
Schedule
Installation Cycle
Time

scheduling the installation of product
D3.4: Schedule Installation
RS.3.121
Schedule MRO
Return Receipt
Cycle Time

MRO product
DR2.2: Schedule MRO Return

Receipt
RS.3.122
Schedule Product
Deliveries Cycle
Time

scheduling the shipment of the return
of MRO product

RS.3.123
Schedule
Production
Activities Cycle
Time

scheduling production activities

Activities
Activities
Activities
RS.3.124
Select Carriers &

Rate Shipments
Cycle Time

selecting carriers and rating shipments

Shipments
Shipments
D3.7: Select Carriers & Rate
Shipments
RS.3.125
Select Supplier
and Negotiate
Cycle Time

selecting a suppliler and negotiating
S3.2: Select Final Supplier(s) and

Negotiate
RS.3.126
Ship Product
Cycle Time

shipping product
D1.12: Ship Product

D2.12: Ship Product
D3.12: Ship Product
RS.3.127
Source Return
Cycle Time
Average time associated with Sourcing

Return

Product
2.2.19
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.128
Stage Finished
Product Cycle
Time

staging finished product
M1.5: Stage Product

M2.5: Stage Finished Product
RS.3.129
Stock Shelf Cycle

Time
The average time associate with

stocking shelves
D4.4: Stock Shelf
RS.3.130
Supply chain
down time due to
compliance issues
Time the supply chain is disrupted

by environmental compliance issues
divided by the total potential available
time

Requirements and Compliance,
Requirements
Environment
Requirements
ER.8: Manage Return Regulatory
RS.3.131
Time to reach and

sustain current
customer return
order cycle time
Amount of time needed to reach and

sustain current customer return order
cycle time, including customer return
order processing cycle time, transit
time, return processing and disposition
cycle time, etc.

ER.6: Manage Return
Transportation
Configuration
RS.3.132
Time to reach and

sustain current
logistics order
cycle time
Amount of time needed to reach

and sustain current logistics order
cycle time, including customer order
processing cycle time, dock-to-stock
cycle time, pick-to-ship cycle time,
transit time, etc.

Assets,
RS.3.133
Time to reach and

sustain current
manufacturing
order cycle time

sustain current manufacturing cycle
time

and Facilities
RS.3.134
Time to reach and

sustain current
purchase order
cycle time

sustain current procurement cycle time,
including time to place a purchase
order and supplier lead time
ES.5: Manage Source Capital Assets

Agreements
RS.3.135
Time to reach and

sustain current
supplier return
order cycle time

sustain current supplier return order
cycle time, including supplier return
order processing cycle time, pick-toship cycle time, transit time, etc.

Agreements
RS.3.136
Transfer Defective
Product Cycle
Time
The average time associated transfer

until product is moved to the next
process.
DR1.4: Transfer Defective Product
2.2.20
RS
Metric ID
Metric Name
Metric Definition
Process
RS.3.137
Transfer Excess
Product Cycle
Time

process.
DR3.4: Transfer Excess Product
RS.3.138
Transfer MRO
Product Cycle
Time

process.
DR2.4: Transfer MRO Product
RS.3.139
Transfer Product
Cycle Time

process.

RS.3.140
Verify Product
Cycle Time

verifying raw material product

RS.3.141
Waste
accumulation
time
The time required to collect and

properly store production waste

2.2.21
2.2.22
AG.1.1
Upside Supply Chain Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in quantities
delivered.
Note - 20% is a number provided for benchmarking purposes. For some industries and some
organizations 20% may be in some cases unobtainable or in others too conservative.
Note - component metrics (Upside Source Flexibility, Upside Make Flexibility, etc) can be
improved in parallel and as a result, this calculation requires the result to be the least amount
of time to achieve the desired result).
Calculation: Total elapsed days between the occurrence of the unplanned event and the achievement
of sustained plan, source, make, deliver and return performance.
Note: Elapsed days are not necessarily the sum of days required for all activities as some may occur
simultaneously.
AG.2.1 Upside Source Flexibility: The number of days required to achieve an unplanned sustainable
20% increase in quantity of raw materials.
AG.2.2 Upside Make Flexibility: The number of days required to achieve an unplanned sustainable
20% increase in production with the assumption of no raw material constraints.
AG.2.3 Upside Deliver Flexibility: The number of days required to achieve an unplanned sustainable
20% increase in quantity delivered with the assumption of no other constraints.
AG.2.4 Upside Source Return Flexibility: The number of days required to achieve an unplanned
sustainable 20% increase in the return of raw materials to suppliers.
AG.2.5 Upside Deliver Return Flexibility: The number of days required to achieve an unplanned
sustainable 20% increase in the return of finished goods from customers.
None Identified
Calculation
The calculation of supply chain flexibility requires the calculation to be the least time required
to achieve the unplanned sustainable increase when considering Source, Make, and Deliver
components.
For example, if it requires 90 days achieve a 20% increase in raw material volume, 60 days for adding
capital to support production, and no time to increase the ability to deliver, upside supply chain
flexibility would be 90 days (if production changes can run concurrently with material acquisition
activities) or as much as 150 days if production changes and material acquisition changes must run
sequentially.
2.3.1
AG.1.1
Data Collection
Data for the components that are used to drive the calculation of supply chain flexibility are taken
from the actual planning activities incurred in devising the actions to be taken and the execution
activities themselves. Neither the complete set of activities nor any given subset of those activities
can be identified except in either contingency plans (in which case they are hypothetical), special
analytical simulations conducted for the purpose of predicting total elapsed time, or after the fact
(when they have actually occurred and are unlikely to reoccur in the same combination).
Flexibility measures are assumption based or based on historic events. Some elements can be
measured and taken as a basis for further considerations, e.g.
Discussion
Certainly enterprises deal with change all the time. In most cases, these changes are minor deviations
from the norm or fleeting blips in the marketplace. Also, certainly, most supply chains move
through these changes almost effortlessly and, in this regard, demonstrate equivalent flexibility. In
many extreme cases, however, it is possible that a particular supply chain has reached a condition
of relative rigidity (say, at capacity or rigid, constraining agreements with partners) and a seemingly
minor increase in production requirement can consume much time and effort as the supply chain
struggles to restore its capability to perform.
It is evidenced that enterprises engaged in appropriate business risk and competitive contingency
planning activities will usually be in a better position to optimize overall supply chain performance
and these activities are presented as best practices later in this document.
When change is known in advance (such as Wal-Mart requiring RFID devices on all delivered cases,
or a major sourcing change is planned to occur), and is incorporated in the enterprises operating
plan, then the time incurred to undertake the adaptation isnt necessarily a reflection of the supply
chains flexibility. While flexibility is still addressed, it is frequently clouded by other considerations in
the operating plan. Unplanned change is the primary consideration in measuring the supply chains
flexibility.
Level 1
AG1.1 Upside Supply Chain Flexibility

AG.2.1 Upside Source Flexiblity
AG.2.2 Upside Make Flexibility
Level 2
AG.2.3 Upside Deliver Flexibility

AG.2.4 Upside Source Return Flexibility
AG.2.5 Upside Deliver Return Flexibility
2.3.2
AG.1.2
Upside Supply Chain Adaptability
The maximum sustainable percentage increase in quantity delivered that can be achieved in
30 days.
Note: 30 days is an arbitrary number provided for benchmarking purposes. For some
industries and some organizations 30 days may be in some cases unobtainable or in others
too conservative.
Note: Component metrics (Upside Source Adaptability, Upside Make Adaptability, etc) can
be improved in parallel and as a result, this calculation requires the result to be the least
increase in quantity sustainable in 30 days
Note: The calculation of Supply Chain Adaptability requires the calculation to be the least quantity
sustainable when considering Source, Make, Deliver and Return components.
AG.2.6 Upside Source Adaptability: The maximum sustainable percentage increase in raw material
quantities that can be acquired/received in 30 days.
AG.2.7 Upside Make Adaptability: The maximum sustainable percentage increase in production that
can be achieved in 30 days with the assumption of no raw material constraints.
AG.2.8 Upside Deliver Adaptability: The maximum sustainable percentage increase in quantities
delivered that can be achieved in 30 days with the assumption of unconstrained finished good
availability.
AG.2.9 Upside Source Return Adaptability: The maximum sustainable percentage increase in returns
of raw materials to suppliers that can be achieved in 30 days with the assumption of unconstrained
finished goods availability.
AG.2.10 Upside Deliver Return Adaptability: The maximum sustainable percentage increase in returns
of finished goods from customers that can be achieved in 30 days.
Upside Source Adaptability + Upside Make Adaptability + Upside Deliver Adaptability
Calculation
None Identified
Data Collection
Adaptability measures are assumption based or based on historic events. Some elements can be
measured and taken as a basis for further considerations. Adaptability measures are based on the
actual number of returns compared to the maximum number of returns which can be achieved
within 30 days. The weakest component determines the overall volume.
2.3.3
AG.1.2
Discussion
The calculation of Supply Chain Adaptability requires the calculation to be the least quantity
o P&L Impact
! Revenue
! COGS
! SGA
o Balance Sheet Impact
! Inventory
Level 1
AG1.2 Upside Supply Chain Adaptability

AG.2.6 Upside Source Adaptability
AG.2.7 Upside Make Adaptability
Level 2
AG.2.8 Upside Deliver Adaptability

AG.2.9 Upside Source Return Adaptability
AG.2.10 Upside Deliver Return Adaptability
2.3.4
AG.1.3
Downside Supply Chain Adaptability
The reduction in quantities ordered sustainable at 30 days prior to delivery with no inventory
or cost penalties.
Note: 30 days is an arbitrary number provided for benchmarking purposes. For some industries and some organizations 30 days may be in some cases unobtainable or in others too
conservative.
The calculation of downside supply chain adaptability requires the calculation to be based on the
least reduction sustainable when considering Source, Make, and Deliver components.
AG.2.11 Downside Source Adaptability: The raw material quantity reduction sustainable at 30 days
prior to delivery with no inventory or cost penalties.
AG.2.12 Downside Make Adaptability: The production reduction sustainable at 30 days prior to
delivery with no inventory or cost penalties.
AG.2.13 Downside Deliver Adaptability: The reduction in delivered quantities sustainable at 30 days
Downside Source Adaptability + Downside Make Adaptability + Downside Deliver Adaptability
Calculation
None Identified
Data Collection
Adaptability measures are assumption based on historic events. Some elements can be measured
and taken as a basis for further considerations.
Discussion
The calculation of Supply Chain Adaptability requires the calculation to be the least quantity
o P&L Impact
! Revenue
! COGS
! SGA
o Balance Sheet Impact
! Inventory
2.3.5
AG.1.3
Level 1
AG.1.3 Downside Supply Adaptability

AG.2.11 Downside Source Adaptability
Level 2
AG.2.12 Downside Make Adaptability

AG.2.13 Downside Deliver Adaptability
2.3.6
AG.2.1
Upside Source Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in quantity
of raw materials.
Note: This is a planning activity normally considering constraints to increase delivery that
results in an estimate. Possible constraint factors are included in this section.
Least time to pursue all necessary activities.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Source: Input
Current elements needed to fully understand future requirements, to establish 20% gap, based on
the question How long will it take for the company to sustain a 20% increase in quantities sourced?.
These elements are mainly output metrics from other attributes . . . responsiveness, reliability, cost,
asset management.
Demand
o Current source volumes
! Amount of each item purchased
Staffing
o Staff needed to meet current demand
! Productivity-purchase orders per FTE
! Needed, but may be underutilized
Capital
o Current capital requirements
! Credit line
! Cash on hand
! Accounting procedures
Materials
o All else equal in make, deliver, return, current inventory on hand (raw material and purchased
finished goods), including safety stock required to sustain current order fulfillment.
! Assuming optimized inventory practices (no excess inventory)
o Current sourcing/supplier constraints
! Current contract terms.
! Nature of items; commodity/sole source.
2.3.7
AG.2.1
Discussion cont.
Cycle Time
o Current procurement cycle time
! Time to place a purchase order
Supplier lead time
Source: Resource Availability Assessment & Ramp-up/Lead Time
Elements needed to establish 20% delta in resources and what is required to meet the 20% delta
based on the question How long will it take for the company to sustain a 20% increase in quantities
sourced?
Demand
o Additional source volume
Staffing
o Staff availability in procurement (underutilized FTEs)
o Amount of time needed to recruit/hire/train additional staff to fill gap between underutilized
FTEs and staff needed to sustain 20% increase in quantities delivered
Capital
o Current capital availability
! Credit line
! Cash on hand
o Amount of time needed to obtain capital to fill gap between current capital availability and
capital needed to sustain 20% increase in quantities ordered
Materials
o Sourcing Constraints
! Time required in negotiating new source/volume contracts/terms
! Time required to find/obtain additional sources
o All else equal in make, deliver, return, amount of time needed to obtain, deliver and phase in
inventory (raw material and purchased finished goods) for order fulfillment, including safety
stock to sustain 20% increase in quantities sourced.
Cycle Time
o Amount of time needed to reach and sustain current procurement cycle time
! Supplier lead time
2.3.8
AG.2.1
Level 1
Level 2
AG.1.1 Upside Supply Flexibility

AG.2.1 Upside Source Flexibility
Current source volumes
Productivity-purchase orders per FTE
Current capital requirements
Current on-hand inventories (Raw, Purchased FG)
Current sourcing/supplier constraints
Current purchase order cycle times
Additional source volumes
Level 3
Procurement staff availablity

Time needed to recruit/hire/train additional staff
Capital availability
Time needed to obtain additional capital
Additional demand sourcing - supplier constraints
Time needed to increase inventory for additional
order fulfillment (Raw, Purchased FG)
Time to reach and sustain current purchase order
cycle time
2.3.9
AG.2.2
Upside Make Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in production with the assumption of no raw material constraints.
results in an estimate.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Make: Input
Current elements needed to fully understand future requirements, to establish 20% gap, based
on the question How long will it take for the company to sustain a 20% increase in quantities
produced?. These elements are mainly output metrics from other attributes . . . responsiveness,
reliability, cost, asset management.
Demand
o Current make volumes
! Amount of each item manufactured
Labor
o Labor needed to meet current demand
! Productivity-units/orders per FTE
Capital/Assets
o Internal and External (outsourced) capacity needed for current demand throughput
! Facilities, space
! Manufacturing equipment, materials handling and packaging equipment, etc.
! Credit line
! Cash on hand
! Finance Procedures (outsource vs. in-source, make vs. buy, lease vs. purchase)
Materials
o All else equal in source, deliver and return, current inventory on hand (WIP and finished
goods), including safety stock required to sustain current order fulfillment.
2.3.10
AG.2.2
Discussion cont.
Cycle Time
o Current manufacturing cycle time (all else equal including procurement order cycle time and
supplier lead time)
Make: Resource Availability Assessment & Ramp-up/Lead Time
produced?
Demand
o Additional make volume
Labor
o Direct labor availability and percent of labor used in manufacturing, not used in direct
activity (underutilized FTEs)
o Amount of time needed to recruit/hire/train additional labor to fill gap between
underutilized FTEs and labor needed to sustain 20% increase in quantities manufactured
Capital/Assets
o Current Internal Capacity utilization
! Facilities, space
! Credit line
! Cash on hand
! Finance Procedures (outsource vs. in-source, lease vs. purchase)
o Amount of time needed to obtain capital to fill gap between underutilized asset capacity
and assets needed to sustain 20% increase in quantities delivered
o Amount of time needed to obtain assets/capacity to fill gap between underutilized asset
capacity and assets needed to sustain 20% increase in quantities delivered
! Facilities, space
Outsourcing Alternatives to capital
o Supplemental Outsource/lease availability
! Facilities, lease building, etc.
! Lease manufacturing equipment, materials handling and packaging equipment,
etc.
! Co-packers
o Amount of time needed to obtain supplemental outsourced or leased resources or facilities
to sustain 20% increase in quantities made
Materials
o All else equal in source, deliver and return, amount of time needed to receive and phase in
raw material inventory for manufacturing and make WIP and FG inventory, including safety
stock to sustain 20% increase in quantities manufactured)
Cycle Time
o Amount of time needed to reach and sustain current manufacturing cycle time (all else equal
including procurement order cycle time and supplier lead time)
2.3.11
AG.2.2
Level 1
Level 2

Current make volume
Productivity-units/orders produced per FTE
Internal and External manufacturing equipment capacity
needed for current make volume
Internal and External facilities/, storage capacity needed
for current make volume
Current inventory on hand (WIP, FG)
Current manufacturing order cycle time
Additional make volume
Direct labor activity
Percent of labor used in manufacturing, not used in direct
activity
Level 3
Time needed to recruit/hire/train additional labor

Current internal equipment capacity utilization
Current internal facility/storage capacity utilization
Capital availablitly
Time needed to obtain additional internal space
Supplemental outsource/lease availability
Time needed to obtain supplemental outsourced or leased
resources or facilities
Time needed to increase inventory (WIP, FG)
Time to reach and sustain current manufacturing order
cycle time
2.3.12
AG.2.3
Upside Deliver Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in quantity
delivered with the assumption of no other constraints.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Deliver: Input
Current elements needed to fully understand future requirements, to establish 20% gap, based on the
question How long will it take for the company to sustain a 20% increase in quantities delivered?.
These elements are mainly output metrics from other attributes . . . responsiveness, reliability, cost,
asset management.
Demand
o Current delivery volume
! Number of orders shipped
Labor
! Productivity-orders per FTE
Capital/Assets
o Internal and External (3PL) capacity needed for current demand throughput
! Facilities, space
! Fleet equipment, outside carrier loads, materials handling equipment, etc.
o Credit line
o Cash on hand
o Accounting procedures
o Finance Procedures (outsource vs. in-source, make vs. buy, lease vs. purchase)
Materials
o All else equal in source, make, return, current finished goods inventory on hand (including
safety stock required to sustain current order fulfillment)
2.3.13
AG.2.3
Discussion cont.
Cycle Time
o Current logistics order cycle time (all else equal including procurement order cycle time,
supplier lead time, manufacturing cycle time, etc.)
! Customer order processing cycle time (logistics only)
! Dock-to-stock cycle time
! Pick-to-ship cycle time
! Transit time
Deliver: Resource Availability Assessment & Ramp-up/Lead Time
delivered?
Demand
o Additional delivery volume
Labor
o Direct labor availability and percent of labor used in logistics, not used in direct activity
(underutilized FTEs)
o Amount of time needed to recruit/hire/train additional labor to fill gap between underutilized
FTEs and labor needed to sustain 20% increase in quantities delivered
Capital/Assets
! Facilities, space
! Fleet equipment, materials handling equipment, etc.
! Credit line
! Cash on hand
o Amount of time needed to obtain capital to fill gap between underutilized asset capacity and
assets needed to sustain 20% increase in quantities delivered
capacity and assets needed to sustain 20% increase in quantities delivered
! Facilities, space
! 3PL facilities, lease building, etc.
! Full service lease fleet, materials handling, etc. equipment
! Outside carriers
o Amount of time needed to obtain supplemental outsourced or leased resources or facilities to
sustain 20% increase in quantities delivered
Materials
o All else equal in source, make, return, amount of time needed to increase finished inventory
for order fulfillment (time to receive/stock inventory, including safety stock to sustain 20%
increase in quantities delivered)
2.3.14
AG.2.3
Discussion cont.
Cycle Time
o Amount of time needed to reach and sustain current logistics order cycle time (all esle equal
including procurement order cycle time, supplier lead time, manufacturing cycle time, etc.)
! Transit time
2.3.15
AG.2.3
Level 1
Level 2

Current delivery volume
Productivity-orders produced per FTE
Internal and External (3PL) Equipment capacity needed for
current delivery volume
Internal and External (3PL) storage capacity needed for
Current inventory on hand ( FG)
Current logistics order cycle time
Additional delivery volume
Direct labor activity
Percent of labor used in logistics, not used in direct activity
Time needed to recruit/hire/train additional labor
Level 3

Current internal storage capacity utilization
Time needed to obtain additional equipment
Time needed to obtain supplemental outsourced (3PL) or
leased resources or facilities
Time needed to increase inventory (FG) for order fulfillment
Time to reach and sustain current logistics order cycle time
2.3.16
AG.2.4
Upside Source Return Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in the return
of raw materials to suppliers.
Note: This is a planning activity normally considering constraints to increase delivery that results in an
estimate.
Data Collection
None Identified
Discussion
Source Return: Input
Assuming no supplier constraints, current elements needed to fully understand future requirements,
to establish 20% gap, based on the question How long will it take for the company to sustain a 20%
increase in quantities returned to suppliers? These elements are mainly output metrics from other
attributes . . . responsiveness, reliability, cost, asset management.
Demand
! Current return volume
! Number of orders returned
Staff / Labor
o Procurement Staff / Logistics Labor needed to meet current returned volume
! Productivity-orders returned per FTE
Capital/Assets
o Internal and External (3PL) capacity needed for current return throughput
! Facilities, space
! Credit line
! Cash on hand
Cycle Time
o Current supplier return order cycle time
! Supplier return order processing cycle time (procurement and logistics)
! Transit time
2.3.17
AG.2.4
Discussion cont.
Source Return: Resource Availability Assessment & Ramp-up/Lead Time
Assuming no supplier constraints, elements needed to establish 20% delta in resources and what
is required to meet the 20% delta based on the question How long will it take for the company to
sustain a 20% increase in quantities returned to suppliers?
Demand
o Additional supplier return volume
Staff / Labor
o Procurement staff / Logistics labor availability (underutilized FTEs)
o Amount of time needed to recruit/hire/train additional staff / labor to fill gap between
underutilized FTEs and staff / labor needed to sustain 20% increase in quantities returned to
suppliers
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
and assets needed to sustain 20% increase in quantities returned to suppliers
capacity and assets needed to sustain 20% increase in quantities returned to suppliers
! Facilities, space
! Outside carriers
to sustain 20% increase in quantities returned to suppliers
Cycle Time
o Amount of time needed to reach and sustain current supplier return order cycle time
! Transit time
2.3.18
AG.2.4
Level 1
Level 2

AG.2.4 Upside Source Return Flexibility
Current source return volume
Productivity-orders produced per FTE
current return volume
Current supplier return order cycle time
Additional source return volume
Procurement staff/Logistics labor availability
Constraint Factors
Time needed to recruit/hire/train additional staff/labor

Time to reach and sustain current logistics order cycle time
2.3.19
AG.2.5
Upside Deliver Return Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in the return
of finished goods from customers.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Deliver Return: Input
Assuming no customer constraints, current elements needed to fully understand future requirements,
to establish 20% gap, based on the question How long will it take for the company to sustain a 20%
increase in quantities returned from customers? These elements are mainly output metrics from
other attributes . . . responsiveness, reliability, cost, asset management.
Demand
o Current return volume
Staff / Labor
o Customer Service Staff / Logistics Labor needed to meet current returned volume
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
Cycle Time
o Current customer return order cycle time
! Customer return order processing cycle time (customer service and logistics)
! Transit time
! Return processing and disposition cycle time
2.3.20
AG.2.5
Discussion cont.
Deliver Return: Resource Availability Assessment & Ramp-up/Lead Time
Assuming no customer constraints, elements needed to establish 20% delta in resources and what
is required to meet the 20% delta based on the question How long will it take for the company to
sustain a 20% increase in quantities returned to suppliers?
Demand
o Additional customer return volume
Staff / Labor
o Customer Service staff / Logistics labor availability (underutilized FTEs)
o Amount of time needed to recruit/hire/train additional staff / labor to fill gap between
underutilized FTEs and staff / labor needed to sustain 20% increase in quantities returned
from customers
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
and assets needed to sustain 20% increase in quantities returned from customers
capacity and assets needed to sustain 20% increase in quantities returned from customers
! Facilities, space
! Outside carriers
to sustain 20% increase in quantities returned from customers
Cycle Time
o Amount of time needed to reach and sustain current customer return order cycle time
! Transit time
2.3.21
AG.2.5
Level 1
Level 2
AG.1.1 Upside Supply Chain Flexibility

AG.2.5 Upside Deliver Return Flexibility
Current deliver return volume
Productivity-orders returned per FTE
Current customer return order cycle time
Additional deliver return volume
Level 3
Customer Service staff/Logistics labor availability

Time needed to recruit/hire/train additional staff/labor
Time to reach and sustain current customer return order
cycle time
2.3.22
AG.2.6
Upside Source Adaptability
The maximum sustainable percentage increase in raw material quantities that can be
acquired/received in 30 days.
Least quantity sustainable when considering all components
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Source: Input
Current elements needed to fully understand future requirements, to establish the volume delta that
can be sustained based on the question How much of an increase in quantities sourced (expressed
as a percentage) can the company sustain, given 30 days? These elements are mainly output metrics
from other attributes . . . responsiveness, reliability, cost, asset management.
Demand
Staffing
Capital
! Credit line
! Cash on hand
Materials
o All else equal in make, deliver, return, current inventory on hand (raw material and purchased
finished goods), including safety stock required to sustain current order fulfillment.
Cycle Time
2.3.23
AG.2.6
Discussion cont.
Source: Resource Availability Assessment & Ramp-up/Lead Time
Elements needed to establish delta in resources and what can be ramped up and sustained within
30 days based on the question How much of an increase in quantities sourced (expressed as a
percentage) can the company sustain, given 30 days
Demand
o Additional source volume to be determined given ramped up resources below
Staffing
o How much staff can be recruited/hired and trained fill gap between underutilized FTEs and
FTEs needed to increase and sustain quantities sourced given 30 days
Capital
! Credit line
! Cash on hand
o How much capital can be obtained to increase quantities sourced given 30 days
Materials
! Time required to find/obtain additional sources
o All else equal in make, deliver, return, how much inventory (raw material and purchased
finished goods) can be obtained, delivered and phased in and sustained for order fulfillment,
including safety stock given 30 days.
Cycle Time
o Procurement order cycle time reestablished and sustained for increased quantities sourced
given 30 days.
2.3.24
AG.2.6
Level 1
Level 2
AG.1.2 Upside Supply Chain Adaptability

AG.2.6 Upside Source Adaptability
Current source volume
Additional source volumes obtained in 30 days
Procurement staff availability
Amount additional staff recruited/hired/trained in 30 days
Level 3
Additional demand sourcing - supplier constraints
Amount of additional capital obtained in 30 days
Amount of inventory (Raw, Purchased FG) obtained in 30
days
Purchase order cycle time reestablished and sustained in
30 days
2.3.25
AG.2.7
Upside Make Adaptability
The maximum sustainable percentage increase in production that can be achieved in 30 days
with the assumption of no raw material constraints.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Make: Input
can be sustained based on the question How much of an increase in quantities produced (expressed
Demand
Labor
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
Materials
Cycle Time
supplier lead time)
2.3.26
AG.2.7
Discussion cont.
Make: Resource Availability Assessment & Ramp-up/Lead Time
30 days based on the question How much of an increase in quantities produced (expressed as a
Demand
o Additional make volume to be determined given increased resources below
Labor
o How much labor can be recruited/hired and trained fill gap between underutilized FTEs and
FTEs needed to increase and sustain quantities produced given 30 days
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
o How much capital can be obtained to fill gap between underutilized asset capacity and
assets needed to increase and sustain quantities produced given 30 days
o How much assets/capacity can be obtained to fill gap between underutilized asset capacity
and assets needed to increase and sustain quantities produced given 30 days
! Facilities, space
! Lease manufacturing equipment, materials handling and packaging equipment, etc.
! Co-packers
o How much supplemental outsourced or leased resources or facilities can be obtained to
increase and sustain quantities produced given 30 days
Materials
o All else equal in source, deliver and return, how much raw material inventory can be received
and phased into manufacturing and produced into WIP and FG inventory, and sustained for
order fulfillment, including safety stock given 30days.
Cycle Time
o Manufacturing cycle time reestablished and sustained for increased quantities produced
given 30 days.
2.3.27
AG.2.7
Level 1
Level 2
AG.2.7 Upside Make Adaptability

Current make volume
Internal and External facilities/, storage capacity needed for
current make volume
Current iventory on hand (WIP,FG)
Additional make volume
Level 3
Direct labor availability

Percent of labor used in manufacturing, not in direct acivity
Amount additional labor recruited/hired/trained in 30 days
Amount additional capital obtained in 30 days
Amount additiona equipment obtained in 30 days
Amount additional internal space obtained in 30 days
Amount of supplemental outsourced or leased resources or
facilities obtained in 30 days
Amount of additional inventory (raw) received and made
(WIP, FG) in 30 days
Manufacturing cycle time reestablished and sustained in 30

days
2.3.28
AG.2.8
Upside Deliver Adaptability
The maximum sustainable percentage increase in quantities delivered that can be achieved
in 30 days with the assumption of unconstrained finished good availability.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Deliver: Input
can be sustained based on the question How much of an increase in quantities delivered (expressed
Demand
Labor
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
Materials
2.3.29
AG.2.8
Discussion cont.
Cycle Time
! Transit time
Deliver: Resource Availability Assessment & Ramp-up/Lead Time
30 days based on the question How much of an increase in quantities delivered (expressed as a
Demand
o Additional delivery volume to be determined given increased resources below
Labor
o How much labor can be recruited/hired and trained fill gap between underutilized FTEs and
FTEs needed to increase and sustain quantities delivered given 30 days
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
assets needed to increase and sustain quantities delivered given 30 days
and assets needed to increase and sustain quantities delivered given 30 days
! Facilities, space
! Outside carriers
increase and sustain quantities delivered given 30 days
Materials
o All else equal in source, make, return, amount of how much finished goods inventory can be
received/stocked, including safety stock to sustain quantities delivered given 30 days
2.3.30
AG.2.8
Discussion cont.
Cycle Time
o Logistics cycle time reestablished and sustained for increased quantities delivered
given 30 days (all else equal including procurement order cycle time, supplier lead time,
manufacturing cycle time, etc.)
! Transit time
2.3.31
AG.2.8
Level 1
Level 2

AG.2.8 Upside Deliver Adaptability
Current delivery volume
Productivity-orders shipped per FTE
Internal and External (3PL) equipment capacity needed for
Current inventory on hand (FG)
Level 3

Percent of labor used in logistics, not in direct activity
Amount labor recruited/hired/trained in 30 days
Amount additional capital obtained in 30 days
Amount additiona equipment obtained in 30 days
Amount of supplemental outsourced or leased resources or
facilities obtained in 30 days
Amount of additional inventory (FG) obtained in 30 days
Logistics order cycle time reestablished and sustained in 30
days
2.3.32
AG.2.9
Upside Source Return Adaptability
The maximum sustainable percentage increase in returns of raw materials to suppliers that
can be achieved in 30 days.
The component which is the bottleneck determines the least volume for the increase of returns
within 30 days. Least quantity sustainable when considering all components
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Source Return: Input
Assuming no supplier constraints, current elements needed to fully understand future requirements,
to establish the volume delta that can be sustained based on the question How much of an increase
in quantities returned to suppliers (expressed as a percentage) can the company sustain, given 30
days? These elements are mainly output metrics from other attributes . . . responsiveness, reliability,
cost, asset management.
Demand
Staff / Labor
o Procurement Staff / Logistics Labor needed to meet current returned volume
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
Cycle Time
o Current supplier return order cycle time
! Transit time
2.3.33
AG.2.9
Discussion cont.
Source Return: Resource Availability Assessment & Ramp-up/Lead Time
Assuming no supplier constraints, elements needed to establish delta in resources and what can
be ramped up and sustained within 30 days based on the question How much of an increase in
quantities returned to suppliers (expressed as a percentage) can the company sustain, given 30 days
Demand
o Additional supplier return volume to be determined given increased resources below
Staff / Labor
o Procurement staff / Logistics labor availability (underutilized FTEs)
o How much procurement staff/logistics labor can be recruited/hired and trained fill gap
between underutilized FTEs and FTEs needed to increase and sustain quantities returned to
suppliers given 30 days
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
assets needed to increase and sustain quantities returned to suppliers given 30 days
and assets needed to increase and sustain quantities returned to suppliers given 30 days
! Facilities, space
! Outside carriers
increase and sustain quantities returned to suppliers given 30 days
Cycle Time
o Source return cycle time reestablished and sustained for increased quantities returned to
! Transit time
2.3.34
AG.2.9
Level 1
Level 2

AG.2.9 Upside Source Return Adaptability
Current source return volume
Current supplier return order cycle time
Additional source return volume
Procurement staff/Logistics labor availability
Level 3
Amount staff/labor recruited/hired/trained in 30 days

Amount of additional equipment obtained in 30 days
Amount of supplemental outsourced (3PL) or leased
resources or facilities obtained in 30 days
Supplier return order cycle time reestablished and
sustained in 30 days
2.3.35
AG.2.10
Upside Deliver Return Adaptability
The maximum sustainable percentage increase in returns of finished goods from customers
that can be achieved in 30 days.
The component which is the bottleneck determines the least volume for the increase of returns
within 30 days. Least quantity sustainable when considering all components
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Deliver Return: Input
Assuming no customer constraints, current elements needed to fully understand future requirements,
to establish the volume delta that can be sustained based on the question How much of an increase
in quantities returned from customers (expressed as a percentage) can the company sustain, given 30
days? These elements are mainly output metrics from other attributes . . . responsiveness, reliability,
cost, asset management.
Demand
Staff / Labor
o Customer Service Staff / Logistics Labor needed to meet current returned volume
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
Cycle Time
o Current customer return order cycle time
! Transit time
2.3.36
AG.2.10
Discussion cont.
Deliver Return: Resource Availability Assessment & Ramp-up/Lead Time
Assuming no customer constraints, elements needed to establish delta in resources and what can
be ramped up and sustained within 30 days based on the question How much of an increase in
quantities returned from customers (expressed as a percentage) can the company sustain, given 30
days
Demand:
o Additional customer return volume to be determined given increased resouces below
Staff / Labor
o Customer Service staff / Logistics labor availability (underutilized FTEs)
o How much customer service staff/logistics labor can be recruited/hired and trained fill gap
between underutilized FTEs and FTEs needed to increase and sustain quantities returned
from customers given 30 days
Capital/Assets
! Facilities, space
! Credit line
! Cash on hand
assets needed to increase and sustain quantities returned from customers given 30 days
and assets needed to increase and sustain quantities returned from customers given 30 days
! Facilities, space
! Outside carriers
increase and sustain quantities returned from customers given 30 days
Cycle Time
o Deliver return cycle time reestablished and sustained for increased quantities returned to
o Customer return order processing cycle time (customer service and logistics)
! Transit time
2.3.37
AG.2.10
Level 1
Level 2

AG.2.10 Upside Deliver Return Adaptability
Current deliver return volume
Current customer return order cycle time
Additional deliver return volume
Customer service staff/Logistics labor availability
Level 3
Amount staff/labor recruited/hired/trained in 30 days

Amount of additional equipment obtained in 30 days
Amount of supplemental outsourced (3PL) or leased
resources or facilities obtained in 30 days
Customer return order cycle time reestablished and
sustained in 30 days
2.3.38
AG.2.11
Downside Source Adaptability
The raw material quantity reduction sustainable at 30 days prior to delivery with no
inventory or cost penalties.
Least quantity reduction sustainable when considering all components
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Source: Input
can be sustained based on the question How much of a reduction in quantities sourced (expressed
Demand
Staffing
Capital
Materials
o All else equal in make, deliver, return, current inventory on hand (raw material and
purchased finished goods), including safety stock required to sustain current order
fulfillment.
Cycle Time
2.3.39
AG.2.11
Discussion cont.
Source: Resource Availability Assessment & Ramp-down/Lead Time
Elements needed to establish delta in resources and what can be ramped down and sustained at
30 days prior to delivery based on the question How much of a decrease in quantities sourced
(expressed as a percentage) can the company sustain without inventory or cost penalties, given 30
days notice prior to delivery
Demand
o Reduced source volume to be determined given ramped down resources below
Staffing
o How much staff can be laid-off or diverted to other activities, without cost penalty, to ramp
down to decreased quantities delivered given 30 days notice
Capital
! Accounting procedures for selling/diverting/recycling assets
Materials
! Time required to ramp down supplier inventory
o How much inventory (raw material and purchased finished goods) can be returned, sold or
diverted without cost penalty to ramp down to decreased quantities delivered given 30 days
notice
Cycle Time
o Procurement order cycle time reestablished and sustained for decreased quantities sourced
given 30 days.
2.3.40
AG.2.11
Level 1
Level 2
AG.1.3 Downside Supply Adaptability

AG.2.11 Downside Source Adaptability
Current source volumes
Reduced source volumes accomplished in 30 days
Procurement staff availability
Amount of staff that can be laid-off in 30 days
Level 3
Current capital requirements (accounting policy)
Demand sourcing - supplier constraints
Amount of decrease in inventory (Raw, Purchased FG)
obtained in 30 days
30 days
2.3.41
AG.2.12
Downside Make Adaptability
The production reduction sustainable at 30 days prior to delivery with no inventory or cost
penalties.
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Make: Input
can be sustained based on the question How much of a reduction in quantities produced (expressed
Demand
Labor
Capital/Assets
! Facilities, space
Materials
Cycle Time
supplier lead time)
2.3.42
AG.2.12
Make: Resource Availability Assessment & Ramp-down/Lead Time
30 days prior to delivery based on the question How much of a decrease in quantities produced
Demand
o Reduced make volume to be determined given ramped down resources below
Labor
o How much labor can be laid-off or diverted to other activities, without cost penalty, to ramp
Capital/Assets
! Facilities, space
! Finance Procedures (outsource vs. in-source, make vs. buy, lease vs. purchase) and
their effect upon ability to terminate leases or sell capital equipment assets.
o How many capital equipment assets can be recycled, diverted or sold or subleased without
cost penalty, to ramp down to decreased quantities delivered given 30 days notice
! Facilities, space
! Lease manufacturing equipment, materials handling and packaging equipment,
etc.
! Co-packers
o How much supplemental outsourced or leased resources or facilities can be terminated to
ramp down to decreased quantities delivered given 30 days notice
Materials
o All else equal in source, deliver and return, how much manufacturing quantities (WIP and
FG inventory), including safety stock can be ramped down to decreased order fulfillment
quantities given 30 days notice.
Cycle Time
o Manufacturing cycle time reestablished and sustained for decreased quantities produced
given 30 days.
2.3.43
AG.2.12
Level 1
Level 2
AG.1.3 Downside Supply Chain Adaptability

AG.2.12 Downside Make Adaptability
Current make volumes
Internal and External facilities/, storage capacity needed for
current make volume
Current inventory on hand (WIP, FG)
Reduced make volume
Level 3

Percent of labor used in manufacturing, not used in direct
activity
Amount of labor that can be laid off in 30 days
Amount of equipment recycled, diverted or sold in 30 days
Capital Requirements (Acct./Finance Policy)
Amount of internal space subleased or sold in 30 days
Supplemental outsource/lease termination ability
Amount supplemental outsourced or leased resources or
facilities terminated in 30 days
Amount reduced in inventory made (WIP, FG) in 30 days
Manufacturing cycle time reestablished and sustained in 30
days
2.3.44
AG.2.13
Downside Deliver Adaptability
Downside Deliver Adaptability = The reduction in delivered quantities sustainable at 30 days
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
Deliver: Input Elements
Current elements needed to fully understand future requirements, to establish what can be ramped
down and sustained at 30 days prior to delivery, based on the question How much of a decrease in
quantities delivered (expressed as a percentage) can the company sustain without inventory or cost
penalties, given 30 days notice prior to delivery? These elements are mainly output metrics from
other attributes . . . responsiveness, reliability, cost, asset management.
Demand
Labor
Capital/Assets
! Facilities, space
Materials
o Assuming optimized inventory practices (no excess inventory)
2.3.45
AG.2.13
Discussion cont.
Cycle Time
! Transit time
Deliver: Availability Assessment & Ramp-down/Lead Time
30 days prior to delivery based on the question How much of a decrease in quantities delivered
Demand:
o Reduced delivery volume to be determined given ramped down resources below
Labor
o How much labor can be laid-off or diverted to other activities, without cost penalty, to ramp
Capital/Assets
o Facilities, space
! Finance Procedures (outsource vs. in-source, make vs. buy, lease vs. purchase) and
their effect upon ability to terminate leases or sell capital equipment assets.
o How many capital equipment assets can be recycled, diverted or sold without cost penalty,
to ramp down to decreased quantities delivered given 30 days notice
! Facilities, space
! Outside carriers
o How much supplemental outsourced or leased resources or facilities agreements can be
terminated to ramp down to decreased quantities delivered given 30 days notice
Materials
o All else equal in source, make, return, how much inventory can be shipped or diverted
without cost penalty to ramp down to decreased quantities delivered given 30 days notice
(all else equal in source and make, includes safety stock)
! Transit time
2.3.46
AG.2.13
Discussion cont.
Cycle Time
o Logistics cycle time reestablished and sustained for decreased quantities delivered
given 30 days (all else equal including procurement order cycle time, supplier lead time,
manufacturing cycle time, etc.)
2.3.47
AG.2.13
Level 1
Level 2
AG.1.3 Downside Supply Chain Adaptability

AG.2.13 Downside Deliver Adaptability
Current Delivery volumes
Productivity-orders shipped per FTE
Internal and External (3PL) storage capacity needed for current delivery volume
Current inventory on hand (FG)
Level 3
Amount supplemental outsourced or leased resources or

facilities terminated in 30 days
Amount decrease in inventory (FG) obtained in 30 days
Logistics order cycle time reestablished & sustained in 30
days
Supplemental outsource/lease termination ability
Amount internal space subleased or sold in 30 days
Amount of equipment recycled, diverted or sold in 30 days
30 days
Capital Requirements (Acct/Finance Policy)
Amount of labor that can be laid off in 30 days
Percent of labor used in logistics, not used in direct activiy
Direct lavor availability
Reduced delivery volume
2.3.48
AG
Level 3 Agility Metrics
Metric ID
Metric Name
Metric Definition
Process
AG.3.1
% of labor used in
logistics, not used
in direct activity
Percent of labor used in logistics, not

used in direct activity
D1: Deliver Stocked Product

D2: Deliver Make-to-Order Product
Product
AG.3.2
% of labor used
in manufacturing,
not used in direct
activity
Percent of labor used in manufacturing,

not used in direct activity
M1: Make-to-Stock
M2: Make-to-Order
AG.3.3
Additional deliver
return volume
Additional customer return volume

Product
AG.3.4
Additional
Delivery volume

Product
AG.3.5
Additional
demand
sourcing-supplier
constraints
Time required in negotiating new

source/volume contracts/terms and
time required to find/obtain additional
source

Agreements
AG.3.6
Additional make
volume
Additional make volume to be

determined given increased resources

and Facilities
AG.3.7
Additional source
return volume
Additional supplier return volume

ER.6: Manage Return
Transportation
Configuration
AG.3.8
Additional Source
Volumes
Additional source volume

ES.10: Manae Supplier Agreements
AG.3.9
Additional source
volumes obtained
in 30 days
Additional source volume to be

determined given ramped up resources
S1: Source Stocked Product

S2: Source Make-to-Order Product
S3: Source Engineer-to-Order
Product
AG.3.10
Amount
additional capital
obtained in 30
days
How much capital can be obtained to

fill gap between underutilized asset
capacity and assets needed to increase
and sustain quantities delivered given
30 days

with Financial Plan
2.3.49
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.11
Amount
additional
equipment
obtained in 30
days
How much assets/capacity can

be obtained to fill gap between
underutilized asset capacity and assets
needed to increased and sustain
quantities produced given 30 days
in equipment such as manufacturing
equipment, materials handling and
packaging equipment, etc

Chain Capital Assets,
ES.5: Manage Capital Assets,
and Facilities,
Assets
AG.3.12
Amount
additional
internal space
obtained in 30
days
How much assets/capacity can

be obtained to fill gap between
needed to increased and sustain
quantities produced given 30 days in
internal space

Chain Capital Assets, ES.5: Manage
Capital Assets,
and Facilities,
Assets
AG.3.13
Amount
additional
inventory (raw)
received and
made (WIP, FG) in
30 days
How much raw material inventory

can be received and phased into
manufacturing and produced into WIP
and FG inventory, and sustained for
order fulfillment, including safety stock
given 30 days
ES.4: Manage Product Inventory,

EM.4: Manage In-Process Products,
Inventories
AG.3.14
Amount
additional labor
recruited/hired/
trained in 30 days
How much labor can be recruited/

hired and trained to fill gap between
underutilized FTEs and FTEs needed
to increase and sustain quantities
produced given 30 days
AG.3.15
Amount
additional staff
recruited/hired/
trained in 30 days

AG.3.16
Amount
additional staff/
labor recruited/
hired/trained in
30 days
How much staff/labor can be recruited/

hired and trained fill gap between
underutilized FTEs and FTEs needed to
increase and sustain quantities sourced
given 30 days
AG.3.17
Amount decrease
in inventory (FG)
obtained in 30
days
How much inventory can be shipped or

diverted without cost penalty to ramp
down to decreased quantities delivered
given 30 days notice (all else equal in
source and make, includes safety stock)

Inventories
AG.3.18
Amount decrease
in inventory (Raw,
Purchased FG)
obtained in 30
days
How much inventory (raw material

and purchased finished goods) can be
returned, sold or diverted without cost
penalty to ramp down to decreased
quantities delivered given 30 days
notice

Inventories
2.3.50
AG
Metric ID
Metric Name
Metric Definition
AG.3.19
Amount labor
recruited/hired/
trained in 30 days

delivered given 30 days
AG.3.20
Amount labor
that can be laid
off in 30 days
How much labor can be laid-off or

diverted to other activities, without cost
penalty, to ramp down to decreased
notice

Environment
AG.3.21
Amount of
Equipment
recycled,
diverted, or sold
in 30 days
How many capital equipment assets

can be recycled, diverted or sold or
subleased without cost penalty, to
ramp down to decreased quantities
delivered given 30 days notice

and Facilities,
Assets
AG.3.22
Amount of
inventory (Raw,
Purchased FG)
obtained in 30
days
How much inventory (raw material

and purchased finished goods) can
be obtained, delivered and phased
in and sustained for order fulfillment,
including safety stock given 30 days

Inventories
AG.3.23
Amount of staff
that can be laidoff in 30 days
How much staff can be laid-off or

diverted to other activities, without cost
penalty, to ramp down to decreased
notice
AG.3.24
Amount reduced
inventory made
(WIP, FG) in 30
days
How much manufacturing quantities

(WIP and FG inventory), including
safety stock can be ramped down to
decreased order fulfillment quantities
given 30 days notice

Inventories
AG.3.25
Amount
supplemental
outsourced or
leased resources
or facilities
terminated in 30
How much supplemental outsourced

or leased resources or facilities can be
terminated to ramp down to decreased
notice

and Facilities,
Assets
Process
2.3.51
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.26
Amount
supplemental
outsourced or
leased resources
or faciltiies
obtained in 30
days
How much supplemental outsourced

or leased resources or facilities can
be obtained to increased and sustain
quantities returned to suppliers given
30 day.

and Facilities,
Assets
AG.3.27
Capital
Availability
The percentage of orders that are

fulfilled on the customers original
commit date

with Financial Plan
AG.3.28
Capital
Requirements
(Acct/Finance
Policy)

Deliver Retail Processes

with Financial Plan
AG.3.29
Current Capital
Requirements
Requirements on credit line, cash on

hand and accounting procedures based
on current sourcing situation

with Financial Plan
AG.3.30
Current capital
requirements
(accounting
policy)
Accounting procedures for selling/

diverting/recycling assets

with Financial Plan
AG.3.31
Current Deliver
Return Volume
current return volume, number of

orders returned

Product
AG.3.32
Current Delivery
Volume
Number of orders shipped

Product
D4: Deliver Retail Product
AG.3.33
Current internal
equipment
capacity
utilization
Current utilization of internal

equipment capacity, including
manufacturing equipment, materials
handling and packaging equipment,
etc.

and Facilities,
Assets
AG.3.34
Current Internal
facility/storage
capacity
utilization
Current utilization of internal facility/

storage capacity, including facilities,
space.

and Facilities,
Assets
2.3.52
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.35
Current Internal
Storage capacity
utilization
Current utilization of internal facility/

storage capacity, including facilities,
space.

and Facilities,
Assets
AG.3.36
Current Inventory
on hand (FG)
Current on hand inventories (finished

goods), including safety stock required
to sustain current order fulfillment,
assuming optimized inventory practices

Inventories
AG.3.37
Current Inventory
on Hand (WIP, FG)
Current on hand inventories (work

in process and purchased finished

Inventories
AG.3.38
Current Make
Volume
Amount of each item which are

manufactured
M1: Make-to-Stock
M2: Make-to-Order
AG.3.39
Current On-hand
inventories (Raw,
Purchased, FG)
Current on hand inventories (raw

material and purchased finished

Inventories
AG.3.40
Current Purchase
Order Cycle Times
Sum of time to place a purchase order

and supplier lead time

Product
AG.3.41
Current source
return volume
current return volume, number of

orders returned

Product
AG.3.42
Current Source
Volume
Amount of each item which are

purchased

Product
AG.3.43
Current Sourcing/
Supplier
Constraints
Current contract terms and nature of

items (commodity/sole source)

Agreements
AG.3.44
Customer return
order cycle time
reestablished and
sustained in 30
days
Customer return order cycle time

reestablished and sustained for
increased quantities returned from
customer given 30 days, including
customer return order processing cycle
time, transit time, return processing and
disposition cycle time, etc.

Product
2.3.53
AG
Metric ID
Metric Name
Metric Definition
AG.3.45
Customer Service
staff/Logistics
labor availability
Customer service staff / Logistics labor

availability
AG.3.46
Demand
sourcing-supplier
constraints
Percentage of orders with on time and

accurate documentation supporting
the order, including packing slips, bills
of lading, invoices, etc. [Total number
of orders delivered with correct and
timely documentation] / [Total number
of orders delivered] x 100%

Product
AG.3.47
Direct Labor
Availability
Labor needed to meet current demand,

productivity-units/orders per FTE

Performance
AG.3.48
Internal and
External (3PL)
equipment
capacity needed
for current
delivery volume
Internal and external (3PL) capacity

needed for current demand throughput
in fleet equipment, outside carrier
loads, materials handling equipment,
etc.
ED.5: Manage Deliver

Capital Assets, ED.6: Manage
Transportation
AG.3.49
Internal and
External (3PL)
Equipment
capacity needed
for current return
volume

needed for current return throughput
in fleet equipment, outside carrier
loads, materials handling equipment,
etc.

ER.6: Manage Return
Transportation
Configuration
AG.3.50
Internal and
External (3PL)
Equipment
needed for
current return
volume
Internal and External (3PL) Equipment

needed for current return volume

ER.6: Manage Return
Transportation
Configuration
AG.3.51
Internal and
External (3PL)
storage capacity
needed for
current delivery
volume

needed for current demand throughput
in facilities and space.
ED.5: Manage Deliver

Capital Assets, ED.6: Manage
Transportation
AG.3.52
Internal and
External (3PL)
storage capacity
needed for
current return
volume

needed for current return throughput
in facilities and space.

ER.6: Manage Return
Transportation
Configuration
2.3.54
Process
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.53
Internal and
External facilities/
storage capacity
needed for
current make
volume
Internal and external (outsourced)

capacity needed for current demand
throughput in facilities and space

and Facilities
AG.3.54
Internal and
External
manufacturing
equipment
capacity needed
for current make
volume
Internal and external (outsourced)

capacity needed for current demand
throughput in manufacturing
equipment

and Facilities
AG.3.55
Internal Event
Response
(average days)
The average response time (in days) to

an internal risk event from the time of
the event (included detection lags)

Risk
Risk
Risk
Risk
AG.3.56
Logistics order
cycle time
reestablished and
sustained in 30
days
Logistics order cycle time reestablished

and sustained for increased quantities
produced given 30 days, including
customer order processing cycle time,
dock-to-stock cycle time, pick-to-ship
cycle, transit time, etc

Assets,
AG.3.57
Manufacturing
cycle time
reestablished and
sustained in 30
days
Manufacturing cycle time reestablished

and sustained for increased quantities

and Facilities
AG.3.58
Options Rating
(0-100%)
Options Rating (0-100%)

Risk
Risk
Risk
Risk
AG.3.59
Procurement Staff
Availability
Staff availability in procurement
AG.3.60
Procurement
staff/Logistics
labor availability
Procurement staff / Logistics labor

availability
2.3.55
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.61
Productivity
orders shipped
per FTE
Productivity-order shipped per FTE to

meet current requirements
AG.3.62
Productivityorders returned
per FTE
Productivity orders returned per FTE

Return Processes
AG.3.63
ProductivityPurchase orders
per FTE
Productivity-purchase order per FTE to

AG.3.64
Productivityunits/orders
produced per FTE
Productivity-purchase order per FTE to


Performance
AG.3.65
Purchase order
cycle time
reestablished and
sustained in 30
days
Procurement order cycle time

reestablishment and sustained for
increased quantities sourced given 30
days, including time to place a purchase
order and supplier lead time

Agreements
AG.3.66
Reduced delivery
volume
Reduced delivery volume to be

determined given ramped down
resources

Assets
AG.3.67
Reduced Make
volume
Reduced make volume to be

resources

and Facilities
AG.3.68
Reduced
source volumes
accomplished in
30 days
Reduced source volume to be

resources

Agreements
AG.3.69
Supplemental
outsource/lease
availability
Including facilities, leasing building,

leasing manufacturing equipment,
materials handling and packaging
equipment, co packers, etc.
AG.3.70
Supplemental
outsource/lease
termination
ability
Including facilities, leasing building,

leasing manufacturing equipment,
materials handling and packaging
equipment, co packers, etc.
AG.3.71
Time needed
to increase
inventory (FG) for
additional order
fulfillment
Amount of time needed to increase

finished inventory for order fulfillment
(time to receive/stock inventory)
including safety stock to sustain 20%
increase in quantities sourced

Chain Inventory
2.3.56
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.72
Time needed
to increase
inventory (WIP,
FG) for additional
order fulfillment
Amount of time needed to receive

and phase in raw material inventory
for manufacturing and make WIP and
FG (work in process and purchased
finished goods) inventory, including
safety stock to sustain 20% increase in
quantities sourced

Chain Inventory
AG.3.73
Time needed
to increase
inventory for
additional order
fulfillment (Raw,
Purchase
Amount of time needed to obtain,

deliver and phase in inventory (raw
material and purchased finished
goods) for order fulfillment, including
safety stock to sustain 20% increase in
quantities sourced

Chain Inventory
AG.3.74
Time needed to
obtain additional
capital
Amount of time needed to obtain

capital to fill gap between current
capital availability and capital needed
to sustain 20% increase in quantities
ordered

with Financial Plan
AG.3.75
Time needed to
obtain additional
equipment

assets/capacity to fill gap between
needed to sustain 20% increase in
quantities delivered in equipments

and Facilities
Assets
AG.3.76
Time needed to
obtain additional
internal space

assets/capacity to fill gap between
quantities delivered in internal space

and Facilities
Assets
AG.3.77
Time needed
to obtain
supplemental
outsourced
(3PL) or leased
resources or
facilities

supplemental outsourced or leased
resources or facilities to sustain 20%
increase in quantities delivered

ES.7: Manage Supplier Network,
and Facilities
Assets
ER.6: Manage Return
Transportation
Configuration
2.3.57
AG
Metric ID
Metric Name
Metric Definition
Process
AG.3.78
Time needed
to obtain
supplemental
outsourced or
leased resources
or facilities

supplemental outsourced or leased
resources or facilities to sustain 20%
increase in quantities made

ES.7: Manage Supplier Network,
and Facilities
Assets
ER.6: Manage Return
Transportation
Configuration
AG.3.79
Time needed to
recruit/hire/train
additional labor
Amount of time needed to recruit/

hire/train additional labor to fill gap
between underutilized FTEs and labor
quantities manufactured
AG.3.80
Time needed to
recruit/hire/train
additional staff
Amount of time needed to recruit/hire/

train additional staff to fill gap between
underutilized FTEs and staff needed
to sustain 20% increase in quantities
delivered
AG.3.81
Time needed to
recruit/hire/train
additional staff/
labor
Amount of time needed to recruit/

hire/train additional labor to fill gap
between underutilized FTEs and labor
quantities returned to suppliers
2.3.58
CO.1.1
Total Supply Chain Management Cost
The sum of the costs associated with the SCOR Level 2 processes to Plan, Source, Deliver, and
Return.
Note - Cost of Raw Material and Make Costs are generally accounted for in COGS. It is
recognized that there is likely to be overlap/ redundancy between supply chain management
costs and COGS.
None Identified
TSCMC = Cost to Plan + Source + Make + Deliver + Return + Mitigate Supply Chain Risk
Calculation
TSCMC = Sales Profits Cost to Serve (e.g., marketing, selling, administrative)
Data Collection
Resource expenses (e.g., salaries, supplies, etc.) are initially captured in the organizations general
ledger accounting system. Then these expenses are traced and assigned (i.e., distributed) to the
organizations horizontal core processes based employee time and non wage-related factors (drivers;
e.g., # of units consumed). Data for these expense distribution assignments are collected from (1)
employee time collection systems (or % split estimates), and (2) operational systems (e.g., enterprise
resource planning [ERP] systems).
Discussion
Collecting transactional information, primarily resource expenses and operational drivers, is now
commonplace. The challenging task is to logically transform these expenses into calculated costs of
the horizontal processes based on cause-and-effect relationships without the temptation of using
broad averages or arbitrary factors.
Level 1
CO.1.1 Total Supply Chain Management Cost

CO.2.1 Cost to Plan
CO.2.2 Cost to Source
Level 2
CO.2.3 Cost to Make

CO.2.4 Cost to Deliver
CO.2.5 Cost to Return
CO.2.7 Mitigation Cost (Cost To Mitigate Supply Chain)
2.4.1
CO.1.2
Cost of Goods Sold
The cost associated with buying raw materials and producing finished goods. This cost
includes direct costs (labor, materials) and indirect costs (overhead).
Note - Cost of Raw Material and Make Costs are generally accounted for in COGS. It
is recognized that there is likely to be overlap/ redundancy between supply chain
management costs and COGS.
None Identified
Cost of Goods Sold (COGS) = Cost to Make
Calculation
COGS = direct material costs + direct labor costs + indirect costs related to making product
Data Collection
organizations horizontal core processes based employee time and non wage-related factors
(drivers; e.g., # of units consumed). Data for these expense distribution assignments are collected
from (1) employee time collection systems (or % split estimates), and (2) operational systems (e.g.,
enterprise resource planning [ERP] systems).
Discussion
Level 1
Level 2
2.4.2
CO.1.2 Cost of Goods Sold (COGS)

CO.2.3 Cost to Make
CO.2.1
Cost to Plan
The sum of the costs associated with Plan. (Processes: P1, P2, P3, P4, P5)
None Identified
Cost to Plan = Sum of Cost to Plan (Plan + Source + Make + Deliver + Return)
Calculation
None Identified
Data Collection
Discussion
Level 1
Level 2
CO.1.1 Total Supply Chain Management Cost (TSCMC)

CO.2.1 Cost to Plan
Cost to Plan Source
Cost to Plan Deliver
Level 3
Cost to Plan Supply Chain

Cost to Plan Return
Cost to Plan Make
2.4.3
CO.2.2
Cost to Source
The sum of the costs associated with Source. (Processes: S1, S2, S3)
None Identified
Cost to Source = Sum of Cost for (Supplier Management + Material Acquisition Management)
Calculation
t
t
Supplier Management = material planning + planning procurement staff + supplier negotiation

and qualification + etc.
Material Acquisition Management = bidding and quotations + ordering + receiving + incoming
material inspection + material storage + payment authorization + sourcing business rules and
rqmts. + inbound freight and duties + etc.
Data Collection
Discussion
Level 1
Level 2

CO.2.2 Cost to Source
Supplier Management (see processes under Source)
Level 3
2.4.4
Material Acquisition Management

(see Processes under Source)
CO.2.3
Cost to Make
The sum of the costs associated with Make.
Note - Cost of Raw Material and Make Costs are generally accounted for in COGS. It is
recognized that there is likely to be overlap/ redundancy between supply chain management
costs and COGS. (Processes: M1, M2, M3)
None Identified
None Identified
Calculation
None Identified
Data Collection
None Identified
Discussion
None Identified
Level 1
Level 2
Level 3

CO.2.3 Cost to Make
See Cost of Goods Sold
2.4.5
CO.2.3
Cost to Make
The sum of the costs associated with Make. (Processes: M1, M2, M3)
None Identified
Cost to Make = Sum of Direct Material, Direct Labor, and Direct non-Material Product-related Cost
(equipment) and of Indirect Product-related Cost
Calculation
None Identified
Data Collection
resource planning [ERP] systems). In some cases, (1) direct material data is maintained at the unit
level in bills of material (BOMs) or recipe formulas; and (2) direct labor and direct non-material
product (equipment) data is maintained at the unit level in labor/machine routings or process
sheets.
Discussion
commonplace. The challenging task is to logically transform these expenses into calculated costs
of (1) the horizontal processes (referenced in Lean environments as value-stream mapping), and
(2) products (or intermediate outputs) with both types of calculations based on cause-and-effect
relationships without the temptation of using broad averages or arbitrary factors.
Level 1
Level 2
CO.1.2 Cost of Goods Sold (COGS)

CO.2.3 Cost to Make
Direct Material Cost
Level 3
Indirect Cost Related to Production

Direct Labor Cost
2.4.6
CO.2.4
Cost to Deliver and/or Install
The sum of the costs associated with Deliver and/or Install. (Processes: D1, D2, D3)
None Identified
Cost to Deliver = Sum of Cost of ( Sales order management + Customer Management )
Calculation
t
t
Sales order management = inquiry & quotations + order entry & maintenance + channel
management + order fulfillment + distribution + transportation + outbound freight and duties +
installation + customer invoicing / accounting + new product release / phase-in + etc.
Customer Management = financing + post-sales customer service + handling disputes + field
repairs + enabling technologies + etc.
Data Collection
Discussion
Level 1
Level 2

CO.2.4 Cost to Deliver
Sales (order) Management
(See processes under Deliver)
Level 3
Customer Management
2.4.7
CO.2.5
Cost to Return
Cost to Return Defective Product - The sum of the costs associated with returning a defective
product to the supplier. (Processes: SR1, DR1) Cost to Return Excess Product - The sum of the
costs associated with returning excess product to the supplier. (Processes: SR3, DR3) Cost to
Return MRO Product - The sum of the costs associated with returning MRO product to the
supplier. (Processes: SR2, DR2)
None Identified
Cost to Return = Sum of Cost to Return ( to Sources + from Customers )
Calculation
t
t
Cost to Return to Source (SRx) = Verify Defective Product Costs + Disposition of Defective Product
Costs + Identify MRO Condition Costs + Request MRO Return Authorization Costs + Schedule
MRO Shipment Costs + Return MRO Product Costs + etc.
Cost to Return From Customer (DRx) = Authorization Costs + Schedule Return Costs + Receive
Costs + Authorize MRO Return Costs + Schedule MRO Return Costs + Receive MRO Return Costs
+ Transfer MRO Product Costs + etc.
Data Collection
Discussion
2.4.8
CO.2.5
Level 1
Level 2
Level 3

CO.2.5 Cost to Return
Cost to Source Return
Cost to Deliver Return
2.4.9
CO.2.6
Supply Chain Value at Risk (VAR)
Value at Risk the sum of the probability of risk events times the monetary impact of
the events for all the supply chain functions (e.g. Plan, Source, Make, Deliver and Return).
(Processes: EP.9, ES.9, EM.9, ED.9, ER.9).
Value at Risk the sum of the probability of risk events times the monetary impact of the events for
all the supply chain functions (e.g. Plan, Source, Make, Deliver and Return).
Supply Chain Risk VAR ($) = Sum of Supply Chain VAR $ (Plan + Source + Make + Deliver + Return)
Calculation
Supply Chain Risk VAR ($) = VAR $ (Plan) + VAR $ (Source) + VAR $ (Make) + VAR $ (Deliver) + VAR $
(Return)
Data Collection
The VaR calculation uses historical data on the specific event (on time delivery, quality, disruptions,
failures, etc) to calculate the number of times the event performed below the target (probability)
times the amount below the target. For disruptions, VaR would use estimated frequency based upon
expert resources times the impact of the event.
Discussion
VaR can be used in the supply chain to evaluate the different aspects of risk. Suppliers can be
evaluated base upon the VaR of performance measures. Customers can also be measured based
upon performance measures (profitability, volume growth, returns, and complaints) as well as
products (warranty claims, etc.). VaR can also be applied to internal supply chain entities such as
manufacturing, distribution or sales locations.
Since VaR can be monitarized by accessing the cost of performance below target, VaR can be
rolled up and examined by any demographic or data cut (by region, by customer, by supplier, etc.).
Suppliers can be evaluated based upon VaR and ranked according to the risk of poor performance.
Caveats in using VaR :
VaR calculates the probability of non-adherence to metrics value (expected value) based on historical
data. Hence, it is a retrospective view of the event risk. The same may or may not be applicable in the
future.
VaR is a downside Risk Metrics. It calculates maximum loss for each level of confidence (probability).
In a real life scenario, it is likely that the losses would be less than calculated using VaR.
Calculating VaR from historical data requires a large database of events and metrics, and it could be
computationally intensive.
2.4.10
CO.2.6
Level 1
Level 2
CO.2.6 Value At Risk (VAR $, % of Sales)

Value at Risk (VAR $) (Plan)
Value at Risk (VAR $) (Make)
Level 3
Value at Risk (VAR $) (Return)

Value at Risk (VAR $) (Deliver)
Value at Risk (VAR $) (Source)
2.4.11
CO.2.7
Supply Chain Risk Mitigation Cost
The sum of the costs associated with Supply Chain Risk Mitigation Costs. (Processes: EP.9,
ES.9, EM.9, ED.9, ER.9)
None Identified
Mitigation Costs (Cost to Mitigate Supply Chain Risk) = Sum of Supply Chain Risk Mitigation Costs
(Plan + Source + Make + Deliver + Return)
Calculation
None Identified
Data Collection
Mitigation Cost - The total supply chain risk mitigation cost of all mitigation actions for a specific area,
supplier, product, etc. ($)
Discussion
None Identified
Level 1
Level 2

CO.2.7 Mitigation Cost (Cost to Mitigate Supply Chain Risk)
Risk Mitigation Costs (Plan)
Risk Mitigation Costs (Make)
Level 3
Risk Mitigation Costs (Return)

Risk Mitigation Costs (Deliver)
Risk Mitigation Costs (Source)
2.4.12
CO
Level 3 Cost Metrics
Metric ID
Metric Name
Metric Definition
Process
CO.3.1
% Defective
Product
Scheduling Cost
to Total Source
Return Cost
% Defective Product Scheduling Cost to

Total Source Return Cost

Shipment
CO.3.2
% Excess Product
Scheduling Cost
to Total Source
Return Cost
% Excess Product Scheduling Cost to

Total Source Return Cost

Shipment
CO.3.3
% MRO
Scheduling Cost
to Total Source
Return Cost
% MRO Scheduling Cost to Total Source

Return Cost
CO.3.4
% of
authorization
request
transmitted
error-free/total
authorization
requests
% of authorization request transmitted

error-free/total authorization requests
SR3.3: Request Excess Product

Return Authorization
SR2.3: Request MRO Return
Authorization
CO.3.5
% of excess
packaging per
unit
Weight of packaging material that is

not needed to protect the product
during shipping as a per cent of total
packaging material used
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.6
% of paints used
that are non-toxic
The volume of paint that does not

include toxic ingredients as a percent of
total paint volume used
CO.3.7
% of pallets that
are reusable
Number of reusable pallets used as a

percent of total pallets used
CO.3.8
% of solid waste
consisting of
packaging
material
The weight of packaging material

waste as a percent of total solid waste
generated.

CO.3.9
% of trucks using
retread tires
Number of trucks using retreaded tires

as a percent of trucks in the carrier fleet
2.4.13
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.10
% of vehicle fuel
derived from
alternative fuels
The portion of transfer vehicle fuels that

are non-petroleum based

Product
Product
CO.3.11
% of warehouse
loading
machinery using
MFBs
The percent of warehouse machines

using maintenance free batteries
CO.3.12
% packaging
material
consisting of
post-consumer
recycled content
Weight of recycled packaging material

as a per cent of total packaging material
used
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.13
% packaging
material that is
biodegradable
Weight of biodegradable packaging

material as a per cent of total packaging
material used
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.14
% packaging
material that
is recyclable/
reusable
Weight of packaging material that can

be effectively recycled as a per cent of
total packaging material used
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.15
Air emissions
The weight of air pollutant emitted per

weight of finished good produced

CO.3.16
Assessment / Risk
Management
Costs ($)
The cost of risk assessment and

management activities for a specific
area, supplier, product, etc.($)

Risk
Risk
Risk
Risk
Risk
CO.3.17
Cost of
identifying
the defective
condition
as a % of total
Source cost
Cost of identifying the defective

condition as a % of total Source cost
SR1.1: Identify Defective Product

Condition
2.4.14
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.18
Cost of
Identifying
the MRO
Condition
as a % of Total
Source
Return Cost
Cost of Identifying the MRO Condition

as a % of Total Source Return Cost
SR2.1: Identify MRO Product

Condition
CO.3.19
Cost of
identifying the
excess condition
as a % of total
Source cost
Cost of identifying the excess condition

as a % of total Source cost

Condition
CO.3.20
Cost per
request
authorization
Cost per request authorization

SR1.3: Request Defective Product
Authorization
CO.3.21
Cost to Align
Supply Chain
Unit Plan with
Financial Plan
The sum of the costs associated with

aligning supply chain performance
plans with financial plans.

with Financial Plan
CO.3.22
Cost to Assess
Delivery
Performance

assessing delivery performance.
CO.3.23
Cost to Assess
Supplier
Performance

assessing supplier performance.
CO.3.24
Cost to Authorize
Defective Product
Return

authorizing the return of defective
product.

Return
CO.3.25
Cost to Authorize
Excess Product
Return

authorizing the return of excess
product.

Return
CO.3.26
Cost to Authorize
MRO Product
Return

authorizing the return of product to be
maintained, repaired, or overhauled.
DR2.1: Authorize MRO Product

Return
CO.3.27
Cost to Authorize
Supplier Payment

authorizing supplier payment.

2.4.15
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.28
Cost to Balance
Production
Resources with
Production
Requirements

identifying, assessing and aggregating
production resources.

CO.3.29
Cost to Balance
Product
Resources
with Product
Requirements

balance of product resources with
product requirements.
P2.3: Balance Product Resources

with Product Requirements
CO.3.30
Cost to Balance
Supply Chain
Resources with
Supply Chain
Requirements

balance of supply chain resources with

CO.3.31
Cost to Build
Loads

building transportation loads.
D1.5: Build Loads

D2.5: Build Loads
D3.5: Build Loads
CO.3.32
Cost to Checkout

product checkout.
D4.6: Checkout
CO.3.33
Cost to
Consolidate
Orders

consolidating customer orders.

CO.3.34
Cost to Deliver
and/or Install

deliver and/or install
CO.3.35
Cost to Deliver
Return
Cost to Return From Customer (DRx) =

Authorization Costs + Schedule Return
Costs + Receive Costs + Authorize MRO
Return Costs + Schedule MRO Return
Costs + Receive MRO Return Costs +
Transfer MRO Product Costs + etc.

Product
CO.3.36
Cost to Enter
Order, Commit
Resources &
Launch Program
The sum of the costs associated

with entering the order, committing
resources & launching a program.

CO.3.37
Cost to
Establish and
Communicate
Return Plans

establishing and communicating return
plans.

Return Plans
CO.3.38
Cost to
Establish and
Communicate
Supply Chain
Plans

supply chain plans.

Supply-Chain Plans
2.4.16
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.39
Cost to Establish
Delivery Plans

deliver plans.
CO.3.40
Cost to Establish
Production Plans

production plans.
CO.3.41
Cost to Establish
Sourcing Plans

source plans.
CO.3.42
Cost to Fill
Shopping Cart

filling a shopping cart.
CO.3.43
Cost to Finalize
Production
Engineering

finalizing production engineering.
M3.1: Finalize Production

Engineering
CO.3.44
Cost to Generate
Stocking
Schedule

generating a stocking schedule.
CO.3.45
Cost to Identify
Sources of Supply

identifying sources of supply.
CO.3.46
Cost to Identify,
Assess, and
Aggregate
Delivery
Resources

delivery resources.

Aggregate Delivery Resources
Requirements
CO.3.47
Cost to Identify,
Assess, and
Aggregate
Product
Resources

product resources.

Aggregate Product Resources
CO.3.48
Cost to Identify,
Assess, and
Aggregate
Production
Resources

production resources.

CO.3.49
Cost to Identify,
Assess, and
Aggregate Return
Resources

return resources.
P5.2: Identify, Assess, and

Aggregate Return Resources
P5.3: Balance Return Resources
with Return Requirements
CO.3.50
Cost to Identify,
Assess, and
Aggregate Supply
Chain Resources

supply chain resources.

2.4.17
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.51
Cost to Identify,
Prioritize, and
Aggregate
Delivery
Requirements

deliver requirements

CO.3.52
Cost to Identify,
Prioritize, and
Aggregate
Product
Requirements

deliver requirements.

CO.3.53
Cost to Identify,
Prioritize, and
Aggregate
Production
Requirements

production requirements

Requirements
CO.3.54
Cost to Identify,
Prioritize, and
Aggregate Return
Requirements

return requirements.

Requirements
CO.3.55
Cost to Identify,
Prioritize, and
Aggregate
Supply Chain
Requirements


CO.3.56
Cost to Install
Product

product installation.

CO.3.57
Cost to Invoice

invoicing.
D1.15: Invoice
CO.3.58
Cost to Issue
Material

issuing material.
CO.3.59
Cost to Issue
Sourced/InProcess Product

issuing sourced or in-process material.

Product
Product
CO.3.60
Cost to Load
Product &
Generate
Shipping
Documentation

loading product & generating shipping
documentation.

Shipping Documents
CO.3.61
Cost to Maintain
Source Data

maintaining supplier data.
2.4.18
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.62
Cost to Manage
Business Rules for
PLAN Processes
The sum of the .Costs to Manage

Business Rules for PLAN Processes

Plan Processes
CO.3.63
Cost to Manage
Business Rules for
Return Processes
The sum of the Cost to Manage

Business Rules for Return Processes

Return Processes
CO.3.64
Cost to Manage
Deliver Business
Rules
The sum of the Costs to Manage Deliver

Business Rules
ED.1: Manage Deliver Business

Rules
CO.3.65
Cost to Manage
Deliver Capital
Assets
The sum of the Costs to Manage Deliver

Capital Assets

Assets
CO.3.66
Cost to Manage
Deliver
Information
The sum of the Cost to Manage Deliver

Information
CO.3.67
Cost to Manage
Finished Goods
Inventories
The sum of the Costs to Manage

Finished Good Inventory

Inventories
CO.3.68
Cost to Manage
Import/Export
Requirements

the management of import/export
requirements

Requirements
Requirements
CO.3.69
Cost to Manage
In-Process
Products (WIP)

managing in-process products (WIP).

(WIP)
CO.3.70
Cost to Manage
Incoming Product

managing incoming product.
CO.3.71
Cost to Manage
Integrated Supply
Chain Capital
Assets

assets.

CO.3.72
Cost to Manage
Integrated Supply
Chain Inventory

managing the integrated supply chain
inventory.

Chain Inventory
CO.3.73
Cost to Manage
Integrated
Supply Chain
Transportation

transportation.

CO.3.74
Cost to Manage
MAKE Equipment
and Facilities

managing Make equipment and
facilities.

and Facilities
2.4.19
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.75
Cost to Manage
MAKE Information
The sum of the Cost to Manage MAKE

Information
CO.3.76
Cost to Manage
MAKE Regulatory
Compliance
The sum of the Cost to Manage MAKE

Regulatory Compliance

Environment
CO.3.77
Cost to Manage
Performance of
Return Processes
The sum of the costs to Manage

Performance of Return Processes.

Return Processes
CO.3.78
Cost to Manage
Performance of
Supply Chain

assessing supplier performance.

Supply Chain
CO.3.79
Cost to Manage
PLAN Data
Collection
The sum of the costs to Manage PLAN

Data Collection.
CO.3.80
Cost to Manage
Plan Regulatory
Requirements
and Compliance
The sum of the costs to Manage

Plan Regulatory Requirements and
Compliance.

CO.3.81
Cost to Manage
Planning
Configuration
The sum of the Cost to Manage

Planning Configuration

Configuration
CO.3.82
Cost to Manage
Product Inventory
The sum of the Cost to Manage Product

Inventory
CO.3.83
Cost to Manage
Product Life Cycle
The sum of the Cost to Manage Product

Life Cycle
CO.3.84
Cost to Manage
Production
Network
The sum of the costs to manage the

production network
CO.3.85
Cost to Manage
Production
Performance
The sum of the costs to manage

production performance.

Performance
CO.3.86
Cost to Manage
Production Rules

production rules.
CO.3.87
Cost to Manage
Return Capital
Assets

capital assets associated with returns.
CO.3.88
Cost to Manage
Return Data
Collection

capital assets associated with returns
data collection.
CO.3.89
Cost to Manage
Return Inventory

capital assets associated with return
inventory.
2.4.20
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.90
Cost to Manage
Return Network
Configuration

the capital assets associated with
configuring the return network.

Configuration
CO.3.91
Cost to Manage
Return Regulatory
Requirements
and Compliance

managing compliance to return
regulatory requirements.

CO.3.92
Cost to
Manage Return
Transportation

managing return transportation.
ER.6: Manage Return

Transportation
CO.3.93
Cost to Manage
Source Capital
Assets
The sum of the Costs to Manage Source

Capital Assets
CO.3.94
Cost to Manage
Sourcing Business
Rules

Source business rules.

Rules
CO.3.95
Cost to Manage
Supplier
Agreements

managing supplier agreements.

Agreements
CO.3.96
Cost to Manage
Supplier Network

managing the supplier network.
CO.3.97
Cost to Manage
Transportation

with managing Finished Good
Transportation

CO.3.98
Cost to Negotiate
& Receive
Contract

negotiating and receiving contracts
D3.2: Negotiate and Receive

Contract
CO.3.99
Cost to Obtain
& Respond to
Request for Quote
(RFQ) / Request
for Proposal (RFP)

obtaining and responding to Request
for Quote (RFQ) / Request for Proposal
(RFP).
D3.1: Obtain and Respond to RFP/

RFQ
CO.3.100
Cost to Pack
Product

product packaging.
D1.10: Pack Product

D2.10: Pack Product
D3.10: Pack Product
CO.3.101
Cost to Package

product packaging.
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.102
Cost to Pick
Product

picking product.
D1.9: Pick Product

D2.9: Pick Product
D3.9: Pick Product
CO.3.103
Cost to Pick
Product from
Backroom

picking product from backroom.
2.4.21
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.104
Cost to Plan
Deliver

planning the delivery of product.
P4: Plan Deliver
CO.3.105
Cost to Plan Make

planning the making of product.
P3: Pan Make
CO.3.106
Cost to Plan
Return

planning the returning of product.
P5: Plan Return
CO.3.107
Cost to Plan
Source

planning source activities.
P2: Plan Source
CO.3.108
Cost to Plan
Supply Chain

planning supply chain activities.
CO.3.109
Cost to Process
Inquiry & Quote

processing inquiry and quotes.

CO.3.110
Cost to Produce
and Test

production and test.

CO.3.111
Cost to Receive &

Verify Product by
Customer

receipt and verification at customer site.

by Customer
by Customer
by Customer
CO.3.112
Cost to Receive
Defective Product

receiving defective product returns.
CO.3.113
Cost to Receive
Excess Product

receiving excess returns.
CO.3.114
Cost to Receive
MRO Product

receiving MRO product returns.
CO.3.115
Cost to Receive
Product

receiving product.

CO.3.116
Cost to Receive
Product at Store

receiving product at the store.
CO.3.117
Cost to Receive
Product from
Source or Make

transferring product from source or
make activities.

or Make
or Make
or Make
CO.3.118
Cost to Receive,
Enter & Validate
Order

receiving, entering and validating a
customer order.

Order
Validate Order
2.4.22
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.119
Cost to Release
Finished Product
to Deliver

releasing finished goods to deliver
processes.

Deliver
CO.3.120
Cost to Reserve
Resources &
Determine
Delivery Date

reserving resources and determining a
delivery date.

CO.3.121
Cost to Route
Shipments

routing shipments.

CO.3.122
Cost to Schedule
Defective Product
Receipt

scheduling defective product receipt.

Receipt
CO.3.123
Cost to Schedule
Excess Product
Receipt

scheduling excess product receipt.

Receipt
CO.3.124
Cost to Schedule
Installation

scheduling product installation.
CO.3.125
Cost to Schedule
MRO Product
Receipt

scheduling MRO product receipt.
DR2.2: Schedule MRO Return

Receipt
CO.3.126
Cost to Schedule
Product Deliveries

scheduling product deliveries.

CO.3.127
Cost to Schedule
Production
Activities

scheduling production activities.

Activities
Activities
Activities
CO.3.128
Cost to Select
Carriers & Rate
Shipments

selecting carriers and rating shipments.

Shipments
Shipments
D3.7: Select Carriers & Rate
Shipments
CO.3.129
Cost to Select
Final Supplier(s)
and Negotiate

with selecting final suppliers and
negotiating supplier agreements.

Negotiate
CO.3.130
Cost to Ship
Product

shipping products.
D1.12: Ship Product

D2.12: Ship Product
D3.12: Ship Product
2.4.23
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.131
Cost to Source
Return

SourceReturn

Product
CO.3.132
Cost to Stage
Finished Product

staging finished goods.
M1.5: Stage Product

CO.3.133
Cost to Stock
Shelf

stocking shelves.
D4.4: Stock Shelf
CO.3.134
Cost to Transfer
Defective Product

transferring defective product for
disposition
CO.3.135
Cost to Transfer
Excess Product

transferring excess product for
disposition
CO.3.136
Cost to Transfer
MRO Product

transferring MRO product for
disposition
CO.3.137
Cost to Transfer
Product

transferring product to Make or Deliver
processes

CO.3.138
Cost to Verify
Product

raw material verification.

CO.3.139
Customer
Invoicing/
Accounting
Costs
Includes costs for invoicing, processing

customer payments, and verifying
customer satisfaction.
D1.15: Invoice,
D2.15: Invoice,
D3.15: Invoice
CO.3.140
Direct labor cost
Direct cost spent on production labor

Performance
CO.3.141
Direct material
cost
Direct cost spent on material for

production

Performance
CO.3.142
Distribution Costs
The costs of distribution (warehousing

and transportation of finished goods)
as a percent of total supply chain costs
CO.3.143
Energy
consumption
The energy consumed by the Make

process per unit produced.

P3: Plan Make
CO.3.144
Energy Cost per

Unit
The cost of energy inputs for the Make

process per unit produced.
P3: Plan Make
2.4.24
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.145
Energy Costs
the cost of energy inputs to S1.4 as a

percent of total product transfer and
storage costs.

M2: Make-to- Order
Products
Receipt
CO.3.146
Energy efficient
upgrades
The percent of new equipment

purchased over the past year that
is more energy efficient than the
equipment it replaces

and Facilities
CO.3.147
Environmental
Compliance Cost
The cost of complying with

environmental regulations and policies
as a percent of total supply chain costs.

CO.3.148
Environmental
non-compliance
cost
The cost impact of compliance

violations with environmental
regulations and policies as a percent of
total supply chain costs.

CO.3.149
Event Risk (EVAR)

($)
The risk (probability X impact) of risk

events. i.e. plant outage, transportation
outage, product failure, etc.

Risk
Risk
Risk
Risk
Risk
CO.3.150
Excess product
disposition costs
as % total
Source cost
Excess product disposition costs as %

total Source cost
SR3.2: Disposition Excess Product
CO.3.151
Finished Goods
Inventory Days
of Supply
Finished goods inventory days

of supply are calculated as gross
finished goods inventory (value of
transfers/365 days).
D1: Deliver Stocked Products

Products
Inventories
2.4.25
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.152
Gross Risk ($)
The total unmitigated risk for a specific


Risk
Risk
Risk
Risk
Risk
CO.3.153
Hazardous waste
generated at
warehousing
facilities as %
of total waste
generated
The weight of hazardous waste

generated from warehousing
operations as a percent of the total
waste generated

CO.3.154
Hedge Rating
(Inventory
DOS for risk
management)
The amount of inventory in use as a risk

mitigation tactic (DOS)

Risk
Risk
Risk
Risk
CO.3.155
Indirect cost
related to
production
Indirect cost incurred in production

indirectly

Performance
CO.3.156
Individual Process
Area Event Rating
(EVAR) ($)
The specific rating (probability X

impact) of a specific event.

Risk
Risk
Risk
Risk
Risk
CO.3.157
Industry
Benchmark
Comparison (%)
Industry Benchmark Comparison (%)

Risk
Risk
Risk
Risk
2.4.26
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.158
Mitigated Risk ($)
The total mitigated risk for a specific


Risk
Risk
Risk
Risk
Risk
CO.3.159
Mitigation cost by
Event ($)
The cost of mitigation for a specific risk

event ($)

Risk
Risk
Risk
Risk
Risk
CO.3.160
MRO Disposition
Costs As % Total
Source cost
MRO Disposition Costs As % Total

Source cost
CO.3.161
NPDES permitted
water effluent
The weight of water pollutant emitted

per weight of finished good produced

CO.3.162
Number of
worker absences
due to poor IAQ
The annual hours of worker absences

that can be attributed to indoor air
quality issues

and Facilities
CO.3.163
Order
Management
Costs
The aggregation of the following cost

elements (contained in this glossary):

Products
CO.3.164
Packaging
material re-use
The percent of packaging materials that

are reused
M1.4: Package
M3.5: Package
CO.3.165
Packaging
purchases
The cost of packaging materials used

during transfer operations
CO.3.166
Packaging
volume
Total volume of packaging material per

unit divided by total unit volume
CO.3.167
Peak Time Energy

Use
% of total energy consumption that

occurs during regional peak demand
times

Activities
Activities
CO.3.168
Pollution
Prevention Ratio
Compliance costs directed to pollution

prevention activities as a percent of
total compliance costs.

Environment
2.4.27
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.169
Product
Acquisition Costs
Product acquisition costs include

costs incurred for the production of
product: sum of product management
and planning, supplier quality
engineering, inbound freight and
duties, receiving and product storage,
incoming inspection, product process
engineering and tooling costs.

Product
CO.3.170
Product
Packaging costs
The cost of material and labor to

package items for transfer divided by
the number of items transferred
CO.3.171
Product Shipped
per delivery
The average number of units

transferred per vehicle
D1.5: Build Loads

D2.5: Build Loads
D3.5: Build Loads
CO.3.172
Quantity per
shipment
The average number of units

transferred per vehicle

Product
Product
D1.5: Build Loads
D2.5: Build Loads
CO.3.173
Ratio of
Authorization
Cost To Total
Source
Cost
Ratio of Authorization Cost To Total

Source Cost

CO.3.174
Ratio of
Authorization
Cost to Total
Source Return
cost
Ratio of Authorization Cost to Total

Source Return cost

Authorization
CO.3.175
Ratio of
authorization
costs to total
source return cost
Ratio of authorization costs to total

source return cost

2.4.28
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.176
Residual Risk ($)
The residual (gross mitigated) risk for

a specific area, supplier, product, etc.($)

Risk
Risk
Risk
Risk
Risk
CO.3.177
Return
transportation
costs
Sum of the costs associated with return

transportion

CO.3.178
Risk Mitigation
Costs (Deliver)
The total supply chain risk mitigation

cost of all DELIVER mitigation actions
for a specific area, supplier, product,
etc. ($)

Risk
CO.3.179
Risk Mitigation
Costs (Make)

cost of all MAKE mitigation actions for a
specific area, supplier, product, etc. ($)

Risk
CO.3.180
Risk Mitigation
Costs (Plan)

cost of all PLAN mitigation actions for a
specific area, supplier, product, etc. ($)

Risk
CO.3.181
Risk Mitigation
Costs (Return)

cost of all RETURN mitigation actions
etc. ($)

Risk
CO.3.182
Risk Mitigation
Costs (Source)

cost of all SOURCE mitigation actions
etc. ($)

Risk
CO.3.183
Scrap packaging
expense
The cost of packaging material that

is scrapped as part of the packaging
process
M1.4: Package
M2.4: Package
M3.5: Package
CO.3.184
Supply /
Customer /
Product Base
Rated (%)
The percent of the assessed area

(suppliers, customers, etc.) that has
been systematically evaluated.

Risk
Risk
Risk
Risk
Risk
CO.3.185
Total Deliver
Costs

the Deliver processes.
P4: Plan Deliver
2.4.29
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.186
Total Excess
Material Return
Costs

the receipt of returned excess products
from the customer
CO.3.187
Total Source
Return Costs

the return of raw materials to the
supplier.
SR2: Return MRO Product
CO.3.188
Transportation
Costs
The costs of transportation per unit

shipped

Requirements
CO.3.189
Value at Risk
(Deliver)
The sum of probability of risk events

times the monetary impact of the
events in all Deliver activities. Risk event
here could be defined as the deviation
from expected metrics value for the
process.

Risk
CO.3.190
Value at Risk
(Make)

events in all Make activities. Risk event
process.

Risk
CO.3.191
Value at Risk
(Return)

events in all Return activities. Risk event
process.

Risk
CO.3.192
Value at Risk
(Source)

events in all Sourcing activities. Risk
event here could be defined as the
deviation from expected metrics value
for the process.

Risk
CO.3.193
VAR of Internal
Process
Performance

specific process.

Risk
Risk
Risk
Risk
2.4.30
CO
Metric ID
Metric Name
Metric Definition
Process
CO.3.194
VAR of Supplier
Performance

specific supplier (or aggregate supply
base)

Risk
Risk
Risk
Risk
CO.3.195
Warehouse
energy costs
The cost of energy inputs for

warehouse operations as a % of total
storage costs
CO.3.196
Warehousing
solid waste
The annual weight of waste generated

from warehousing processes
CO.3.197
Waste produced
as % of product
produced
The weight of waste (air, liquid and

solid) divided by the weight of finished
goods product produced.

CO.3.198
Waste storage
costs as % of
Make costs
The cost to store and manage

production waste as a per cent of total
Make costs

CO.3.199
Water use
reduction
The annual % reduction in water use

per warehousing cost
2.4.31
2.4.32
AM.1.1
Cash-to-Cash Cycle Time
The time it takes for an investment made to flow back into a company after it has been spent
for raw materials. For services, this represents the time from the point where a company
pays for the resources consumed in the performance of a service to the time that the
company received payment from the customer for those services.
The longer the cash-to-cash cycle, the more current assets needed (relative to current liabilities) since
it takes longer to convert inventories and receivables into cash. In other words, the longer the cashto-cash cycle, the more net working capital required.
The Cash-to-Cash Cycle time is measured by converting into days the supply of inventory in stock
and the number of days outstanding for accounts receivable and accounts payable. The inventory
days of supply is added to the days outstanding for accounts receivable. The accounts payable days
outstanding is subtracted from this total to determine the cash-to-cash cycle time.
Calculation
Cash-to-Cash Cycle Time = Inventory Days of Supply + Days Sales Outstanding Days Payable
Outstanding
Level 2 Metrics:
AM.2.2 Inventory Days of Supply = the amount of inventory (stock) expressed in days of sales. The
[5 point rolling average of gross value of inventory at standard cost] / [annual cost of goods sold
(COGS) / 365]
Example: If 2 items a day are sold and 20 items are held in inventory, this represents 10 days (20/2)
sales in inventory.
(Other names: Days cost-of-sales in inventory, Days sales in inventory)
AM.2.1 Days Sales Outstanding = the length of time from when a sale is made until cash for it is
received from customers. The amount of sales outstanding expressed in days. The [5 point rolling
average of gross accounts receivable (AR)] / [total gross annual sales / 365].
Example: If $5000 worth of sales were made per day and $50,000 worth of sales were outstanding,
this would represent 10 days ($50,000/$5000) of sales outstanding.
(Other names: Days sales in Accounts receivables)
AM.2.3 Days Payable Outstanding = the length of time from purchasing materials, labor and/
or conversion resources until cash payments must be made expressed in days. The [5 point rolling
average of gross accounts payable (AP)] / [total gross annual material purchases / 365].
(Other names: Average payment period for materials, Days purchases in accounts payable, Days
2.5.1
AM.1.1
Calculation cont.
The 5 point rolling average calculation uses a combination of both historical and forward-looking
data. This means that the rolling average value has to be calculated based on the average over the
four previous quarters and the projection for the current or next quarter.
The 5 point rolling average calculation is:
[Sum of the 4 previous quarters + projection for next quarter) / 5]
Data Collection
Unlike the other SCOR attributes, where data requirements are specified, typically all of the cash-tocash cycle time source data is already captured by business operating systems:
t general ledger system
t accounts receivable system
t accounts payable system
t purchasing system
t production reporting system
t customer relationship management system
As a result, information is calculated by importing data from these systems and transforming them
into the prescribed analytics/information. The transformation is accomplished using business rules.
Discussion
Cash-to-cash Cycle Time is a value metric used to measure how efficiently a company manages its
working capital assets.
This metric is a generally accepted Supply Chain metric within many industries and is used to
benchmark supply chain asset management performance.
The term 5 point annual average can be confusing in that it can imply a measure over a years
period of time when the data points are taken over 5 quarters. The intent of the approach is to
smooth the seasonal peaks and valleys over time and to balance projected data with historical data.
The measurement can be taken quarterly or at any given consistent time frame.
Level 1
AM.1.1 Cash-to-Cash Cycle Time

AM.2.1 Days Sales Outstanding
Level 2
AM.2.2 Inventory Days of Supply

AM.2.3 Days of Payable Outstanding
2.5.2
AM.1.2
Return on Supply Chain Fixed Assets
Return on Supply Chain Fixed Assets measures the return an organization receives on its
invested capital in supply chain fixed assets. This includes the fixed assets used in Plan,
Source, Make, Deliver, and Return.
None Identified
The return on supply chain fixed assets is measured by monetizing the supply chain revenue, cost of
goods sold and supply chain management costs to determine the profit from the respective supply
chain. This amount is divided by the supply chain fixed assets to determine the return generated
from the respective supply chain.
Calculation
Return on Supply Chain Fixed Assets = (Supply Chain Revenue COGS Supply Chain
Management Costs) / Supply-Chain Fixed Assets
Supply Chain Revenue is used in the metric rather than just Net Revenue. SC Revenue is calculated
as: Supply Chain Revenue - COGS - Total Supply Chain Management Costs. This provides the
revenue generated through the supply chain less the total costs associated with the supply chain.
There is a need for a more specific revenue number than Net Revenue for use in the Supply Chain
Revenue level 2 metric. Net Revenue could include revenue from sources other than the supply
chain, such as investments, leasing real estate, court settlements, etc... Supply Chain Revenue will be
used and will be only the portion of Net Revenue that is generated by the specific supply chain being
measured and analyzed.
Level 2 Metrics
Supply-Chain Revenue
Operating revenue generated from a supply chain. This does not include non-operating revenue,
such as leasing real estate, investments, court settlements, sale of office buildings, etc...
CO.1.2 COGS (Cost of Goods Sold)
Calculation - Refer to the section for COGS in the Attribute for Costs.
CO.1.1 Total Supply Chain Management Costs
Calculation - refer to the section for Supply-Chain Management Costs in the Attribute for Costs.
AM.2.5 Supply Chain Fixed Assets
Source Fixed Asset Value +
Make Fixed Asset Value +
Deliver Fixed Asset Value +
Return Fixed Asset Value +
Plan Fixed Asset Value
2.5.3
AM.1.2
Calculation cont.
Level 3 Metrics
Plan Fixed Asset Value- The current value of the supply chain assets used in supply chain integration
(See EP.5)
Source Fixed Asset Value - The current value of the supply chain assets used in the Source process.
(See ES.5)
Make Fixed Asset Value- The current value of the supply chain assets used in the Make process. (See
EM.5)
Deliver Fixed Asset Value - The current value of the supply chain assets used in the Deliver process.
(See ED.5)
Return Fixed Asset Value - The current value of the supply chain assets used in the Return process.
(See ER.5)
A Revised Capital Plan is an output of the Manage Integrated Supply Chain Fixed Assets (EP.5) process
element and would contain supply chain capital asset information that could be used in measuring
the Supply Chain Fixed Assets.
Data Collection
Unlike the other SCOR attributes, where data requirements are specified, typically all of the return on
working capitals source data is already captured by business operating systems:
t fixed asset system
t purchasing system
t labor reporting system
In order to measure Return on Supply Chain Fixed Assets, the investment in supply chain capital
assets needs to be known. This requires a clear understanding of what is a supply chain fixed asset.
SCOR Ex.5 process elements were used since these are all focused on managing SC capital assets. It is
the assets managed in these Enable processes that comprise Supply Chain Fixed Assets. The value of
these assets is the denominator of the metric.
Discussion
Range of fixed assets used in an organization that have the character of permanency rather
than being rapidly replaced (or expensed); examples include land, warehouse, trucks, buildings,
investments, and plant and machinery.
Fixed assets used to operate the Supply Chain in each of the categories (P, S, M, D, R) are tracked
within the Ex.5 process elements. A Revised Capital Plan is an output of the Manage Integrated
Supply Chain Fixed Assets (EP.5) process element and would contain supply chain capital asset
information that could be used in measuring the Supply Chain Fixed Asset Value.
2.5.4
AM.1.2
Level 1
AM.1.2 Return on Supply Chain Fixed Assets

Supply Chain Revenue
Level 2
CO.1.1 Supply Chain Management Costs

CO.1.2 Cost of Goods Sold
AM.2.5 Supply Chain Fixed Assets
Source Fixed Asset Value
Make Fixed Asset Value
Level 3
Deliver Fixed Asset Value

Return Fixed Asset Value
2.5.5
AM.1.3
Return on working capital is a measurement which assesses the magnitude of investment
relative to a companys working capital position verses the revenue generated from a supply
chain. Components include accounts receivable, accounts payable, inventory, supply chain
revenue, cost of goods sold and supply chain management costs. (Processes: P1, P2, P3, P4,
S1, S2, S3, M1, M2, M3, D1, D2, D3, D4)
None Identified
The return on working capital is measured by monetizing the supply chain profit and dividing into
the calculated amount the supply chain working capital position.
Calculation
Return on Working Capital = (Supply Chain Revenue COGS Supply Chain Management Costs) /
(Inventory + Accounts Receivable Accounts Payable)
Level 2 Metrics:
Supply-Chain Revenue
Operating revenue generated from a supply chain. This does not include non-operating revenue,
such as leasing real estate, investments, court settlements, sale of office buildings, etc...
CO.1.2 COGS (Cost of Goods Sold)
Calculation - Refer to the section for COGS in the Attribute for Costs.
CO.1.1 Total Supply Chain Management Costs
Calculation - refer to the section for Supply-Chain Management Costs in the Attribute for Costs.
AM.2.8 Inventory = the amount of inventory (stock) expressed in dollars. The [5 point rolling
average of gross value of inventory at standard cost]
AM.2.7 Sales Outstanding = the amount of accounts receivable outstanding expressed in dollars.
The [5 point rolling average of gross accounts receivable (AR)]
AM.2.6 Payables Outstanding = expressed in dollars, the amount of purchased materials, labor
and/or conversion resources that are to be paid (accounts payable). The [5 point rolling average of
gross accounts payable (A/P)]
The 5 point rolling average calculation uses a combination of both historical and forward-looking
data. This means that the rolling average value has to be calculated based on the average over the
four previous quarters and the projection for the current or next quarter.
The 5 point rolling average calculation is: [Sum of the 4 previous quarters + projection for next
quarter) / 5]
2.5.6
AM.1.3
Calculation cont.
Level 3 Metrics
Plan Fixed Asset Value- The current value of the supply chain assets used in supply chain integration
(See EP.5)
Source Fixed Asset Value - The current value of the supply chain assets used in the Source process.
(See ES.5)
Make Fixed Asset Value- The current value of the supply chain assets used in the Make process. (See
EM.5)
Deliver Fixed Asset Value - The current value of the supply chain assets used in the Deliver process.
(See ED.5)
Return Fixed Asset Value - The current value of the supply chain assets used in the Return process.
(See ER.5)
A Revised Capital Plan is an output of the Manage Integrated Supply Chain Fixed Assets (EP.5)
process element and would contain supply chain capital asset information that could be used in
measuring the Supply Chain Fixed Assets.
Data Collection
Unlike the other SCOR attributes, where data requirements are specified, typically all of the return on
working capitals source data is already captured by business operating systems:
t accounts receivable system
t accounts payable system
t purchasing system
t labor reporting system
Discussion
Supply Chain Revenue is used in the metric rather than just Net Revenue. SC Revenue is calculated
as: Supply Chain Revenue - COGS - Total Supply Chain Management Costs. This provides the revenue
generated through the supply chain less the total costs associated with the supply chain. There is a
need for a more specific revenue number than Net Revenue for use in the Supply Chain Revenue
level 2 metric. Net Revenue could include revenue from sources other than the supply chain, such as
investments, leasing real estate, court settlements, etc... Supply Chain Revenue will be used and will
be only the portion of Net Revenue that is generated by the specific supply chain being measured
and analyzed.
2.5.7
AM.1.3
Level 1
AM.1.3 Return on Working Capital

CO.1.1 Supply Chain Management Costs
CO.1.2 Cost of Goods Sold
Level 2
AM.2.6 Accounts Payable (Payables Outstanding)

AM.2.7 Accounts Receivable (Sales Outstanding)
AM.2.8 Inventory
Supply Chain Revenue
2.5.8
AM
Level 3 Asset Management Metrics
Metric ID Metric Name
Metric Definition
Process
AM.3.1
% of hazardous material in
inventory
The weight of hazardous

material in inventory as a
percent of total inventory
weight

Inventories
AM.3.2
% of material that has a valid

Take-back program
% of the product content

that has a supplier take-back
program for recycling or reuse.
AM.3.3
% of materials that are

recyclable/ reusable
% of the product content that is

recyclable or reusable
AM.3.4
% of packaging/shipping
materials reused internally
The percent of scrap from

packaging that is immediately
reused in the packaging process
M2.4: Package
AM.3.5
% of production materials
reused
The percent of scrap from

production that is immediately
reused in the production
process

AM.3.6
% of products consisting of
previously used components
the weight of recycled material

in the product as a percent of
total product weight

AM.3.7
Actual Asset Life Maintenance

Cost as % of Replacement
Value
Measure of total lifecycle

maintenance cost of an asset
compared to its replacement
cost. This ratio is based
maintenance cost to-date
so that that replacement or
upgrade cost can be evaluated
as the asset ages on an ongoing basis.
EM.5: Manage Make

Equipment and Facilities
AM.3.8
Average age of
Excess Inventory
Average age of Excess Inventory
SR3: Source Return Excess

Product
AM.3.9
Capacity Utilization
A measure of how intensively

a resource is being used to
produce a good or service.
Some factors that should
be considered are internal
manufacturing capacity,
constraining processes,
direct labor availability and
key components/materials
availability.

M1.4: Package
M2.4: Package
M3.5: Package
Activities
Activities
Activities
2.5.9
AM
Metric Definition
Process
AM.3.10
Defective product
disposition costs
as % total Source
Return cost
Defective product disposition

costs as % total Source Return
cost

Return Processes
AM.3.11
Deliver Fixed Asset Value
Deliver Fixed Asset Value - The

current value of the supply
chain assets used in the Deliver
process.

Assets
AM.3.12
Deliver Return Cycle Time
The average time associated

with returns.

Product
DR2: Deliver Return MRO
Product
AM.3.13
Equipment energy efficiency
The number of capital

equipment units that meet
energy efficiency standards
as a per cent of total capital
equipment units
EM.5: Manage Make

AM.3.14
Hazardous materials used

during production process as
a % of all materials
The % of material (by weight)

issued for production that is
classified as hazardous material

AM.3.15
Hazardous waste as % of total

waste
The % of waste (by weight)

generated from production
that is classified as hazardous
material

AM.3.16
Inventory Days of Supply (Raw

Material)
Value of raw materials (COGS

365).

S2: Source Make-to-Order
Product
Product
AM.3.17
Inventory Days of Supply

(WIP)
Total value of Work in Process

(COGS 365).
M2: Make-to- Order

AM.3.18
Make Fixed Asset Value
The current value of the supply

chain assets used in the Make
process
EM.5: Manage Make

AM.3.19
Packaging as % of total
material
The % by weight of packaging

material to total raw material
weight

Product
Product
EM.6: Manage Transportation
(WIP)
AM.3.20

chain assets used in supply
chain integration
EP.5: Manage Integrated

Supply Chain Capital Assets
2.5.10
AM
Metric Definition
Process
AM.3.21
Rebuild or recycle rate
Number of returned products

that are rebuilt or recycled as a
percent of the total number of
products returned

Product
SR1.5: Return Defective
Product
SR2: Return MRO Product
AM.3.22
Recyclable waste as % of total

waste
The % of waste (by weight)

generated from production that
is recyclable
M1: Make-to-stock
M2: Make-to- Order
AM.3.23
Recycle DOS
Days of supply of recyclable

inventory awaiting processing
AM.3.24
Return Fixed Asset Value

chain assets used in the Return
process
ER.5: Manage Return Capital

Assets
AM.3.25
Return for Recycle Rate
Number of returns that are for

recycling or re use as a per cent
of the total number of products
returned
DR3: Deliver Return Excess

Product
AM.3.26
Return Rate
Weight of products returned

divided by the weight of
product shipped

Product
AM.3.27
Source Fixed Asset Value

chain assets used in the Source
process
AM.3.28
Value of defective
product inventory/ total
defective product inventory
value
Value of defective product

inventory in authorization
stage/ total defective product
inventory value

Product
AM.3.29
Value of Defective Inventory

in Disposition Stage/ Total
Inventory Value
Inventory Awaiting Return
SR1.1: Identify Defective

Product Condition
SR1.2: Disposition Defective
Product
SR2.2: Disposition MRO
Product
AM.3.30
Value of Defective Product

Inventory in Request Return
Authorization Stage/ Total
Inventory awaiting return

authorization.
SR1.3: Request Defective

Product Return Authorization
DR1.1: Authorize Defective
Product Return
AM.3.31
Value of defective
product inventory
in physical return

inventory in physical return
and transportation stage/ total
defective inventory value
SR1.5: Return Defective

Product
2.5.11
AM
Metric Definition
Process
AM.3.32
Value of defective
product in scheduling
stage/ total
defective product

in scheduling stage/ total
defective product
SR1.4: Schedule Defective

Product Shipment
AM.3.33
Value of Excess Inventory

in Disposition Stage/ Total
Inventory Value
SR3.2: Disposition Excess

Product
AM.3.34
Value of excess product

and transportation stage/tot

inventory in physcial return and
transportation stage/tot
AM.3.35
Value of Excess Product

Authorization Stage/ Total Ex

Authorization

AM.3.36
Value of excess
inventory in
identification
stage/ total
inventory value
Value of excess inventory in

identification stage/ total
inventory value

Condition
AM.3.37
Value of excess
inventory/ total
inventory value
Value of excess inventory/ total

inventory value
SR3: Source Return Excess

Product
AM.3.38
Value of excess
product in scheduling
stage/ total
excess product inv

inventory in scheduling stage/
total excess product inventory
value

Shipment
AM.3.39
Value of Unserviceable MRO

Inventory In Disposition
Stage/ Total MRO Inventory Va
Inventory awaiting disposition
SR2.2: Disposition MRO

Product
DR2: Deliver Return MRO
Product
AM.3.40
Value of unserviceable mro

and transportation stage/
Value of unserviceable mro

inventory in physical return and
transportation stage/
AM.3.41

Inventory awaiting return

authorization

Authorization
AM.3.42
Value of Unserviceable
MRO Inv. in
Identification Stage/
Total MRO Inv. Value

Inventory In Identification
Stage/Total MRO Inventory
Value
SR2.1: Identify MRO Product

Condition
AM.3.43
MRO Inventory in Scheduling
Stage/Total MRO Inventory

inventory in Scheduling Stage/
Total MRO Inventory Value
SR2.4: Schedule MRO

Shipment
2.5.12
AM
Metric Definition
Process
AM.3.44

Inventory in Deliver Return
Process/ Total MRO Inv.
MRO Inventory in
Deliver Return Process/
Total MRO Inv.
2.5.13
2.5.14
Section 3
Processes
P
Plan
The processes associated with determining requirements and corrective actions to achieve
supply chain objectives.
Process Categories
The development and establishment of courses of action

over specified time periods that represent a projected
appropriation of supply chain resources to meet supply chain
requirements for the longest time fence constraints of supply
resources.
P2: Plan Source

appropriation of material resources to meet supply chain
requirements.
P3: Plan Make

appropriation of production resources to meet production
requirements.
P4: Plan Deliver

appropriation of delivery resources to meet delivery
requirements.
P5: Plan Return
A strategic or tactical process to establish and adjust courses

of action or tasks over specified time periods that represent a
projected appropriation of return resources and assets to meet
anticipated as well as unanticipated return requirements. The
scope includes unplanned returns of sold merchandise as well
as planned returns of rotable products that are refurbished
for reissue to customers.
EP: Enable Plan
The collection of processes associated with managing and

monitoring Plan process data, performance and relationships.
3.1.1
P1
Plan Supply Chain
The development and establishment of courses of action over specified time periods
that represent a projected appropriation of supply chain resources to meet supply chain
requirements for the longest time fence constraints of supply resources.
Metric
Supply Chain Responsiveness
Order Fulfillment Cycle Time,

Plan Cycle Time
Supply Chain Asset Management
Return on Working Capital,

Cash-To-Cash Cycle Time,
Supply Chain Costs
Cost to Plan Supply Chain,

Environmental Compliance Cost
Best Practices
Description/Definition
All Functions and Organizations

Understand Their Impact on Supply/
Demand Balancing, Including Sales,
Marketing, Product Management,
Manufacturing, Customer, Suppliers,
Materials Management, and Product
Development
None identified
Change in the Demand Signal

Instantaneously Reconfigures the
Production and Supply Plans
Event-driven supply chain re-planning
Collaborative Planning, Forecasting,

Replenishment (CPFR)
Collaborative Planning, Forecasting and Replenishment is a

concept that allows collaborative processes across the supply
chain, using a set of process and technology models....(From
www.cpfr.org/intro.html)
Supply Chain is Designed to Have

Supply Flexibility Equal to Demand
Volatility
None identified
On-Line Visibility of All SupplyChain Demand Requirements and

Resources, both Currently Available
and Committed (Pegged)
Enterprise resource planning system Customer relationship

management system
3.1.2
P1
Best Practices cont.
Description/Definition cont.
Sales and Operations Planning

(S&OP)
A process to develop tactical plans that provide management

the ability to strategically direct its businesses to achieve
competitive advantage on a continuous basis by integrating
customer-focused marketing plans for new and existing
products with the management of the supply chain. The
process brings together all the plans for the business (sales,
marketing, development, manufacturing, sourcing, and
financial) into one integrated set of plans. It is performed at
least once a month and is reviewed by management at an
aggregate (product family) level. The process must reconcile all
supply, demand, and new-product plans at both the detail and
aggregate levels and tie to the business plan. It is the definitive
statement of the companys plans for the near to intermediate
term, covering a horizon sufficient to plan for resources and
to support the annual business planning process. Executed
properly, the sales and operation planning process links the
strategic plans for the business with its execution and reviews
performance measurements for continuous improvement.
(From APICS online dictionary.)
Tools Support Balanced Decision

Making (e.g., Trade-Off between
Service Level and Inventory
Investment)
Supply chain planning optimization system
Supply/Demand Process is Highly

Integrated from Customer Data
Gathering to Order Receipt, through
Production to Supplier Request
Integrated supply chain planning system with interfaces to

all supply/demand data sources through public and private
digitally enabled supply networks.
Re-Balancing of Full-Stream Supply/

Demand on a Daily Basis, Including
Source-Make-Deliver Resources
and Requirements from Customers
Customer to Suppliers Supplier
Enterprise-wide planning system customer Relationship

Systems
Identify and manage environmental

impacts
Identify and manage environmental aspects and impacts of

supply chain operations to mitigate the impacts mitigate the
impacts
Responsiveness and Flexibility

Are Emphasized By Developing
Expertise in Making Business
Processes Re-Programmable, ReConfigurable and Continuously
Changeable
Integrated process modeling and software reconfiguration

tools
3.1.3
P1
Capability to Run Simulated FullStream Supply/Demand Balancing

for What-If Scenarios
Supply chain modeling and visualization system
Environmental Management
System (EMS)
Implement an Environmental Management System (EMS) to

track and manage environmental performance and to track
performance against regulatory requirements
Vendor Managed Inventory
VMI is a concept for planning and control of inventory, in

which the supplier has access to the customers inventory data
and is responsible for maintaining the inventory level required
by the customer. Re-supply is performed by the vendor
through regularly scheduled reviews of the on-site inventory.
The on-site inventory is counted, damaged or outdated goods
are removed, and the inventory is restocked to predefined
levels.
Measure environmental impacts
Measure environmental impacts of the supply chain
3.1.4
P1
Revises Business Assumptions EP.10, EP.5
Customer Requirements
Revised Aggregate Forecast and Projections EP.10
Shipments D1.11,D1.3
Planning Data EP.3
Order Backlog D1.11, D1.3, D2.3, D3.3
! P1.1 !
Supply Chain Requirements P1.3
A
Planning Data EP.3
Inventory
Delivery Plans P4.4
Make/Buy Decision EP.5
Outsource Plan EP.5, EP.6
Production Plans P3.4
Return Regulatory Requirement ER.8
Sourcing Plans P2.4
Revised Capital Plan EP.5, EP.6
! P1.2 !

Supply Chain Performance Improvement Plan EP.2
Inventory Strategy EP.4
Planning Decision Policies EP.1
Supply Chain Resources P1.2
! P1.3
P1.4 !
Supply Chain Plans P2.1, P3.1, P4.1, P5.1, EM.7
3.1.5
P1.1
Identify, Prioritize and Aggregate Supply Chain Requirements
The process of identifying, aggregating, and prioritizing, all sources of demand for the
integrated supply chain of a product or service at the appropriate level, horizon and interval.
The sales forecast is comprised of the following concepts: sales forecasting level, time
horizon, and time interval. The sales forecasting level is the focal point in the corporate
hierarchy where the forecast is needed at the most generic level. i.e. Corporate forecast,
Divisional forecast, Product Line forecast, SKU, SKU by Location. The sales forecasting time
horizon generally coincides with the time frame of the plan for which it was developed i.e.
Annual, 1-5 years, 1- 6 months, Daily, Weekly, Monthly. The sales forecasting time interval
generally coincides with how often the plan is updated, i.e. Daily, Weekly, Monthly, and
Quarterly.
Metric
Supply Chain Reliability
Forecast Accuracy
Identify, Prioritize, and Aggregate Supply Chain Requirements

Cycle Time
Supply Chain Agility
None Identified
Supply Chain Costs
Cost to Identify, Prioritize, and Aggregate Supply Chain

Requirements
None Identified
Best Practices
Consider environmental impacts
Consider environmental impacts when identifying

requirements
Digital Links (XML Based, EDI. Etc.)

Among Supply Chain Members
Real-time exchange of supply chain information between

supply chain members collaborative planning systems,
Internet Trading Exchanges, B2B Integration and Application
Server Systems
Joint Service Agreements (JSA)
Collaborative Planning Systems
Push-Based Forecasts Are Replaced

with Customer Replenishment PullBased Signals
Standards Based (RosettaNet, eBXML, OAGI, etc) B2B

integration tools and systems
Systems Support Accurate On-Line

Visibility of Full-Stream Demand
Requirements and Priorities
Advance Planning and Scheduling System, Supply Chain Event

Management Software
Supply Chain Advance Planning

System
Collaboration among Supply Chain partners extends outwards

to customers, spanning the supply chain. Planning, Replanning, Business Rules, Plan Changes
Collaboration among Operations

Strategy Team
Supply Chain Advanced Planning Systems, Supply Chain

Integration Systems, Integration between supply chain
advanced planning and ERP execution systems, Supply Chain
Capacity Planning Systems
3.1.6
P1.1
Inputs
Revises Business Assumptions
EP.10, EP.5
Revised Aggregate Forecast
and Projections
EP.10
Shipments
D1.11,D1.3
> P1.1
Outputs
Chain Requirements
> Supply
P1.3
Planning Data
EP.3
Order Backlog
D1.11, D1.3, D2.3, D3.3
3.1.7
P1.2
Identify, Prioritize and Aggregate Supply-Chain Resources
The process of identifying, prioritizing, and aggregating, as a whole with constituent parts,
all sources of supply that are required and add value in the supply chain of a product or
service at the appropriate level, horizon and interval.
Metric
None Identified
Identify, Assess, and Aggregate Supply Chain Resources Cycle

Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Supply Chain

Resources
Best Practices

requirements
Lead Times Updated Monthly
None identified
Review Product Profitability
ABC and cost modeling.
Digital Links (XML Based, EDI. Etc.)

Among Supply Chain Members
Real-time exchange of supply chain information between

supply chain members collaborative planning systems,
Internet Trading Exchanges, B2B Integration and Application
Server Systems
3.1.8
P1.2
Inputs
Planning Data
EP.3
Inventory
Delivery Plans
P4.4
Make/Buy Decision
EP.5
Outsource Plan
EP.5, EP.6
Production Plans
P3.4
> P1.2
Outputs
Chain Resources
> Supply
P1.3
Return Regulatory
Requirement
ER.8
Sourcing Plans
P2.4
Revised Capital Plan
EP.5, EP.6
3.1.9
P1.3
Balance Supply Chain Resources with SC Requirements
The process of identifying and measuring the gaps and imbalances between demand and
resources in order to determine how to best resolve the variances through marketing,
pricing, packaging, warehousing, outsource plans or some other action that will optimize
service, flexibility, costs, assets, (or other supply chain inconsistencies) in an iterative and
collaborative environment.
The process of developing a time-phased course of action that commits supply-chain
resources to meet supply-chain requirements.
Metric
Fill Rate
Balance Supply Chain Resources with Supply Chain

Requirements Cycle Time
None Identified
Supply Chain Costs
Cost to Balance Supply Chain Resources with Supply

Chain Requirements
Best Practices
Balance environmental requirements
Balance environmental requirements as well as

supply/demand requirements
Customer Relationship Management (CRM)
Software that provides customer input and keeps

the customer informed about the planning of the
production and delivery process by managing all
contacts and communication with the customer
thorough all channels including internet and
traditional sales and customer service channels.
Demand Planning, Demand Flow Leadership
Software that provides multiple data models

including the business rules and metrics for the
entire supply chain planning process. Algorithms
use the business rules and metrics as the drivers for
the planning engine.
Business Intelligence (BI)
A data warehouse / data mart is the source of

all planning (master) data, business rules and
transaction data. Analytical tools enable the ongoing
maintenance and improvement of the business rules
based on actual data.
3.1.10
P1.3
Inputs
Supply Chain Requirements
P1.1
Supply Chain Performance
Improvement Plan
EP.2
Inventory Strategy
EP.4
> P1.3
Outputs
> None Identified
Planning Decision Policies

EP.1
Supply Chain Resources
P1.2
3.1.11
P1.4
Establish & Communicate Supply-Chain Plans
The establishment and communication of courses of action over the appropriate timedefined (long-term, annual, monthly, weekly) planning horizon and interval, representing a
projected appropriation of supply-chain resources to meet supply-chain requirements.
Metric
None Identified
Establish Supply Chain Plans Cycle Time
None Identified
Supply Chain Costs
Cost to Establish and Communicate Supply Chain

Plans
Best Practices
Collaboration among Operations Strategy

Team
Supply Chain Advanced Planning Systems, Supply

Chain Integration Systems, Integration between
supply chain advanced planning and ERP execution
systems, Supply Chain Capacity Planning Systems
Digital Links (XML Based, EDI. Etc.) Among

Supply Chain Members
Real-time exchange of supply chain information

between supply chain members collaborative
planning systems, Internet Trading Exchanges, B2B
Integration and Application Server Systems
Communicate environmental requirements
Include environmental requirements in

communications.
Supply Chain Advance Planning System
Collaboration among Supply Chain partners extends

outwards to customers, spanning the supply chain.
Planning,Re-planning,Business Rules,Plan Changes
Systems Support Accurate On-Line Visibility

of Full-Stream Demand Requirements and
Priorities as Well as Resource Utilization and
Availability
Advance Planning and Scheduling System
Collaborate with supply chain partners
Supply chain partners collaborate to improve the

environmental performance of the supply chain
Inputs
None Identified
3.1.12
> P1.4
Outputs
> Supply Chain Plans
P2.1, P3.1, P4.1, P5.1, EM.7
P2
Plan Source
that represent a projected appropriation of material resources to meet supply chain
requirements.
Metric
None Identified
Plan Source Cycle Time,

None Identified
Return on Supply Chain Fixed Assets,

Supply Chain Costs
Cost to Plan Source
Best Practices
Select suppliers with EMS
Select suppliers with active EMS systems
Track supplier environmental

records
Processes to identify suppliers with good environmental

records
Distinct and Consistent Linkages

Exist to Ensure Disruptions and
Opportunities in Material Resources
Are Quickly and Accurately
Communicated and Acted Upon
Bi-directional Digital Links (XML, EDI, etc) or Internet

procurement networks to customer service linkage
Joint Service Agreements with

Suppliers Define the Levels of
Flexibility or Resource Upside
Available Within Stated Lead Times
and Agreed Upon Conditions
None identified
All Key Participants in the Supply

Chain, Including Strategic Partners,
Have Full Visibility of the Demand/
Supply Plan
Supply Chain Event Management Systems
Purchase environmentally friendly

materials
Purchase environmentally friendly materials
EDI Links Integrate Supplier

Resource Information (Inventory,
Capacity Availability, Etc.) with Own
Resources
Inter-company resource planning with EDI/Internet

communication
3.1.13
P2
Delivery Plans P4.4
Planning Data EP.3
Supply Chain Plans P1.4
Item Master EP.7
Source Return Requirements P5.4
Order Signal D2.3, D3.3
Bill Of Materials EP.7
Product Routings EP.7
! P2.1 !
Product Requirements P2.3
A
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3,
D1.8, D4.2
Product Availability
Product On Order S1.1, S2.1, S3.3
Product Inventory Target Levels ES.4
Planning Data EP.3
! P2.2 !

Product Sources P2.2
! P2.3
P2.4 !
3.1.14
Sourcing Plans P1.2, P3.2, P4.2, P5.1, P5.2, ES.3, ES.4,

S1.1, S2.1, S3.1, S3.3, D1.3, D2.3, D3.3, DR1.4, DR2.4,
DR3.4
P2.1
Identify, Prioritize and Aggregate Product Requirements
The process of identifying, prioritizing, and considering, as a whole with constituent parts,
all sources of demand for a product or service in the supply chain.
Metric
Forecast Accuracy
Identify, Prioritize, and Aggregate Product Requirements Cycle

Time
None Identified
Supply Chain Costs
Cost to Identify, Prioritize, and Aggregate Product

Requirements
None Identified
Best Practices
Master Production Scheduling

Reflects Management of Capacity
and/or Supply Constraints
None identified
Sales and Operations Agree to

Limits of Short Term Flexibility
None identified
The Demand Plan is Updated

Frequently to Reflect Actual
Consumption or Customer Forecast
Information
None identified
Capacity and Supply Constraints

Are Balanced Against Demand
during the Planning Cycle
None identified
Categorize 100% of Total Inventory

(Active, Usable, Excess, Obsolete) for
Appropriate Action
None identified
3.1.15
P2.1
Inputs
Production Plans
P3.4
Delivery Plans
P4.4
Planning Data
EP.3
Supply Chain Plans
P1.4
Item Master
EP.7
> P2.1
Outputs
Requirements
> Product
P2.3
Source Return Requirements

P5.4
Order Signal
D2.3, D3.3
Bill Of Materials
EP.7
Product Routings
EP.7
3.1.16
P2.2
Identify, Assess and Aggregate Product Resources
The process of identifying, evaluating, and considering, as a whole with constituent parts, all
material and other resources used to add value in the supply chain for a product or services.
Metric
None Identified
Identify, Assess, and Aggregate Product Resources Cycle Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Product Resources
None Identified
Best Practices
Inventory Performance is Measured

at the Dollar and Unit Levels
None identified
Capacity and Supply Constraints

Are Balanced Against Demand
during the Planning Cycle
None identified
Identify recyclable/reusable
materials
Identify recyclable/reusable materials
Identify green products
Identify products that are manufactured to minimize

environmental impacts
Categorize 100% of Total Inventory

(Active, Usable, Excess, Obsolete)
for Appropriate Action
None identified
Obsolete Inventory is Reviewed at

the Part Number Level
None identified
Minimize packaging
Work with suppliers to minimize packaging requirements and

use reusable packaging material
Inventory is Planned at the Part

Level, Based on Supply and
Demand Variability
None identified
Inventory targets Are Reviewed and

Adjusted Frequently
Digital Linkages using XML standards (RosettaNet, eBXML,

OAGI) to automatically query inventory levels.
3.1.17
P2.2
Inputs
Inventory Availability
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Product On Order
S1.1, S2.1, S3.3
> P2.2
Outputs
> Product Requirements

P2.3
Product Inventory Target

Levels
ES.4
Planning Data
EP.3
3.1.18
P2.3
Balance Product Resources with Product Requirements
The process of developing a time-phased course of action that commits resources to meet
requirements.
Metric
None Identified
Balance Product Resources with Product Requirements Cycle

Time
None Identified
Supply Chain Costs
Cost to Balance Product Resources with Product Requirements
None Identified
Best Practices
Suppliers Share Responsibility for

Balancing Supply and Demand
through Joint Service Agreements
None identified
Inputs
EP.1
Product Requirements
P2.1
> P2.3
Outputs
> None Identified
Product Sources
P2.2
3.1.19
P2.4
Estabilsh Sourcing Plans
The establishment of courses of action over specified time periods that represent a
projected appropriation of supply resources to meet sourcing plan requirements.
Metric
None Identified
Establish Sourcing Plans Cycle Time
None Identified
Supply Chain Costs
Cost to Establish Sourcing Plans
None Identified
Best Practices
Blanket Purchase Orders Cover Period

Requirements
None identified
Digital Linkage (EDI, XML, Etc.) is Used to

Provide Real-Time Demand Information and
Handle Routine Transactions
None identified
Outputs
Inputs
None Identified
3.1.20
> P2.4
>
Sourcing Plans
P1.2, P3.2, P4.2, P5.1, P5.2, ES.3,
ES.4, S1.1, S2.1, S3.1, S3.3, D1.3,
D2.3, D3.3, DR1.4, DR2.4, DR3.4
P3
Plan Make
that represent a projected appropriation of production resources to meet production
requirements.
Metric
None Identified
None Identified
Supply Chain Costs
Energy Cost per Unit,

Energy consumption

Best Practices
Distinct and Consistent Linkages Exist to

Ensure that Disruptions and Opportunities
in Production Are Quickly and Accurately
Communicated and Responses Made
Multi-plant supply/demand planning and execution
Reduce Make environmental impacts
Identify processes that reduce environmental

impacts of manufacturing
3.1.21
P3
Planning Data EP.3
Order Signal D2.3, D3.3
Delivery Plans P4.4
Item Master EP.7
Bill Of Materials EP.7
Return Production Requirements P3.1, P5.4
! P3.1 !
Return Production Requirements P3.1, P5.4
A
Equiptment and Facilities Replacement and
Disposition Plans EM.5
Planning Data EP.3
Production Schedule M1.1, M2.1, M2.2. M3.2
D1.8, D4.2
Sourcing Plans P2.4
! P3.2 !
Production Resources P3.3
Planing Decision Policies EP.1

Production Resources P3.2
Production Requirements
! P3.3
P3.4 !
3.1.22
Production Plans P1.2, P2.1, P4.2, P5.1, P5.2, EM.1,

EM.2, EM.5, M1.1, M1.5, M2.1, M2.5, M3.2, M3.6, D1.3,
D2.3, D3.3
P3.1
Identify, Prioritize and Aggregate Production Requirements
The process of identifying, prioritizing, and considering as a whole with constituent parts, all
sources of demand in the creation of a product or service.
Metric
Forcast Accuracy
Identify, Prioritize, and Aggregate Production Requirements

Cycle Time
None Identified
Supply Chain Costs
Cost to Identify, Prioritize, and Aggregate Production

Requirements
None Identified
Best Practices
Consideration of Suppliers Material

Availability in Companys Supply
Resources (Including Suppliers
Production Plans & Capability,
Inventory, and Delivery Plans)
Digital linkage to supplier quoting, planning, configuration

and customer service applications
Inputs
Planning Data
EP.3
Supply Chain Plans
P1.4
Order Signal
D2.3, D3.3
Delivery Plans
P4.4
Item Master
EP.7
> P3.1
Outputs
Production
> Return
Requirements
P3.1, P5.4
Bill Of Materials
EP.7
Product Routings
EP.7
Return Production
Requirements
P3.1, P5.4
3.1.23
P3.2
Identify, Assess and Aggregate Production Resources
things that add value in the creation of a product or performance of a service.
Metric
None Identified
Identify, Assess, and Aggregate Product Resources Cycle Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Production Resources
None Identified
Best Practices
Obsolete Inventory is Reviewed at

the Part Number Level
None identified

Adjusted Frequently

Consider environmental production

constraints
Environmental constraints are considered as part of

production capacity
Inputs
Equiptment and Facilities
Replacement and Disposition
Plans
EM.5
Planning Data
EP.3
Production Schedule
M1.1, M2.1, M2.2. M3.2
> P3.2
Outputs
Resources
> Production
P3.3
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Sourcing Plans
P2.4
3.1.24
P3.3
Balance Production Resources with Production Requirements
The process of developing a time-phased course of action that commits creation and
operation resources to meet creation and operation requirements.
Metric
None Identified
Balance Production Resources with Production Requirements

Cycle Time
None Identified
Supply Chain Costs
Cost to Balance Production Resources with Production

Requirements
None Identified
Best Practices
Balance environmental
requirements
Balance environmental requirements as well as supply/

demand requirements

Adjusted Frequently

Inputs
Planing Decision Policies
EP.1
Production Resources
P3.2
> P3.3
Outputs
> None Identified
3.1.25
P3.4
Establish Production Plans
projected appropriation of supply resources to meet production and operating plan
requirements.
Metric
None Identified
Establish Production Plans Cycle Time
None Identified
Supply Chain Costs
Cost to Establish Production Plans
None Identified
Best Practices
Minimize energy use
Plans are created to minimize energy use
Minimize Make emissions
Plans are established to minimize emissions (e.g., release VOCs

after dark)
Unplanned Orders Are Accepted

and Scheduled Only When There is
No Detrimental Impact on Overall
Product Delivery Plan

OAGI) to automatically query production capacity and ATP and
schedule unplanned orders.
Outputs
Inputs
None Identified
> P3.4
Production Plans
P2.1, P4.2, P5.1, P5.2, EM.1,

> P1.2,
EM.2, EM.5, M1.1, M1.5, M2.1,
M2.5, M3.2, M3.6, D1.3, D2.3,
D3.3
3.1.26
P4
Plan Deliver
The development and establishment of courses of action over specified time periods that
represent a projected appropriation of delivery resources to meet delivery requirements.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Plan Deliver,

Total Deliver Costs

Best Practices
Distinct and Consistent Linkages

Exist to Ensure Disruptions and
Opportunities in Material Resources
Are Quickly and Accurately
Communicated and Acted Upon
Bi-directional Digital Links (XML, EDI, etc) or Internet

procurement networks to customer service linkage
Proactive Education of Customers

to Set Expectations and Encourage
Close Working Relationships
(Knowledge of Long-Lead Items,
Visibility to Supply Resources,
Agreement on Levels of Flexibility)
None identified
Minimize vehicle fuel use
Plan the use of high-efficiency, low-emissions,or alternativefuel vehicles where possible
3.1.27
P4
Product/Category Lifecycle
Store Shelf Inventory Counts D4.4
Planning Data EP.3
DC/Vendor Transit Time
Order Backlog D1.11, D1.3, D2.3, D3.3
Year-to Year for Like SKU/Subclass
Item Master EP.7
Service Levels EP.1
Markdown Plans
DC/Vender Lead Time
Promotion/Event Plans
Actual Shrink
Point of Sale Data (Daily) D4.6
Merchandise Category/Classification
Delivery Return Requirements P5.4
Stock-out History
EOQ/ESQs
! P4.1 !
Resource Availability D3.3

Planning Data EP.3
Load Information D1.5, D2.5, D3.5
Productin Plans P3.4
Sourcing Plans P2.4
Inventory Availability/Delivery Date D1.3, D2.3
Finish Goods Inventory Target Levels SD.4
! P4.2 !
Delivery Requirements P4.3

Item Stocking Requirements D4.2
Delivery Resources and Capabilities P4.3

Delivery Resources and Capabilities P4.2
Delivery Requirements P4.1
! P4.3
P4.4 !
3.1.28
Delivery Plans P1.2, P2.1, P3.1, P5.1, P5.2, M1.5, M2.5,

M3.6, D1.3, D2.3, D3.3
Stocking Requirements D4.1
P4.1
Identify, Prioritize and Aggregate Delivery Requirements
The process of identifying, prioritizing, and considering, as a whole with constituent parts,
all sources of demand in the delivery of a product or service.
Metric
Forecast Accuracy
Identify, Prioritize, and Aggregate Delivery Requirements Cycle

Time
None Identified
Supply Chain Costs
Transportation Costs,
Cost to Identify, Prioritize, and Aggregate Delivery
Requirements
None Identified
Best Practices
Customer Relationship and Digital

Linkages (XML, EDI, Etc.) Provide
Accurate Visibility into Actual
Demand via Customer Forecasts,
Product Plans, Production Plans,
and Inventory Positions
Tightly integrated supply chain or demand planning with point

of sale and customer inventory systems

levels.
Ideal Stock Position Based on Days/

Weeks of Supply
Pilot by Wal-Mart. IT
Planogram Flexibility for Seasonal/

Promotional changes
None identified
Electronic Matching Between POS

Data and Store Inventory (Shelves
and Back Room)
Integrated Software Systems
Eliminate Special Deals Sales

to Reduce Returns and Improve
Forecast Accuracy (Reduces
Uncertainty, Lowers Safety
Stock Requirements, Cheaper to
Administer)
None identified
RFID and Other Tagging
POG software/field force
3.1.29
P4.1
Unplanned Orders Are Accepted
and Scheduled Only When There is
No Detrimental Impact on Overall
Product Delivery Plan

OAGI) to automatically query production capacity and ATP and
schedule unplanned orders.
Forecasts Are Replaced with Actual

Customer Replenishment Signals
and Orders Where Possible
B2B Integration and Application Server Systems
Matching Shelf Stock to

Expectations
A software based system that corrects shelf inventory levels

based on actual product present (possible RFID solution).
Identifies stock-outs from shrinkage or item misplacement.
Aggregate requirements
Aggregate requirements to minimize transportation

requirements
3.1.30
P4.1
Inputs
Product/Category Lifecycle
Store Shelf Inventory Counts
D4.4
Planning Data
EP.3
Order Backlog
D1.11, D1.3, D2.3, D3.3
Year-to Year for Like SKU/
Subclass
Product Routings
EP.7
Item Master
EP.7
Service Levels
EP.1
Markdown Plans
DC/Vender Lead Time
Outputs
> P4.1
>
Delivery Requirements
P4.3
Item Stocking Requirements
D4.2
Actual Shrink
Point of Sale Data (Daily)
D4.6
Merchandise Category/
Classification
Supply Chain Plans
P1.4
Delivery Return Requirements
P5.4
Stock-out History
EOQ/ESQs
3.1.31
P4.2
Identify, Assess and Aggregate Delivery Resources
things that add value in the delivery of a product or service.
Metric
Forecast Accuracy
Identify, Assess, and Aggregate Delivery Resources Cycle Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Delivery Resources
None Identified
Best Practices
Use reusable packaging
Use reusable packaging where possible
Inputs
Resource Availability
D3.3
Planning Data
EP.3
Load Information
D1.5, D2.5, D3.5
Productin Plans
P3.4
Sourcing Plans
P2.4
Outputs
> P4.2
Resources and
> Delivery
Capabilities
P4.3
Inventory Availability/Delivery
Date
D1.3, D2.3
Delivery Return Requirements
P5.4
Finish Goods Inventory Target
Levels
SD.4
3.1.32
P4.3
Balance Delivery Resources and Capabilities with Delivery Requirements
The process of developing a time-phased course of action that commits delivery resources
to meet delivery requirements.
Metric
None Identified
None Identified
None Identified
Supply Chain Costs
Transportation Costs,
Cost to Identify, Assess, and Aggregate Delivery Resources
None Identified
Best Practices
Demand Priorities Reflecting

Strategic Customer Relationships as
Business Policies Are Automatically
Followed in Allocating Resources;
First-In-First-Out (FIFO) is Utilized as
the Default Scheduling Priority
Rules-based distribution planning system. Trading partner

agreements
Maximize loads, minimize runs
Maximize load size; minimize transportation runs
Inputs
EP.1
Delivery Resources and
Capabilities
P4.2
> P4.3
Inputs
> None Identified
P4.1
3.1.33
P4.4
Establish Delivery Plans
projected appropriation of delivery resources to meet delivery requirements.
Metric
None Identified
Establish Delivery Plans Cycle Time
None Identified
Supply Chain Costs
Distribution Costs,
Cost to Establish Delivery Plans
None Identified
Best Practices
To Address Conditions which

Cannot be Adequately Satisfied
During the Current Planning Period,
Each Functional Area Develops
Prioritized Recommendations for the
Subsequent Planning Period
None identified
Plans Which Do Not Violate Business

Rules Are Communicated Openly
and Cross-Functionally for Execution
None identified
Specific Changes to the Plan Are

Agreed to Cross-Functionally,
According to Defined Business Rules
None identified
Plans that Violate Business Rules

(e.g. Joint Service Agreements)
Are Addressed Cross-Functionally,
Considering Total Business Impacts
(Revenue, Cost, Quality, Customer
Service, Etc.)
None identified
Outputs
Inputs
None Identified
> P4.4
>
Delivery Plans
P1.2, P2.1, P3.1, P5.1, P5.2, M1.5,
M2.5, M3.6, D1.3, D2.3, D3.3
Stocking Requirements
D4.1
3.1.34
P5
Plan Return
A strategic or tactical process to establish and adjust courses of action or tasks over
specified time periods that represent a projected appropriation of return resources and
assets to meet anticipated as well as unanticipated return requirements. The scope includes
unplanned returns of sold merchandise as well as planned returns of rotable products that
are refurbished for reissue to customers.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Plan Return
None Identified
Best Practices
Planning and Forecasting

Outsourced Return process
Collaborative planning and forecasting with RETURN

outsourcing partners (3PL, reverse drop shippers, etc.)
Use Demand Planning
Demand Planning Systems to forecast returns, predict yield

rates for reusable products or components, determine demand
in a resale market, and project a revenue stream.
3.1.35
P5
Item Master EP.7
Return Regulatory Requirements ER.8
Sourcing Plans P2.4
Historic Return Rates SR1.3, SR2.3, SR3.3, DR1.1, DR2.1,
DR3.1
Business Rules for Return Processes ES.1, ER.1
Actual Sales History D1.2, D2.2, D3.3
Contractual Obligations
Revised Business Assumptions EP.10, EP.5
Planning Data EP.3
Delivery Plans P4.4
Revised Aggregate Forecast and Projections EP.10
Regulatory Requirements EP.8
Inventory Strategy EP.4
Return Process Capabilities EP.2
MRO Product Return Capabilities ER.2, ER.5
Planning Data EP.3
Return Inventory Transfer Data DR1.4, DR2.4, DR3.3,
DR3.4
Outsource Plan EP.5, EP.6
Return Process Workflow Definiton and Policies ER.7
Budget Constraints EP.10
Return Inventory Targets ER.4
Return Transportation Guidelines, Policies and
Agreements
Data About Return Capabilities ER.3
Make/Buy Decision EP.5
Projected Internal and External Capacity EP.5, EP.6
Delivery Plans P4.4
Sourcing Plans P2.4
Return Resources P5.2

Return Requirements P5.1
Supply Chain Performance Improvement Plan EP.2
! P5.1 !
Return Requirements P5.3

! P5.2 !
Return Resources P5.3

! P5.3
P5.4 !
3.1.36
Product Return Capabilities DR1.1, DR2.1, DR3.1

Return Plans SR1.2, SR2.2, SR3.2,DR1.1. DR2.1, DR3.1,
ER.4, ER.5, ER.6, ER.7
Process Procedures ER.1, ER.2, ER.8
Deliver Return Requirements P4.1, P4.2
Source Return Requirements P2.1
Return Rules and Policies ER.1
Return Production Requirements P3.1
P5.1
Assess and Aggregate Return Requirements
sources of demand for the return of a product.
Metric
None Identified
Identify, Prioritize, and Aggregate Return Requirements Cycle

Time
None Identified
Supply Chain Costs
Cost to Identify, Prioritize, and Aggregate Return

Requirements
None Identified
Best Practices
Use Historical Based Return Rate

Forecasts
None identified
Identify take-back programs
Identify products in take-back programs that are near end of

life
Identify items to return
Identify MRO items that will need planned maintenance

during the planning horizon
Real Time Return Anticipation
Having real time data on return demand and including it in

the plan and forecast. Requires a connection with customers,
call centers or CRM system, possibly to the store level with
retail returns. The return demand needs to be included in
the production plan as soon as possible because upon repair
it may be the next piece of serviceable inventory to satisfy
demand.
3.1.37
P5.1
Inputs
Product Routings
EP.7
Item Master
EP.7
Return Regulatory
Requirements
ER.8
Sourcing Plans
P2.4
Historic Return Rates
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
Business Rules for Return
Processes
ES.1, ER.1
Actual Sales History
D1.2, D2.2, D3.3
> P5.1
Outputs
Requirements
> Return
P5.3
Revised Business Assumptions
EP.10, EP.5
Planning Data
EP.3
Delivery Plans
P4.4
Production Plans
P3.4
Supply Chain Plans
P1.4
3.1.38
P5.2
Identify, Assess, and Aggregate Return Resources
The process of identifying, evaluating, and consideration for all resources that add value to,
execute, or constrain the processes for the return of a product.
Metric
None Identified
Balance Return Resources with Return Requirements Cycle

Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Return Resources
None Identified
Best Practices
Allow Source Suppliers Full Visibility

into the Current Return Situations
and the Forecasted Return Activity
Shared supply chain forecasting and event management

functionality with Source suppliers
Joint Service Agreements with

Source Suppliers to Share
Responsibilities and Costs of
Returns
Collaborative planning tools with the Source suppliers
Rapid Reconfiguration of Return

Capacity
Use of RETURN tracking and projection systems and flexible

partner agreements that allow the rapid addition of RETURN
capacity to match unexpected demand.
3.1.39
P5.2
Inputs
Return Regulatory Requirements
ER.8
Regulatory Requirements
EP.8
Inventory Strategy
EP.4
Return Process Capabilities
EP.2
MRO Product Return Capabilities
ER.2, ER.5
Production Plans
P3.4
Planning Data
EP.3
Return Inventory Transfer Data
DR1.4, DR2.4, DR3.3, DR3.4
Outsource Plan
EP.5, EP.6
Return Process Workflow
Definiton and Policies
ER.7
Budget Constraints
EP.10
> P5.2
Outputs
Resources
> Return
P5.3
Return Inventory Targets

ER.4
Return Transportation Guidelines,
Policies and Agreements
Data About Return Capabilities
ER.3
Make/Buy Decision
EP.5
Projected Internal and External
Capacity
EP.5, EP.6
Delivery Plans
P4.4
Sourcing Plans
P2.4
Processes
ES.1, ER.1
EP.5, EP.6
3.1.40
P5.3
Balance Return Resources with Return Requirements
The process of developing courses of action that make feasible the commitment the
appropriate return resources and or assets to satisfy return requirements.
Metric
None Identified
Balance Return Resources with Return Requirements Cycle

Time
None Identified
Supply Chain Costs
Cost to Identify, Assess, and Aggregate Return Resources
None Identified
Best Practices
Advance Planning Engines Applied

to Returns
Advanced math model solvers that optimize / minimize

constraints, routing, restocking priorities and costs.
Cost Accounting System to

Determine the Best Return Process
to Follow from a Cost of Business
Perspective
ABC costing system
Dynamic Return Restocking

Management
Dynamic prioritization of restocking plans in order to rapidly

re-sell products that are in demand thus reducing new
inventory demand.
Inputs
Return Resources
P5.2
Return Requirements
P5.1
EP.1
> P5.3
Outputs
> None Identified

Improvement Plan
EP.2
3.1.41
P5.4
Establish and Communicate Return Plans
The establishment and communication of courses of action over specified time periods
that represent a projected appropriation of required return resources and or assets to meet
return process requirements.
Metric
None Identified
Establish and Communicate Return Plans Cycle Time
None Identified
Supply Chain Costs
Cost to Establish and Communicate Return Plans
None Identified
Best Practices
Rapid, Dynamic Reconfiguration of

Return Process to Meet Demand
The ability to reset and reconfigure the RETURN process

capacity, routings, etc. by transmitting new requirements
and directives using mathematical models, the Internet,
outsourcing and flexible partnership agreements. Also
requires integration with the CRM system for real time
redirection of customer returns based upon cost and capacity.
Full Internal (And External If Source

Suppliers Share in the Return
Process Responsibilities) Visibility to
Return Plans
Intranet and Extranet communications tools
Outputs
Product Return Capabilities
DR1.1, DR2.1, DR3.1
Return Plans
SR1.2, SR2.2, SR3.2,DR1.1. DR2.1,
DR3.1, ER.4, ER.5, ER.6, ER.7
Inputs
None Identified
> P5.4
Process Procedures
ER.1, ER.2, ER.8
Return Requirements
> Deliver
P4.1, P4.2
Source Return Requirements
P2.1
Return Rules and Policies
ER.1
Return Production
Requirements
P3.1
3.1.42
EP
Enable Plan
The collection of processes associated with managing and monitoring Plan process data,
performance and relationships.
Process Categories
Plan Processes
The process of establishing, maintaining, and enforcing

decision support criteria for Supply Chain Planning which
translate to rules for conducting business, i.e. developing and
maintaining customer and channel performance standards
of an entire supply chain such as service levels, given service
requirements by supply chain stakeholders/trading partners.
Business rules align PLAN process policies with business
strategy, goals, and objectives.

Supply Chain
The process of measuring actual integrated Supply Chain

performance against internal and/or external standards to
develop and implement a course of action to achieve targeted
performance levels. Performance targets established for
the execution of supply chain processes are reflected in the
process elements for PLAN, i.e. cost, delivery reliability, cycle
time, responsiveness, and assets.
The process of collecting, integrating and maintaining the

accuracy of supply chain execution information necessary
to plan the balance of supply chain resources to demand
requirements at both the highest aggregate and lowest SKU
planning levels. Each occurrence consumes time

Chain Inventory
The process of establishing total supply chain inventory

strategy and planning the total inventory limits or levels
(including Raw Material, Work In Process, Finished and
Purchased Finished Goods) including replenishment models,
ownership, product mix, and stocking locations, both inter
and intra company.

The process of defining capacity strategy (i.e. internal versus

contract manufacturing or internal versus 3rd Party Logistics)
and then acquiring, maintaining and dispositioning an
organizations capital assets to operate the integrated supply
chain.

The process of defining an integrated supply chain

transportation strategy and maintaining the information
which characterizes total supply chain transportation
requirements, and the management of transporters both inter
and intra company.
3.1.43
EP
Configuration
The process of defining and maintaining the information

about a unique supply chain network for a group of similar
or complimentary products through their full life cycle,
including the evaluation of market need, product realization
(development, introduction and production), product
discontinuation, and after-market support. This element also
includes the management of critical sub processes needed to
manage the life cycle of individual item numbers including
item masters, routings, event planning (promotions, etc.), ABC
classification, rationalization, and bill of materials.

The process of identifying and complying with regulatory

documentation and process standards set by external entities
(i.e. government, trade officials, etc.) when planning for the
integrated supply chain network.

Risk
The process of identifying, coordinating and managing

Supply Chain Risk(s) by aligning with the overall business risk
management program. Supply Chain Risk is defined as any
uncertainty that can affect the organization in a potentially
negative fashion. The Manage Supply Chain Plan Risk
enabler includes identifying the potential risk, assessing the
probabality and potential impact of the risk, and planning risk
mitigating strategies.

with Financial Plan
The process of revising the long-term supply chain capacity

and resource plans, given the inputs from the strategic and
business plans. This includes revision of not only aggregate
forecast and projections related to supply chain, source, make,
and delivery plans, but also business assumptions.
3.1.44
EP
Strategic Plan
Service Requirements
Business Plan
EP.1 !
Service Levels P4.1

Planning Decision Policies P4.1, EP.4, EP.5, EP.6, P1.3,
P2.3, P3.3, P4.3, P5.3, ED.1
Supply Chain Performance Metrics ES.4, EM.2, ED.2,

ER.2
Continuous Improvement Process
Business Plan
EP.2
Return Process Capabilities P5.2

Supply Chain Performance Improvement Plan P1.3,
P5.3
Supply Chain Execution Data
EP.3 !
Planning Data P1.1, P1.2, P2.1, P2.2, P3.1, P3.2, P4.1,

P4.2, P5.1, P5.2, EM.7

Integrated Supply Chain Inventory Information EP.4
Capacity Constraints
EP.4 !
Integrated Supply Chain Inventory Information EP.4

Inventory Strategy P1.3, P5.2
EP.5 !
Revised Business Assumptions P1.1, P5.1, ED.7

Make/Buy Decision P1.2, P5.2
Projected Internal and External Capacity P5.2
Revised Capital Plan P1.2, P5.2
Production Capacity EM.1, EM.2
Outsource Plan P1.2, P5.2


!
!
Make/Buy Decision P1.2, P5.2

Projected Internal and External Capacity P5.2
Revised Capital Plan P1.2, P5.2
Outsource Plan P1.2, P5.2
Transportation Capacity EM.1, EM.3
EP.6 !
EP.7
Item Master P2.1, P3.1, P4.1, P5.1

Product Routings EP.4, EP.5, EP.6, P2.1, P3.1, P4.1, P5.1
Bill of Materials P2.1, P3.1
EP.8 !
Regulatory Requirements P5.2
EP.9 !
Risk Management Program for Process Area

Internal Adjustments
Internal Information
Monitoring
Strategic Plan
Business Plan
!EP.10 !
Revised Business Assumptions P1.1, P5.1, ED.7

Revised Aggregate Forecast and Projections P1.1, P5.1
Budget Constraints P5.2
3.1.45
EP.1
Manage Business Rules for Plan Process
The process of establishing, maintaining, and enforcing decision support criteria for Supply
Chain Planning which translate to rules for conducting business, i.e. developing and
maintaining customer and channel performance standards of an entire supply chain such
as service levels, given service requirements by supply chain stakeholders/trading partners.
Business rules align PLAN process policies with business strategy, goals, and objectives.
Metric
None Identified
Manage Business Rules for Return Processes Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Business Rules for PLAN Processes
None Identified
Best Practices
Integrated Business and SupplyChain Planning Processes Where

Cross-Functional Input is Leveraged
to Set Business Rules
Supply Chain performance dashboard capability.
Outputs
Inputs
Strategic Plan
Business Plan
3.1.46
> EP.1
Service Levels
P4.1
> Planning Decision Policies
EP.4, EP.5, EP.6, P1.3, P2.3, P3.3,

P4.3, P5.3
EP.2
Manage Performance of Supply Chain
The process of measuring actual integrated Supply Chain performance against internal
and/or external standards to develop and implement a course of action to achieve targeted
performance levels. Performance targets established for the execution of supply chain
processes are reflected in the process elements for PLAN, i.e. cost, delivery reliability, cycle
time, responsiveness, and assets.
Metric
None Identified
Manage Performance of Supply Chain Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Performance of Supply Chain
None Identified
Best Practices
Efficient and Effective

Benchmarking Process Leveraging
Cross Industry Metrics and
Definitions
None identified
Sound Project Management

Process and Methodology
None identified
Reliable Continuous Improvement

Process and Methodology.
None identified
Manage environmental
performance
Manage environmental performance of the supply chain.
Inputs
Metrics
ES.4, EM.2, ED.2, ER.2
Continuous Improvement
Process
Business Plan
Outputs
> EP.2
Return Process Capabilities

P5.2
> Supply Chain Performance

Improvement Plan
P1.3, P5.3
3.1.47
EP.3
Manage PLAN Data Collection
The process of collecting, integrating and maintaining the accuracy of supply chain
execution information necessary to plan the balance of supply chain resources to demand
requirements at both the highest aggregate and lowest SKU planning levels. Each
occurrence consumes time.
Metric
None Identified
Manage PLAN Data Collection Cycle Time
None Identified
Supply Chain Costs
Cost to Manage PLAN Data Collection
None Identified
Best Practices
Integrated Demand and Supply

Planning - Demand Planning,
Supply Planning and especially
the Supply Plan Execution Are no
longer disconnected. All required
planning and execution data is
integrated and shared in between
all functional areas within an orga
Memory based planning systems provide one single data

model and data mart (including the business rules) for
the entire supply chain planning and execution process.
Algorithms use the business rules as the driver for the
planning engine.
Single Data Source for Decision

Support and Business Rules
A data warehouse/data mart is the source of all planning

(master) data, business rules and transaction data. Analyzing
tools enable the ongoing maintenance and improvement of
the business rules based on actual data.
Inputs
Supply Chain Execution Data
3.1.48
Outputs
> EP.3
Data
> Planning
P1.1, P1.2, P2.1, P2.2, P3.1, P3.2,
P4.1, P4.2, P5.1, P5.2, EM.7
EP.4
Manage Integrated Supply Chain Inventory
The process of establishing total supply chain inventory strategy and planning the
total inventory limits or levels (including Raw Material, Work In Process, Finished and
Purchased Finished Goods) including replenishment models, ownership, product
mix, and stocking locations, both inter and intra company.
Metric
Forecast Accuracy
Manage Integrated Supply Chain Inventory Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Integrated Supply Chain Inventory
None Identified
Best Practices
Capability to Run Multiple

Simulated Full-Stream Supply/
Demand Balancing Against LongTerm Capacity Plans and Scenarios
Supply Chain modeling capabilities, i.e. Advanced Planning

Systems.
Inputs
Product Routings
EP.7
Integrated Supply Chain
Inventory Information
EP.4
EP.1
Outputs
> EP.4
>

Inventory Information
EP.4
Inventory Strategy
P1.3, P5.2
Sourcing Plans
P2.4
3.1.49
EP.5
Manage Integrated Supply Chain Capital Assets
The process of defining capacity strategy (i.e. internal versus contract manufacturing or
internal versus 3rd Party Logistics) and then acquiring, maintaining and dispositioning an
organizations capital assets to operate the integrated supply chain.
Metric
Forecast Accuracy
Manage Integrated Supply Chain Capital Assets Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Integrated Supply Chain Capital Assets
None Identified
Best Practices
Alignment of Strategic and Business

Plans with Long-Term Capacity and
Resource Planning
None identified
Use of Cross Functional Teams to

Execute the Process of Developing
Long-Term Capacity and Resource
Plans
None identified
Factor environmental considerations

into planning
Factor environmental considerations/restrictions into capacity

planning

Simulated Full-Stream Supply/
Demand Balancing Against LongTerm Capacity Plans and Scenarios
Supply Chain modeling capabilities, i.e. Advanced Planning

Systems.
Outputs
P1.1, P5.1, ED.7
Make/Buy Decision
P1.2, P5.2
Inputs
Product Routings
EP.7
EP.1
> EP.5
>

Capacity
P5.2
P1.2, P5.2
Production Capacity
EM.1, EM.2
Outsource Plan
P1.2, P5.2
3.1.50
EP.6
Manage Integrated Supply Chain Transportation
The process of defining an integrated supply chain transportation strategy and maintaining
the information which characterizes total supply chain transportation requirements, and the
management of transporters both inter and intra company.
Metric
Forecast Accuracy
Manage Integrated Supply Chain Transportation Cycle

Time
None Identified
Supply Chain Costs
Cost to Manage Integrated Supply Chain Transportation
None Identified
Best Practices
Considerations emissions in
transportation decisions
Integrate environmental emissions considerations

to transportation decisions. Feature: Implement
Environmental Management System
Alignment of Strategic and Business

Plans with Long-Term Capacity and
Resource Planning
None identified
Capability to Run Simulated FullStream Supply/Demand Balancing for

What-If Scenarios
Supply chain modeling and visualization system
Use of Cross Functional Teams to

Execute the Process of Developing
Long-Term Capacity and Resource Plans
None identified
Outputs
Make/Buy Decision
P1.2, P5.2
Inputs
Product Routings
EP.7
EP.1
> EP.6

Capacity
P5.2
Capital Plan
> Revised
P1.2, P5.2
Outsource Plan
P1.2, P5.2
Transportation Capacity
EM.1, EM.2
3.1.51
EP.7
Manage Planning Configuration
The process of defining and maintaining the information about a unique supply chain
network for a group of similar or complimentary products through their full life cycle,
including the evaluation of market need, product realization (development, introduction
and production), product discontinuation, and after-market support. This element also
includes the management of critical sub processes needed to manage the life cycle of
individual item numbers including item masters, routings, event planning (promotions,
etc.), ABC classification, rationalization, and bill of materials.
Metric
Forecast Accuracy
Manage Planning Configuration Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Planning Configuration
None Identified
Best Practices
New Items Introductions Are part of the

Sales and Operations Planning Process
at the General Management Business
Team Level
None identified
Use of Platform Teams in the New

Product Development Process
None identified
Incorporates leading practices such

as Efficient Consumer Response,
Collaborative Planning, Forecasting,
and Replenishment, Vendor Managed
Inventory, and real time point of
consumption reporting.
None Identified
SKU Rationalization
None identified
ABC Classification
None identified
Material content classification
Material content classification (HAZMAT recycleable, etc.)
Outputs
Inputs
None Identified
Item Master
P2.1, P3.1, P4.1, P5.1
> EP.7
Routings
> Product
EP.4, EP.5, EP.6, P2.1, P3.1, P4.1,
P5.1
Bill of Materials
P2.1, P3.1
3.1.52
EP.8
Manage PLAN Regulatory Requirements and Compliance
The process of identifying and complying with regulatory documentation and process
standards set by external entities (i.e. government, trade officials, etc.) when planning for
the integrated supply chain network.
Metric
Number of notices of violation received
Supply chain down time due to compliance issues
None Identified
Supply Chain Costs
Environmental Compliance Cost,

Cost to Manage Plan Regulatory Requirements and
Compliance,
Environmental non-compliance cost
None Identified
Best Practices
Monitor supplier environmental

compliance
Determine supplier environmental compliance performance/

Actively participate in regulation development

(EMS)
Implement an Environmental Management System (EMS) to

track and manage environmental performance and to track
performance against regulatory requirements
Inputs
None Identified
> EP.8
Outputs
Requirements
> Regulatory
P5.2
3.1.53
EP.9
Process Element: Manage Supply Chain Plan Risk
The process of identifying, coordinating and managing Supply Chain Risk(s) by aligning
with the overall business risk management program. Supply Chain Risk is defined as
any uncertainty that can affect the organization in a potentially negative fashion. The
Manage Supply Chain Plan Risk enabler includes identifying the potential risk, assessing
the probability and potential impact of the risk, and planning risk mitigating strategies.
This requires analysis and coordination with the assessment and mitigating activities of
the other process areas (S, M, D, R) as it relates to Supply side, Demand side, Internal, and
External Supply Chain Risks.
Metric
None Identified
None Identified
Industry Benchmark Comparison (%),

Options Rating (0-100%),
Hedge Rating (Inventory DOS for risk management)
Supply Chain Costs
Assessment / Risk Management Costs ($),

Mitigation Cost ($),
Mitigation cost by Event ($)
Residual Risk ($),

Mitigated Risk ($),
Individual Process Area Event Rating (EVAR) ($),
Supply / Customer / Product Base Rated (%),
Event Risk (EVAR) ($),
Gross Risk ($)
Best Practices
Supply Chain Network Configured

to Mitigate Risk
This practice relies on a risk evaluation of the supply chain to

guide the design of the supply chain network. Node locations,
transportation routes, capacity size and location, number
of suppliers, number of production locations, etc. are all
determined in a fashion that mitigates potential disruptions to
the ability to deliver product and service to the end customer.
This practice relies on the information collected through risk
identification and risk assessment processes to identify nodes
that are at a high risk of disruption due to the location of the
node. Location specific risks can include tactical strike risks,
natural disaster risks, single point of failure risks, etc.
3.1.54
EP.9
Supply Chain Business Rules

Configured to mitigate risk
This practice involves establishing business rules (e.g.,

customer priority, supplier priority, production routing,
transportation routing, etc.) based on minimizing the risk
to the supply chain. Under this practice, business rules are
established or configured in response to the corporate
risk management plan with a goal of reducing either the
likelihood of a disruption occurring or the impact to the
supply chain should a disruption occur.
Business rule reconfiguration typically includes an assessment
of the impact of each rule change on the overall supply chain
before actual implementation.
Supply Chain Risk Identification
A key aspect of supply chain risk management is

identification. Identification involves creating a list of potential
events that could harm any aspect of the supply chains
performance. Risk identification allows an organization to take
steps to create plans to manage risks before they occur. this is
typically more cost effective then waiting to react to adverse
events when they occur.
Supply Chain Information

Configured to Minimize Risk
This practice involves managing supply chain information

networks to minimize the risk to the supply chain. This
includes information sharing with partners as well as internal
locations. This helps all parties to be quickly informed of a real
or potential disruption and respond quickly and appropriately
to minimize the disruption impact.
Supply Chain Risk Assessment
Supply Chain Risk assessment provides management with an

understanding of where the greatest risks may exist in order
to prioritize resources for risk mitigation and management.
Performing such assessments will involve clarifying the nature
of the risk, understanding conditions that may lead to the
event, knowing how frequently such events have happened or
can be expected to happen, and the potential impact of such
events. the team can then prioritize addressing the risks.
Supply Chain Risk Management
Supply chain risk management is the systematic identification,

assessment and mitigation of potential disruptions in logistics
networks with the objective to reduce their negative impact
on the logistics networks performance.
Supply Chain Risk Monitoring
Once areas of risk have been identified, an organization needs

to monitor their internal and external environment. This helps
them to predict when risky events are becoming more likely. It
also helps to identify new risks and is tightly linked to the best
practice of Supply Chain Risk Identification.
3.1.55
EP.9
Crisis Communications Planning
Open communication is necessary for effective risk

management, where the term open refers to the possibility
to directly reach the right person who can better handle
the information about a crisis situations wherever in the
organization.
Managers require direct communication channels up, down
and across their business units to help identify risks and take
appropriate actions.
Inputs
Monitoring
3.1.56
Outputs
> EP.9
Management Program for

> Risk
Process Area
EP.10
Align Supply Chain Unit Plan with Financial Plan
The process of revising the long-term supply chain capacity and resource plans, given the
inputs from the strategic and business plans. This includes revision of not only aggregate
forecast and projections related to supply chain, source, make, and delivery plans, but also
business assumptions.
Metric
None Identified
Align Supply Chain Unit Plan with Financial Plan Cycle

Time
None Identified
Supply Chain Costs
Cost to Align Supply Chain Unit Plan with Financial

Plan
None Identified
Best Practices
Re-Planning Process Links the Supply Chain

Operation with the Business Strategy and
the Marketing Strategy
None identified
Re-Planning Process Exists in Multi-Levels

of the Supply-Chain between Business
Enterprises
Business to business Internet capability to share

common data.
Strategic Sales and Operations Planning

Process in Place and Managed at the
Executive Level
None identified
Outputs
Inputs
Strategic Plan
Business Plan

P1.1, P5.1, ED.7
> EP.10
Aggregate Forecast
> Revised
and Projections
P1.1, P5.1
Budget Constraints
P5.2
3.1.57
3.1.58
S
Source
The processes associated with ordering, delivery, receipt and transfer of raw material items,
subassemblies, product and/or services.
Process Categories
The process of ordering, receiving and transferring raw material items,

sub-assemblies, product and or services based on aggregated demand
requirements. The intention of Source-to-Stock is to maintain a predetermined level of inventory for these materials, sub-assemblies or
products. No customer reference or customer order detail is exchanged
with the supplier, attached to or marked on the product, or recorded in
the warehousing or ERP system for Source-to-Stock products. Examples
of alternative or related names for Source-to-Stock are: replenishment
inventory, drip parts, kan-ban, andon, and bulk or generic stock.
S2: Source Make-to-Order

Product
The processes of ordering and receiving product or material that is

ordered (and may be configured) only when required by a specific
customer order. The intention of Source-to-Order is to maintain
inventory ordered (and/or configured) specifically for customer
orders only. The product is ordered, received and identified in stock
using this customer order reference (order designated inventory).
The product is typically identifiable throughout the sourcing process,
by the reference to the customer order attached to or marked on the
product or packaging and in the warehouse management or ERP
system. Examples of alternative or related names for Source-to-Order
are: purchase-to-order, special ordering (retail industry), kitting and line
sequencing (manufacturing industries).
S3: Source Engineer-toOrder Product
The processes of identifying and selecting sources of supply,

negotiating, validating, scheduling, ordering and receiving parts,
assemblies or specialized products or services that are designed,
ordered and/or built based on the requirements or specifications of a
specific customer order.
ES: Enable Source
The collection of processes associated with managing and monitoring

Source process data, performance and relationships
3.2.1
S1
Source Stocked Product
The process of ordering, receiving and transferring raw material items, sub-assemblies,
product and or services based on aggregated demand requirements. The intention of
Source-to-Stock is to maintain a pre-determined level of inventory for these materials, subassemblies or products. No customer reference or customer order detail is exchanged with
the supplier, attached to or marked on the product, or recorded in the warehousing or ERP
system for Source-to-Stock products. Examples of alternative or related names for Sourceto-Stock are: replenishment inventory, drip parts, kan-ban, andon, and bulk or generic stock.
Metric
None Identified
Source Cycle Time,

None Identified
Supply Chain Costs
Cost to Source,
Product Acquisition Costs

Inventory Days of Supply (Raw Material)
Best Practices
Utilize green purchasing practices
3.2.2
S1
Sourcing Plans P2.4
Replenishment Signal M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
DR3.4
Supplier Performance ES.2
Logistics Selection ES.6
Production Schedule M1.1, M2.1, M2.2, M3.2
! S1.1 !
Product On Order P2.2, ES.10

Scheduled Receipts S1.2, S3.4, M1.1, M2.1, M3.2, D1.8,
D4.2
Procurement Signal (Supplier)
MRO Products DR2.4

Product D1.13, D2.13, D3.13
Defective Products DR1.4
Scheduled Receipts S1.1, S2.1, S3.3
Excess Products DR3.4
Return Production uirements P3.1, P5.4
! S1.2 !
Receipt Verification ES.1, ES.2, ES.6, ES.8, S1.3, S1.4,

S2.3, S2.4, S3.5, S3.6, ED.8
Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
! S1.3 !
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Product Inventory Location ES.4

Finished Goods Inventory Location ED.4
Receipt Verification S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
D3.3
WIP Inventory Location EM.6
! S1.4 !
Exising Inventory Data ES.4, ED.4

Loaded Retail Cart or Pallet D4.4
Transferred Product S1.5, S2.5, S3.7
Inventory Availability P2.2, P3.2, ES.4, M1.2, M2.2, M3.3,
D1.3, D1.8, D1.9, D2.3, D2.9, D3.9, D4.2, D4.3
Daily Replenishment Requirements D4.1

Payment Terms ES.10
! S1.5
3.2.3
S1.1
Schedule Product Deliveries
Scheduling and managing the execution of the individual deliveries of product against an
existing contract or purchase order. The requirements for product releases are determined
based on the detailed sourcing plan or other types of product pull signals.
Metric
% Schedules Changed within Suppliers Lead Time
Average Release Cycle of Changes,

Average Days per Engineering Change,
Schedule Product Deliveries Cycle Time,
Average Days per Schedule Change
None Identified
Supply Chain Costs
Cost to Schedule Product Deliveries,

Quantity per shipment
None Identified
Best Practices
Bundle deliveries
Bundle deliveries of different products into single shipment

when possible
Infrequent product delivery
Minimize need for frequent shipments by accurately

determining product needs
Mechanical (Kanban) Pull Signals

Are Used to Notify Suppliers of the
Need to Deliver Product
Electronic Kanban support
Supplier managed inventories with

scheduling interfaces to external
supplier systems
VMI agreements allow suppliers to manage (replenish)

inventory
Utilize EDI Transactions to Reduce

Cycle Time and Costs
EDI interface for 830, 850, 856 & 862 transactions
Advanced Ship Notices Allow for

Tight Synchronization between
Source and Make Processes
Blanket order support with scheduling interfaces to external

supplier systems
Consignment Agreements Are Used

to Reduce Assets and Cycle Time
While Increasing the Availability of
Critical Items
Consignment inventory management
3.2.4
S1.1
Inputs
Sourcing Plans
P2.4
Replenishment Signal
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
Outputs
> S1.1
Product On Order
P2.2, ES.10
> Scheduled Receipts

DR1.4, DR2.4, DR3.3, DR3.4
S1.2, S3.4, M1.1, M2.1, M3.2,

D1.8, D4.2
Supplier Performance
ES.2
Logistics Selection
ES.6
Production Schedule
M1.1, M2.1, M2.2, M3.2
3.2.5
S1.2
Receive Product
The process and associated activities of receiving product to contract requirements.
Metric
% Orders/ Lines Processed Complete,

% Orders/ Lines Received On-Time To Demand Requirement,
% Orders/ Lines Received with Correct Shipping Documents,
% Orders/ lines received with correct packaging
Receiving Product Cycle Time
None Identified
Supply Chain Costs
Cost to Receive Product
None Identified
Best Practices
Deliveries Are Balanced Throughout

Each Working Day and Throughout
the Week
None identified

levels.
Supplier Delivers Directly to Point

of Use
Electronic Tag tracking to Point of Use (POU) destination
Bar Coding is Used to Minimize

Handling Time and Maximize Data
Accuracy
t
t
t
t
Supplier Certification Programs

Are Used to Reduce (Skip Lot) or
Eliminate Receiving Inspection
Skip lot/sampling inspection logic
Carrier Agreement
Carrier agreements are agreements between a company

and its domestic and global carriers (for both, inbound raw
materials and outbound finished goods) specifying service
levels, payment terms, and other conditions.
3.2.6
Bar code interface for data collection devices.

Generate bar coded receiving documents.
Product serial number used as identifier.
RFID
S1.2
Inputs
MRO Products
DR2.4
Product
D1.13, D2.13, D3.13
Defective Products
DR1.4
> S1.2
Outputs
Verification
> Receipt
ES.1, ES.2, ES.6, ES.8,S1.3, S1.4,
S2.3, S2.4, S3.5, S3.6
Scheduled Receipts
S1.1, S2.1, S3.3
Excess Products
DR3.4
3.2.7
S1.3
Verify Product
The process and actions required determining product conformance to requirements and
criteria.
Metric
% Orders/ Lines Received Defect Free,

% Orders/ lines received with correct content
None Identified
Supply Chain Costs
Cost to Verify Product
None Identified
Best Practices
Supplier Replaces Defective

Material at Customers Facility with
Good Product as Required

Monitor product compliance
Review product for compliance with environmental

specifications, including product packaging

the Week
None identified

of Use

Accuracy
t
t
t
t
Inputs
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
3.2.8
Bar code interface for data collection devices

Generate bar coded receiving documents
RFID
> S1.3
Outputs
> Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
S1.4
Transfer Product
The transfer of accepted product to the appropriate stocking location within the supply
chain. This includes all of the activities associated with repackaging, staging, transferring
and stocking product. For service this is the transfer or application of service to the final
customer or end user.
Metric
% Product Transferred On-Time to Demand Requirement,

% Product Transferred without Transaction Errors
None Identified
Supply Chain Costs
Energy Costs,
Cost to Transfer Product,
Product Packaging costs,
% of vehicle fuel derived from alternative fuels,
Packaging purchases,
Best Practices
Drive Deliveries Directly to Stock or

Point-Of-Use in Manufacturing to
Reduce Costs and Cycle Time
Pay on receipt. Specify delivery location and time (to the

minute).Specify delivery sequence
Implement pollution prevention

program
Implement rigorous and comprehensive pollution prevention

program and include environmentally preferable purchasing
Utilize alternative fuel vehicles
Utilize high efficiency vehicles
Utilize high fuel efficiency vehicles
Capability Transfer to Organization
None identified
3.2.9
S1.4
Outputs
Inputs
Exising Inventory Data

ES.4, ED.4
Product Inventory Location

ES.4
Finished Goods Inventory
Location
ED.4
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
3.2.10
Loaded Retail Cart or Pallet

D4.4
> S1.4
Transferred Product
S1.5, S2.5, S3.7
> Inventory Availability
P2.2, P3.2, ES.4, M1.2, M2.2,

M3.3, D1.3, D1.8, D1.9, D2.3,
D2.9, D3.9, D4.2, D4.3
Daily Replenishment
Requirements
D4.1
S1.5
Authorize Supplier Payment
The process of authorizing payments and paying suppliers for product or services. This
process includes invoice collection, invoice matching and the issuance of checks.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Authorize Supplier Payment
None Identified
Best Practices
Pay on Receipt
Electronic Invoice Processing
Inputs
Transferred Product
S1.4, S2.4, S3.6
Payment Terms
ES.10
> S1.5
Outputs
> None Identified
3.2.11
S2
Source Make-to-Order Product
The processes of ordering and receiving product or material that is ordered (and may be
configured) only when required by a specific customer order. The intention of Source-toOrder is to maintain inventory ordered (and/or configured) specifically for customer orders
only. The product is ordered, received and identified in stock using this customer order
reference (order designated inventory). The product is typically identifiable throughout
the sourcing process, by the reference to the customer order attached to or marked on
the product or packaging and in the warehouse management or ERP system. Examples of
alternative or related names for Source-to-Order are: purchase-to-order, special ordering
(retail industry), kitting and line sequencing (manufacturing industries).
Metric

Source Cycle Time
None Identified
Supply Chain Costs
Product Acquisition Costs,

Cost to Source
Inventory Days of Supply (Raw Material),

Best Practices
Automated Statistical Process

Control (SPC)
None identified
3.2.12
S2
D3.3
DR3.4
Source Execution Data M2.2
Sourcing Plans P2.4
! S2.1 !

D4.2
Defective Products DR1.4

Excess Products DR3.4
MRO Products DR2.4
Product D1.13, D2.13, D3.13
! S2.2 !

S2.3, S2.4, S3.5, S3.6, ED.8
! S2.3 !

D3.3
! S2.4 !

D1.3, D1.8, D1.9, D2.3, D2.9, D3.9, D4.2, D4.3
Existing Inventory Data ES.4, ED.4

Payment Terms ES.10
! S2.5
3.2.13
S2.1
Scheduling and managing the execution of the individual deliveries of product against the
contract. The requirements for product deliveries are determined based on the detailed
sourcing plan. This includes all aspects of managing the contract schedule including
prototypes, qualifications or service deployment.
Metric

Average Days per Schedule Change,
Schedule Product Deliveries Cycle Time
None Identified
Supply Chain Costs
Cost to Schedule Product Deliveries,

None Identified
Best Practices
Utilize EDI Transactions to Reduce

Cycle Time and Costs
Mechanical (Kanban) Pull Signals

Are Used to Notify Suppliers of the
Need to Deliver Product

Consignment Agreements Are Used

to Reduce Assets and Cycle Time
While Increasing the Availability of
Critical Items
Bundle deliveries
Bundle deliveries of different products into single shipment

when possible
Advanced Ship Notices Allow for

Tight Synchronization between
Blanket order support with scheduling interfaces to external

supplier systems

levels.
3.2.14
S2.1
Inputs
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
Production Schedule
M1.1, M2.1, M2.2, M3.2
DR1.4, DR2.4, DR3.3, DR3.4
Source Execution Data
M2.2
Outputs
> S2.1
Product On Order
P2.2, ES.10
> Procurement Signal (Supplier)

Scheduled Receipts
S1.2, S3.4, M1.1, M2.1, M3.2,
D1.8, D4.2
Sourcing Plans
P2.4
Logistics Selection
ES.6
ES.2
3.2.15
S2.2
Process Element: Receive Product
Metric
% Orders/ Lines Received On-Time To Demand

Requirement,
% Orders/ lines received with correct packaging,
% Orders/ Lines Received with Correct Shipping
Documents
None Identified
Supply Chain Costs
None Identified
Best Practices

Accuracy
t
t
t
t

which the supplier has access to the customers inventory
data and is responsible for maintaining the inventory level
required by the customer. Re-supply is performed by the
vendor through regularly scheduled reviews of the on-site
inventory. The on-site inventory is counted, damaged
or outdated goods are removed, and the inventory is
restocked to predefined levels.
Supplier Certification Programs Are

Used to Reduce (Skip Lot) or Eliminate
Receiving Inspection

Each Working Day and Throughout the
Week
None identified
Supplier Delivers Directly to Point of

Use
3.2.16

RFID
S2.2
Inputs
Defective Products
DR1.4
Excess Products
DR3.4
MRO Products
DR2.4
> S2.2
Outputs
Verification
> Receipt
ES.1, ES.2, ES.6, ES.8, S1.3, S1.4,
S2.3, S2.4, S3.5, S3.6, ED.8
Product
D1.13, D2.13, D3.13
3.2.17
S2.3
Verify Product
criteria.
Metric
% Orders/ Lines Received Defect Free,

% Orders/ lines received with correct content
None Identified
Supply Chain Costs
None Identified
Best Practices

the Week
None identified

of Use


Material at Customers Facility with
Good Product as Required


Accuracy
t
t
t
t

of Use
Inputs
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
3.2.18

RFID
> S2.3
Outputs
Verification
> Receipt
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
S2.4
Transfer Product
chain. This includes all of the activities associated with repackaging, staging, transferring,
and stocking product and or application of service.
Metric
% Product Transferred On-Time to Demand Requirement,

% Product Transferred without Transaction Errors
None Identified
Supply Chain Costs
Energy Costs,
Cost to Transfer Product
Best Practices

program



Capability Transfer to Customer
None identified
Inputs
Location
ED.4
WIP Inventory Location
EM.6
M1.2, M2.2, M3.3, D1.3, D2.3, D3.3
ES.4
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Outputs
> S2.4
P2.2, P3.2, ES.4, M1.2, M2.2,
M3.3, D1.3, D1.8, D1.9, D2.3,
D2.9, D3.9, D4.2, D4.3
> Transferred Product

S1.5, S2.5, S3.7
Existing Inventory Data

ES.4, ED.4
3.2.19
S2.5
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices
Pay on Receipt
Inputs
Transferred Product
S1.4, S2.4, S3.6
Payment Terms
ES.10
3.2.20
> S2.5
Outputs
> None Identified
S3
Source Engineerto-Order Product
The processes of identifying and selecting sources of supply, negotiating, validating,
scheduling, ordering and receiving parts, assemblies or specialized products or services that
are designed, ordered and/or built based on the requirements or specifications of a specific
customer order.
Metric
None Identified

Source Cycle Time
None Identified
Supply Chain Costs
Cost to Source,
Product Acquisition Costs

Inventory Days of Supply (Raw Material)
Best Practices
3.2.21
S3
Business Rules for Source Processes ES.1
Sourcing Plans P2.4
Supplier Data ES.7
Current Inventory Source Data ES.3
ETO Spec or Design
! S3.1 !
ETO Request for Proposal

Supplier Data ES.7
ETO Proposal
! S3.2 !

Supplier Agreement ES.10, ES.5, ES.7, S3.3, EM.6

D3.3
Supplier Agreement ES.10, S3.2
DR3.4
Sourcing Plans P2.4
! S3.3 !

D4.2
Product D1.13, D2.13, D3.13

! S3.4 !

S2.3, S2.4, S3.5, S3.6, ED.8
! S3.5 !

D3.3
Receipt Verification S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5
! S3.6 !

Payment Terms ES.10
! S3.7
3.2.22

D1.3, D1.8, D1.9, D2.3, D2.9, D3.9, D4.2, D4.3
Existing Inventory Data ES.4
S3.1
Identify Sources of Supply
The identification and qualification of potential suppliers capable of designing and
delivering product that will meet all of the required product specifications.
Metric
% of suppliers with an EMS or ISO 14001 certification
Identify Sources of Supply Cycle Time
None Identified
Supply Chain Costs
Cost to Identify Sources of Supply
% of material that has a valid Take-back program,

% of materials that are recyclable/ reusable
Best Practices
Product Data Management & Electronic

Document Management Are Used to
Manage Technical Documents and
Requirements for Engineer to Order Product
None identified
Electronic Data Interchange is Used to Send

Technical Information to and from Potential
Suppliers
None identified
On Line RFQ Processes Linked into the

Document Management Process Reduces
Cycle Time and Product Management Costs
None identified
Purchase recycled product
Purchase products from recyclers or remanufactures
Concurrent Engineering is Used to Tightly

Link Sourcing into the Product Development
Process Make/Buy Decision Process
(Outsourcing vs. In Sourcing)
None identified
Purchase previously used supplies
Supplier Development Programs Are

Used to Get Local Suppliers to Invest in
Developing New Technologies
None identified
3.2.23
S3.1
Inputs
Business Rules for Source
Processes
ES.1
Sourcing Plans
P2.4
Supplier Data
ES.7
> S3.1
> ETO RequestOutputs

for Proposal
Current Inventory Source Data

ES.3
ETO Spec or Design
3.2.24
S3.2
Select Final Supplier (s) and Negotiate
The identification of the final supplier(s) based on the evaluation of RFQs, supplier
qualifications and the generation of a contract defining the costs and terms and conditions
of product availability.
Metric
% of suppliers with an EMS or ISO 14001 certification
Select Supplier and Negotiate Cycle Time
None Identified
Supply Chain Costs
Cost to Select Final Supplier(s) and Negotiate
None Identified
Best Practices
Select firms with EMS
Select firms that have implemented an EMS
Utilize Concurrent Engineering with

Suppliers to Allow Them to Provide
Engineering and Product Performance Test
Data
None identified
Select ISO 14001 firms
Select firms that are ISO 14001 certified or similar
Product take-back programs
Select firms that offer product take-back programs
On Line Document Management and

Automated Supplier Approval Processes Can
Reduce the Cycle Time and Costs Associated
With Managing Supplier Evaluations and Get
Them into the Supplier Network Faster
ERP
Electronic Data Interchange Can Be Used

To Send Rfqs and Technical Information to
and from Potential Suppliers to Determine
Supplier Capability to Fulfill Requirements So
that They May Be Added to Supplier Network
Electronic Data Interchange
Supplier Certification Programs Can Reduce

the Cycle Time for Certifying Existing
Suppliers to Provide New Technologies
None identified
On Line RFQ Processes Linked into the

Document Management Process Reduces
Cycle Time and Product Management Costs
None identified
On-Line Availability to Supplier Financials to

Determine Potential Supplier Viability to be
Added to Supplier Network
Internet web sites for financial evaluation
3.2.25
S3.2
Inputs
Processes
ES.1
Supplier Data
ES.7
ES.3
> S3.2
Outputs
> Procurement Signal (Supplier)

Supplier Agreement
ES.10, ES.5, ES.7, S3.3, EM.6
ETO Proposal
3.2.26
S3.3
Scheduling and managing the execution of the individual deliveries of product against the
contract. The requirements for product deliveries are determined based on the detailed
sourcing plan. This includes all aspects of managing the contract schedule including
prototypes and qualifications.
Metric

Schedule Product Deliveries Cycle Time,
Average Days per Schedule Change
None Identified
Supply Chain Costs
Quantity per shipment,

Cost to Schedule Product Deliveries
None Identified
Best Practices
Mechanical (Kanban) Pull Signals Are Used

to Notify Suppliers of the Need to Deliver
Product

Bundle deliveries
Bundle deliveries of different products into single

shipment when possible
Utilize EDI Transactions to Reduce Cycle Time

and Costs
Advanced Ship Notices Allow for Tight

Synchronization between Source and Make
Processes
Blanket order support with scheduling interfaces to

external supplier systems
Consignment Agreements Are Used to

Reduce Assets and Cycle Time While
Increasing the Availability of Critical Items
3.2.27
S3.3
Inputs
Logistics Selection
ES.6
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
Supplier Agreement
ES.10, S3.2
DR1.4, DR2.4, DR3.3, DR3.4
ES.2
Outputs
> S3.3
>
Scheduled Receipts
S1.2, S3.4, M1.1, M2.1, M3.2,
D1.8, D4.2
Product On Order
P2.2, ES.10
Sourcing Plans
P2.4
Production Schedule
M1.1, M2.1, M2.2, M3.2
3.2.28
S3.4
Receive Product
Metric

% Orders/ Lines Received with Correct Shipping Documents,
% Orders/ lines received with correct packaging,
% Orders/ Lines Received On-Time To Demand Requirement
None Identified
Supply Chain Costs
None Identified
Best Practices

of Use - (Dock to Line or End
Destination)

Accuracy
t
t
t
t
Deliveries Are Balanced

Throughout Each Working Day and
Throughout the Week
None identified
VMI is a concept for planning and control of inventory, in which

the supplier has access to the customers inventory data and
is responsible for maintaining the inventory level required by
the customer. Re-supply is performed by the vendor through
regularly scheduled reviews of the on-site inventory. The onsite inventory is counted, damaged or outdated goods are
removed, and the inventory is restocked to predefined levels.

Carrier Agreement


RFID
3.2.29
S3.4
Inputs
Product
D1.13, D2.13, D3.13
Scheduled Receipts
S1.1, S2.1, S3.3
3.2.30
Outputs
> S3.4
ES.2, ES.6, ES.8, S1.3, S1.4,

> ES.1,
S2.3, S2.4, S3.5, S3.6, ED.8
S3.5
Verify Product
criteria.
Metric
% Orders/ lines received with correct content,

% Orders/ Lines Received Defect Free
None Identified
Supply Chain Costs
None Identified
Best Practices

Supplier Replaces Defective Material

at Customers Facility with Good
Product as Required

the Week
None identified

Accuracy
t
t
t
t

of Use

Inputs
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5

RFID
> S3.5
Outputs
> Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
3.2.31
S3.6
Transfer Product
chain. This includes all of the activities associated with repackaging, staging, transferring,
and stocking product.
Metric
% Product Transferred without Transaction Errors,

% Product Transferred On-Time to Demand Requirement
None Identified
Supply Chain Costs
Cost to Transfer Product,

Energy Costs
Best Practices



program

Capability Transfer to Organization
None identified
Inputs
ES.4
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3
Location
ED.4
EM.6
Outputs
> S3.6
>
P2.2, P3.2, ES.4, M1.2, M2.2,
M3.3, D1.3, D1.8, D1.9, D2.3,
D2.9, D3.9, D4.2, D4.3
ES.4
Transferred Product
S1.5, S2.5, S3.7
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5
3.2.32
S3.7
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices
Pay on Receipt
Inputs
Transferred Product
S1.4, S2.4, S3.6
Payment Terms
ES.10
> S3.7
Outputs
> None Identified
3.2.33
ES
Enable Source
The collection of processes associated with managing and monitoring Source process data,
Process Categories
Rules
The process of defining requirements and establishing,

maintaining and enforcing decision support criteria, in
alignment with business strategy, goals and objectives. The
business strategy defines the criteria for sourcing business
rules that are translated into guidelines and policies for
conducting business within the enterprise and other legal
entities. Sourcing business rules include: supplier selection and
negotiation processes, fulfillment and delivery performance
and relationship definition for specific levels of collaboration
and partnership.
The process of measuring actual supplier performance against

internal and/or external standards, providing feedback to
achieve and maintain the performance required to meet the
customers business and/or competitive needs
The process of collecting, sorting, defining hierarchy and

managing configuration control of supplier information and
source data that are required to make sourcing and related
planning and manufacturing decisions. Source data to be
maintained includes supplier profile data, financials, quality
and delivery performance, spend analysis at various levels
of the enterprise, from major business units to material part
number
The process of establishing and maintaining physical

inventories and inventory information. This includes
warehouse management, cycle counting, physical inventories
and inventory reconciliation. For Services, this may include
tracking the number of service providers and the financial
resources committed at any given point in time.
The process of acquiring, maintaining and dispositioning an

organizations capital assets located at a suppliers facility and/
or outside source, which are used to operate the supply chain.
The process of defining and maintaining the information that

characterizes inbound logistics management of all supplier
deliveries, including both physical and electronic goods and
services. This includes carrier selection and management,
tracking deliveries and import
3.2.34
ES
The process of defining and maintaining a unique network

of suppliers to deliver a specific product set. This includes
establishment of a new supplier or maintaining an existing
supplier and all the tasks and activities associated with
identifying and qualifying the supplier and finalizing on the
sourcing terms and conditions. Also, the management of
a supplier certification process, which includes certifying
new suppliers and maintaining the current status of existing
suppliers.

Requirements
The process of identifying and complying with import/export

regulatory documentation and process standards set by
external entities (eg, government).

Risk
The process of managing Source risks within an overall Supply

Chain Risk Program. This includes identifying and assessing
Source risks as well as planning and implementing responses
to Source risks. Source risks include potential events that could
impact the organizations or the supplierss ability to deliver
raw material in a timely manner at a reasonable cost with
acceptable quality. Risk Management includes: migration,
either reduicing the impact of a risk event of reducing the
likelihood of its occurrence.

Agreements
The management of existing purchase orders or supplier

contracts. This includes managing volume/step pricing,
resolving issues, enforcing terms and conditions and
maintaining an accurate status for existing purchase orders or
contracts.
3.2.35
ES
Business Rules for Return Processes P5.1, P5.2, ES.7,
SR1.1, SR2.1, SR3.1,DR1.1, DR2.1, DR3.1, ER.4, ER.5, ER.7,
ER.8
Business Rules for Source Processes ES.4, S3.1, S3.2
Supplier Data ES.7

ES.1
Supplier Data ES.7

ES.2 !
Quality and Delivery Performance

Supplier Performance ES.7, S1.1, S2.1, S3.3
Supplier Data ES.7

Sourcing Plans P2.4
Quality & Delivery Peformance
ES.3 !
Quality and Delivery Performance
Existing Inventory Data S1.4, S2.4. S3.6, D1.8

Sourcing Plans P2.4
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Parts and Services Consumed EM.5
ES.4
Product Inventory Location S1.4, S2.4, S3.6

Product Inventory Target Levels P2.2
MRO Parts Availability EM.5
Supply Chain Performance Metrics EP.2, ED.1, ED.5

Import/Export Requirements ES.8
ES.5 !
Capital Assets ES.8

Contact Carrier Rates ES.8
ES.6 !
Logistics Selection S1.1, S2.1, S3.3

ES.7 !
Supplier Data ES.1, ES.10, ES.2, ES.3, S3.1, S3.2

Capital Assets ES.5
ES.8 !
Monitoring
ES.9 !

Supplier Data ES.7
Product On Order S1.1, S2.1, S3.3
! ES.10 !
3.2.36
Contract Carrier Rates ES.6, ED.6

Import/Export Requirements ES.5, ES.6, ES.10
Risk Management Programs for Process Area
Payment Terms S1.5, S2.5, S3.7

Supplier Aggrement ES.10, S3.2
ES.1
Manage Sourcing Business Rules
The process of defining requirements and establishing, maintaining and enforcing decision
support criteria, in alignment with business strategy, goals and objectives. The business
strategy defines the criteria for sourcing business rules that are translated into guidelines
and policies for conducting business within the enterprise and other legal entities. Sourcing
business rules include: supplier selection and negotiation processes, fulfillment and delivery
performance and relationship definition for specific levels of collaboration and partnership.
Metric
None Identified
Manage Sourcing Business Rules Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Sourcing Business Rules
None Identified
Best Practices
Optimized Supply-Chain Processes,

Optimized Supplier Count, Supplier
and Part Rationalization
Web based access to preferred and recommended suppliers,

supplier performance data & spend data stratified by
commodity, business unit/site, supplier, part type, process
type
Collaborative environmental
management processes
Collaborative environmental management processes with

suppliers, including EMS integration
Long Term Supplier Agreements/

Partnerships
Electronic rules for business relationships and transactions:

Vendor-managed Inventory Agreements, Fab & Hold
Agreements, Just-In-Time Agreements.
Enterprise Level Policies/Rules with

Local Execution
Web based access to enterprise level business rules
Electronic Sourcing and Negotiation
Business Rules for electronic sourcing process and hierarchy
Enterprise Level Spend Analysis
None identified
Outputs
Inputs
Supplier Data
ES.7
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5
> ES.1
>

Processes
P5.1, P5.2, ES.7, SR1.1, SR2.1,
SR3.1,DR1.1, DR2.1, DR3.1, ER.4,
ER.5, ER.7, ER.8
Processes
ES.4, S3.1, S3.2
3.2.37
ES.2
Assess Supplier Performance
The process of measuring actual supplier performance against internal and/or external
standards, providing feedback to achieve and maintain the performance required to meet
the customers business and/or competitive needs.
Metric
% of suppliers meeting environmental metrics/criteria
Assess Supplier Performance Cycle Time
None Identified
Supply Chain Costs
Cost to Assess Supplier Performance
None Identified
Best Practices
Comparative Analysis of Supplier

Performance is Used in Sourcing Decisions
Software application with data analysis capability
Supplier Cost of Nonconformance

Data is Collected, Analyzed and Used in
Performance Reporting
Software application to automate data collection and

reporting
Cost Reduction and or Cost Avoidance Are

Opportunities Are Identified, Implemented
and measured on a Periodic Basis
None identified
Supplier environmental performance criteria
Develop a set of environmental performance criteria

for all suppliers
Performance Expectations and Business

Rules Are Clearly Communicated Prior to the
Initiation of Business with the Supplier
Web based access / availability to business rules and

performance criteria
Develop supplier partnerships
Develop a partnership with suppliers to help them

implement and maintain environmentally sustainable
business practices
Supplier Performance Assessment System
Assess Supplier Performance is the process of

measuring actual supplier performance against
internal and/or external standards, providing
feedback to achieve and maintain the performance
required to meet the customers business and/or
competitive needs.
Continuous Improvement and Development

is Driven and Measured through the
Performance Review Process
None identified
3.2.38
ES.2
Carrier Agreement
Carrier agreements are agreements between a

company and its domestic and global carriers (for
both, inbound raw materials and outbound finished
goods) specifying service levels, payment terms, and
other conditions.
Inputs
Supplier Data
ES.7
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5
Outputs
> ES.2
>
Quality and Delivery

Performance
ES.7, S1.1, S2.1, S3.3
3.2.39
ES.3
Maintain Source Data
The process of collecting, sorting, defining hierarchy and managing configuration control
of supplier information and source data that are required to make sourcing and related
planning and manufacturing decisions. Source data to be maintained includes supplier
profile data, financials, quality and delivery performance, spend analysis at various levels of
the enterprise, from major business units to material part number
Metric
None Identified
Maintain Source Data Cycle Time
None Identified
Supply Chain Costs
Cost to Maintain Source Data
None Identified
Best Practices
Supplier and Material

Rationalization
Web based access to supplier/source data
Automated Update of Supplier

Performance Information
None identified
On Demand Access of Supplier/

Source Data
Web based access to current supplier/source data
Data Accessibility across the

Enterprise for Visibility by Discrete
Business Units
Web based access to various levels of enterprise data
Access to supplier environmental management and

compliance data
Inputs
Supplier Data
ES.7
Sourcing Plans
P2.4
Quality & Delivery Peformance
3.2.40
Outputs
> ES.3

Performance
> Current Inventory Source Data

ES.7, S3.1, S3.2, ED.7
ES.4
Manage Product Inventory
The process of establishing and maintaining physical inventories and inventory information.
This includes warehouse management, cycle counting, physical inventories and inventory
reconciliation. For Services, this may include tracking the number of service providers and
the financial resources committed at any given point in time.
Metric
None Identified
Manage Product Inventory Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Product Inventory,

Number of worker absences due to poor IAQ,
Warehousing solid waste,
Packaging material re-use,
% of warehouse loading machinery using MFBs,
Warehouse energy costs,
Water use reduction,
Hazardous waste generated at warehousing facilities as % of
total waste generated
Best Practices
Statistical Test Count
The Statistical Test Count (STC) process is a method of

validating inventory on-hand values by physically counting
and reconciling a statistical sample of the entire inventory
population. This sample is then extrapolated across the
inventory population, which provides an indicative measure of
entire inventory population. Furthermore, with extrapolation
the net and gross percentage of error is determined.

levels.
Storm water management plans
Implement storm water management and spill response plans
Energy-efficient HVAC systems
Utilize energy-efficient HVAC systems
Real Time Data on Current Status
Dynamic calculation of safety stock based on actual sales.
Utilize maintenance free batteries
Utilize maintenance free batteries in warehouse/short haul

vehicles
3.2.41
ES.4
Energy-efficient buildings
Utilize energy-efficient lighting and heating systems

throughout warehouse and production areas
Periodic Review of Metrics and

Strategy with Comparisons to
Industry Benchmarks
Real time view of data.
Reusable pallets
Utilize reusable pallets
Inputs
Outputs

S1.4, S2.4. S3.6, D1.8

S1.4, S2.4, S3.6
Sourcing Plans
P2.4

Levels
P2.2

Processes
ES.1
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
> ES.4
> MRO Parts Availability

EM.5

Metrics
EP.2, ED.1, ED.5
Parts and Services Consumed

EM.5
3.2.42
ES.5
Manage Capital Assets
The process of acquiring, maintaining and dispositioning an organizations <capital assets>
located at a suppliers facility and/or outside source, which are used to operate the supply
chain.
Metric
% of assets in compliance with scheduled maintenance

requirements
Manage Capital Assets Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Source Capital Assets
None Identified
Best Practices
Changeover Reduction /
Continuous Improvement Program
Changeover process flow element identification, instructional

directions to conduct changeover, and measurement
tool, which can be used to prioritize and track results of
improvement efforts. Software to identify operational
constraints to the MAKE processes to assist in directing
resources toward bottleneck functional areas.
Total Preventative Maintenance

Program
Automatically generated TPM repair schedules integrated

with MRP systems, electronic equipment repair history, parts
listings, part stores inventory & reorder points, automatic store
room parts purchases, Shop floor access to electronic data
base of equipment line drawings, electrical wiring diagrams,
parts listing reference guide and part cost lists.
Removal of Obsolete Capital Assets
Automated Calculation of ABC Velocity Movement
Facility & Equipment Environmental

/ Safety Audit System
System software to list checklist items, report results of audit &

forward actions to be taken
Inputs
EM.5
Supplier Agreement
ES.10, S3.2
> ES.5
Outputs
Assets
> Capital
ES.8
Import/Export Requirements
ES.8
3.2.43
ES.6
Manage Incoming Product
The process of defining and maintaining the information that characterizes inbound
logistics management of all supplier deliveries, including both physical and electronic
goods and services. This includes carrier selection and management, tracking deliveries and
import.
Metric
None Identified
Manage Incoming Product Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Incoming Product
None Identified
Best Practices
Real-Time Optimized Shipment

Method Selection (Air Parcel,
Ground Parcel, LTL, etc.) Based on
Customer Service Requirements
Transportation Management System (TMS) Maintenance

Management
Automated Documentation for

International Shipments

Management
Backhaul Trading Exchange
Pooling
Capture and Maintain Mode

Specific Data

Management
Integrated Order Management,

Warehouse Management, and
Transportation Management
Systems View for analysis for all
orders and shipments the following
data: Logistics, Product, Cost, GL
Charging

Management
Real-Time Shipment Tracking, (via

internet)

Management
Measurement of Carrier
Performance for On-time Delivery
and Completeness

Management
Electronic Manifest and Electronic

Billing

Management
Appointment Scheduling for

Pickup and Delivery of Customer
Shipments

Management
3.2.44
ES.6
Manage Information Across 100%

of Shipments

Management
Rating & Routing
Internet Pooling (Electronic brokerage of shipments
Inputs
ES.8
Contact Carrier Rates
ES.8
> ES.6
Outputs
> Logistics Selection
S1.1, S2.1, S3.3
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
3.2.45
ES.7
Manage Supplier Network
The process of defining and maintaining a unique network of suppliers to deliver a specific
product set. This includes establishment of a new supplier or maintaining an existing
supplier and all the tasks and activities associated with identifying and qualifying the
supplier and finalizing on the sourcing terms and conditions. Also, the management of a
supplier certification process, which includes certifying new suppliers and maintaining the
current status of existing suppliers.
Metric
Manage Supplier Network Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Supplier Network
None Identified
Best Practices
Establishment of Criteria to Rank Suppliers
Utilize supplier delivery, quality, price performance as

well as any other criteria such as terms and conditions
Evaluate Supplier Network for Duplicates
Supplier Merge Programs for duplicates
VMI is a concept for planning and control of inventory,

in which the supplier has access to the customers
inventory data and is responsible for maintaining the
inventory level required by the customer. Re-supply is
performed by the vendor through regularly scheduled
reviews of the on-site inventory. The on-site inventory
is counted, damaged or outdated goods are removed,
and the inventory is restocked to predefined levels.

the Cycle Time for Initial Certification of New
Suppliers or Certifying Existing Suppliers
that Wish to Provide New Technologies
Electronic Data Interchange Can Be Used
To Send Rfqs and Technical Information to
and from Potential Suppliers to Determine
Supplier Capability to Fulfill Requirements
So that They May Be Added to Supplier
Network
Establish environmental requirements
Establish supplier environmental requirements
On-Line Availability to Supplier Financials to

Determine Potential Supplier Viability to be
Internet web sites for financial evaluation
3.2.46
ES.7
Identification of Suppliers Who Will

Participate in Vendor Managed Inventory
(VMI) Programs
Supplier managed inventories with scheduling

interfaces to external supplier systems to replenish

Participate in Kanban Programs
Electronic Kanban Support
Internet Exchanges
Internet Exchanges are a hosted, business-to-business

trading network. Exchanges are an open procurement
network, accessible to any buyer and focused on new
Internet-enabled purchasing models like spot buys
or reverse, buyer-driven auctions. Exchanges will also
support more traditional catalog-based sales.

the Cycle Time for Certifying Existing
Suppliers to Provide New Technologies
None identified
Create and Maintain Multiple Suppliers and

None Identified
Multiple Supplier Sites to Record Information
about Individuals and Companies from
Whom You Want to Purchase Catalogue
Goods and Services
On Line Document Management and
ERP
Automated Supplier Approval Processes Can
Reduce the Cycle Time and Costs Associated
With Managing Supplier Evaluations and Get
Them into the Supplier Network Faster
Carrier Agreement
Carrier agreements are agreements between a

company and its domestic and global carriers (for
both, inbound raw materials and outbound finished
goods) specifying service levels, payment terms, and
other conditions.

Participate in Procurement Split (Two
or More Suppliers Sharing Purchase
Requirements) Programs
None identified
Utilize Concurrent Engineering with

Suppliers to Allow Them to Provide
Engineering and Product Performance Test
Data to Qualify as Part of Potential Supplier
Network
Internet, EDI, FAX
3.2.47
ES.7
Inputs
Processes
ES.1, ER.1
ES.3
Supplier Agreement
ES.10, S3.2
> ES.7
Outputs
Data
> Supplier
ES.1, ES.10, ES.2, ES.3, S3.1, S3.2
ES.2
3.2.48
ES.8
Manage Import/ Export Requirements (Source)
The process of identifying and complying with import/export regulatory documentation
and process standards set by external entities (eg, government).
Metric
None Identified
Customs Clearance Cycle Time,

Manage Import/Export Requirements Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Import/Export Requirements
None Identified
Best Practices
Direct Transfer of Documents to

Recipient and Forwarder
Electronic documentation submission via EDI and/or internet.
Ability to Track Component/SubComponent Manufacturing Country

of Origin
Component/lot tracking (lot trace-ability)
Direct Connection to Customs

Clearance
Track foreign environmental

requirements
Maintain and manage current foreign environmental

regulations
Assessing Export/Import
Requirements during Time of
Product Development/Manufacture
Multi-country Export/Import documentation compliance
Inputs
EM.5
Capital Assets
ES.5
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
> ES.8
Outputs
Carrier Rates
> Contract
ES.6, ED.6
ES.5, ES.6, ES.10
3.2.49
ES.9
Manage Supply Chain Source Risk
The process of managing Source risks within an overall Supply Chain Risk Program. This
includes identifying and assessing Source risks as well as planning and implementing
responses to Source risks. Source risks include potential events that could impact the
organizations or the supplierss ability to deliver raw material in a timely manner at a
reasonable cost with acceptable quality. Risk Management includes: migration, either
reduicing the impact of a risk event of reducing the likelihood of its occurrence.
Metric
VAR of product/customer performance - ,

Supplier Mitigation Plans Implemented (percent),
VAR of Internal Process Performance,
Value at Risk (Source),
VAR of Supplier Performance,
Age of Supplier Risk Data (months),
Age of Product / Customer Risk Data (months)
External Event Response (average days)
Internal Event Response (average days)
Supply Chain Costs

Mitigation cost by Event ($)

Residual Risk ($),
Gross Risk ($),
Mitigated Risk ($)
Best Practices
A key aspect of supply chain risk management is identification.

Identification involves creating a list of potential events that
could harm any aspect of the supply chains performance. Risk
identification allows an organization to take steps to create
plans to manage risks before they occur. this is typically more
cost effective then waiting to react to adverse events when
they occur.

organization.
3.2.50
ES.9



established or configured in response to the corporate risk
management plan with a goal of reducing either the likelihood
of a disruption occurring or the impact to the supply chain
should a disruption occur.


networks to minimize the risk to the supply chain. This includes
information sharing with partners as well as internal locations.
This helps all parties to be quickly informed of a real or
potential disruption and respond quickly and appropriately to
minimize the disruption impact.

Sourcing Risk Mitigation Strategies
Strategies can be implemented to minimize sourcing risk.

to Mitigate Risk

3.2.51
ES.9
Sourcing Opportunities
Prioritization to Improve Cost &
Security of Supply
Many businesses need to improve performance through

reliable Sourcing of more cost-effective supplies & services to
meet customers needs and growth opportunities. This Best
Practice covers strategic sourcing approaches for reducing
Total Cost of Ownership, and simultaneously assessing supply
risk in case of business rationalization, excessive demand, fire,
work outage, etc
Risk Management Programs

Coordination with Partners
The process of coordinated risk management places a strong

emphasis on cooperation among departments within a single
company and among different companies of a supply chain
to effectively manage the full range of risks as a whole. A
closer coordination of risk management activities performed
throughout the supply chain is intended to conserve resources
and increase effectiveness.

networks with the objective to reduce their negative impact on
the logistics networks performance.
Inputs
Monitoring
3.2.52
Outputs
> ES.9
Adjustments
> Internal
for Process Area
ES.10
Manage Supplier Agreements
The management of existing purchase orders or supplier contracts. This includes managing
volume/step pricing, resolving issues, enforcing terms and conditions and maintaining an
accurate status for existing purchase orders or contracts.
Metric
Manage Supplier Agreements Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Supplier Agreements
None Identified
Best Practices
Enterprise Level Spend Analysis
None identified

Local Execution
Carrier Agreement

Long Term Supplier Agreements/

Partnerships
Electronic rules for business relationships and transactions:

Vendor-managed Inventory Agreements, Fab & Hold
Agreements, Just-In-Time Agreements.
Optimized Supply-Chain Processes,

Optimized Supplier Count, Supplier
Web based access to preferred and recommended suppliers,

supplier performance data & spend data stratified by
commodity, business unit/site, supplier, part type, process type
Inputs
Supplier Agreement
ES.10, S3.2
Supplier Data
ES.7
Product On Order
S1.1, S2.1, S3.3
Outputs
> ES.10
Payment Terms
S1.5, S2.5, S3.7
> Supplier Aggrement

ES.10, S3.2
ES.8
3.2.53
3.2.54
M
Make
The process of adding value to products through mixing, separating, forming, machining,
and chemical processes.
Process Categories
M1: Make-to-Stock
The process of manufacturing in a make-to-stock environment adds

value to products through mixing, separating, forming, machining,
and chemical processes. Make to stock products are intended to
be shipped from finished goods or off the shelf, can be completed
prior to receipt of a customer order, and are generally produced to a
planned schedule in accordance with a sales forecast. No customer
reference or customer order detail or specification is attached to
production orders, attached to or marked on the product, or recorded
in the shop floor management or ERP system for Make-to-Stock
products.
M2: Make-to-Order
Given plans for the production of specific parts, products, or

formulations in specific quantities and planned availability of required
sourced products, the scheduling of the operations to be preformed
in accordance with these plans. Scheduling includes sequencing, and,
depending on the factory layout, any standards for setup and run. In
general intermediate production activities are coordinated prior to the
scheduling of the operations to be preformed in producing a finished
product.
The process of developing, designing, validating, and ultimately using

a manufacturing process to produce products or services based on
the requirements of a specific customer. In general Engineer-to-Order
requires that work instructions may need to be defined or refined and
material routing instructions may need to be added or modified. An
example of an alternative or related name for Make Engineer-to-Order
is: Design-to-Order (DTO).
Enable Make

Make process data, performance and relationships.
3.3.1
M1
Make-to-Stock
The process of manufacturing in a make-to-stock environment adds value to products
through mixing, separating, forming, machining, and chemical processes. Make to stock
products are intended to be shipped from finished goods or off the shelf, can be completed
prior to receipt of a customer order, and are generally produced to a planned schedule
in accordance with a sales forecast. No customer reference or customer order detail or
specification is attached to production orders, attached to or marked on the product, or
recorded in the shop floor management or ERP system for Make-to-Stock products.
Metric
Yield

Make Cycle Time
Upside Make Adaptability,

Downside Make Adaptability,
Supply Chain Costs
Cost to Make,
Cost of Goods Sold

Best Practices

levels.
Link Individual Performance to

Organizational and Divisional Goals
None identified
Performance Results that Are

Compared to Benchmarks (i.e.
Capacity, Scheduling) and Readily
Available to Employees
Data warehouse, report writing, real time database and

Executive Information systems that are easily accessible. Use
of web-based technologies for dissemination of information.
Provide Continuous Formal Training

to Employees
Examples would be TQM, Six Sigma.
Production Level Loading
Capacity planning
3.3.2
M1
Organize to Enhance Flexibility
Few Job Classifications, Self-Directed Work Force, Flat

Management Structure, Cross-Functional Work Teams.
Support for modular skills inventory with links to training
databases, compensations systems, and operator instructions
Cellular Manufacturing
Manufacturing is broken into work cells
Accurate and Approved Work

Instructions/Process Plans
Electronic document management that maintains current

Standard Operating Procedures (SOP)
Lean Manufacturing
Use a team based systematic approach to identifying and

eliminating wasteful, or non-value adding activities within
your manufacturing organization
Paperless Order Tracking and

Customer Visibility of Orders
Electronic dispatch and data collection with external interface

to internet.
Demand-Pull Manufacturing,
Including Active Reduction of
Manufacturing Systems Time and
WIP Through the Use of DemandPull Mechanisms and Visual Controls
Support of demand-pull mechanisms (Kanban, replenishment

signals, etc.) based on rate schedules and user-defined
minimum/maximum trigger points
Posted Performance Results
Data warehouse, report writing, real time data base and EI

systems
Paperless Production Order and

Inventory Tracking
Electronic dispatch and data collection. Allow customer

access to production status and inventories using internet
technologies and web site features.
Postponement
Postponement (delayed differentiation) is a supply chain

concept where a product is kept as long as possible in a
generic state. Differentiation of the generic product into a
specific end-product is shifted closer to the consumer by
postponing identify changes, such as assembly or packaging,
to the last possible supply chain location.
Accurate and Low Cost Batch/

Configuration Records for Warranty
and Regulatory Tracking
Electronic batch recording/configuration
3.3.3
M1
Information Feedback M1.2, M1.3, M1.4, M1.5, M1.6,
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
M3.7,
Equipment and Facilities Schedules and Plans EM.5
Preventative Maintenance and Calibration
Schedule EM.5

D1.8, D4.2
WIP Location Rules EM.6
WIP Handling Rules, Move Information and
Methods EM.4
! M1.1 !
Production Schedule P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,

M3.3, D1.3, D1.8, D2.3, D2.9, D3.3, D3.9, D4.2
! M1.2 !
Information Feedback M1.1, M2.1, M3.2

D1.8, D4.2
Product Location Information EM.6
Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
M1.3 !

Delivery Plans P4.4
M1.4 !
! M1.5 !
M1.6 !

Finished Product Release D1.8, D2.9, D3.9, D4.2
Waste Produced M1.3
3.3.4
! M1.7
M1.1
Schedule Production Activities
Given plans for the production of specific parts, products, or formulations in specified
quantities and planned availability of required sourced products, the scheduling of
the operations to be performed in accordance with these plans. Scheduling includes
sequencing, and, depending on the factory layout, any standards for setup and run. In
general, intermediate production activities are coordinated prior to the scheduling of the
operations to be performed in producing a finished product.
Metric
Schedule Achievement
None Identified
Supply Chain Costs
Peak Time Energy Use,

Cost to Schedule Production Activities
Best Practices
Cross Training/Certification
HR/certification support
Additional Capacity for Overflow

Demand
Outsource manufacturing and work force augmentation

providers connected to production schedules via the internet.
Real Time Feedback from

Production, Raw Materials, and
Finished Goods Inventory and Test
Activities
Allow dynamic re-synchronization of MAKE activities by tying

in real time status information to scheduler.
Utilize off-peak shifts
Utilize off-peak shifts for production workers (e.g.,shift 1 =

11:0019:00)
Schedule air emissions after sunset
Schedule air emission emitting activities after sunset
Maintain Data and System Integrity

by Ensuring Production Data,
Inventory Levels, and Schedule
Requirements Are 99+% Accurate
Detailed production model that synchronizes PLAN and MAKE

activities in real time.
Schedule Minimizes Changeover

Costs between Products
Algorithms that manage set up times/costs, cleaning times,

and ideal job sequences (e.g., color sequencing light to dark)
Schedule Includes Preventative

Maintenance Program
Interface between maintenance management system and

scheduling system
Drum-Buffer-Rope Scheduling
Technique
(DBR, also referred to as Synchronous Manufacturing or

Constraint Management) A technique used to manage
resources to maximize throughput.
Schedule high energy consumption

at night
Schedule electricity consuming (large amounts) activities from

sunset to sunrise
3.3.5
M1.1
Schedule Reflects Current Plant

Status (Equipment Availability,
Other Jobs and Resource
Availability) On Line
Schedule undated by on line reporting and status systems and

re-sequence activities
Produce Products to Unique

Order entry specifications linked to manufacturing order
Provide Scheduling Output Back

to Material and Labor Planning
Systems
Allow dynamic re-synchronization of MAKE activities by tying

in real time status information to scheduler
WIP Through the Use of DemandPull Mechanisms and Visual
Controls

Schedule Optimizes Use of Shared

Resources Such as Tooling and
Production Equipment
Scheduling utilizing optimization techniques Required

production resources included in routing/process instructions
Inputs
Scheduled Receipts
S1.1, S2.1, S3.3
Information Feedback
M1.2, M1.3, M1.4, M1.5, M1.6,
M2.2, M2.3, M2.4, M2.5, M2.6,
M3.3, M3.4, M3.5, M3.6, M3.7,
Schedules and Plans
EM.5
Outputs
> M1.1
Production Schedule
S1.1, S2.1, S3.3, M1.2, M2.2,

> P3.2,
M3.3, D1.3, D1.8, D2.3, D2.9,
D3.3, D3.9, D4.2
Production Plans
P3.4
Preventative Maintenance and
Calibration Schedule
EM.5
3.3.6
M1.2
Issue Material
The selection and physical movement of sourced/in-process product (e.g., raw materials,
fabricated components, subassemblies, required ingredients or intermediate formulations)
from a stocking location (e.g., stockroom, a location on the production floor, a supplier)
to a specific point of use location. Issuing product includes the corresponding system
transaction. The Bill of Materials/routing information or recipe/production instructions will
determine the products to be issued to support the production operation(s).
Metric
None Identified
Issue Material Cycle Time
None Identified
Supply Chain Costs

Cost to Issue Material,
% of vehicle fuel derived from alternative fuels
Packaging as % of total material
Best Practices
Strategic Safety Stock of Selected

Materials, Items, or Subassemblies
to Decouple Sourced Product
Issuance Cycle Time from Supplier
Lead Time
Use of safety stock algorithms to minimize stock levels.

11:0019:00)
Back Flush Material at Order

Completion
Flexible back flush logic
Complete Lot History
Inventory by lot of sourced/in-process or discrete order /usage

reporting by lot or discrete order
Demand-Pull Mechanisms; Kanban

Replenishment Signals from
Stockroom, Intermediate Products,
or Subassembly Area
None identified
Supplier Delivery to Production

Process at Point of Use
EDI link to suppliers sales order and inventory systems

program

Electronic Material Move

Transactions
Automated process control and/or barcode data collection
3.3.7
M1.2
Inputs
Outputs
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2
WIP Location Rules
EM.6
WIP Handling Rules, Move
Information and Methods
EM.4
3.3.8
M1.1, M2.1, M3.2
> M1.2
>
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Product Location Information
EM.6
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
M1.3
Produce and Test
The series of activities performed upon sourced/in-process product to convert it from
the raw or semi-finished state to a state of completion and greater value. The processes
associated with the validation of product performance to ensure conformance to defined
specifications and requirements.
Metric
Warranty Costs,
Yield Variability,
Warranty and Returns,
Fill Rate,
Yield
Produce and Test Cycle Time,

Asset Turns
None Identified
Supply Chain Costs
NPDES permitted water effluent,

Hazardous waste generated at warehousing facilities as %
of total waste generated,
Air emissions,
Energy consumption,
Cost to Produce and Test,
% of solid waste consisting of packaging material,
Waste produced as % of product produced
% of products consisting of previously used components,

Capacity Utilization,
Hazardous materials used during production process as a
% of all materials,
% of production materials reused
Best Practices
Maintain Accurate Lot/Batch History

Information
Electronic data collection of employee actions and

sourced/in-process product lot used
Implement an EMS
Implement an EMS
Real Time quality control techniques
Electronic collection of quality data and on-line SPC.

program
Implement rigorous and comprehensive pollution

prevention program and include environmentally
preferable purchasing
Authorize Each Operation to Assess the

Quality of the Previous Operations
None identified
Provide Continuous Formal Training to

Employees
Reduce Chances of Operator Error
Automatic download of production equipment with

batch recipes/part programs
3.3.9
M1.3
Accurate and Approved Process Plans/

Specifications
Electronic document management
Paperless Production Control
Electronic dispatch of operations
Reduce Non-Value Added Paperwork

While Still Measuring Process Metrics
Electronic data collection of completion, quality, lot

tractability, scrap, and labor data
Reduce Non-Value Added Activities,

Including Queue, Move, and Set-Up
Times
Use principals of Lean Manufacturing.
Measuring Process Metrics and Feedback

to Operators
Electronic data collection of completion, quality,

scrap, labor and equipment data and dissemination of
information on factory floor
Benchmark practices
Benchmark practices of other firms
Just-In-Time Demand Flow Techniques
Demand-pull mechanisms

Configuration Records for Warranty and
Regulatory Tracking
Real Time Statistical Control Techniques
Electronic collection of defect data and on-line SPC.
Up-to-Date Shop Packet/Specifications
Electronic work instructions
Provide environmental training
Provide environmental training to all employees
Design/Upgrade Production Equipment

to Maximize Flexibility and Avoid Line
Stoppages
Machine productivity and downtime monitoring
Inputs
None Identified
3.3.10
> M1.3
Outputs
Feedback
> Information
M1.1, M2.1, M3.2
M1.4
Package
The series of activities that containerize completed products for storage or sale to end-users.
Within certain industries, packaging may include cleaning or sterilization.
Metric
Warranty Costs,
Warranty and Returns
Asset Turns,
Package Cycle Time
None Identified
Supply Chain Costs
% packaging material that is recyclable/reusable,

% packaging material consisting of post-consumer recycled
content,
% of excess packaging per unit,
Scrap packaging expense,
% packaging material that is biodegradable,
Cost to Package
Best Practices
Retrieve packaging after

installation
Retrieve packaging after installation for reuse
Postponement and Pre-Kitting Of

Accessories into Modular Packages
that Allow Flexibility While
Maintaining Control
None identified
Up-to-Date Shop Packet/

Specification for Each Unique
Production Event/Demand
Electronic Work Instructions

Minimize Operator Induced Errors
Automatic download of production equipment with setup

parameters Graphical display of setup, changeover, or layout
Maximize Container Loading
Re-design container shapes to minimize material used but

retain amount of product stored
Bulk Packaging
Package larger groups of items in a single package (bulk)
Accurate and Approved Process

Plans, Routings, Specifications and
Procedures
3.3.11
M1.4
Reduce Non-Value Added

Paperwork While Still Measuring
Process Metrics
Electronic data collection of completion, quality, lot tractability,

scrap, and labor data
Design/Upgrade Production
Equipment to Maximize Flexibility
and Avoid Line Stoppages
Packaging Operation is an Integral

Part of the Overall Production
Process
None identified
Automatic Label and Seal

Verification
Automatic interface to inspection systems
Use multi-purpose packaging
Use multi-purpose packaging that can be used by customer
Use recyclable packaging
Inputs
None Identified
3.3.12
> M1.4
Outputs
> Information Feedback

M1.1, M2.1, M3.2
M1.5
Stage Product
The movement of packaged products into a temporary holding location to await movement
to a finished goods location. Products that are made to order may remain in the holding
location to await shipment per the associated customer order. The movement to finished
goods is part of the Deliver process.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Stage Finished Product
None Identified
Best Practices

Transactions
Direct Ship from Factory to

Customer/Channel
Share production status with customers and transportation

providers via web-based tools. Auto-Tendering for direct ship
utilizing EDI/XML protocols.
Inputs
Production Plans
P3.4
Delivery Plans
P4.4
> M1.5
Outputs

M1.1, M2.1, M3.2
3.3.13
M1.6
Release Product to Deliver
Activities associated with post-production documentation, testing, or certification required
prior to delivery of finished product to customer. Examples include assembly of batch
records for regulatory agencies, laboratory tests for potency or purity, creating certificate of
analysis, and sign-off by the quality organization.
Metric
# of complaints regarding missing environmental

documentation,
# of recordkeeping related NOVs
None Identified
None Identified
Supply Chain Costs
Cost to Release Finished Product to Deliver
None Identified
Best Practices
Accurate and Low Cost Batch

records for Regulatory Compliance
Electronic batch records
Ensure environmental
documentation
Ensure all required environmental documentation is obtained
Review Batch Records by Exception
Electronic batch records linked to process plans/recipes and

exceptions flagged
Implement HAZMAT pharmacy

system
Implement hazardous materials pharmacy system
Include supplier environmental

information
Include supplier environmental information in addition to

product environmental information
Automated Notification of
Laboratory Regarding Sample
Availability
Interface between production system and LIMS
Implement an EMS
Implement an EMS
Outputs
Inputs
None Identified
3.3.14
> M1.6
>
M1.1, M2.1, M3.2
Finished Product Release
D1.8, D2.9, D3.9, D4.2
M1.7
Waste Disposal
Activities associated with collecting and managing waste produced during the produce and
test process including scrap material and non-conforming product.
Metric
Reportable Release Incidents

Waste Processing Error
Waste accumulation time
Waste storage capacity utilization
Supply Chain Costs
Waste storage costs as % of total Make costs
Hazardous waste as % of total waste

Recyclable waste as % of total waste
Best Practices
Daily HAZMAT inspection
Daily inspection of any hazardous waste storage areas
Waste accumulation Envirnomental

Meanagement System (EMS)
EMS covering waste accumulation processes
Storm water prevention plans
Storm water prevention and spill control plans for waste

accumulation areas
Inputs
Waste Produced
M1.3
> M1.7
Outputs
> None Identified
3.3.15
M2
Make-to-Order
The process of manufacturing in a make-to-order environment adds value to products
through mixing, separating, forming, machining, and chemical processes for a specific
customer order. Products are completed, built or configured only in response to a customer
order, the customer order reference is attached to the production order, attached to or
marked on the product upon completion of the make process and referenced when
transferring the product to Deliver. The product is identifiable throughout the Make process,
as made for a specific customer order. Examples of alternative or related names for Maketo-Order are: Build-to-Order (BTO), Assemble-to-Order (ATO), Configure-to-Order (CTO), and
postponement.
Metric
Yield,
Make Cycle Time

Supply Chain Costs
Energy Costs,
Cost of Goods Sold,
Cost to Make
Inventory Days of Supply (WIP),

Best Practices
Accurate and Approved Work

Instructions/Process Plans
Electronic document management that maintains current

Standard Operating Procedures (SOP)


Postponement


to Employees
3.3.16
M2
Delivery Schedules Are

Collaboratively Developed with
Customers
Web-based access to plant scheduling status, collaborative

data-sharing environment.


to internet.

systems
Organize to Enhance Flexibility:

Few Job Classifications, SelfDirected Work Force, Flat
Management Structure, CrossFunctional Work Teams


None identified
Capacity planning
Cellular and Demand Pull

Manufacturing
Support for cellular and demand pull manufacturing execution
3.3.17
M2
Schedule EM.5
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
M3.7

Methods EM.4
D1.8, D4.2
! M2.1 !

M3.3, D1.3, D1.8, D2.3, D2.9, D3.3, D3.9, D4.2
! M2.2 !

Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Source Execution Data S2.1
M2.3 !
M2.4 !

Delivery Plans P4.4
! M2.5 !
M2.6 !

Delivery Plans P4.4
Waste Produced M2.3
3.3.18
! M2.7
M2.1
Given plans for the production of specific parts, products, or formulations in specific
the operations to be preformed in accordance with these plans. Scheduling includes
general intermediate production activities are coordinated prior to the scheduling of the
operations to be preformed in producing a finished product.
Metric
None Identified
Supply Chain Costs
Cost to Schedule Production Activities,

Peak Time Energy Use
Best Practices



WIP Through the Use of DemandPull Mechanisms and Visual Controls

Technique

Maintain Data and System Integrity

by Ensuring Production Data,
Requirements Are 99+% Accurate
Detailed production model that synchronizes PLAN and MAKE

activities in real time.

at night
Schedule electricity consuming (large amounts) activities from

sunset to sunrise
Demand Pull Mechanisms
Repetitive scheduling and sequencing
3.3.19
M2.1
Inputs
Production Plans
P3.4
Schedules and Plans
EM.5
EM.5
Outputs
> M2.1
Schedule
> Production
P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
M3.3, D1.3, D1.8, D2.3, D2.9,
D3.3, D3.9, D4.2
M1.2, M1.3, M1.4, M1.5, M1.6,
M2.2, M2.3, M2.4, M2.5, M2.6,
M3.3, M3.4, M3.5, M3.6, M3.7
Scheduled Receipts
S1.1, S2.1, S3.3
3.3.20
M2.2
Issue Sourced/ In-Process Product
The selection and physical movement of sourced/in-process products (e.g., raw materials,
to a specific point of use location. Issuing product includes the corresponding system
determine the products to be issued to support the production operation(s).
Metric
None Identified
Issue Sourced/In-Process Product Cycle Time
None Identified
Supply Chain Costs

Cost to Issue Sourced/In-Process Product,
Best Practices
Inventory by lot of sourced/in-process or discrete order /usage

reporting by lot or discrete order

Utilize maintenance free batteries in warehouse/short haul

vehicles

program


Transactions

or Subassembly Area
None identified

Completion
3.3.21
M2.2
Outputs
Production Schedule
M1.1, M2.1, M2.2, M3.2
Inputs
EM.4
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
> M2.2
S1.4, S2.4, S3.6, M1.2,
M2.2, M3.3, D1.8, D4.2
Signal
> Replenishment
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Production Schedule
M1.1, M2.1, M2.2, M3.2

S2.1
WIP Location Rules

EM.6

EM.6
M1.1, M2.1, M3.2
3.3.22
M2.3
Produce and Test
Metric
Warranty Costs,
Yield,
Yield Variability

Asset Turns
None Identified
Supply Chain Costs
% of solid waste consisting of packaging material,

Energy consumption,
Air emissions,
Waste produced as % of product produced
% of production materials reused,

Hazardous materials used during production process as a % of
all materials,
Capacity Utilization,
% of products consisting of previously used components
Best Practices
Reduce Chances of Operator Error
Automatic download of production equipment with batch

recipes/part programs

Times


program

Benchmark practices
3.3.23
M2.3

Plans/Specifications
Authorize Each Operation to

Assess the Quality of the Previous
Operations
None identified
Maintain Accurate Lot/Batch

History Information
Electronic data collection of employee actions and sourced/inprocess product lot used
Just-In-Time Demand Flow

Techniques

Specifications
Implement an EMS
Implement an EMS
Real Time quality control

techniques
Real Time Statistical Control

Techniques
Inputs
None Identified
3.3.24
> M2.3
Outputs
Feedback
> Information
M1.1, M2.1, M3.2
M2.4
Package
Metric
Warranty Costs
Asset Turns,
Package Cycle Time
None Identified
Supply Chain Costs
% of excess packaging per unit,

Cost to Package,
content,
% packaging material that is biodegradable
% of packaging/shipping materials reused internally,

Best Practices

Retrieve packaging after installation

Plans/Specifications

Maintaining Control
None identified

Specification for Each Unique
Production Event/Demand

Verification
Bulk Packaging

Paperwork While Still Measuring
Process Metrics
Electronic data collection of completion, quality, lot

tractability, scrap, and labor data

3.3.25
M2.4


Process
None identified
Inputs
None Identified
3.3.26
> M2.4
Outputs

M1.1, M2.1, M3.2
M2.5
Stage Finished Product
location to await shipment per the associated customer order. The actual move transaction
is part of the Deliver process.
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices

Customer/Channel


Transactions
Inputs
Production Plans
P3.4
Delivery Plans
P4.4
> M2.5
Outputs
Feedback
> Information
M1.1, M2.1, M3.2
3.3.27
M2.6
Release Finished Product to Deliver
Metric
% of products with proper environmental labeling (if

required),
% of products meeting specified environmental performance
requirements
None Identified
Supply Chain Costs
None Identified
Best Practices
Availability
Implement an EMS
Implement an EMS


exceptions flagged

system
Outputs
Inputs
None Identified
3.3.28
> M2.6
>

D1.8, D2.9, D3.9, D4.2
M1.1, M2.1, M3.2
M2.7
Waste Disposal
Metric
Reliability

Waste Processing Errors
Responsiveness
Agility
Costs
Waste storage costs as % of Make costs
Asset

Best Practices
Waste accumulation Environmental

Management System (EMS)

program

program and include environmentally preferable purchasing.
Inputs
Waste Produced- From M2.3
Inputs
Waste Produced
M2.3
Waste produced during the produce and test process

including scrap material and non-conforming product.
> M2.7
Outputs
> None Identified
3.3.29
M3
Engineer-to-Order
The process of developing, designing, validating, and ultimately using a manufacturing
process to produce products or services based on the requirements of a specific customer.
In general Engineer-to-Order requires that work instructions may need to be defined or
refined and material routing instructions may need to be added or modified. An example of
an alternative or related name for Make Engineer-to-Order is: Design-to-Order (DTO).
Metric
Yield

Make Cycle Time

Supply Chain Costs
Cost to Make,
Cost of Goods Sold

Inventory Days of Supply (WIP),
Best Practices

Collaboratively Developed with
Customers
Web-based access to plant scheduling status, collaborative

data-sharing environment.
Product Design Collaboration with

Customers
On-line design tools facilitated by internet connections.
Organize to Enhance Flexibility: Few

Job Classifications, Self-Directed
Work Force, Flat Management
Structure, Cross-Functional Work
Teams


systems
WIP Through the Use of DemandPull Mechanisms and Visual
Controls



to internet.
3.3.30
M3
Order Information D3.3
Engineering Design
! M3.1 !

Schedule EM.5
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
M3.7
Methods, Procedures, Processes M3.1
! M3.2 !

M3.3, D1.3, D1.8, D2.3, D2.9, D3.3, D3.9, D4.2
! M3.3 !

D1.8, D4.2

D1.8, D4.2
Methods EM.4
Methods, Procedures, Processes M3.2
M3.4 !
M3.5 !
Delivery Plans P4.4
! M3.6 !
M3.7 !
Finished Product Release D1.8, D2.69, D3.9, D4.2

Waste Produced M3.4
! M3.8
3.3.31
M3.1
Finalize Production Engineering
Engineering activities required after acceptance of order, but before product can
be produced. May include generation and delivery of final drawings, specifications,
formulas, part programs, etc. In general, the last step in the completion of any preliminary
engineering work done as part of the quotation process.
Metric
None Identified
Finalize Production Engineering Cycle Time
None Identified
Supply Chain Costs
Cost to Finalize Production Engineering
None Identified
Best Practices
Automated Conversion of
Engineering Drawings into Product
Specifications
None identified
Automated Configuration
Management
Configuration
Inputs
Order Information
D3.3
Engineering Design
3.3.32
> M3.1
Outputs
Procedures,
> Methods,
Processes
M3.2
M3.2
Given plans for the production of specific parts, products, or formulations in specified
the operations to be performed in accordance with these plans. Scheduling includes
general, intermediate production activities are coordinated prior to the scheduling of the
operations to be performed in producing a finished product.
Metric
None Identified
Supply Chain Costs
Cost to Schedule Production Activities
Best Practices
Additional Capacity for Overflow

Demand
Outsource manufacturing and work force augmentation

providers connected to production schedules via the internet.

11:0019:00)
Schedule Minimizes Changeover

Costs between Products
Algorithms that manage set up times/costs, cleaning times,

and ideal job sequences (e.g., color sequencing light to dark)

at night
Schedule electricity consuming (large amounts) activities

from sunset to sunrise


Technique

Maximize Data Integrity and

System Accuracy by Ensuring 99%+
Accuracy of BOM Configuration,
Requirements
None identified
3.3.33
M3.2
Build Subassemblies to Forecast
at Highest Generic Level in Bill
of Material; Maintain Flexibility
While Minimizing Cycle Time and
Inventory Position
None identified
Schedule Includes Preventative

Maintenance Program
Interface between maintenance management system and

scheduling system
Schedule Reflects Current Plant

Status (Equipment Availability, Other
Jobs and Resource Availability) On
Line
Schedule undated by on line reporting and status systems

and re-sequence activities
Inputs
EM.5
Scheduled Receipts
S1.1, S2.1, S3.3
M1.2, M1.3, M1.4, M1.5, M1.6,
M2.2, M2.3, M2.4, M2.5, M2.6,
M3.3, M3.4, M3.5, M3.6, M3.7
Outputs
> M3.2
>
Production Schedule
P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
M3.3, D1.3, D1.8, D2.3, D2.9,
D3.3, D3.9, D4.2
Methods, Procedures,
Processes
M3.1
Schedules and Plans
EM.5
Production Plans
P3.4
3.3.34
M3.3
Issue Sourced/ In-Process Product
The selection and physical movement of sourced/in-process products (e.g., raw materials,
to a specific point of use location. Issuing material includes the corresponding system
determine the materials to be issued to support the production operation(s).
Metric
None Identified
Issue Sourced/In-Process Product Cycle Time
None Identified
Supply Chain Costs
Cost to Issue Sourced/In-Process Product,

Best Practices

or Subassembly Area
None identified

Transactions

Completion


program

Two-Bin Floor Stock Located at Work

Center for B And C Components
- Controlled by Operators and
Replenished When One Bin is Empty
None identified
3.3.35
M3.3
Inputs
Outputs
WIP Location Rules

EM.6
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
EM.4
Production Schedule
M1.1, M2.1, M2.2, M3.2
3.3.36
M1.1, M2.1, M3.2
> M3.3

EM.6
> Replenishment Signal
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6

S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
M3.4
Produce and Test
Metric
Yield Variability,
Yield,
Warranty Costs

Asset Turns
None Identified
Supply Chain Costs
Hazardous waste generated at warehousing facilities as % of

total waste generated,
Air emissions,
Energy consumption,
% of solid waste consisting of packaging material
Hazardous materials used during production process as a % of

all materials,
% of production materials reused,
% of products consisting of previously used components
Best Practices
Implement Employee Involvement

Programs
None Identified

program


to Employees

None identified
3.3.37
M3.4
techniques
Authorize Each Operation to

Assess the Quality of the Previous
Operations
None identified

Techniques

Times

Techniques
Benchmark practices
Implement an EMS
Implement an EMS

History Information
Electronic data collection of employee actions and sourced/inprocess product lot used

Specifications
Inputs
None Identified
3.3.38
> M3.4
Outputs
Feedback
> Information
M1.1, M2.1, M3.2
M3.5
Package
Metric
Warranty Costs
Package Cycle Time,

Asset Turns
None Identified
Supply Chain Costs

Cost to Package,
% packaging material that is biodegradable,
content,
% of excess packaging per unit
Best Practices

Maintaining Control
None identified
Bulk Packaging


Process
None identified

Verification
3.3.39
M3.5
Specifications
Electronic data collection of

completion, quality, lot trace ability,
scrap, and labor data
Reduce non-value added paperwork while still maintaining

process metrics

Inputs
None Identified
3.3.40
> M3.5
Outputs

M1.1, M2.1, M3.2
M3.6
Stage Finished Product
location to await shipment per the associated customer order. The actual move transaction
is part of the Deliver process.
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices

Customer/Channel


Transactions
Inputs
Delivery Plans
P4.4
Production Plans
P3.4
> M3.6
Outputs
Feedback
> Information
M1.1, M2.1, M3.2
3.3.41
M3.7
Release Product to Deliver
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices

system
Implement an EMS
Implement an EMS

Availability

exceptions flagged
Outputs
Inputs
None Identified
3.3.42
> M3.7
>

D1.8, D2.9, D3.9, D4.2
M1.1, M2.1, M3.2
M3.8
Waste Disposal
Metric

Waste Processing Error
Supply Chain Costs
Waste storage costs as % of total Make costs

Best Practices
Waste accumulation Environmental

Management System (EMS)
Storm water prevention plans
Storm water prevention and spill control plans for waste

accumulation areas
Inputs
Waste Produced
M3.4
> M3.8
Outputs
> None Identified
3.3.43
EM
EM: Enable Make
The collection of processes associated with managing and monitoring Make process data,
Process Categories

rules for managing production details in line with business
strategy, goals, and objectives. Production details include part/
item master, bills of materials/formulas, routings, processes,
equipment requirements, tooling, and other information
specifying the method of production for a particular product.

Performance
The process of developing and maintaining performance

standards and analysis methods to compare actual production
performance against the established standards. This process
allows the development and implementation of a course of
action to achieve targeted performance.
The process of managing, collecting, maintaining, and

communicating information to support MAKE planning and
execution processes. The information to be managed includes
production, order and process data.

(WIP)
The process of establishing and maintaining limits or levels,

replenishment models, ownership, product mix and stocking
locations for In-Process Product (WIP).

and Facilities
The process of specifying maintaining and dispositioning

MAKEs capital assets to operate the supply chain production
processes. This includes repair, alteration, calibration and
other miscellaneous items to maintain production capabilities.
The process of transporting In-Process Product (WIP). This

includes management of the activities associated with in
transit handling and movement of In-Process Product (WIP).
The process of identifying and maintaining a network of intracompany production units that deliver specific semi-finished
materials or product sets to the final production site.

Environment

(eg government)

Risk
The process of managing Make risks within an overall supply

Chain risk Program. This includes identifying and assessing
make risks as well as and planning and implementing
responses to Make risks. Make risks include potential events
that could impact your ability to make on-time at a reasonable
cost with good quality. The risks can occur internally within
your organization, e.g. a matching breakdown or facility fire, or
externally, e.g. a hurricane, that impacts your ability to Make.
3.3.44
EM
Business Plan
Transportation Capacity EP.6
Corporate Objectives and Strategies
Inventory Capacity
Production Capacity EP.5
Product Design
! EM.1 !
Production Rules
Business Plan
Transportation Capacity EP.6
Inventory Capacity
Production Capacity EP.5
Product Design/Quality
! EM.2 !
Production Rules
Production Quality & Policies
Supply Chain Performance Metrics EP.2, ED.1, ED.5
Systems Capabilities
Information Needed to Create and Maintain IT
Information from Business Processes
Information Needs Analysis
! EM.3 !
Reports, Information and Documents

Information Infrastructure Plan
Capacity Requirements
Production Orders Planned & Actual Reports
Returned Product Information
Incoming Product Information
! EM.4 !

Methods EM.6, M1.2, M2.2, M3.3
Budgets
Manufacturers Recommended Maintenance
Schedules & Specifications
Equipment and Facilities Monitoring Information
MRO Parts Availability ES.4
Production Quality and Policies
! EM.5 !
Equipment and Facilities Replacement and

Disposition Plans EM.5
Production Orders Planned & Actual Reports
Methods EM.4
Projected Delivery Requirements EM.7
Product Location Information M1.2, M2.2, M3.3
Equipment and Facilities Maintenance History

Parts and Services Consumed ES.4, ES.5, ES.8
Equipment and Facilities Schedules and Plans M1.1,
M2.1, M3.2
Equipment and Facilities Replacement and
Disposition Plans P3.2, EM.6
Production Status EM.7
Schedule M1.1, M2.1, M3.2
! EM.6 !
WIP Move Information and Methods

WIP Location Rules M1.2, M2.2, M3.3, D2.9
WIP Inventory Location S1.4, S2.4, S3.6
Planning Data EP.3

Production Status EM.5
! EM.7 !
Cost to Produce
Internal Capacity
Projected Delivery Requirements EM.6, ED.6
Equipment and Facilities Characteristics

External Regulatory Information
Product Design/Claims
! EM.8 !
Conformance Rules
Conformance Plan
Monitoring
! EM.9 !

3.3.45
EM.1
Manage Production Rules
The process of establishing, maintaining, and enforcing rules for managing production
details in line with business strategy, goals, and objectives. Production details include part/
item master, bills of materials/formulas, routings, processes, equipment requirements,
tooling, and other information specifying the method of production for a particular product.
Metric
None Identified
Manage Production Rules Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Production Rules
None Identified
Best Practices
Attribute-Based Process Planning
Computer aided process planning / recipe management
Automatic Generation /
Configuration Of Tooling / Set-Up
Instructions
Parametric driven (Group Technology - based) manufacturing

design system
Design For Production
Table of manufacturing capacities or design envelops

(capacities; envelop sizes; tank, vessel or batch sizes)
Automated Engineering
Specifications
Automated Intelligence (Heuristic) - based engineering

specifications system
Implement an EMS
Implement an EMS
Automatic Notification When to

Begin and When to Complete
Workflow/Groupware
Genealogy Tracking
Where-used listing of as-planned vs. as-built documentation
Pre-Defined Manufacturing Design

Rules
Libraries of manufacturing capabilities or design envelopes
Document Control
Control who can create, revise and access information
Automated Links To Existing CAD &

CAM Information
Electronic hypertext or links to existing database of detail/

parts/setup sketches/drawings
On Line Access and Notification of

Tooling and Equipment Information
Delivery of tooling and equipment details drawings
Electronic Documentation and

Imaging
Graphical display of drawings, diagrams, recipes/formulas,

specifications, instructions, etc., to all users
3.3.46
EM.1
Inputs
Business Plan
EP.6
Corporate Objectives and
Strategies
> EM.1
> ProductionOutputs
Rules
Production Plans
P3.4
Inventory Capacity
Production Capacity
EP.5
Product Design
3.3.47
EM.2
Manage Production Performance
The process of developing and maintaining performance standards and analysis methods
to compare actual production performance against the established standards. This process
allows the development and implementation of a course of action to achieve targeted
performance.
Metric
# of staff-related environmental violations
Manage Production Performance Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Production Performance
None Identified
Best Practices
Real Time Performance

Measurement Reporting Systems
Systems to collect production information online generate

reports upon request by operators, and track progress against
schedule and standards.
Develop environmental
performance standards.
Develop environmental performance standards.
Periodic Review of Standards
Process for establishing and maintaining review schedules
Implement an EMS
Implement an EMS
Standards and Measurements

Aligned to Maximize Supply Chain
Performance
Internal/external benchmarking, industry standards,

customer/supplier alignment agreements, visibility of key
performance indicators
Inputs
Business Plan
EP.6
Strategies
Production Plans
P3.4
Inventory Capacity
Inputs
Production Rules
> EM.2
Production Quality & Policies
> Supply Chain Performance

Metrics
EP.2, ED.1, ED.5
Production Capacity
EP.5
3.3.48
EM.3
Manage MAKE Information
The process of managing, collecting, maintaining, and communicating information to
support MAKE planning and execution processes. The information to be managed includes
production, order and process data.
Metric
None Identified
Manage MAKE Information Cycle Time
None Identified
Supply Chain Costs
Cost to Manage MAKE Information
None Identified
Best Practices
On-Demand Access to Available

to Promise (ATP), Production
Schedules and Inventory Status by
Internal Operations and Customers
None identified
On-Demand Access of Production

Information
Data Collection and Display Systems designed for efficient

performance of value-added operations in production. This
could include using PLC, Machine Interface, bar code, Radio
Frequency Communication, Radio Frequency Identification,
Magnetic Stripe, Smart Cards, etc., to enable data collection
Utilize Enterprise Information

Systems
Enter, Process, and Deliver information about the

manufacturing process to management using information
systems that span the enterprise
Include products environmental

attributes
Include products environmental attributes information
Historical trending, cause and effect analysis, and Key

Performance Indicators Scheduling reviews of processes for
possible improvements
Inputs
Outputs
Systems Capabilities
Information Needed to Create
and Maintain IT
Information from Business
Processes
> EM.3
Reports, Information and

Documents
> Information Infrastructure

Plan
Information Needs Analysis
3.3.49
EM.4
Manage In-Process Products (WIP)
The process of establishing and maintaining limits or levels, replenishment models,
ownership, product mix and stocking locations for In-Process Product (WIP).
Metric
None Identified
Manage In-Process Products (WIP) Cycle Time
None Identified
Supply Chain Costs
Cost to Manage In-Process Products (WIP)
None Identified
Best Practices
Optimize Packing
No packing and unpacking time required. Recyclable or no

containers where appropriate. No discarded material.
Dunnage Control
System data field to specify where the part / product shipping

container should be removed. Best practice is to remove the
dunnage as soon as possible unless part / product damage
will result. Reuse of intermediate WIP containers for finished
goods.


program

Minimizing In-Process Product

(WIP)
WIP Storage Management System Efficient Space Utilization

Implementing Pull Systems
In-Process Product (WIP) Handling

Rules
Tracking, genealogy
Minimum Product Handling
Move high frequency used inventory close to point of use. For

example, the system should provide the frequency of picks by
part number so that high frequency picks can be moved to
convenient locations or part pick quantities increased.
3.3.50
EM.4
VMI is a concept for planning and control of inventory, in which

the supplier has access to the customers inventory data and
is responsible for maintaining the inventory level required by
the customer. Re-supply is performed by the vendor through
regularly scheduled reviews of the on-site inventory. The onsite inventory is counted, damaged or outdated goods are
removed, and the inventory is restocked to predefined levels.
First In - First Out
Part / WIP location by date received for those parts that must
be stocked or staged in a holding area
Inputs
Production Orders Planned &
Actual Reports
Returned Product Information
> EM.4
Outputs
Handling Rules, Move

> WIP
EM.6, M1.2, M2.2, M3.3
Incoming Product Information
3.3.51
EM.5
Manage MAKE Equipment and Facilities
The process of specifying maintaining and dispositioning MAKEs capital assets to operate
the supply chain production processes. This includes repair, alteration, calibration and other
miscellaneous items to maintain production capabilities.
Metric
None Identified
Manage MAKE Equipment and Facilities Cycle Time,

None Identified
Supply Chain Costs
Energy efficient upgrades,

Cost to Manage MAKE Equipment and Facilities,
Number of worker absences due to poor IAQ
Actual Asset Life Maintenance Cost as % of Replacement Value,

Equipment energy efficiency
Best Practices
Predictive Maintenance Monitoring

(Heat, Noise, Lubrication
Composition & Vibration)
Database for equipment to contain expected results of

analysis, allow entry of test readings, and have capability of
generating desired reports, which could highlight suggested
actions based upon readings obtained, track maintenance
completed, contain a help-file to be consulted
Use non-toxic solvents
Use non-toxic solvents for machinery cleaning
Utilize non-toxic materials
Utilize non-toxic solvents and cleaning materials
Continuous Improvement Program
Changeover process flow element identification, instructional

directions to conduct changeover, and measurement
tool, which can be used to prioritize and track results of
improvement efforts. Software to identify operational
constraints to the MAKE processes to assist in directing
resources toward bottleneck functional areas.
Systematic Disposition Of
Equipment
Rules for deciding appropriate disposition.
Minimize Capital Assets Required

and Maintenance Costs
Outsourcing strategies including the use of Application

Service Providers (ASPs), web-based maintenance/diagnostic
assistance and MRO parts.
Supplier Managed Inventory of

Parts
E.D.I. linkage of Inventory Information
Facility & Equipment Environmental

/ Safety Audit System
System software to list checklist items, report results of audit &

forward actions to be taken
Utilize energy-star (or similar)

equipment
Utilize energy-star (or similar) equipment whenever possible
3.3.52
EM.5

system
Factory Floor Electronic Decision

Making Information System
Software to capture actual performance history / costs of

operations with capability of predicting best cost action plans
relating to maintaining equipment and facilities.
Total Preventative Maintenance

Program
Automatically generated TPM repair schedules integrated

with MRP systems, electronic equipment repair history, parts
listings, part stores inventory & reorder points, automatic store
room parts purchases, Shop floor access to electronic data
base of equipment line drawings, electrical wiring diagrams,
parts listing reference guide and part cost lists.
Outputs
Inputs

Maintenance History
Budgets

ES.4, ES.5, ES.8
Manufacturers Recommended
Maintenance Schedules &
Specifications
Equipment and Facilities Monitoring Information
MRO Parts Availability
ES.4
Production Plans
P3.4
Production Quality and Policies
> EM.5
>

Schedules and Plans
M1.1, M2.1, M3.2
Plans
P3.2, EM.6
Production Status
EM.7
M1.1, M2.1, M3.2
3.3.53
EM.6
Manage Transportation (WIP)
The process of transporting In-Process Product (WIP). This includes management of the
activities associated with in transit handling and movement of In-Process Product (WIP).
Metric
None Identified
Manage Transportation (WIP) Cycle Time
None Identified
Supply Chain Costs
Packaging volume,
% of pallets that are reusable,
% of trucks using retread tires,
Cost to Manage Transportation,
% of paints used that are non-toxic
Best Practices
Utilize retread tires
Utilize non-wood or recycled pallets
Utilize non-wood pallets or recycled pallets

program

Reduce In-Process Product (WIP)

Handling
Reduction of WIP handling through automation (i.e. AGVs and

ASRS) and process improvement (i.e. reduction of handling
steps, shorter move paths)
Short Move Paths
Software that allows for input of the distance that particular

parts/WIP need to be moved. This software then need to
provide a report based on the cubic feet of material times
distance moved by part number.
3.3.54
EM.6
Inputs
Plans
EM.5
Production Orders Planned &
Actual Reports
EM.4
Projected Delivery
Requirements
EM.7
Outputs
> EM.6
WIP Move Information and

Methods
> WIP Location Rules
M1.2, M2.2, M3.3, D2.9

S1.4, S2.4, S3.6
Supplier Agreement
ES.10, S3.2
M1.2, M2.2, M3.3
3.3.55
EM.7
Manage Production Network
The process of identifying and maintaining a network of intra-company production units
that deliver specific semi-finished materials or product sets to the final production site.
Metric
None Identified
Manage Production Network Cycle Time,

None Identified
Supply Chain Costs
Cost to Manage Production Network
None Identified
Best Practices
Collaborative Planning/Scheduling
Interactive, on-line planning/scheduling systems. Capacity

planning systems with accurate production capability data.
JIT Environment
Schedule visibility, on-line communications between source

and demand
Production Reporting/Status
Real time monitoring of production status and In-Process

Product (WIP)
Inputs
Planning Data
EP.3
Production Status
EM.5
Supply Chain Plans
P1.4
3.3.56
Outputs
> EM.7
Cost to Produce
Capacity
> Internal
Projected Delivery
Requirements
EM.6, ED.6
EM.8
Manage Make Regulatory Environment
standards set by external entities (eg government)
Metric
% of employees trained on environmental requirements
Manage MAKE Regulatory Compliance Cycle Time
None Identified
Supply Chain Costs
Cost to Manage MAKE Regulatory Compliance,

Pollution Prevention Ratio
None Identified
Best Practices
Automated Conformance
Monitoring And Control
Internal automatic notification of conformance, including

holding of product until requirements are met
Automatic Generation And

Submission Of Conformance
Documents
Software specific to industry regulations and standards

(e.g. may be software to produce MSDS documents, or FDA
requirements, etc.)

program

Maintaining Repository of Current

Electronic subscription and publication of conformance

documentation. Electronic Document Management System
features.
Implement an EMS
Implement an EMS
Inputs
Characteristics
External Regulatory
Information
> EM.8
Outputs
> Conformance Rules

Conformance Plan

Strategies
3.3.57
EM.9
Manage Supply Chain Make Risk
The process of managing Make risks within an overall supply Chain risk Program. This
includes identifying and assessing make risks as well as and planning and implementing
responses to Make risks. Make risks include potential events that could impact your ability
to make on-time at a reasonable cost with good quality. The risks can occur internally within
your organization, e.g. a matching breakdown or facility fire, or externally, e.g. a hurricane,
that impacts your ability to Make. Response planning includes: mitigation, either reducing
the impact of a Make risk event or reducing the likelihood it will occur; transfer; acceptance.
An organization has a high level of control and flexibility of action concerning internal Make
risks, so they are prime candidates for control Response planning can be aggregated for
make risks across the organization.
Metric

Value at Risk (Make),
Age of Product / Customer Risk Data (months),
VAR of product/customer performance -

Hedge Rating (Inventory DOS for risk management),
Supply Chain Costs

Mitigation cost by Event ($),
Assessment / Risk Management Costs ($)
Supply Chain Asset

Management
Residual Risk ($),

Mitigated Risk ($),
Gross Risk ($)
Best Practices

This practice involves establishing business rules (e.g., customer

priority, supplier priority, production routing, transportation
routing, etc.) based on minimizing the risk to the supply chain.
Under this practice, business rules are established or configured
in response to the corporate risk management plan with a goal
of reducing either the likelihood of a disruption occurring or the
impact to the supply chain should a disruption occur.
3.3.58
EM.9
Business rule reconfiguration typically includes an assessment of
the impact of each rule change on the overall supply chain before
actual implementation.
Once areas of risk have been identified, an organization needs to

monitor their internal and external environment. This helps them
to predict when risky events are becoming more likely. It also helps
to identify new risks and is tightly linked to the best practice of
Supply Chain Risk Identification.


of the risk, understanding conditions that may lead to the event,
knowing how frequently such events have happened or can be
expected to happen, and the potential impact of such events. the
team can then prioritize addressing the risks.


This helps all parties to be quickly informed of a real or potential
disruption and respond quickly and appropriately to minimize the
disruption impact.

identification allows an organization to take steps to create plans
to manage risks before they occur. this is typically more cost
effective then waiting to react to adverse events when they occur.
Supply Chain Network

Configured to Mitigate Risk

transportation routes, capacity size and location, number of
suppliers, number of production locations, etc. are all determined
in a fashion that mitigates potential disruptions to the ability to
deliver product and service to the end customer.
identification and risk assessment processes to identify nodes that
are at a high risk of disruption due to the location of the node.
Location specific risks can include tactical strike risks, natural
disaster risks, single point of failure risks, etc.
3.3.59
EM.9
Crisis Communications
Planning
Open communication is necessary for effective risk management,

where the term open refers to the possibility to directly reach
the right person who can better handle the information about a
crisis situations wherever in the organization.
Inputs
Monitoring
3.3.60
Outputs
> EM.9

> Risk
Process Area
D
Deliver
The processes associated with performing customer-facing order management and order
fulfillment activities.
Process Categories
D1: Deliver Stocked
Product
The process of delivering product that is sourced or made based on

aggregated customer orders, projected orders/demand and inventory
re-ordering parameters. The intention of Deliver Stocked Product is to
have the product available when a customer order arrives (to prevent
the customer from looking elsewhere). For services industries, these are
services that are pre-defined and off-the-shelf (e.g. standard training).
Products or services that are configurable cannot be delivered through
the Deliver Stocked Product process, as configurable products require
customer reference or customer order details.
D2: Deliver Make-to-Stock

Product
The processes of delivering product that is sourced, configured,

manufactured, and/or assembled from standard raw materials, parts,
ingredients or sub-assemblies, in response to a specific firm customer
order. A reference to the customer order is exchanged with the
sourcing or make process and attached to or marked on the product.
Products in stock are identifiable by customer order through labeling
and inventory data management. Examples include assigning a serial
number, lot number or batch number to a customer order prior to
Make or Source, processes that generate a bill-of-materials for the
associated Make process (e.g. configure-to-order and assemble-toorder) and the special order process in retail.
D3: Deliver Engineer-toOrder Product
The process of obtaining, responding to, and allocating resources for

a customer order that has unique requirements or specifications and
delivering a product that is partially or fully designed, redesigned,
manufactured, and/or assembled from a bill of materials or recipe that
includes one or more custom parts or ingredients. Design will begin
only after the receipt and validation of a firm customer order.
D4: Deliver Retail Product
Deliver Retail Products are the processes used to acquire, merchandise,

and sell finished goods at a retail store. A retail store is a physical
location that sells products (and services) direct to the consumer using
a point of sale process (manual or automated) to collect payment.
Merchandising at a store level is the stocking and restocking of
products in designated storage locations to generate sales in a retail
store.
ED: Enable Deliver

Deliver process data, performance and relationships.
3.4.1
D1
Deliver Stocked Products
The process of delivering product that is sourced or made based on aggregated customer
orders, projected orders/demand and inventory re-ordering parameters. The intention of
Deliver Stocked Product is to have the product available when a customer order arrives (to
prevent the customer from looking elsewhere). For services industries, these are services
that are pre-defined and off-the-shelf (e.g. standard training). Products or services that
are configurable cannot be delivered through the Deliver Stocked Product process, as
configurable products require customer reference or customer order details.
Metric
Deliver Cycle Time,

Upside Deliver Adaptability,

Downside Deliver Adaptability,
Supply Chain Costs
Cost to Deliver,
Finished Goods Inventory Days of Supply,
Order Management Costs

Best Practices
Postponement

Electronic Catalogues/Malls
None identified
Efficient Consumer Response (ECR);

Quick Response
Demand Planning, Deployment, Scheduling
Internet Ordering
None identified
Rapid Replenishment, VMI, EDI
None identified
3.4.2
D1
! D1.1 !
Customer Quote D1.2
! D1.2 !
Optional Payment
Validated Order D1.3
Customer Order D3.4, ED.2
Actual Sales History P5.1
Shipping Preferences (Customer) ED.3
Purchase History ED.3
Customer Address Data ED.3
Location of Customers ED.7
Contract Status ED.3
Credit History D2.2, ED.3
Delivery Plan P4.4

D1.8, D4.2
Sourcing Plans P2.4
! D1.3 !
Delivery Date D1.4, D2.4

Order Backlog P1.1, P4.1
Inventory Availability/Delivery Date P4.2
Shipments P1.1
! D1.4 !
Daily Shipment Volume D1.5
Daily Shipment Volume D1.5
! D1.5 !
Load Information P4.2, D1.6, D2.6, D3.6

Plan and Build Loads Information SR1.4, SR2.4, SR3.4

Rated Carrier Data
Routing Guide
! D1.6 !
Shipment Routes D1.7, D2.7
! D1.7 !
Scheduled Deliveries D1.9
Customer Inquiry
(Customer) Customer Replenish Signal

Order Rules ED.1
(Customer) Deliver Contract Terms
Customer Quote D1.1
(Customer) Customer Order
3.4.3
D1
Authorization to Scrap SR1.2, SR2.2, SR3.2
D1.8, D4.2
Finished Product Release M1.6, M2.6, M3.7
Authorization to Return to Service SR1.2, SR2.2, SR3.2
! D1.8 !

D1.8, D4.2
Existing Inventory Data ES.4, ED.4
A
Inventory Available S1.4, S2.4, S3.6, M1.2, M2.2, M3.3,
D1.8, D4.2
Shipment Routes D1.7, D2.6, D3.5
! D1.9
D1.10
Shipping Parameters and Documentation ED.6
Shipping Export Parameters and Documentation ED.8
! D1.11 !

Shipping History ED.8
Shipping Documents
Load, Shipping, Verify, and Credit Information SR1.5,
SR2.5, SR3.5
Shipments P1.1
Delivered End Items
D1.12
D1.13 !
3.4.4
Product S1.2, S2.2, S3.4, D1.14, D2.14, D3.14
Product S1.2, S2.2, S3.4, D1.14, D2.14, D3.14
! D1.14 !
Installed Product D1.15, D2.15
Installed Product D1.14, D2.14, D3.14
! D1.15 !
Payment
D1.1
Process Inquiry and Quote
Receive and respond to general customer inquiries and requests for quotes
Metric
None Identified
Process Inquiry & Quote Cycle Time
None Identified
Supply Chain Costs
Cost to Process Inquiry & Quote
None Identified
Best Practices
Quote Capability, without

Reserving Inventory, Which Can Be
Converted into an Order in a Single
Step
None identified
Single Point of Contact for All Order

Inquiries (Including Order Entry)
None identified
Inputs
Customer Inquiry
> D1.1
Outputs
> Customer Quote

D1.2
3.4.5
D1.2
Receive, Enter and Validate Order
Receive orders from the customer and enter them into a companys order processing
system. Orders can be received through phone, fax, or electronic media. Technically
examine orders to ensure an orderable configuration and provide accurate price. Check the
customers credit. Optionally accept payment.
Metric
None Identified
Receive, Enter & Validate Order Cycle Time,

Order Fulfillment Dwell Time
None Identified
Supply Chain Costs
Cost to Receive, Enter & Validate Order
None Identified
Best Practices
Remote (Sales, Customers) Order

Entry Capability
None identified
Enable Real-Time Visibility into

Backlog, Order Status, Shipments,
Scheduled Material Receipts,
Customer Credit History, and Current
Inventory Positions
None identified
Value Pricing Based on Cost to

Serve; EDLP; Cost Plus Pricing
Activity Based Costing; Integrated Order Management by

Customer by Line Item
Automatic Multi-level Credit

Checking: Dollar Limits; Days Sales
Outstanding; Margin Testing
Integrated Order/Financial Management
Continuous Replenishment
Programs; Vendor Managed
Inventory, Telemetry to
Automatically Communicate
Replenishment of Chemicals
Integrated demand/deployment planning to customer

location driven by POS; Customer movement data
Electronic Commerce (Customer

Visibility of Stock Availability, Use
of Hand-Held Terminals for Direct
Order Entry, Confirmation, Credit
Approval), On-Line Stock Check and
Reservation of Inventory
EDI applications and integrated order management
3.4.6
D1.2
Outputs
Optional Payment
Validated Order
D1.3
Customer Order
D3.4, ED.2
Inputs

P5.1
(Customer) Customer Replenish

Signal
Order Rules
ED.1
(Customer) Deliver Contract
Terms
> D1.2
Shipping Preferences
(Customer)
ED.3
> Validated Order

D1.3
Customer Quote
D1.1
Purchase History
ED.3
(Customer) Customer Order
Customer Address Data

ED.3
Location of Customers
ED.7
Contract Status
ED.3
Credit History
D2.2, ED.3
3.4.7
D1.3
Reserve Inventory and Determine Delivery Date
Inventory (both on hand and scheduled) is identified and reserved for specific orders and a
delivery date is committed and scheduled.
Metric
Delivery Performance to Customer Commit Date,

Fill Rate,
Reserve Inventory & Determine Delivery Date Cycle Time,

None Identified
Supply Chain Costs
Cost to Reserve Resources & Determine Delivery Date
None Identified
Best Practices
Include environmental costs
Include environmental costs in inventory carrying costs
Inventory Allocation Exception

Process is Clearly Defined and
Jointly Owned by Manufacturing
and Sales
None identified
Priority-Based Inventory
Reservations, for Key Customers,
with FIFO Allocation for All Others
None identified
Automatic Reservation of Inventory

and Dynamic Sourcing of Product
for Single Shipment to Customer
Integrated order management system that treats each order

line as a separate order with integration to inventory source
and status; Real-time inventory management
Establish spill controls
Establish spill controls for finished goods inventory storage
Available-to-Promise (ATP)
Available-to-Promise (ATP) provides an availability and

feasibility check concerning a customer request or a customer
order.
EDI Links between Manufacturing

and Distributor to Achieve Visibility
of Complete Finished Goods
Inventory and Expected Shipments
None identified
3.4.8
D1.3
Inputs
Outputs
Delivery Plan
P4.4
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Sourcing Plans
P2.4
Production Schedule
M1.1, M2.1, M2.2, M3.2
Validated Order
D1.2
Production Plans
P3.4
Delivery Date
D1.4, D2.4
> D1.3
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Backlog
> Order
P1.1, P4.1
Date
P4.2
Shipments
P1.1
3.4.9
D1.4
Consolidate Orders
The process of analyzing orders to determine the groupings that result in least cost/best
service fulfillment and transportation.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Consolidate Orders
None Identified
Best Practices
Consolidate Orders by Customer,

Source, Traffic Lane, Carrier, Etc.
Integrated load planning and building with warehouse

management
Consolidate to minimize energy

consumption
Consolidate to minimize fuel/energy consumption
Combine Consolidation Needs

with Other Products/Divisions/
Companies
None identified
Inputs
Delivery Date
D1.3, D2.3
3.4.10
> D1.4
Outputs
Shipment Volume
> Daily
D1.5
D1.5
Build Loads
Transportation modes are selected and efficient loads are built.
Metric
None Identified
None Identified
Supply Chain Costs

Cost to Build Loads
None Identified
Best Practices
Consolidation of Inbound and

Outbound Requirements
Integrated inbound/outbound transportation planning

which the supplier has access to the customers inventory
data and is responsible for maintaining the inventory level
required by the customer. Re-supply is performed by the
vendor through regularly scheduled reviews of the on-site
inventory. The on-site inventory is counted, damaged or
outdated goods are removed, and the inventory is restocked
to predefined levels.
Build Load in Stop Sequence
Integrated inbound/outbound transportation planning (i.e.

1st truck destination loaded last, etc.).
Select carriers with good records
Select carriers with good environmental records
Select carriers with EMS
Select carriers that have adopted an EMS or otherwise

demonstrated environmental commitment
CRP & VMI Loads Optimized for

Utilization
Integration with CRP/VMI vendor systems
Inputs
Daily Shipment Volume
D1.4
Outputs
> D1.5
>
Load Information
P4.2, D1.6, D2.6, D3.6
Plan and Build Loads
Information
SR1.4, SR2.4, SR3.4
3.4.11
D1.6
Route Shipments
Loads are consolidated and routed by mode, lane and location.
Metric
None Identified
Route Shipments Cycle Time
None Identified
Supply Chain Costs
Cost to Route Shipments,

Energy Costs
None Identified
Best Practices

levels.
Shipment Tracking and Tracing
Satellite communications, GPS, RFID
Consolidation of Carriers
Transportation modeling and rate analysis
CRP/VMI
Integrated Load Building; Routing & Scheduling with

Advanced Ship Notice (ASN)
Route to minimize fuel

consumption
Route to minimize fuel consumption
Inputs
Load Information
D1.5, D2.5, D3.5
Rated Carrier Data
> D1.6
Outputs
Routes
> Shipment
D1.7, D2.7
Routing Guide
3.4.12
D1.7
Select Carriers and Rate Shipments
Specific carriers are selected by lowest cost per route and shipments are rated and tendered.
Metric
Select Carriers & Rate Shipments Cycle Time
None Identified
Supply Chain Costs
Cost to Select Carriers & Rate Shipments
None Identified
Best Practices

Select complaint carriers
Select carriers that have not violated environmental laws
Select carriers using retread tires
Select Carriers by Least Cost per

Shipment and Rate Using Actual
Rates Prior to Release to Billing
Rules based carrier selection and actual rate database
Inputs
Shipment Routes
D1.6, D2.6
> D1.7
Outputs
Deliveries
> Scheduled
D1.9
3.4.13
D1.8
Receive Product from Source or Make
The activities such as receiving product, verifying, recording product receipt, determining
put-away location, putting away and recording location that a company performs at its own
warehouses. May include quality inspection.
Metric
None Identified
Receive Product from Source or Make Cycle Time
None Identified
Supply Chain Costs
Cost to Receive Product from Source or Make
None Identified
Best Practices
Automatic Identification
Bar Coding & Radio Frequency Communications
Cross-Docking
Used in many distribution centers (DC) to increase inventory

velocity while maintaining shipping efficiency. In a traditional
DC, the receiving process is disjointed from the shipping
process and storage acts as an intermediary between the
two processes. Cross docking actively links the receiving and
shipping processes. In a DC, both cross docking (no storage)
and traditional (with storage) operations might take place.
Download P.O. & Advanced Ship

Notices for Automated Receiving
and Put Away
Integration with Procurement Systems & Electronic Commerce

with Vendors
Merge-in-Transit
Merge-in-Transit is a practice to combine items from multiple

sources into a single customer shipment. This includes items
on stock in the distribution center, from which the shipment
is sent, items on stock in other distribution centers, items on
stock elsewhere (e.g. at a plant or a supplier) as well as maketo-order items. The items to be merged are cross-docked from
inbound receipt to outbound shipping. Merging is usually
performed in a shippers distribution center (DC) or in a
carriers terminal.
3.4.14
D1.8
Inputs
Authorization to Scrap
SR1.2, SR2.2, SR3.2
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2
Scheduled Receipts
S1.1, S2.1, S3.3
M1.6, M2.6, M3.7
Outputs
> D1.8
>
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
ES.4, ED.4
Authorization to Return to
Service
SR1.2, SR2.2, SR3.2
3.4.15
D1.9
Pick Product
The series of activities including retrieving orders to pick, determining inventory availability,
building the pick wave, picking the product, recording the pick and delivering product to
shipping in response to an order.
Metric
Fill Rate
None Identified
Supply Chain Costs
Cost to Pick Product
None Identified
Best Practices
Dynamic Simulation of Picking

Requirements Optimized for Labor,
Cost, and Time
Rules based picking logic and simulation
Use of Speed Racks for Automated

Material Handling
None identified
Merge-in-Transit
Merge-in-Transit is a practice to combine items from multiple

sources into a single customer shipment. This includes items
on stock in the distribution center, from which the shipment
is sent, items on stock in other distribution centers, items on
stock elsewhere (e.g. at a plant or a supplier) as well as maketo-order items. The items to be merged are cross-docked from
inbound receipt to outbound shipping. Merging is usually
performed in a shippers distribution center (DC) or in a
carriers terminal.
Wave picking
A practice used in many DC operations to increase labor

picking productivity and reduce the labor cost per pick. In
some DCs, orders are scheduled to be picked when they are
received. Wave picking consolidates orders into waves where
multiple orders with similar characteristics are picked at one
time. Orders can be consolidated by customer, geography, or
any other criteria that makes sense for the DC operation.
Inputs
Inventory Available
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
> D1.9
Outputs
> None Identified
Shipment Routes
D1.7, D2.6, D3.5
3.4.16
D1.10
Pack Product
The activities such as sorting / combining the products, packing / kitting the products, paste
labels, barcodes etc. and delivering the products to the shipping area for loading.
Metric
% correct material documentation
Pack Product Cycle Times
None Identified
Supply Chain Costs
Cost to Pack Product
None Identified
Best Practices
None Identified
None Identified
Inputs
None Identified
> D1.10
Outputs
> None Identified
3.4.17
D1.11
Load Vehicle & Generate Shipping Docs
The series of tasks including placing/loading product onto modes of transportation,
and generating the documentation necessary to meet internal, customer, carrier and
government needs. Shipping documentation includes the invoice. Optionally verify
customer credit.
Metric
Documentation Accuracy,
Load Product & Generate Shipping Documentation Cycle Time
None Identified
Supply Chain Costs
Cost to Load Product & Generate Shipping Documentation
None Identified
Best Practices
Shipment Tracking
None identified
Full Visibility of Credit History by

Shipping Personnel
None identified
Advanced Shipping Notices &

UCC128 Container Labeling
Bar coding; EDI; integrated transportation/warehouse

management
Carrier Agreement

Electronic Generation and

Download of Shipping Documents
None identified
Integrated Credit Checking
Interface to suppliers shipping system to financials
Cross-Docking

3.4.18
D1.11
Outputs
Order Backlog
P1.1, P4.1
Inputs
Shipping Parameters and
Documentation
ED.6
Shipping Export Parameters
and Documentation
ED.8
> D1.11
Shipping History
ED.8
> Shipping Documents
Load, Shipping, Verify, and

Credit Information
SR1.5, SR2.5, SR3.5
Shipments
P1.1
Delivered End Items
3.4.19
D1.12
Ship Product
The process of shipping the product to the customer site.
Metric

None Identified
Supply Chain Costs
Cost to Ship Product
Supply Chain Asset

Management
None Identified
Best Practices
Shipment Tracking
None identified
Cross-Docking

velocity while maintaining shipping efficiency. In a traditional DC,
the receiving process is disjointed from the shipping process and
storage acts as an intermediary between the two processes. Cross
docking actively links the receiving and shipping processes. In a
DC, both cross docking (no storage) and traditional (with storage)
operations might take place.
Retrieve packaging after

installation
Inputs
None Identified
3.4.20
> D1.12
Outputs
> None Identified
D1.13
Receive and Verify Product by Customer
The process of receiving the shipment by the customer (either at customer site or at
shipping area in case of self-collection) and verifying that the order was shipped complete
and that the product meets delivery terms.
Metric

Perfect Condition,
Receive & Verify Product by Customer Cycle Time
None Identified
Supply Chain Costs
Cost to Receive & Verify Product by Customer
None Identified
Best Practices


management
Outputs
Inputs
None Identified
> D1.13
> Product
S1.2, S2.2, S3.4, D1.14, D2.14,
D3.14
3.4.21
D1.14
Install Product
When necessary, the process of preparing, testing and installing the product at the
customer site. The product is fully functional upon completion.
Metric
Perfect Condition,
% Of Faultless Installations
None Identified
Supply Chain Costs
Cost to Install Product
None Identified
Best Practices
Joint Service Agreements to

Document Acceptable Service
Levels in Terms of Installation Costs,
Installation Cycle Time, Etc.
Collaborative planning tools with the Source suppliers.

(This would be effective between customer and supplier,
and between internal functions such as Field Service,
Manufacturing, Marketing and Order Management)
Inputs
Product
D1.13, D2.13, D3.13
3.4.22
> D1.14
Outputs
Product
> Installed
D1.15, D2.15
D1.15
Invoice
A signal is sent to the financial organization that the order has been shipped and that the
billing process should begin and payment be received or be closed out if payment has
already been received. Payment is received from the customer within the payment terms of
the invoice.
Metric
% of Faultless Invoices,
Invoice Cycle Time
None Identified
Supply Chain Costs
Cost to Invoice
None Identified
Best Practices
Utilize EDI and EFT for Payment to

Speed Closing of Receivables and
to Reduce Processing Costs
EDI transaction and network services
Electronic Transfer of Shipment

Information to Finance
None identified
Provide Visibility to and Quickly

Escalate Delinquent Accounts for
Resolution
Integrated accounts receivables
Inputs
Installed Product
D1.14, D2.14, D3.14
> D1.15
> Payment
Outputs
3.4.23
D2
Deliver Make-to-Order Product
The processes of delivering product that is sourced, configured, manufactured, and/or
assembled from standard raw materials, parts, ingredients or sub-assemblies, in response
to a specific firm customer order. A reference to the customer order is exchanged with the
sourcing or make process and attached to or marked on the product. Products in stock are
identifiable by customer order through labeling and inventory data management. Examples
include assigning a serial number, lot number or batch number to a customer order prior to
Make or Source, processes that generate a bill-of-materials for the associated Make process
(e.g. configure-to-order and assemble-to-order) and the special order process in retail.
Metric

Deliver Cycle Time

Upside Deliver Flexibility,
Supply Chain Costs
Cost to Deliver,
Energy Costs,
Finished Goods Inventory Days of Supply

Best Practices
Postponement

3.4.24
D2
Customer Inquiry
D2.1 !
Order Quote (Customer) D2.2
! D2.2 !

Credit History D1.2, D2.2, D3.1
Optional Payment
Booked Order D2.3, ED.3
Customer Address Data ED.3
Customer Order Size, Weight, and Freight Class ED.6
! D2.3 !

Order Signal P2.1, P3.1
Inventory Status
Available to Promise Date
Inventory Availability/Delivery Date P4.2
! D2.4 !
Consolidated Orders D2.5
Consolidated Orders D2.5
! D2.5 !
Rated Carrier Data

Routing Guide
! D2.6 !

! D2.7
Configuration Rules ED.1

Order Quote (CUSTOMER) D2.1
Contract Terms
Order Rules ED.1
Delivery Plans P4.4

Sourcing Plans P2.4
Booked Order D2.2
D1.8, D4.2
3.4.25
D2
D2.8
D1.8, D4.2
! D2.9
D2.10
!D2.11 !
Advance Ship Notice D2.13

Shipping Documents
Delivered End Items
D2.12
3.4.26
Advance Ship Notice D2.11
!D2.13 !
Product S1.2, S2.2, S3.4, D1.14, D2.14, D3.14
Product D1.13, D2.13, D3.13
!D2.14 !
Installed Product D1.14, D2.14, D3.14
!D2.15 !
Payment
D2.1
Process Inquiry and Quote
Receive and respond to general customer inquiries and requests for quotes.
Metric
None Identified
Process Inquiry & Quote Cycle Time
None Identified
Supply Chain Costs
Cost to Process Inquiry & Quote
None Identified
Best Practices
Quote Capability, without Reserving

Inventory, Which Can Be Converted
into an Order in a Single Step
None identified
Quote Capability, without Reserving

Inventory, Which Can be Converted
into an Order, But Does Not
Generate Build Signal or Reserve
Inventory Capacity
None identified
Single Point of Contact for All Order

Inquiries (Including Order Entry)
None identified
Inputs
Customer Inquiry
> D2.1
Outputs
Quote (Customer)
> Order
D2.2
3.4.27
D2.2
Receive, Configure, Enter and Validate Order
Receive orders from the customer and enter them into a companys order processing
system. Orders can be received through phone, fax, or through electronic media. Configure
your product to the customers specific needs, based on standard available parts or options.
Technically examine order to ensure an orderable configuration and provide accurate
price. Check the customers credit. Optionally accept payment.
Metric
None Identified
Receive, Configure, Enter & Validate Order Cycle Time,

None Identified
Supply Chain Costs
Cost to Receive, Enter & Validate Order
None Identified
Best Practices
Automated Configuration Management
Configuration
Electronic Commerce (Customer Visibility

of Stock Availability, Use of HandHeld Terminals for Direct Order Entry,
Confirmation, Credit Approval), On-Line
Stock Check and Reservation of Inventory
EDI applications and integrated order management
Value Pricing Based on Cost to Serve; EDLP;

Cost Plus Pricing
Activity Based Costing; Integrated Order

Management by Customer by Line Item
Enable Real-Time Visibility into Backlog,

Order Status, Shipments, Scheduled Material
Receipts, Customer Credit History, and
Current Inventory Positions
None identified
Order Entry is Organized by Customer

Segment Customers Receive Differentiated
Service Based on Volume of Business
Customer Team is Empowered to Fully
Service Customer Requests, Including Formal
Orders and Ad Hoc Requests Customers Have
One Point of Conta
None identified
Remote (Sales, Customers) Order Entry

Capability
None identified
Automatic Multi-level Credit Checking: Dollar

Limits; Days Sales Outstanding; Margin
Testing
3.4.28
D2.2
Outputs
ED.7
Purchase History
ED.3
Contract Status
ED.3
Inputs
Configuration Rules
ED.1
Credit History
D1.2, D2.2, D3.1
Order Quote (CUSTOMER)

D2.1
Optional Payment
Contract Terms
Order Rules
ED.1
Credit History
D1.2, D2.2, D3.1
> D2.2
> Booked Order

D2.3, ED.3

ED.3
Customer Order Size, Weight,
and Freight Class
ED.6
(Customer)
ED.3
P5.1
3.4.29
D2.3
Reserve Inventory and Determine Delivery Date
Inventory and/or planned capacity is identified and reserved for specific orders, and a
delivery date is committed and scheduled.
Metric
% of Orders Delivered In Full,

Order Fulfillment Dwell Time,

Reserve Resources and Determine Delivery Date Cycle Time
None Identified
Supply Chain Costs
Cost to Reserve Resources & Determine Delivery Date
None Identified
Best Practices
Dynamic Deployment Based on

Constraint Based Planning and
Optimal Scheduling
Advanced planning and scheduling logic with constraint, cost,

and resource optimization
Available-to-Promise (ATP) provides an availability and feasibility

check concerning a customer request or a customer order.
Include environmental costs in inventory carrying costs
Automatic Reservation of
Inventory and Dynamic Sourcing
of Product for Single Shipment to
Customer
Integrated order management system that treats each order

line as a separate order with integration to inventory source and
status; Real-time inventory management
Establish spill controls for finished goods inventory storage
3.4.30
D2.3
Outputs
Inputs
Delivery Date
D1.4, D2.4
Delivery Plans
P4.4
Order Signal
P2.1, P3.1
Production Plans
P3.4
Sourcing Plans
P2.4
Booked Order
D2.2
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2
Order Backlog
P1.1, P4.1
> D2.3
Status
> Inventory
Customer Order
D3.4, ED.2
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Date
P4.2
3.4.31
D2.4
Consolidate Orders
The process of analyzing orders to determine the groupings that result in least cost/best
service fulfillment and transportation.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Consolidate Orders
None Identified
Best Practices
Consolidate Orders by Customer,

Source, Traffic Lane, Carrier, Etc.
Integrated load planning and building with warehouse

management

consumption
Inputs
Delivery Date
D1.3, D2.3
3.4.32
> D2.4
Outputs
Orders
> Consolidated
D2.5
D2.5
Build Loads
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Build Loads,

None Identified
Best Practices


Utilization

Integrated inbound/outbound transportation planning (i.e. 1st

truck destination loaded last, etc.).
Inputs
Consolidated Orders
D2.4
> D2.5
Outputs
Information
> Load
P4.2, D1.6, D2.6, D3.6
3.4.33
D2.6
Route Shipments
Loads are consolidated and routed by mode, lane, and location.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Route Shipments,

Energy Costs
None Identified
Best Practices

levels.
Route to minimize fuel

consumption
CRP/VMI

Inputs
Rated Carrier Data
Load Information
D1.5, D2.5, D3.5
Routing Guide
3.4.34
Outputs
> D2.6
Shipment Routes
D1.7, D2.7
> Scheduled Deliveries

D1.9
D2.7
Select Carriers and Rate Shipments
Metric
None Identified
Supply Chain Costs
None Identified
Best Practices
Select Carriers by Least Cost per Shipment

and Rate Using Actual Rates Prior to Release
to Billing

Inputs
Shipment Routes
D1.6, D2.6
> D2.7
Outputs
> None Identified
3.4.35
D2.8
put-away location, putting away and recording location for goods received from either Make
or Source. May include quality inspection.
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices

and Put Away

with Vendors
Dynamic Location Assignment

Including Lot Control, Zoned
Picking, Quality Assurance
Real time inventory control, stock locator, and rules based

picking logic
Cross-Docking

Inputs
None Identified
3.4.36
> D2.8
Outputs
> None Identified
D2.9
Pick Product
The series of activities including retrieving orders to pick, verifying inventory availability,
packing area in response to an order.
Metric
None Identified
Supply Chain Costs
None Identified
Best Practices
Use of Speed Racks for Automated

Material Handling
None identified

Cost, and Time


picking logic
Inputs
Production Schedule
M1.1, M2.1, M2.2, M3.2
WIP Location Rules
EM.6
M1.6, M2.6, M3.7
> D2.9
Outputs
> None Identified
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
3.4.37
D2.10
Pack Product
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Inputs
None Identified
3.4.38
> D2.10
Outputs
> None Identified
D2.11
Load Product & Generate Shipping Docs
customer credit.
Metric

Load Product & Generate Shipping Documentation Cycle

Time
None Identified
Supply Chain Costs
None Identified
Best Practices
Advanced Shipping Notices & UCC128

Container Labeling

management
Electronic Generation and Download of

Shipping Documents
None identified
Carrier Agreement

and its domestic and global carriers (for both, inbound
raw materials and outbound finished goods) specifying
service levels, payment terms, and other conditions.

Shipping Personnel
None identified
Cross-Docking
Used in many distribution centers (DC) to increase

inventory velocity while maintaining shipping efficiency.
In a traditional DC, the receiving process is disjointed from
the shipping process and storage acts as an intermediary
between the two processes. Cross docking actively links
the receiving and shipping processes. In a DC, both
cross docking (no storage) and traditional (with storage)
operations might take place.
3.4.39
D2.11
Outputs
Inputs
Documentation
ED.6
and Documentation
ED.8
3.4.40
> D2.11
Advance Ship Notice

D2.13
History
> Shipping
ED.8
Shipping Documents
Delivered End Items
D2.12
Ship Product
Metric

None Identified
Supply Chain Costs
None Identified
Best Practices
Shipment Tracking
None identified
Cross-Docking

Inputs
None Identified
> D2.12
Outputs
> None Identified
3.4.41
D2.13
The process of receiving the shipment at the customer (either at customer site or at
shipping area in case of self-collection) and verifying that the order was shipped complete
and that the product meets delivery terms.
Metric
Perfect Condition,
None Identified
Supply Chain Costs
None Identified
Best Practices
Shipment Tracking
None identified


management
Inputs
Advance Ship Notice
D2.11
3.4.42
Outputs
> D2.13
> Product
S1.2, S2.2, S3.4, D1.14, D2.14,
D3.14
D2.14
Install Product
When necessary, the process of preparing, testing and installing the product at the customer
site. The product is fully functional upon completion.
Metric
Perfect Condition,
% Of Faultless Installations
None Identified
Supply Chain Costs
None Identified
Best Practices
Joint Service Agreements to

Document Acceptable Service
Levels in Terms of Installation Costs,
Collaborative planning tools with the Source suppliers.

(This would be effective between customer and supplier,
and between internal functions such as Field Service,
Manufacturing, Marketing and Order Management)
Inputs
Product
D1.13, D2.13, D3.13
> D2.14
Outputs
Product
> Installed
D1.15, D2.15
3.4.43
D2.15
Invoice
the invoice.
Metric
% of Faultless Invoices
Deliver Cycle Time
None Identified
Supply Chain Costs
Customer Invoicing/ Accounting Costs
Days Sales Outstanding
Best Practices

Resolution

None identified
Inputs
Installed Product
D1.14, D2.14, D3.14
3.4.44
> D2.15
> Payment
Outputs
D3
Deliver Engineer-to-Order Products
The process of obtaining, responding to, and allocating resources for a customer order that
has unique requirements or specifications and delivering a product that is partially or fully
designed, redesigned, manufactured, and/or assembled from a bill of materials or recipe
that includes one or more custom parts or ingredients. Design will begin only after the
receipt and validation of a firm customer order.
Metric
Supply Chain
Responsiveness
Deliver Cycle Time,

Upside Deliver Flexibility,

Supply Chain Costs
Cost to Deliver,
Energy Costs,
Order Management Costs,
Finished Goods Inventory Days of Supply
Supply Chain Asset

Management

3.4.45
D3
! D3.1 !

Customer address Data ED.3
Completed Proposal D3.2
Credit History D2.2, ED.3
! D3.2 !
Optional Payment
Approved Contract D3.3
Customer Order Size, Weight, and Freight Class ED.6
Delivery Plans P4.4

Sourcing Plans P2.4
Production Plans
P3.4
Approved Contract D3.2
! D3.3 !

Order Information M3.1
Resource Availability P4.2, D4.1
Order Signal P2.1, P3.1
Customer Order D1.2, D2.3, D3.2, D3.3
! D3.4 !
Scheduled Installation D3.5
Scheduled Installation D3.4
! D3.5 !


Rated Carrier Data
Routing Guide
! D3.6
RFQ/RFP
Completed Proposal D3.1

Order Rules ED.1
D3.7
3.4.46
D3
D3.8
D1.8, D4.2
! D3.9
D3.10
!D3.11 !

Shipping Documents
D3.12
D3.13!
Product D1.13, D2.13, D3.13
!D3.14 !
D3.15!
Product S1.2, S2.2, S3.4, D1.14, D2.14, D3.14
Payment
3.4.47
D3.1
Obtain & Respond to RFP/RFQ
The process of receiving a request for proposal or request for quote, evaluating the request
(estimating the schedule, developing costs estimates, establishing price), and responding to
the potential customer.
Metric
None Identified
Obtain & Respond to Request for Quote (RFQ) / Request for

Proposal (RFP) Cycle Ti
None Identified
Supply Chain Costs
Cost to Obtain & Respond to Request for Quote (RFQ) /

Request for Proposal (RFP)
None Identified
Best Practices
Partnership with Outside Design

Firms to Provide Skills and Capacity,
as Needed
None identified
Use of CAD/CAE Applications

to Simulate Design, Cost and
Manufacturing Process
None identified
Outputs
Contract Status
ED.3
Customer address Data
ED.3
Inputs
RFQ/RFP
> D3.1
Completed Proposal
> D3.2
Purchase History
ED.3
Credit History
D2.2, ED.3
(Customer)
ED.3
3.4.48
D3.2
Negotiate and Receive Contract
The process of negotiating order details with customer (e.g.: price, schedule, product
performance) and finalizing the contract. Optionally accept payment.
Metric
None Identified
Negotiate & Receive Contract Cycle Time
None Identified
Supply Chain Costs
Cost to Negotiate & Receive Contract
None Identified
Inputs
Completed Proposal
D3.1
Order Rules
ED.1
Outputs
> D3.2
Optional Payment
> Customer Order

D3.4, ED.2
ED.7
Approved Contract
D3.3
and Freight Class
ED.6
3.4.49
D3.3
Enter Order, Commit Resources & Launch Program
The process of entering/finalizing the customers order, approving the planned resources
(e.g., engineering, manufacturing, etc.) and officially launching the program.
Metric

Enter Order, Commit Resources & Launch Program Cycle

Time,
None Identified
Supply Chain Costs
Cost to Enter Order, Commit Resources & Launch Program
None Identified
Outputs
Customer Order
D3.4, ED.2
Inputs
Delivery Plans
P4.4
Sourcing Plans
P2.4
Production Plans
P3.4
Production Schedule
M1.1, M2.1, M2.2, M3.2
Approved Contract
D3.2

P5.1
> D3.3
Order Information
> M3.1
P4.2, D4.1
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Order Backlog
P1.1, P4.1
Order Signal
P2.1, P3.1
3.4.50
D3.4
Schedule Installation
The process of evaluating the design and build schedules relative to customer requested
installation date to determine installation schedule.
Metric
None Identified
Schedule Installation Cycle Time
None Identified
Supply Chain Costs
Cost to Schedule Installation
None Identified
Best Practices
Schedule to maximize
transportation capacity
Schedule to maximize transportation capacity
Inputs
Customer Order
D1.2, D2.3, D3.2, D3.3
> D3.4
Outputs
Installation
> Scheduled
D3.5
3.4.51
D3.5
Build Loads
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Build Loads
None Identified
Best Practices


Utilization

levels.
Integrated inbound/outbound transportation planning (i.e.

1st truck destination loaded last, etc.).

consumption
Inputs
Scheduled Installation
D3.4
3.4.52
Outputs
> D3.5
Information
> Load
P4.2, D1.6, D2.6, D3.6
Scheduled Deliveries
D1.9
D3.6
Route Shipments
Loads are consolidated and routed by mode, lane, and location.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Route Shipments
None Identified
Best Practices
CRP/VMI



Carrier/Route Optimization Based

on Continuous Movement and
Consolidation/Pooling
Route scheduling, carrier selection, and rating
Inputs
Load Information
D1.5, D2.5, D3.5
Rated Carrier Data
> D3.6
Outputs
> None Identified
Routing Guide
3.4.53
D3.7
Select Carriers & Rate Shipments
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices

Inputs
None Identified
3.4.54
> D3.7
Outputs
> None Identified
D3.8
put-away location, putting away and recording location for goods received from either Make
or Source. May include quality inspection.
Metric
None Identified
Supply Chain Costs
None Identified
Best Practices


picking logic

and Put Away

with Vendors
Cross-Docking

Inputs
Product S1, S2, S3, M1, M2, M3
> D3.8
Outputs
> None Identified
3.4.55
D3.9
Pick Product
The series of activities including retrieving orders to pick, verifying inventory availability,
packing area in response to an order.
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices


picking logic

Cost, and Time
Inputs
Production Schedule
M1.1, M1.2, M2.2, M3.2
M1.6, M2.6, M3.7
> D3.9
Outputs
> None Identified
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
3.4.56
D3.10
Pack Product
Metric
None Identified
None Identified
Supply Chain Costs
None Identified
Best Practices
Inputs
None Identified
> D3.10
Outputs
> None Identified
3.4.57
D3.11
Load Product & Generate Shipping Docs
customer credit.
Metric
Load Product & Generate Shipping Documentation Cycle Time
None Identified
Supply Chain Costs
None Identified
Best Practices
Cross-Docking


Download of Shipping Documents
None identified

Shipping Personnel
None identified
Carrier Agreement



management
Inputs
and Documentation
ED.8
Documentation
ED.6
3.4.58
Outputs
> D3.11
History
> Shipping
ED.8
Shipping Documents
D3.12
Ship Product
Metric

None Identified
Supply Chain Costs
None Identified
Best Practices
Cross-Docking

Shipment Tracking
None identified
Inputs
None Identified
> D3.12
Outputs
> None Identified
3.4.59
D3.13
The process of receiving the shipment (either at customer site or at shipping area in case
of self-collection) and verifying that the order was shipped complete and that the product
meets delivery terms.
Metric

Perfect Condition
None Identified
Supply Chain Costs
None Identified
Best Practices
Shipment Tracking
None identified


management
Inputs
None Identified
> D3.13
Outputs
> Product
S1.2, S2.2, S3.4, D1.14, D2.14,
D3.14
3.4.60
D3.14
Install Product
The process of preparing, testing and installing the product at the customer site. The
product is fully functional upon completion.
Metric
Perfect Condition
None Identified
Supply Chain Costs
None Identified
Best Practices
None Identified
None identified
Inputs
Product
D1.13, D2.13, D3.13
> D3.14
Outputs
Product
> Installed
D1.15, D2.15
3.4.61
D3.15
Invoice
the invoice.
Metric
% of Faultless Invoices,
Invoice Cycle Time
None Identified
Supply Chain Costs
Cost to Invoice
None Identified
Best Practices
Utilize EDI and EFT for Payment to

Speed Closing of Receivables and to
Reduce Processing Costs

None identified

Resolution
Inputs
None Identified
3.4.62
> D3.15
> Payment
Outputs
D4
Deliver Retail Product
Deliver Retail Products are the processes used to acquire, merchandise, and sell finished
goods at a retail store. A retail store is a physical location that sells products (and services)
direct to the consumer using a point of sale process (manual or automated) to collect
payment. Merchandising at a store level is the stocking and restocking of products in
designated storage locations to generate sales in a retail store.
Metric
None Identified
Deliver Cycle Time,


Upside Deliver Adaptability,
Supply Chain Costs
Cost to Deliver

Best Practices
None Identified
None identified
3.4.63
D4
Resource Availability D3.3
Vendor/DC inventory availability
Store Allocation Instructions
Daily Replenishment Requirements S1.4
Shipping Schedules (internal or 3PL)
Stocking Requirements P4.4
On-demand Replenishment Requirements
! D4.1 !
Stocking Schedule D4.4

D1.8, D4.2
Item Stocking Requirements P4.1
! D4.2 !

D1.8, D4.2
Item Pick Sheet for Stocking Schedule
Replenishment Quantities
On-Order/Backorder
Inventory in Stock
Item Pick Sheet for Stocking Schedule D4.2
D1.8, D4.2
! D4.3 !
Load Retail Cart or Pallet D4.4

Assorted by Shelf Order
Vendor Merchandising / Co-op advertising

agreements
Stocking Schedule D4.1
Plan-o-gram Data
Loaded Retail Cart or Pallet S1.4, D4.3
! D4.4 !
Full Shelf Locations D4.5

Store Shelf Inventory Counts P4.1
Lost or Dropped Shopping Carts

Product Data (linked/related SKUs)
Merchandising Plan
Full Shelf Location D4.4
Customer Data (preference)
Promotional Plan
! D4.5 !
Full Cart Ready for Checkout D4.6
! D4.6 !
Point of Sale Data (Daily) P4.1

Full Cart (Empty Cart)
Satisfied Customer
Loyalty Customer Profile Changes
Customer Loyalty / Recurring Visits
Full Cart Ready for Checkout D4.5

Customer Profile/Data
Promotion Event Calendar
D4.7 !
3.4.64
Consistently High Adoption Rates

Successful Installation / Live System
High Customer Services Satisfaction Levels
Low Rates of Failure
D4
Generate Stocking Schedule
The process of scheduling resources to support item-stocking requirements.
Metric
None Identified
Generate Stocking Schedule Cycle Time
None Identified
Supply Chain Costs
Cost to Generate Stocking Schedule
None Identified
Best Practices
Automated Pick List
System generated pick-lists based on picking / batching rules.
Labor Scheduling that Matches

Product Flow
Workforce management solution with flexible rules.
Push Product on Trailer Arrival
System prioritization of items coming off trucks vs. picked from

back room.
Inputs
D3.3
Vendor/DC inventory
availability
Store Allocation Instructions
Daily Replenishment
Requirements
S1.4
> D4.1
Outputs
Schedule
> Stocking
D4.4
Shipping Schedules (internal or

3PL)
P4.4
On-demand Replenishment
Requirements
3.4.65
D4.2
Receive Product at the Store
put-away location, putting away and recording location that a company performs at its own
stores. May include quality inspection.
Metric
None Identified
None Identified
Supply Chain Costs
Cost to Receive Product at Store
None Identified
Best Practices
Push Product on Trailer Arrival
System prioritization of items coming off trucks vs. picked

from back room.
Automated Pick List
System generated pick-lists based on picking / batching rules.
Labor Scheduling that Matches

Product Flow
Workforce management solution with flexible rules.
Inputs
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2
Item Stocking Requirements
P4.1
M1.6, M2.6, M3.7
Outputs
> D4.2
S2.4, S3.6, M1.2, M2.2,

> S1.4,
M3.3, D1.8, D4.2
Item Pick Sheet for Stocking
Schedule
Scheduled Receipts
S1.1, S2.1, S3.3
3.4.66
D4.3
Pick Product from Backroom
The process of retrieving restocking orders to pick, determining inventory availability,
building a pick wave, picking item and quantity from a designated backroom warehouse
location, recording the resulting inventory transaction, and delivering the product to point
of stock.
Metric
None Identified
Pick Product from Backroom Cycle Time
None Identified
Supply Chain Costs
Cost to Pick Product from Backroom
None Identified
Best Practices
Staging Based on In-store Zones
Items are staged for re-stocking based on zones within the

store. This minimizes restocking effort.
Automated Directed Picking
A pick list displayed on a handheld device that directs picks

and relieves inventory from backroom locations
Automated Replenishment of Back

Stock Based on Minimum Stocking
Levels
None identified
Defined Stocking Levels and Criteria
None identified
Inputs
Replenishment Quantities
On-Order/Backorder
Inventory in Stock
Item Pick Sheet for Stocking
Schedule
D4.2
Outputs
> D4.3
>
Load Retail Cart or Pallet

D4.4
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
3.4.67
D4.4
Stock Shelf
For restocks, the tasks associated with identifying the item location, stocking the shelf
according to merchandise plans, and recording the appropriate inventory transaction. For
promotional items and stock repositioning the tasks associated with shelf and point of sale
preparation, stock placement, and end of sale activities.
Metric
None Identified
Stock Shelf Cycle Time,

In-stock %
None Identified
Supply Chain Costs
Cost to Stock Shelf
None Identified
Best Practices
Proof of Performance (Promotion

Management)
Scan store shelves / bar codes to confirm put-a-way. Scan

using handheld and match with ad.
Scan Displays for Promotion

Conformance
None identified
Off Peak Stocking
The majority of stocking is completed with minimal impact to

or visibility from the customer.
Stocking is Completed in Zones
Each area of the store has its own stocking plan and items are
routed specifically to that area.
Item/Shelf Scanning Upon Put-AWay
Scan store shelves / bar codes to confirm put-a-way.
Inputs
Vendor Merchandising / Co-op
advertising agreements
Stocking Schedule
D4.1
Plan-o-gram Data
Loaded Retail Cart or Pallet
S1.4, D4.3
3.4.68
> D4.4
Outputs
Shelf Locations
> Full
D4.5
Store Shelf Inventory Counts

P4.1
D4.5
Fill Shopping Cart
Typical set of tasks associated with product selection, storage and movement through to
checkout.
Metric
% Item Location Accuracy
Fill Shopping Cart Cycle Time
None Identified
Supply Chain Costs
Cost to Fill Shopping Cart
None Identified
Best Practices
Multiple Locations Throughout

Store
Planned and tracked via a plan-o-gram system;Location

specific product labeling.
Up and Cross Selling and/or

Substitution
Trained staff or automated systems (Internet) that recommend

up-sell, cross-sell, and/or substitution.
Items Are Relieved from Inventory

When Item is Removed from Shelf
RFID, smart cart or customer self-service reduces system

inventory upon item pick.
Substitution
Trained staff or automated systems (Internet) that recommend

up-sell, cross-sell, and/or substitution.See Up and cross selling
Measured and Compared with

Same Activity Previous Period
DSS or portal tool that shows previous period performance

and comparison for store management (whether it is a year
ago, period ago, etc.).
Loyalty Card Data
Use for comparison to previous sales activity/track new

consumers, etc.
Inputs
Lost or Dropped Shopping
Carts
Product Data (linked/related
SKUs)
Merchandising Plan
> D4.5
Outputs
Cart Ready for Checkout

> Full
D4.6
Full Shelf Location

D4.4
Customer Data (preference)
Promotional Plan
3.4.69
D4.6
Checkout
The processes and tasks associated with product checkout including scanning, method of
payment, credit application and approval, service agreement, order confirmation, and/or
invoice or receipt.
Metric
None Identified
Checkout Cycle Time
None Identified
Supply Chain Costs
Cost to Checkout
None Identified
Best Practices
Notification of Existing/Future Event

or Promotions
None identified
Customer Profile Drive Recognition

Upon Checkout
None identified
Automatic Customer Payment
RFID, smart cart or customer self-service charges goods to

card upon store departure.
Outputs
P4.1
Inputs
Full Cart Ready for Checkout
D4.5
Promotion Event Calendar
> D4.6
> Satisfied Customer
Loyalty Customer Profile

Changes
Customer Loyalty / Recurring
Visits
3.4.70
D4.7
Deliver and/or Install
The process of preparing and installing the product at the customer site. The product is fully
functional upon completion.
Metric
None Identified
Deliver and/or Install Cycle Time
None Identified
Supply Chain Costs
Cost to Deliver and/or Install
None Identified
Best Practices
Provide Product or Service Training

to Employees or FAQs Online
None identified
Goals / Performance Plans
None identified
Measurement, Monitoring and

Adjustment of Service or Product
Installation
None identified
Stage Product or Service Adoption
None identified
Outputs
Consistently High Adoption
Rates
Inputs
None Identified
> D4.7
Installation / Live
> Successful
System
High Customer Services
Satisfaction Levels
3.4.71
ED
Enable Deliver
The collection of processes associated with managing and monitoring Deliver process data,
Process Categories
ED.1: Manage Deliver Business Rules
The process of defining and maintaining rules which affect the

acceptance of an order, based on quantity, method of delivery,
credit, customer experience, etc. (Include distribution channel
rules)
The process of defining the requirement and monitoring the

performance of the delivery of product to a customer. When
physical delivery is out-sourced the performance is passed on to
source for contract administration.
The process of collecting, maintaining, and communicating

information to support deliver planning and execution processes.
The information to be managed includes: order data - (customer
preference, history, status, and delivery requirements, etc.),
warehouse data, transportation data, and deliver data.

Inventories
The process of establishing and maintaining finished goods,

inventory limits or levels, replenishment models, ownership,
product mix, stocking locations
ED.5: Manage Deliver Capital Assets
Acquisition, maintenance, and disposition of order management,

warehouse and transportation capital assets. Determine material
handling (inventory) pick pack & ship methods (inventory), and
equipment.
The process of 1) defining and maintaining the information

which characterizes product, containerization, vehicle, route,
terminals, regulations, rates/tariffs and backhaul opportunity
(Characterization include information necessary to support
maintenance of internal Outbound Transportation equipment CAPITAL ASSETS) and 2) the management of transporters.
The process of defining and maintaining the distribution

channel/ network for a specific product line (no capital asset or
transportation management).

Requirements
The process of recording and maintaining regulations and rates,

which constrain the ordering and delivering of product

Risk
The process of managing Deliver risks within an overall Supply

Deliver risks as well as and planning and implementing responses
to Deliver risks. Delivery risks include all potential events that
could impact companys ability to deliver on-time at a reasonable
cost and quality. In particular, the risk areas addressed are
Transportation (weather related transportation issues, ocean
freight), Inventory management (accuracy, stock-out, damaged
inventory.), Order management (fulfillment accuracy, delayed
delivery), and Document compliance (invoicing issue, customs
procedures).
3.4.72
ED
Management Process Reports ED.2
Supply-Chain Performance Metrics ES.4, EM.2, ED.2,
ER.2
! ED.1 !
Order Rules D1.2, D2.2, D3.2, ED.4, ED.5

Carrier Contracts (Customer)

Benchmark Data
Customer Order D1.2, D2.3, D3.2, D3.3
Delivery Performance ED.4, ED.5, ED.6
! ED.2 !
Management Process Reports ED.1

Supply-Chain Performance Metrics ED.1, ED.5, EP.2
Customer Service Requirements ED.6
Booked Order D2.2

Contract Status D1.2, D2.2, D3.1
Customer Address Data D1.2, D2.2, D3.1
Shipping Preferences (Customer) D1.2, D2.2, D3.1
Purchase History D1.2, D2.2, D3.1
! ED.3 !
Customer Master Database/Up to Date ED.4
Customer Master Database/Up to Date ED.3

Order Rules ED.1
Returns Data ED.8
Scrap Authorization ED.8
Product Mix and Plans
Existing Inventory Data S1.4, S2.4, S3.6, D1.8
Integrated Supply Chain Plan
Inventory Rules ED.4
! ED.4 !
Finished Goods Inventory Location S1.4, S2.4, S3.6

Finish Goods Inventory Target Levels P4.2
Delivery Performance ED.2
Order Rules ED.1

Budgets
Approved Item Master
Supply-Chain Performance Metrics ES.4, EM.2, ED.2,
ER.2
! ED.5 !

Warehouse Operating Constraints
Contract Carrier Rates ES.8

Air, Ground, Carrier Rate Tables
Projected Delivery Requirements EM.7
Standard Practices/Rules
Customer Service Requirements ED.2
Customer Order Size, Weight, and Freight Class D2.2,
D3.2
! ED.6 !

Shipping Parameters and Documentation D1.11,
D2.11, D3.11

Location of Customers D1.2, D2.2, D3.2
Budgets
Government Constraints ED.8
Revised Business Assumptions EP.10, EP.5
! ED.7 !
Enterprise Distribution Model
Shipping History D1.11, D2.11, D3.11

Government Regulations
Tariffs & Duties
! ED.8 !
Monitoring
! ED.9 !
Shipping Export Parameters and

Documentation D1.11, D2.11, D3.11
Scrap Authorization ED.4
Government Constraints ED.7
Returns Data ED.4
Duty Drawback Claims

3.4.73
ED.1
Manage Deliver Business Rules
The process of defining and maintaining rules which affect the acceptance of an order,
based on quantity, method of delivery, credit, customer experience, etc. (Include
distribution channel rules)
Metric
None Identified
Manage Deliver Business Rules Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Deliver Business Rules
None Identified
Best Practices
Integrated Edit at Order Entry Time
Customer Master Record
On-Line Rule Base
None identified
Include environmental
requirements
Include environmental requirements in deliver rules
Inputs
Management Process Reports
ED.2
Configuration Rules
ED.1
EP.1
Supply-Chain Performance
Metrics
ES.4, EM.2, ED.2, ER.2
3.4.74
> ED.1
Outputs
Rules
> Order
D1.2, D2.2, D3.2, ED.4, ED.5
Configuration Rules
ED.1
ED.2
Assess Delivery Performance
The process of defining the requirement and monitoring the performance of the delivery of
product to a customer. When physical delivery is out-sourced the performance is passed on
to source for contract administration.
Metric
Perfect Condition
Assess Delivery Performance Cycle Time
None Identified
Supply Chain Costs
Cost to Assess Delivery Performance
None Identified
Best Practices
Real Time Package Tracking
Tracking and tracing
Customer Initiated Package

Tracking
WEB based Shared systems
Outputs
Inputs
Management Process Reports

ED.1
Carrier Contracts (Customer)

Benchmark Data
Customer Order
D1.2, D2.3, D3.2, D3.3
Delivery Performance
ED.4, ED.5, ED.6
> ED.2
Performance
> Supply-Chain
Metrics
ED.1, ED.5, EP.2
Customer Service
Requirements
ED.6
3.4.75
ED.3
Manage Deliver Information
The process of collecting, maintaining, and communicating information to support deliver
planning and execution processes. The information to be managed includes: order data
- (customer preference, history, status, and delivery requirements, etc.), warehouse data,
transportation data, and deliver data.
Metric
None Identified
Manage Deliver Information Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Deliver Information
None Identified
Best Practices
Provide Single Source of Information

on the Customer (Single Group /
Owner Responsible for Accuracy /
Quality of Customer Data)
Secure E-Commerce Server and integrated Order

Management System (OMS) Warehouse Management System
(WMS) and Transportation Management System (TMS)
Online Real-Time Customer Entry

and Edit
On-line Customer Service Module CRM (Customer resource

Management) software is getting a big push in the
E-Commerce/E-Business areas and generally provides a
means to fulfill this requirement
Customer Service Data Validation

Including Geo-Coding
None identified
Comprehensive History of Customer

Interactions Including Order History,
Claims, Problems, Etc.
None identified
Customer Access to Online Tracking

of Order Status and Shipping
Information
Internet-enabled package/shipment tracking
3.4.76
ED.3
Inputs
Booked Order
D2.2
Contract Status
D1.2, D2.2, D3.1
D1.2, D2.2, D3.1
(Customer)
D1.2, D2.2, D3.1
Outputs
> ED.3
Master Database/Up
> Customer
to Date
ED.4
Credit History
D1.2, D2.2, D3.1
Purchase History
D1.2, D2.2, D3.1
3.4.77
ED.4
Manage Finished Goods Inventories
The process of establishing and maintaining finished goods, inventory limits or levels,
replenishment models, ownership, product mix, stocking locations
Metric
Manage Finished Goods Inventories Cycle Time
None Identified
Supply Chain Costs
Finished Goods Inventory Days of Supply,

Cost to Manage Finished Goods Inventories
Inventory Days of Supply ,

% of hazardous material in inventory
Best Practices

Manage hazardous inventory
Spill control
Spill control

Industry Benchmarks
3.4.78
ED.4
Inputs
Customer Master Database/Up
to Date
ED.3
Outputs
Location
S1.4, S2.4, S3.6
Order Rules
ED.1
Returns Data
ED.8
Scrap Authorization
ED.8
> ED.4
Goods Inventory Target

> Finish
Levels
P4.2
ED.2

S1.4, S2.4, S3.6, D1.8
Inventory Rules
ED.4
Integrated Supply Chain Plan

Inventory Rules
ED.4
3.4.79
ED.5
Manage Deliver Capital Assets
Acquisition, maintenance, and disposition of order management, warehouse and
transportation capital assets. Determine material handling (inventory) pick pack & ship
methods (inventory), and equipment.
Metric
Manage Deliver Capital Assets Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Deliver Capital Assets
None Identified
Best Practices
Measure Customer Service
Advanced Shipping Notices (ASN)Parcel and Container

Routing and Rating Compliance Labeling Real time shipment
tracking
Standard Operating Procedures and

Methodology
None identified
Storage Location Zoning
Automated or Optimized Slotting (Storage Location) Systems
Facility Master Plan
Automated Item Cubing and Weighting systems
Automated Data Entry
Scanning with RFID/Bar-codes systems
Removal of Obsolete Stock
Automated Calculation of ABC Velocity Movement
Inputs
Order Rules
ED.1
Budgets
Metrics
ES.4, EM.2, ED.2, ER.2
Outputs
> ED.5
> ED.2
Warehouse Operating
Constraints
Inventory Rules
ED.4
3.4.80
ED.6
Manage Transportation
The process of 1) defining and maintaining the information which characterizes product,
containerization, vehicle, route, terminals, regulations, rates/tariffs and backhaul
opportunity (Characterization include information necessary to support maintenance of
internal Outbound Transportation equipment - CAPITAL ASSETS) and 2) the management of
transporters.
Metric
None Identified
Manage Transportation Cycle Time
None Identified
Supply Chain Costs

Cost to Manage Transportation
None Identified
Best Practices
Rating & Routing
Integrated Order Management, Warehouse

Management, and Transportation
Management Systems View for analysis for
all orders and shipments the following data:
Logistics, Product, Cost, GL Charging
Transportation Management System (TMS)

Maintenance Management
Real-Time Shipment Tracking, (via internet)

Pooling
View for Analysis for All Orders and

Shipments the Following Data: Logistics,
Product, Cost, GL Charging

Manage Information Across 100% of

Shipments

Appointment Scheduling for Pickup and

Delivery of Customer Shipments

Electronic Manifest and Electronic Billing

Automated Documentation for International

Shipments

Real-Time Optimized Shipment Method

Selection (Air Parcel, Ground Parcel, LTL, etc.)
Based on Customer Service Requirements

3.4.81
ED.6
Measurement of Carrier Performance for Ontime Delivery and Completeness

Capture and Maintain Mode Specific Data

Inputs
Contract Carrier Rates
ES.8
Outputs
Air, Ground, Carrier Rate Tables

Projected Delivery
Requirements
EM.7
> ED.6
ED.2
Parameters and
> Shipping
Documentation
D1.11, D2.11, D3.11
Customer Service
Requirements
ED.2
and Freight Class
D2.2, D3.2
3.4.82
ED.7
Manage Product Life Cycle
The process of defining and maintaining the distribution channel/ network for a specific
product line (no capital asset or transportation management).
Metric
None Identified
Manage Product Life Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Product Life Cycle
None Identified
Best Practices
Take-back program
Take-back program at end of product life
Integrated Facility Management
None identified
Operations and Network Analysis
None identified
Standard Operating Procedures and

Methodology
None identified
Plan for proper product disposal
Inputs
D1.2, D2.2, D3.2
Budgets
Government Constraints
ED.8
> ED.7
Outputs
> Enterprise Distribution Model

ES.3
EP.10, EP.5
3.4.83
ED.8
Manage Import/Export Requirements
The process of recording and maintaining regulations and rates, which constrain the
ordering and delivering of product.
Metric
None Identified
Customs Clearance Cycle Time,

Manage Import/Export Requirements Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Import/Export Requirements
None Identified
Best Practices
Multi-country Export/Import
documentation compliance
None identified
Requirements during Time of
Product Development/Manufacture
Multi-country Export/Import documentation compliance
Documents Generated
Automatically During Shipment
Preparation.
Manage foreign environmental

requirements
Manage foreign environmental requirements
Direct Connection to Customs

Clearance
Ability to Track Component/

Sub-Component Manufacturing
Country of Origin
Component/lot tracking (lot trace-ability)
Direct Transfer of Documents to

Recipient and Forwarder
3.4.84
ED.8
Outputs
and Documentation
D1.11, D2.11, D3.11
Inputs
Shipping History
D1.11, D2.11, D3.11
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Tariffs & Duties
> ED.8
Authorization
> Scrap
ED.4
ED.7
Returns Data
ED.4
3.4.85
ED.9
Manage Supply Chain Deliver Risk
The process of managing Deliver risks within an overall Supply Chain Risk Program. This
includes identifying and assessing Deliver risks as well as and planning and implementing
responses to Deliver risks. Delivery risks include all potential events that could impact
companys ability to deliver on-time at a reasonable cost and quality. In particular, the risk
areas addressed are Transportation (weather related transportation issues, ocean freight),
Inventory management (accuracy, stock-out, damaged inventory.), Order management
(fulfillment accuracy, delayed delivery), and Document compliance (invoicing issue,
customs procedures).
Metric
Value at Risk (Deliver),

Age of Supplier Risk Data (months)

Hedge Rating (Inventory DOS for risk management),
Supply Chain Costs

Assessment / Risk Management Costs ($)
Gross Risk ($),

Mitigated Risk ($),
Residual Risk ($),
Individual Process Area Event Rating (EVAR) ($)
Best Practices


3.4.86
ED.9

they occur.


to Mitigate Risk




This helps all parties to be quickly informed of a real or
potential disruption and respond quickly and appropriately to
minimize the disruption impact.

organization.
3.4.87
ED.9

Inputs
Monitoring
3.4.88
Outputs
> ED.9

> Risk
Process Area
R
Return
The processes associated with moving material from a customer back through the supply
chain to address defects in product, ordering, or manufacturing, or to perform upkeep
activities.
Process Categories
Product
The return and disposition determination of defective

products as defined by the warranty claims, product recall,
non-conforming product and/or other similar policies
including appropriate replacement. The Return Defective
Product supports any type of product not conforming to
specifications (including order non-conformance such as
late or otherwise improper delivery); company business rules
determine the definition of defective. The physical disposition
of the product may not be part of the return process.

Product
The receipt and disposition determination of defective

products as defined by the warranty claims, product recall,
non-conforming product and/or other similar policies
including appropriate replacement. The Return Defective
Product supports any type of product not conforming to
specifications (including order non-conformance such as
late or otherwise improper delivery); company business rules
determine the definition of defective. The physical disposition
of the product may not be part of the return process.
SR2: Source Return MRO Product
The return of Maintenance, Repair and Overhaul (MRO)

products or company assets for the purpose of servicing,
repairing or upgrading it, as defined by Maintenance Plans
or the occurrence or anticipation of risk of failure. Generally
company assets managed through a MRO process are
expected to be refurbished to a useable condition and
returned to service. The Return process does not represent
the actual maintenance, repair or overhaul activities; these
are generally represented by Make processes. The physical
disposition of the product may not be part of the return
process.

Product
The receipt of Maintenance, Repair and Overhaul (MRO)

products or company assets for the purpose of servicing,
repairing or upgrading it, as defined by Maintenance Plans
or the occurrence or anticipation of risk of failure. Generally
company assets managed through a MRO process are
expected to be refurbished to a useable condition and
returned to service. The Return process does not represent
the actual maintenance, repair or overhaul activities; these
are generally represented by Make processes. The physical
disposition of the product may not be part of the return
process.
3.5.1
R
The return of excess or aging inventory or obsolete products

as defined by the terms and conditions of a customer/
supplier contract. The intention of excess product returns is to
reallocate inventory to a location or organization that can sell
the product that is considered in excess in the current location.
The physical disposition of the product may not be part of the
return process.
The receipt of excess or aging inventory or obsolete products

as defined by the terms and conditions of a customer/
supplier contract. The intention of excess product returns is to
reallocate inventory to a location or organization that can sell
the product that is considered in excess in the current location.
The physical disposition of the product may not be part of the
return process.
ER: Enable Return
The collection of processes associated with managing

and monitoring Return process data, performance and
relationships.
3.5.2
SR1
Source Return Defective Product
The return and disposition determination of defective products as defined by the warranty
claims, product recall, non-conforming product and/or other similar policies including
appropriate replacement. The Return Defective Product supports any type of product not
conforming to specifications (including order non-conformance such as late or otherwise
improper delivery); company business rules determine the definition of defective. The
physical disposition of the product may not be part of the return process.
Metric
None Identified

Source Return Cycle Time
None Identified
Supply Chain Costs

Rebuild or recycle rate,
Best Practices
None Identified
None identified
3.5.3
SR1
! SR1.1 !
Return Defective Product
! SR1.2 !
Return Inventory Availability SR1.3, SR1.4, SR1.5, SR2.3,

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Authorization to Return to Service D1.8
Return Product Location ER.4
Returned Defective Product SR1.2, SR1.3, SR1.4, SR1.5
Authorization to Scrap D1.8

Returned Schedule Instructions DR1.2, DR2.2, DR3.2
Defective Product Return Authorization
Response DR1.1
Return Inventory Availability SR1.2, SR2.2, SR3.2, ER.4
! SR1.3 !
Ship-to Data SR1.4, SR2.4, SR3.4

Request DR1.1
Historical Return Rates P5.1
Validated Return Material Authorization SR1.4, SR3.4
Defective Product Disposition Request DR1.1
Credit/Exchange Options SR1.4, SR2.4, SR3.4

Return Defective Product SR1.2, SR1.3, SR1.4, SR1.5
Credit Exchange Options SR1.3, SR2.3, SR3.3
Ship-to Data SR1.3, SR2.3, SR3.3, DR1.1, DR2.1, DR3.1
Plan and Build Loads Information D1.5
! SR1.4 !
Scheduled Defective Product Return SR1.5

Return Defective Product SR1.2, SR1.3, SR1.4, SR1.5

Return Defective Product SR1.2, SR2.2, SR3.2, ER.4
Scheduled Defective Product Return SR1.4
Load, Shipping, Verify, and Credit Information D1.11
! SR1.5 !
Shipment Documents

Warranty Data ER.8
Manage Regulatory Return Policy ER.8

Returned Plans P5.4
3.5.4
SR1.1
Identify Defective Product Condition
The process where the customer utilizes planned policies, business rules and product
operating conditions inspection as criteria to identify and confirm that material is excess to
requirements defective.
Metric
None Identified
Value of Defective Inventory in Disposition Stage/ Total

Inventory Value
None Identified
Supply Chain Costs
Cost of identifying the defective condition as a % of total

Source cost
None Identified
Best Practices

Local Execution
Inputs
Processes
ES.1, ER.1
Warranty Data
ER.8
> SR1.1
Outputs
> Return Defective
Product
Manage Regulatory Return

Policy
ER.8
3.5.5
SR1.2
Disposition Defective Product
The process of the customer determining whether to return the defective item and the
appropriate source contact for a return authorization.
Metric
None Identified

Inventory Value
None Identified
Supply Chain Costs
Defective product disposition costs as % total Source Return

cost
None Identified
Best Practices
Confirm Changes in Condition

Code Policies Are Promptly
Communicated to All Employees
and Supply-Chain Partners.
None identified
Confirm Asset Return Condition

Codes Are Clearly Understood by
All Employees, Especially Those
Who Are New to the Process
None identified
Drive Returns Directly to Return

Stock Point of Disposition to
Reduce Cost and Cycle Time
Specify return disposition location and time.
Outputs
Return Inventory Availability
SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5
Inputs
Returned Defective Product
SR1.2, SR1.3, SR1.4, SR1.5
Returned Plans
P5.4
> SR1.2
Service
D1.8
> Return Product Location

ER.4

SR1.2, SR1.3, SR1.4, SR1.5
D1.8
3.5.6
SR1.3
Request Defective Product Return Authorization
The process of a customer requesting and obtaining authorization, from last known holder
or designated return center, for the return of defective product. Additionally, the customer
and last known holder or designated return center would discuss enabling conditions such
as return replacement or credit, packaging, handling, transportation and import / export
requirements to facilitate the efficient return of the defective product.
Metric
None Identified
None Identified
None Identified
Supply Chain costs
Ratio of Authorization Cost to Total Source Return cost
Supply Chain Costs
Value of Defective Product Inventory in Request Return

Best Practices
Clarify Point of Contact and Return

Location
Electronic rules for business relationships and transactions.
Develop and Clarify Mutually

Understood Cycle Times to Process
Return Authorizations
Clarification as to who will pay in-bound and out-bound

freight cost.
Long-Term Return Agreements /

Partnerships
None identified
Enable Customer-Service
Representatives to Complete the
Bill Of Lading for the Customer
Including Carrier Routing, Weight,
Description and Class to Minimize
Guesswork & Wrong Estimates
Clarification of policy if authorizations are not processed

within the expected cycle time.
3.5.7
SR1.3
Outputs
Ship-to Data
SR1.4, SR2.4, SR3.4
Inputs
Defective Product Return

Authorization Request
DR1.1

SR1.2, SR1.3, SR1.4, SR1.5
Returned Schedule
Instructions
DR1.2, DR2.2, DR3.2
Authorization Response
DR1.1
SR1.2, SR2.2, SR3.2, ER.4
> SR1.3
Historical Return Rates

P5.1
> Validated Return Material

Authorization
SR1.4, SR3.4
Defective Product Disposition
Request
DR1.1
SR1.2, SR1.3, SR1.4, SR1.5
Credit/Exchange Options
SR1.4, SR2.4, SR3.4
3.5.8
SR1.4
Schedule Defective Product Shipment
The process where the customer develops the schedule for a carrier to pick-up for delivery
of the defective product. Activities include selecting the carrier and rates, preparing the
item for transfer, preparing scheduling documentation and managing overall scheduling
administration.
Metric
% Shipping Schedules that Support Customer Required Return

by Date
None Identified
None Identified
Supply Chain Costs
% Defective Product Scheduling Cost to Total Source Return

Cost
Value of defective product in scheduling stage/ total defective

product
Best Practices
Transportation Modeling and Rate

Analysis
None identified
Consolidation of Return Carriers
Outbound logistics software to assist with route.
Carrier Selection Based on

Performance Criteria at Least Cost
Scheduling, carrier selection, and rating
Inputs
Validated Return Material
Authorization
SR1.3, SR3.3
SR1.2, SR2.2, SR3.2, ER.4
SR1.2, SR1.3, SR1.4, SR1.5
Credit Exchange Options
SR1.3, SR2.3, SR3.3
Ship-to Data
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
Outputs
> SR1.4
>
Scheduled Defective Product

Return
SR1.5
SR1.2, SR1.3, SR1.4, SR1.5

Information
D1.5
3.5.9
SR1.5
The process where the customer packages, and handles the defective product in
preparation for shipping in accord with pre-determined conditions. The product is then
provided by the customer to the carrier who physically transports the product and its
associated documentation to the last known holder or designated return center.
Metric
% Error-free Returns Shipped,

None Identified
None Identified
Supply Chain Costs
Return transportation costs,

Supply Chain Asset

Management

Value of defective product inventory in physical return
Best Practices
Advanced Shipping Notice
Integrated data sharing with repair facility.
Inputs
SR1.2, SR1.3, SR1.4, SR1.5
SR1.2, SR2.2, SR3.2, ER.4
Scheduled Defective Product
Return
SR1.4
Outputs
> SR1.5
> Returned Defective Product

Shipment Documents
SR1.2, SR1.3, SR1.4, SR1.5

Credit Information
D1.11
3.5.10
DR1
Deliver Return Defective Product
The receipt and disposition determination of defective products as defined by the warranty
claims, product recall, non-conforming product and/or other similar policies including
appropriate replacement. The Return Defective Product supports any type of product not
conforming to specifications (including order non-conformance such as late or otherwise
improper delivery); company business rules determine the definition of defective. The
physical disposition of the product may not be part of the return process.
Metric
None Identified

None Identified
Supply Chain Costs

Value of defective product inventory/ total defective product
inventory value,
Return Rate
3.5.11
DR1
Information DR1.1, DR2.1, DR3.1
Request SR1.3
Return Plans P5.4
Defective Product Disposition Request SR1.3
Pruduct Return Capabilities P5.4
!DR1.1!

Valid Returns Request DR1.2, DR2.2
Response SR1.3
!DR1.2!
Return Schedule Instructions DR1.1, DR2.1, DR3.1

Valid Returns Request SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3
Return Transportation Guidelines, Policies, &

Agreements ER.6
Receipt Data ER.3, ER.4
!DR1.3!
Receipt Discrepancy Notification
Sourcing Plans P2.4

Return Inventory for Transfer ER.4
!DR1.4!
Defective Products S1.2, S2.2

Return Inventory Transfer Data P5.2, S1.1, S2.1, S3.3,
ER.4
3.5.12
DR1.1
Authorize Defective Product Return
The process where the last known holder or designated return center receives a defective
product return authorization request from a customer, determines if the item can be
accepted and communicates decision to the customer. Accepting the request would include
negotiating the conditions of the return with the customer, including authorizing return
replacement or credit. Rejecting the request would include providing a reason for the
rejection to the customer.
Metric
None Identified
Authorize Defective Product Return Cycle Time
None Identified
Supply Chain Costs
Cost to Authorize Defective Product Return
Value of Defective Product Inventory in Request Return

Best Practices
Communicate with Customer

before the Return to Establish What
Types of Returns Are Acceptable
None identified
Avoid returns beyond economic

repair
Estimate damage to product and do not physically return

product that is beyond economical repair or offers no
diagnostic value
Set Up Electronic or Pre-authorized

Returns
None identified
Use an Exchange System Where

Customer is Issued a Serviceable
Item Upon Submitting an
Unserviceable Item
None identified
3.5.13
DR1.1
Inputs
Manage Integrated Supply
Chain Inventory Information
DR1.1, DR2.1, DR3.1
Outputs
DR1.1, DR2.1, DR3.1

SR1.3
Processes
ES.1, ER.1
> DR1.1
Valid Returns Request

DR1.2, DR2.2
> Historical Return Rates

P5.1
Return Plans
P5.4
Ship-to Data
SR1.4, SR2.4, SR3.4
Defective Product Disposition

Request
SR1.3

SR1.3
Pruduct Return Capabilities

P5.4
3.5.14
DR1.2
Schedule Defective Return Receipt
The process where the last known holder or designated return center evaluates the
defective product handling requirements including negotiated conditions and develops a
schedule that tells the Customer when to ship the product. The scheduling activity would
also inform Receiving when to expect the shipment and where to send the product, for
disposition, upon receipt.
Metric
None Identified
Schedule Defective Return Receipt Cycle Time
None Identified
Supply Chain Costs
Cost to Schedule Defective Product Receipt
None Identified
Best Practices
Integrate Return Planning with

Maintenance and Inventory Planning
to Optimize the System
Both customer and Service Provider departments

are alerted at the same time and viewing the same
information.
Outputs
Inputs
DR1.1, DR2.1
> DR1.2
Return Schedule Instructions

DR1.1, DR2.1, DR3.1
Returns Request
> Valid
SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3
3.5.15
DR1.3
Receive Defective Product (includes verify)
The process where the last known holder or designated return center receives and verifies
the returned defective product against the return authorization and other documentation
and prepares the item for transfer.
Metric
None Identified
Receive Defective Product Cycle Time
None Identified
Supply Chain Costs
Cost to Receive Defective Product,

Energy Costs
None Identified
Best Practices
Develop Local Receiving Process

Close to Repair
Minimize time spent in product movement.
Receivers on the Dock

Communicate Directly with the
Buyer to Efficiently Resolve Any
Discrepancies
Buyers name for every receipt is clearly visible on Receiver.
Pre-Certify Supplier Capability to

Send Return Products Correctly
to Minimize the Need for Receipt
Verification
t
t
Customer Sends Receiving

Advanced Shipment Notification
Prior to Shipment
Electronically link Return authorization, Return schedule and

shipping documents. .
Electronically Track Shipment from

Customer to Service Provider
None Identified

Accuracy
t
t
t
t
3.5.16
Push inspection to SOURCE

Receiving quality criteria connected to ISO 9000 practices

Product serial number used as identifier
RFID
DR1.3
Inputs
Return Transportation
Guidelines, Policies, &
Agreements
ER.6
SR1.2, SR1.3, SR1.4, SR1.5
Receipt Data
ER.3, ER.4
> DR1.3
Outputs
Discrepancy
> Receipt
Notification

DR1.2, DR2.2, DR3.2
Return Regulatory
Requirements
ER.8
3.5.17
DR1.4
Transfer Defective Product
The process where the last known holder or designated return center transfers the defective
product to the appropriate process to implement the disposition decision.
Metric
None Identified
Transfer Defective Product Cycle Time
None Identified
Supply Chain Costs
Cost to Transfer Defective Product
None Identified
Best Practices
Defective Products Scheduling

Identifies Next Destination (Source,
Make, or Deliver) on Return
Authorization
Utilize electronic links
Receiving Equipment and

Packaging Materials to Transfer
Product Are Planned for In Advance
and Readily Available When
Needed
Include packaging materials in inventory management system

and treat as any other inventory to minimize potential of
stock-out.
Return Process Electronically Tracks

Transfer from Station to Station
Utilize Bar coding
Review Transfer Cycle Time Trends

and Determine If Equipment
Capacity is Properly Balanced with
Projected Usage
Periodic review of capital asset plan to determine if additional

equipment, if needed, can be funded.
Inputs
Sourcing Plans
P2.4
SR1.2, SR1.3, SR1.4, SR1.5
Return Inventory for Transfer
ER.4
3.5.18
Outputs
> DR1.4
Defective Products
S1.2, S2.2
> Return Inventory Transfer Data

P5.2, S1.1, S2.1, S3.3, ER.4
SR2
Source Return MRO Product
The return of Maintenance, Repair and Overhaul (MRO) products or company assets for
the purpose of servicing, repairing or upgrading it, as defined by Maintenance Plans or the
occurrence or anticipation of risk of failure. Generally company assets managed through a
MRO process are expected to be refurbished to a useable condition and returned to service.
The Return process does not represent the actual maintenance, repair or overhaul activities;
these are generally represented by Make processes. The physical disposition of the product
may not be part of the return process.
Metric
None Identified
None Identified
Supply Chain Costs
Total Source Return Costs

3.5.19
SR2
! SR2.1 !
Returned MRO Products SR2.2, SR2.3, SR2.4, SR2.5,

DR2.3, DR2.4
! SR2.2 !

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Returned MRO Products SR2.1, SR2.2, SR2.3, SR2.5
Retrun Inventory Availability SR1.2, SR2.2, SR3.2, ER.4

MRO Return Authorization, Response DR2.1
! SR2.3 !

MRO Return Authorization Request DR2.1
MRO Disposition Request DR2.1

Returned Inventory Availability SR1.2, SR2.2, SR3.2,
ER.4
Plan And Build Loads Information D1.5
! SR2.4 !
Scheduled MRO Return SR2.5
Scheduled MRO Return SR2.4

Returned Inventory Availability SR1.2, SR2.2, SR3.2,
ER.4
! SR2.5 !
Returned MRO Product SR2.1, SR2.2, SR2.3, SR2.5

Shipping Documents

Warranty Data ER.8

Return Plans P5.4
3.5.20
SR2.1
Identify MRO Product Condition
The process where the customer utilizes pre-determined MRO policies, business rules
and product operating conditions as criteria to identify and confirm that an item requires
maintenance, repair, overhaul or disposal. Includes operating failures and planned
maintenance requirements.
Metric
Total # of Confirmed MRO Conditions/Total # of MRO Service

Requests Initiated
None Identified
None Identified
Supply Chain Costs
Cost of Identifying the MRO Condition as a % of Total Source

Return Cost
Value of Unserviceable MRO Inv. in Identification Stage/ Total

MRO Inv. Value
Best Practices
None Identified
None identified
Inputs
Policy
ER.8
Warranty Data
ER.8
Outputs
> SR2.1
>
Returned MRO Products

SR2.2, SR2.3, SR2.4, SR2.5,
DR2.3, DR2.4

Processes
ES.1, ER.1
3.5.21
SR2.2
Disposition MRO Product
The process of the customer determining whether to service the item, what service is
required, and who the appropriate service provider would be to service the item. Outputs
include a decision to: (1) send a return authorization request to a service provider, (2) send
the product back into service without requiring a return authorization request, or (3)
discard the item.
Metric
% Identified MRO Products Returned To Service
None Identified
None Identified
Supply Chain Costs
MRO Disposition Costs As % Total Source cost

Inventory Value,
Value of Unserviceable MRO Inventory In Disposition Stage/
Total MRO Inventory Va
Outputs
SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5
Inputs
SR2.1, SR2.2, SR2.3, SR2.5
Return Plans
P5.4
> SR2.2
>
Service
D1.8
D1.8
SR2.1, SR2.2, SR2.3, SR2.5
Return Product Location
ER.4
3.5.22
SR2.3
Request MRO Return Authorization
The process of a customer requesting and obtaining authorization, from a service provider,
for the return of an MRO product. In addition to discussing the MRO issue, the customer
and service provider would discuss enabling conditions such as return replacement or
credit, packaging, handling, transportation and import / export requirements to facilitate
the efficient return of the MRO product to the service provider. The customer may need to
go through several return authorization iterations with multiple service providers before
authorization is received.
Metric
None Identified
None Identified
None Identified
Supply Chain Costs
Cost per request authorization,

Ratio of authorization costs to total source return cost ,
% of authorization request transmitted error-free/total
authorization requests
Value of Unserviceable MRO Inventory in Request Return

Outputs
SR1.4, SR2.4, SR3.4
Inputs
Retrun Inventory Availability
SR1.2, SR2.2, SR3.2, ER.4
DR1.2, DR2.2, DR3.2
MRO Return Authorization,
Response
DR2.1
SR2.1, SR2.2, SR2.3, SR2.5
> SR2.3
MRO Return Authorization

Request
DR2.1
Return Rates
> Historical
P5.1

SR2.1, SR2.2, SR2.3, SR2.5
MRO Disposition Request
DR2.1
Ship-to Data
SR1.4, SR2.4, SR3.4
3.5.23
SR2.4
Schedule MRO Shipment
The process where the customer develops the schedule for a carrier to pick-up and deliver
the MRO product. Activities include selecting the carrier and rates, preparing the item
for transfer, preparing scheduling documentation and managing overall scheduling
administration.
Metric
% Shipping Schedules that Support Customer Required

Return by Date
None Identified
None Identified
Supply Chain Costs
% MRO Scheduling Cost to Total Source Return Cost
Value of Unserviceable MRO Inventory in Scheduling Stage/

Total MRO Inventory
Best Practices


Analysis
None identified
Inputs
Ship-to Data
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
SR1.3, SR2.3, SR3.3
Returned Inventory
Availability
SR1.2, SR2.2, SR3.2, ER.4
> SR2.4
Outputs
MRO Return
> Scheduled
SR2.5

SR2.1, SR2.2, SR2.3, SR2.5
Plan And Build Loads
Information
D1.5
3.5.24
SR2.5
Return MRO Product
The process where the customer packages, and handles the MRO product in preparation
for shipping in accord with pre-determined conditions. The product is then provided
by the customer to the carrier who physically transports the product and its associated
documentation to the service provider.
Metric
Return Shipments Shipped on Time,

% Error-free Returns Shipped
None Identified
None Identified
Supply Chain Costs
Cost per request authorization,

Return transportation costs
Value of unserviceable mro inventory in physical return and

transportation stage/
Best Practices
Inputs
Scheduled MRO Return
SR2.4
Returned Inventory
Availability
SR1.2, SR2.2, SR3.2, ER.4
SR2.1, SR2.2, SR2.3, SR2.5
Outputs
> SR2.5
MRO Product
> Returned
SR2.1, SR2.2, SR2.3, SR2.5
Shipping Documents

Credit Information
D1.11
3.5.25
DR2
Deliver Return MRO Product
The receipt of Maintenance, Repair and Overhaul (MRO) products or company assets for
the purpose of servicing, repairing or upgrading it, as defined by Maintenance Plans or the
occurrence or anticipation of risk of failure. Generally company assets managed through a
MRO process are expected to be refurbished to a useable condition and returned to service.
The Return process does not represent the actual maintenance, repair or overhaul activities;
these are generally represented by Make processes. The physical disposition of the product
may not be part of the return process.
Metric
% of MRO returns delivered to the correct service provider

location

Upside Deliver Return Flexibility,

Supply Chain Costs

Value of Unserviceable MRO Inventory In Disposition Stage/
Total MRO Inventory Va,
Best Practices
None Identified
None identified
3.5.26
DR2
Return Plans P5.4
MRO Disposition Request SR2.3
Product Return Capabilities P5.4
MRO Return Authorization Request SR2.3
!DR2.1!

MRO Return Authorization Response SR2.3
!DR2.2!
Return Schedule Instructions SR1.3, SR2.3, SR3.3,

DR1.3, DR2.3, DR3.3

Agreements ER.6
Return Schedule Instructions DR1.2, DR2.2, DR3.2,
!DR2.3!

Sourcing Plans P2.4
!DR2.4!

ER.4
MRO Products S1.2, S2.2
3.5.27
DR2.1
Authorize MRO Product Return
The process where a service provider receives an MRO product return authorization request
from a customer, determines if the item can be accepted for MRO and communicates their
decision to the customer. Accepting the request would include negotiating the conditions
of the return with the customer, including authorizing return replacement or credit.
Rejecting the request would include providing a reason for the rejection to the customer.
Metric
None Identified
Authorize MRO Product Return Cycle Time
None Identified
Supply Chain Costs
Cost to Authorize MRO Product Return
None Identified
Best Practices

repair
Estimate damage to product and do not physically return

product that is beyond economical repair or offers no
diagnostic value

Returns
None identified

None identified
Use an Exchange System Where

Customer is Issued a Serviceable
Item Upon Submitting an
Unserviceable Item
None identified
3.5.28
DR2.1
Inputs
Outputs
Return Plans
P5.4

DR1.2, DR2.2

SR2.3
P5.4
MRO Return Authorization
Request
SR2.3
Processes
ES.1, ER.1
DR1.1, DR2.1, DR3.1
> DR2.1

DR1.1, DR2.1, DR3.1
> MRO Return Authorization

Response
SR2.3
P5.1
Ship-to Data
SR1.4, SR2.4, SR3.4
3.5.29
DR2.2
Schedule MRO Return Receipt
The process where the service provider evaluates the MRO service requirements including
negotiated conditions and develops a schedule that tells the Customer when to ship the
part. The scheduling activity would also inform Receiving when to expect the shipment and
where to send the part, for induction or storage, upon receipt.
Metric
None Identified
Schedule MRO Return Receipt Cycle Time
None Identified
Supply Chain Costs
Cost to Schedule MRO Product Receipt
None Identified
Best Practices
Consolidate shipments where

possible
Consolidate shipments where possible
Integrate Return Planning with

Maintenance and Inventory
Planning to Optimize the System
Both customer and Service Provider departments are alerted

at the same time and viewing the same information.
Inputs
DR1.1, DR2.1
> DR2.2
Outputs
Schedule Instructions
> Return
SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3
3.5.30
DR2.3
Receive MRO Product
The process where the service provider receives and verifies the returned MRO item against
the return authorization and other documentation and prepares the item for transfer.
Metric
None Identified
Receive MRO Product Cycle Time
None Identified
Supply Chain Costs
Cost to Receive MRO Product
None Identified
Best Practices

None Identified

Close to Repair

Prior to Shipment


Discrepancies

Accuracy
t
t
t
t

Product serial number used as identifier
RFID

Verification
t
t

Receiving quality criteria connected to ISO 9000 practices
3.5.31
DR2.3
Inputs
Receipt Data
ER.3, ER.4
Agreements
ER.6
Returned MRO Product
SR2.1, SR2.2, SR2.3, SR2.5
> DR2.3
Outputs
Discrepancy
> Receipt
Notification
Return Regulatory
Requirements
ER.8
DR1.2, DR2.2, DR3.2,
3.5.32
DR2.4
Transfer MRO Product
The process where the service provider transfers the MRO product to the appropriate
process to implement the disposition decision.
Metric
None Identified
Transfer MRO Product Cycle Time
None Identified
Supply Chain Costs
Cost to Transfer MRO Product,

Energy Costs
None Identified
Best Practices

Projected Usage


and Readily Available When Needed
Include packaging materials in inventory management

system and treat as any other inventory to minimize potential
of stock-out.

Utilize Bar coding
MRO Scheduling Identifies Next

Destination (Stores or Repair
Station) on Return Authorization
Inputs
ER.4
SR2.1, SR2.2, SR2.3, SR2.5
Sourcing Plans
P2.4
Outputs
> DR2.4
Inventory Transfer Data

> Return
P5.2, S1.1, S2.1, S3.3, ER.4
MRO Products
S1.2, S2.2
3.5.33
SR3
Source Return Excess Product
The return of excess or aging inventory or obsolete products as defined by the terms and
conditions of a customer/supplier contract. The intention of excess product returns is to
reallocate inventory to a location or organization that can sell the product that is considered
in excess in the current location. The physical disposition of the product may not be part of
the return process.
Metric
% of Excess Product Returns Delivered Complete to the

Designated Return Center

Source Return Cycle Time
None Identified
Supply Chain Costs
Total Excess Material Return Costs,

Value of excess inventory/ total inventory value,

Average age of Excess Inventory,
Best Practices
Enable customer direct shipments
Enable direct shipments between customers to reduce overall

transportation and handling.
3.5.34
SR3
! SR3.1 !
Returned Excess Product SR3.2, SR3.3, SR3.4, SR3.5,

DR3.3, DR3.4
Returned Excess Product SR3.1, SR3.2, SR3.4, DR3.3

Return Plans P5.4
! SR3.2 !

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Excess Product Return Authorization Request SR3.3

! SR3.3 !


Credit/ Exchange Options SR1.3, SR2.3, SR3.3
Plan and Build Loads Information D1.5
! SR3.4 !
Scheduled Excess Product Return SR3.5


Scheduled Excess Product Return SR3.4
! SR3.5 !
Shipment Documents

3.5.35
SR3.1
Identify Excess Product Condition
The process where the customer utilizes planned policies, business rules and product
inspection as criteria to identify and confirm that material is in excess of the current
requirements.
Metric
Number of occurences where excessive inventory is returned

and followed
None Identified
None Identified
Supply Chain Costs
Cost of identifying the excess condition as a % of total Source

cost

Value of excess inventory in identification stage/ total
inventory value
Best Practices
Automated Inventory Visibility

and Planning System to Highlight
Inventory in Excess of Requirements
Automated inventory planning package linked to real time

demand data and inventory business rules.

Local Execution
Inputs
Processes
ES.1, ER.1
Policy
ER.8
3.5.36
Outputs
> SR3.1
Excess Product
> Returned
SR3.2, SR3.3, SR3.4, SR3.5, DR3.3,
DR3.4
SR3.2
Disposition Excess Product
The process of the customer determining whether to return the excess material and
identification of a designated return center a return authorization.
Metric
Number of occurrences of incorrect designated return center
None Identified
None Identified
Supply Chain Costs
Excess product disposition costs as % total Source cost
Value of Excess Inventory in Disposition Stage/ Total Inventory

Value
Best Practices
Drive Returns Directly to Return

Stock Point of Disposition to Reduce
Cost and Cycle Time
Specify return disposition location and time.
Automated Registry of Inventory

Return Locations by Item to Speed
Identification of Proper Return
Location
None identified
Outputs
D1.8
Inputs
Returned Excess Product
SR3.1, SR3.2, SR3.4, DR3.3
Return Plans
P5.4
> SR3.2
Service
D1.8
> Returned Excess Product

SR3.1, SR3.2, SR3.4, DR3.3
ER.4

SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5
3.5.37
SR3.3
Request Excess Product Return Authorization
The process of a customer requesting and obtaining authorization, from the designated
return center, for the return of excess product. Additionally, the customer and designated
return center would negotiate enabling conditions such as return credit or cash discount,
packaging, handling, transportation and import / export requirements to facilitate the
efficient return of the excess product.
Metric
None Identified
None Identified
None Identified
Supply Chain Costs
% of authorization request transmitted error-free/total

authorization requests,
Ratio of Authorization Cost To Total Source Cost,
Value of Excess Product Inventory in Request Return

Authorization Stage/ Total Ex
Best Practices
Clarify Point of Contact and Return

Location
Electronic rules for business relationships and transactions.
Develop and Clarify Mutually

Understood Cycle Times to Process
Return Authorizations
Clarification as to who will pay in-bound and out-bound

freight cost.
Representatives to Complete the
Bill Of Lading for the Customer
Including Carrier Routing, Weight,
Description and Class to Minimize
Guesswork & Wrong Estimates
Clarification of policy if authorizations are not processed

within the expected cycle time.
Long-Term Return Agreements /

Partnerships
None identified
3.5.38
SR3.3
Outputs
Excess Product Return
SR3.3
Inputs
SR3.3
DR1.2, DR2.2, DR3.2
SR1.2, SR2.2, SR3.2, ER.4
SR3.1, SR3.2, SR3.4, DR3.3
Ship-to Data
SR1.4, SR2.4, SR3.4
> SR3.3
>
Excess Product Disposition

Request
DR3.1
Credit/ Exchange Options
SR1.4, SR2.4, SR3.4
Authorization
SR1.4, SR3.4
P5.1
3.5.39
SR3.4
Schedule Excess Product Shipment
The process where the customer develops the schedule for a carrier to pick-up the excess
product. Activities include selecting the carrier and rates, preparing the item for transfer,
preparing scheduling documentation and managing overall scheduling administration.
Metric
% Shipping Schedules that Support Customer Required

Return by Date
None Identified
None Identified
Supply Chain Costs
% Excess Product Scheduling Cost to Total Source Return Cost
Value of excess product in scheduling stage/ total excess

product inv
Best Practices

Arrange for Shipping Insurance in

Case Of In-Transit Loss or Damage
Preventative management

Analysis
None identified
Inputs
Authorization
SR1.3, SR3.3
SR1.3, SR2.3, SR3.3
SR3.1, SR3.2, SR3.4, DR3.3
Information
D1.5
SR1.2, SR2.2, SR3.2, ER.4
Outputs
> SR3.4
>
Scheduled Excess Product

Return
SR3.5
SR3.1, SR3.2, SR3.4, DR3.3
Ship-to Data
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
3.5.40
SR3.5
Return Excess Product
The process where the customer packages, and handles the excess product in preparation
for shipping in accord with pre-determined conditions. The product is then provided
by the customer to the carrier who physically transports the product and its associated
documentation to the last known holder or designated return center.
Metric
% Error-free Returns Shipped,

None Identified
None Identified
Supply Chain Costs
Return transportation costs,

Value of excess product inventory in physcial return and

transportation stage/tot
Best Practices
Inputs
Credit Information
D1.11
SR3.1, SR3.2, SR3.4, DR3.3
SR1.2, SR2.2, SR3.2, ER.4
> SR3.5
Outputs
> Shipment Documents
Scheduled Excess Product

Return
SR3.4
3.5.41
DR3
Deliver Return Excess Product
The receipt of excess or aging inventory or obsolete products as defined by the terms and
conditions of a customer/supplier contract. The intention of excess product returns is to
reallocate inventory to a location or organization that can sell the product that is considered
in excess in the current location. The physical disposition of the product may not be part of
the return process.
Metric
% of Excess Product Returns Delivered Complete to the

Designated Return Center
Upside Deliver Return Flexibility,

Supply Chain Costs
None Identified
Return for Recycle Rate,

Best Practices
Enable direct shipments between customers to reduce overall

transportation and handling.
3.5.42
DR3
Excess Product Disposition Request SR3.3
Product Return Capabilities P5.4
Return Plans P5.4
!DR3.1!

Excess Product Return Authorization Response
Return Product Authorization DR3.2
Return Product Authorization DR3.1
!DR3.2!
Return Schedule Instructions SR1.3, SR2.3, SR3.3,

DR1.3, DR2.3, DR3.3

Agreements ER.6
!DR3.3!

ER.4
Sourcing Plans P2.4

!DR3.4!
Excess Products S1.2, S2.2

ER.4
3.5.43
DR3.1
Authorize Excess Product Return
The process where the designated return center receives an excess product return
authorization request from a customer, determines if the item can be accepted and
communicates their decision to the customer. Accepting the request would include
negotiating the conditions of the return with the customer, including authorizing credit or
cash discount. Rejecting the request would include providing a reason for the rejection to
the customer.
Metric
None Identified
Authorize Excess Product Return Cycle Time
None Identified
Supply Chain Costs
Cost to Authorize Excess Product Return
None Identified
Best Practices

None identified

Returns
None identified
Inputs
Processes
ES.1, ER.1
Outputs
DR1.1, DR2.1, DR3.1

SR3.3
Excess Product Disposition
Request
SR3.3
P5.4
DR1.1, DR2.1, DR3.1
> DR3.1

P5.1
> Ship-to Data
SR1.4, SR2.4, SR3.4

Return Product Authorization
DR3.2
Return Plans
P5.4
3.5.44
DR3.2
Schedule Excess Return Receipt
The process where the l designated return center evaluates an authorized excess material
return to determine packaging and handling requirements. This assessment will lead to
the development of a return disposition decision and a return schedule with terms and
conditions that will tell the Customer how and when to ship the product. The scheduling
activity would also inform the Return Centers Receiving department when to expect the
shipment and where to send the product, for disposition, upon receipt.
Metric
None Identified
Schedule Excess Return Receipt Cycle Time
None Identified
Supply Chain Costs
Energy Costs,
Cost to Schedule Excess Product Receipt
None Identified
Best Practices
Establish Designated Processes for

Scheduling and Receiving Excess
Inventory
None Identified
Inputs
Return Product Authorization
DR3.1
> DR3.2
Outputs
Schedule Instructions
> Return
SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3
3.5.45
DR3.3
Receive Excess Product
The process where the designated return center receives and verifies the returned excess
product and associated documentation against the return authorization and other
documentation and prepares the item for transfer. Administrate any discrepancies that
arise.
Metric
None Identified
Receive Excess Product Cycle Time
None Identified
Supply Chain Costs
Cost to Receive Excess Product
None Identified
Best Practices

Discrepancies

Close to Repair

Verification
t
t

None Identified

Prior to Shipment


Accuracy
t
t
t
t
3.5.46

Receiving quality criteria connected to ISO 9000
practices

RFID
DR3.3
Inputs
Return Regulatory
Requirements
ER.8
Receipt Data
ER.3, ER.4
DR1.2, DR2.2, DR3.2
SR3.1, SR3.2, SR3.4, DR3.3
Outputs
> DR3.3
Receipt Discrepancy
Notification
> Returned Excess Product

SR3.1, SR3.2, SR3.4, DR3.3
P5.2, S1.1, S2.1, S3.3, ER.4
Agreements
ER.6
3.5.47
DR3.4
Transfer Excess Product
The process where the designated return center transfers the excess product to the
appropriate process to implement the disposition decision.
Metric
None Identified
Transfer Excess Product Cycle Time
None Identified
Supply Chain Costs
Cost to Transfer Excess Product
None Identified
Best Practices

and Readily Available When Needed
Include packaging materials in inventory management

system and treat as any other inventory to minimize potential
of stock-out.

Projected Usage

Excess Products Scheduling

Identifies Next Destination (Source,
Authorization

Utilize Bar coding
Inputs
Sourcing Plans
P2.4
SR3.1, SR3.2, SR3.4, DR3.3
ER.4
3.5.48
Outputs
> DR3.4
Excess Products
S1.2, S2.2
> Return Inventory Transfer Data

P5.2, S1.1, S2.1, S3.3, ER.4
ER
Enable Return
The collection of processes associated with managing and monitoring Return process data,
Process Categories
Return Processes

decision support criteria for Return Planning that are translated
into rules for conducting business. These rules align Return
process policies with business strategy, goals, and objectives.

Return Processes
The process of measuring actual Return Process performance

against internal and/or external standards to develop and
implement a course of action to achieve targeted performance
levels.
ER.3: Manage Return Data

Collection
The process of collecting, integrating and maintaining the

accuracy of return execution information necessary to plan the
recovery of supply chain resources.
The process of establishing a return process inventory

strategy and planning the recovery process inventory limits or
levels (including Raw Material, Work In Process, Finished and
Purchased Finished Goods) including replenishment models,
ownership, product mix, and stocking locations, both inter and
intra company.
The process of acquiring, maintaining and dispositioning

capital assets such as fork lift trucks, information systems and
equipment in receiving docks that are utilized in support
of Return. Management activities would include defining
asset requirements, determining resource availability and
conducting gap analysis and resolution. The process includes
lease-buy and outsourcing decisions.
ER.6: Manage Return Transportation
The process of providing the least cost transportation of a

returned product from a customer location to the appropriate
service provider location within specified time frames.
Can include interim transportation activities conducted
within more than one service provider locations. Includes
defining and implementing a Return transportation strategy
throughout the supply chain, maintaining transportationrelated information (rates, lead times) and managing
transportation performance.

Configuration
The process where customer and service provider locations

involved in the flow of returns are defined and maintained
throughout the supply chain. Locations include retail and
wholesale customer and supplier sites, manufacturing
facilities, distribution centers, warehouses, repair depots and
military bases.
3.5.49
ER

(i.e. government, trade officials, etc.) when planning for the
Return of Assets. Includes Customs requirements and Import /
Export Controls.

Risk
The process of managing Return risks within an overall Supply

Return risks as well as and planning and implementing
responses to Return risks. Return risks include potential events
that could impact you or the customers ability to Return
goods in a timely manner at a reasonable cost with minimal
damage. Risk Management includes: mitigation, either
reducing the impact of a risk event or reducing the likelihood
it will occur.
3.5.50
ER
Process Procedures P5.4
Return Rules and Policies P5.4
! ER.1 !
Business Rules for Return Processes P5.1, P5.2, ES.7,

SR1.1, SR2.1, SR3.1, DR1.1, DR2.1, DR3.1, ER.4, ER.5, R.7,
ER.8

Return Benchmark Data
! ER.2 !
Return Product History ER.3

Supply-Chain Performance Metrics EP.2, ED.1, ED.5
Return Performance ER.5, ER.6
Data Cleansing Procedure

Data System Requirements
Return Product History ER.2
! ER.3 !
Data About Return Capabilities P5.2

Receipt Data DR1.3, DR2.3, DR3.3, ER.2

DR3.4
Return Plans P5.4
Return Product Location SR1.2, SR2.2, SR3.2, ER.4
! ER.4 !
Receipt Data DR1.3, DR2.3, DR3.3, ER.2

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Assess and Aggregate Return Resources
Return Inventory for Transfer DR1.4, DR2.4, DR3.4
Return Product Location SR1.2, SR2.2, SR3.2, ER.4
Return Inventory Targets P5.4

Return Performance ER.2
Return Plans P5.4
! ER.5 !
MRO Product Return Capabilities P5.2, ER.2
Return Performance ER.2

Return Plans P5.4
! ER.6 !

Agreements DR1.3, DR2.3, DR3.3

Return Plans P5.4
! ER.7 !
Return Network Configuration ER.8

Return Process Workflow Definition and Policies P5.2

Return Network Configuration ER.7
! ER.8 !
Warranty Data SR1.1, SR2.1

Manage Regulatory Return Policy SR1.1, SR2.1, SR3.1
Return Regulatory Requirements P1.2, P5.1, P5.2,
DR1.3, DR2.3, DR3.3
Monitoring
! ER.9 !

Internal Adjusments
3.5.51
ER.1
Manage Business Rules for Return Processes
The process of establishing, maintaining, and enforcing decision support criteria for Return
Planning that are translated into rules for conducting business. These rules align Return
process policies with business strategy, goals, and objectives. Examples of business rules
include those that (1) Enable customers to identify when scheduled and unscheduled
conditions occur that require a return authorization request, (2) Enable a service provider
to confirm a part is authorized to be returned, (3) Identify the waiting period to confirm a
return item has been shipped and received before following up (4) Develop and maintain
customer and channel performance standards of return processes such as service levels,
given service requirements by supply chain stakeholders/trading partners.(5) Communicate
to customers the allowable amount of elapsed time from purchase and condition in which
excess material must be received in order for it to be accepted as a return (6) Negotiate any
restocking charge stipulations.
Metric
None Identified
Manage Business Rules for Return Processes Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Business Rules for Return Processes
None Identified
Best Practices
Standard Inventory Policy to

Determine Excess
None Identified
Utilize Real-World Cases in Employee

Training
None Identified
Publish Return Policy
Easy access to return business rules.
Electronic Reminders of Possible

Scheduled Maintenance
Pull signals.
Evaluate the Benefits of OutSourcing the Excess Material Return

Process
Enables customer to focus on core competencies.
Outputs
Inputs
Process Procedures
P5.4
P5.4
3.5.52
> ER.1
>

Processes
P5.1, P5.2, ES.7, SR1.1, SR2.1,
SR3.1, DR1.1, DR2.1, DR3.1, ER.4,
ER.5, ER.7, ER.8
ER.2
Manage Performance of Return Processes
The process of measuring actual Return Process performance against internal and/or
external standards to develop and implement a course of action to achieve targeted
performance levels.
Metric
None Identified
Manage Performance of Return Processes Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Performance of Return Processes
None Identified
Best Practices
Business Rules Are Clearly

Communicated with the Customer
Convenient availability to business rules and return criteria.
Continuous Improvement is
Planned through Process Reviews
and Customer Feedback
Avenue to receive customer comments.
Outputs
Inputs
MRO Product Return
Capabilities
ER.2, ER.5
Process Procedures
P5.4
Receipt Data
ER.3, ER.4
Return Product History

ER.3
> ER.2
Metrics
EP.2, ED.1, ED.5
> Return Performance

ER.5, ER.6
MRO Product Return

Capabilities
ER.2, ER.5
3.5.53
ER.3
Manage Return Data Collection
The process of collecting, integrating and maintaining the accuracy of return execution
information necessary to plan the recovery of supply chain resources.
Metric
None Identified
Manage Return Data Collection Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Data Collection
None Identified
Best Practices
Automated Update of Customer

Excess Material Return Transaction
History
t
t

Enterprise for Visibility by Discrete
Business Units
Web based access to various levels of enterprise data
Use trend analysis to influence inventory level decisions.

Web-based alerts to identify update occurred and when
pre-determined thresholds are exceeded.
Inputs
Data System Requirements
ER.2
3.5.54
Outputs
> ER.3
Data About Return Capabilities

P5.2
> Receipt Data
DR1.3, DR2.3, DR3.3, ER.2
ER.4
Manage Return Inventory
The process of establishing a return process inventory strategy and planning the recovery
process inventory limits or levels (including Raw Material, Work In Process, Finished and
Purchased Finished Goods) including replenishment models, ownership, product mix, and
stocking locations, both inter and intra company.
Metric
None Identified
Manage Return Inventory Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Inventory
None Identified
Best Practices
Unique Identifier Tag for Each

Repairable Asset
Asset management software using bar code, RFI tag, etc.

Industry Benchmarks

Outputs
Receipt Data
DR1.3, DR2.3, DR3.3, ER.2
Inputs
DR1.4, DR2.4, DR3.3, DR3.4
Return Plans
P5.4
SR1.2, SR2.2, SR3.2, ER.4
Processes
ES.1, ER.1
> ER.4

SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5
and Aggregate Return

> Assess
Resources
DR1.4, DR2.4, DR3.4
SR1.2, SR2.2, SR3.2, ER.4
P5.4
3.5.55
ER.5
Manage Return Capital Assets
The process of acquiring, maintaining and dispositioning capital assets such as fork lift
trucks, information systems and equipment in receiving docks that are utilized in support
of Return. Management activities would include defining asset requirements, determining
resource availability and conducting gap analysis and resolution. The process includes
lease-buy and outsourcing decisions.
Metric
None Identified
Manage Return Capital Assets Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Capital Assets
None Identified
Best Practices
Integrated Transportation Visibility
t
t
Automated Disposition Instructions

for Returns Based on Data
Interchange with Strategic Providers
Advanced planning and scheduling capability coupled with

decision support logic.
Outsource If Not a Core Competency
Use 4PL to manage and move.
Advanced shipping notices

Real time shipping tracking
Inputs
Processes
ES.1, ER.1
Return Performance
ER.2
Outputs
> ER.5
Product Return
> MRO
Capabilities
P5.2, ER.2
Return Plans
P5.4
3.5.56
ER.6
Manage Return Transportation
The process of providing the least cost transportation of a returned product from a customer
location to the appropriate service provider location within specified time frames. Can
include interim transportation activities conducted within more than one service provider
locations. Includes defining and implementing a Return transportation strategy throughout
the supply chain, maintaining transportation-related information (rates, lead times) and
managing transportation performance.
Metric
None Identified
Manage Return Transportation Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Transportation
None Identified
Best Practices
Develop Proactive Transit Damage

Programs
None Identified
Integrated Order Management,

Warehouse Management, and
Transportation Management
Systems View for analysis for all
orders and shipments the following
data: Logistics, Product, Cost, GL
Charging

Management
Automated Documentation for

International Shipments

Management
Segregate In-Bound Carcass Return

Cost from Other Transportation
Costs
None Identified
Involve Your Other Supply-Chain

Partners If Possible to Leverage
Transportation throughout the
Chain
Utilization of transportation management system (TMS) to

manage returns. Maximization of TMS use, both intra and
inter-company within the supply chain.
Electronic Manifest and Electronic

Billing

Management
Pooling
Utilize Invoice-less Freight Payment
None Identified
Capture and Maintain Mode Specific

Data

Management
3.5.57
ER.6
Limit the Number of Carriers, Treat

Them as Partners and Build a Strong
Relationship with Each One Geared
Toward Continually Improving
Service and Lowering Cost
Utilization of transportation management system (TMS) to

manage returns. Maximization of TMS use, both intra and
inter-company within the supply chain.
Consolidate Shipments Through

Cross Docking - Coordinate with
Other Shipments
None Identified
Rating & Routing
Utilize Internet-Based Freight

Bidding Built Around Shared
Shipping Volume Projections
None Identified
Performance for On-time Delivery
and Completeness

Management
Appointment Scheduling for

Pickup and Delivery of Customer
Shipments

Management
Real-Time Shipment Tracking, (via

internet)

Management
Manage Information Across 100% of

Shipments

Management
Real-Time Optimized Shipment

Method Selection (Air Parcel,
Ground Parcel, LTL, etc.) Based on
Customer Service Requirements

Management
Inputs
Return Performance
ER.2
Return Plans
P5.4
3.5.58
Outputs
> ER.6
>
Agreements
DR1.3, DR2.3, DR3.3
ER.7
Manage Return Network Configuration
The process where customer and service provider locations involved in the flow of returns
are defined and maintained throughout the supply chain. Locations include retail and
wholesale customer and supplier sites, manufacturing facilities, distribution centers,
warehouses, repair depots and military bases. How unserviceable material flow throughout
the network is governed by the specific supply chains business rules. (See ER1)
Metric
None Identified
Manage Return Network Configuration Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Network Configuration
None Identified
Best Practices
Service Provider Utilizes Web-Based

Communicate to Identify New
and Discontinued Repair Sites to
Customers
Continuously updated authorized repair sites
Utilize Web-Based Collaboration

between Asset Manager and Repair
Sites Regarding Capacity and
Scheduling
Total return asset visibility throughout the network
Utilize Web-Based Collaboration to

Identify Potential New Repair Sites
Prior to Their Selection
Shared knowledge of resource availability and bottlenecks
Utilize Web-Based Collaboration

between Customer and Service
Provider on In-Bound Return
Forecasts and Asset Tracking
Shared return forecasts
Inputs
Processes
ES.1, ER.1
Return Plans
P5.4
Outputs
> ER.7
>
Return Network Configuration

ER.8
Definition and Policies
P5.2
3.5.59
ER.8
Manage Return Regulatory Requirements and Compliance
standards set by external entities (i.e. government, trade officials, etc.) when planning for
the Return of Assets. Includes Customs requirements and Import / Export Controls.
Metric
None Identified
Manage Return Regulatory Requirements and Compliance

Cycle Time
None Identified
Supply Chain Costs
Cost to Manage Return Regulatory Requirements and

Compliance
None Identified
Best Practices
Confirm All Documentation and

Inspection Requirements Before
Shipping
None Identified
Compare Local Customs

Requirements to Your Process
Procedures to Ensure All
Requirements Are Accounted for
Before Shipping
None Identified
Clarify in Advance If the Product

to be Returned Requires Specific,
Formal Authorization from the
Service Provider per Federal,
State or Local Regulation, Prior to
Returning
Participants at all customer and service provider locations

involved clearly understand all regulatory requirements at
each step in the return process .
Note and Communicate Shelf Life

Requirements Carefully Before
Shipping
Hazardous material regulations are given specific attention.
Clarify in Advance Hazardous

Material Packaging, Labeling and
Shipping Requirements
Overseas packaging, labeling and shipping regulatory

requirements are given specific attention.
3.5.60
ER.8
Outputs
Inputs
Processes
ES.1, ER.1
Return Network Configuration
ER.7
Process Procedures
P5.4
Warranty Data
SR1.1, SR2.1
> ER.8
>

Policy
SR1.1, SR2.1, SR3.1
Return Regulatory
Requirements
P1.2, P5.1, P5.2, DR1.3, DR2.3,
DR3.3
3.5.61
ER.9
Manage Supply Chain Return Risk
The process of managing Return risks within an overall Supply Chain Risk Program. This
includes identifying and assessing Return risks as well as and planning and implementing
responses to Return risks. Return risks include potential events that could impact you or the
customers ability to Return goods in a timely manner at a reasonable cost with minimal
damage. Risk Management includes: mitigation, either reducing the impact of a risk event
or reducing the likelihood it will occur.
Metric

Value at Risk (Return)
Internal Event Response (average days),

Hedge Rating (Inventory DOS for risk management)
Supply Chain Costs

Mitigation Cost ($)
Residual Risk ($),

Mitigated Risk ($),
Gross Risk ($),
Event Risk (EVAR) ($)
Best Practices

they occur.
3.5.62
ER.9




networks to minimize the risk to the supply chain. This
includes information sharing with partners as well as internal
locations. This helps all parties to be quickly informed of a real
or potential disruption and respond quickly and appropriately
to minimize the disruption impact.

networks with the objective to reduce their negative impact
on the logistics networks performance.


Coordination with Partners
The process of coordinated risk management places a strong

emphasis on cooperation among departments within a single
company and among different companies of a supply chain
to effectively manage the full range of risks as a whole. A
closer coordination of risk management activities performed
throughout the supply chain is intended to conserve resources
and increase effectiveness.
3.5.63
ER.9

to Mitigate Risk



organization.
Inputs
Monitoring
3.5.64
Outputs
> ER.9

> Risk
Process Area
Internal Adjusments
Inputs/Outputs
Input/Output
Definition
Process
Amount of past sales spanning any

specified period of time (weeks, months,
years, etc.) and expressed in any
specified increments (per day, week,
month, year, etc.)

Validate Order
D1.2: Receive, Enter and Validate Order
D3.3: Enter Order, Commit Resources
Launch Program
Requirements
Actual Shrink
Reductions of actual quantities of items

in stock, in process, or in transit. The
loss may be caused by scrap, theft,
deterioration, evaporation, etc.
P4.1: Identify, Prioritize and Aggregate

Advanced Ship Notice
An EDI notification of shipment of

product.

2.13: Receive and Verify Product by
Customer
Air, Ground, Carrier Rate

Tables
Rates charged by common carriers to

move goods, or freight.
Approved Contract
Acceptance of an agreement between

two or more competent persons or
companies to perform or not to perform
specific acts or services or to deliver
merchandise. A contract may be oral or
written.
D3.2: Negotiate and Receive Contract

Launch Program
The master record for an item.

Typically, it contains identifying and
descriptive data and control values (lead
times, lot sizes, etc.) and may contain
data on inventory status, requirements,
planned orders, and costs. Item records
are linked by bill of material records
(or product structure records), thus
defining the bill of material.
Assess and Aggregate

Return Resources
The function of physically separating

a homogeneous subgroup from a
heterogeneous population of items
Authorization to Return
to Service
Permission to return to service an item

that has been repaired and found to be
within specifications and operable.

D1.8: Receive Product from Source or
Make
SR1.2: Disposition Defective Product
Permission to scrap material or item

outside of specifications and possessing
characteristics that make rework
impractical.

Make
3.6.1
Inputs/Outputs
Input/Output
Definition
Process
The uncommitted portion of a

companys inventory and planned
production maintained in the master
schedule to support customer-order
promising. The ATP quantity is the
uncommitted inventory balance in the
first period and is normally calculated
for each period in which an MPS
receipt is scheduled. In the first period,
ATP includes on-hand inventory less
customer orders that are due and
overdue
D2.3: Reserve Inventory and Determine

Delivery Date
Benchmark Data
A set of measurements (or metrics)

that is used to establish goals for
improvements in processes, functions,
products, and so on Benchmark
measures are often derived from
other firms that display best in class
achievement
Bill of Materials
The Bill of Materials is a structured list

of all the materials or parts needed to
produce a particular finished product,
assembly, subassembly, manufactured
part, whether purchased or not.

EP.7: Manage Planning Configuration
Booked Order
The process of accepting and

translating what a customer wants
into terms used by the manufacturer
or distributor. The commitment should
be based on the available-to-promise
line (ATP) in the master schedule. This
can be as simple as creating shipping
documents for finished goods in a
make-to-stock environment, or it
might be a more complicated series of
activities, including design efforts for
make-to-order products

Delivery Date
Validate Order
Budget Constraints
A plan that includes an estimate of

future costs and revenues related to
expected activities. The budget serves
as pattern for and a control over future
operations.
EP.10: Align Supply Chain Unit Plan with

Financial Plan
P5.2: Identify, Assess, and Aggregate
Return Resources
Budgets
A plan that includes an estimate of

future costs and revenues related to
expected activities. The budget serves
as a pattern for and a control over future
operations.
EM.5: Manage Make Equipment and

Facilities
3.6.2
Inputs/Outputs
Input/Output
Definition
Process
Business Plan
A document resulting from a process

of linking the long-range strategy with
projections of revenue, activity, cost and
profit. This process develops objectives
usually accompanied by budgets,
projected balance sheet, and a cash
flow statement.

Financial Plan
EP.1: Manage Business Rules for Plan
Processes
EM.2: Manage Production Performance

Processes
Rules for conducting business, i.e.

developing and maintaining customer
and channel performance standards
of an return processes such as service
levels, given service requirements by
supply chain stakeholders/trading
partners. Business rules align Return
process policies with business strategy,
goals, and objectives.
ER.1: Manage Business Rules for Return

Processes
Return Resources
SR3.1: Identify Excess Product Condition
Configuration
Return
SR2.1: Identify MRO Product Condition
ES.1: Manage Sourcing Business Rules
Condition
DR2.1: Authorize MRO Product Return
Requirements
DR3.1: Authorize Excess Product Return

Processes
Rules that are translated into guidelines

and policies for conducting business
within the enterprise and other legal
entities. Sourcing business rules include:
supplier selection and negotiation
processes, fulfillment and delivery
performance and relationship definition
for specific levels of collaboration and
partnership.

Negotiate
A capacity constraint is said to exist

when the available capacity at a
resource may be insufficient to meet
the workload necessary to support
the desired throughput. A capacity
constraint is often a bottleneck.
EP.4: Manage Integrated Supply Chain

Inventory
Transportation
Capital Assets
3.6.3
Inputs/Outputs
Input/Output
Definition
Process
The resources needed to produce the

projected level of work required from
a facility over a time horizon. Capacity
requirements are usually expressed in
terms of hours of work or, when units
consume similar resources at the same
rate, units of production.

EM.4: Manage In-Process Products (WIP)
Capital Assets
Physical objects that are held by an

organization for its production potential
and that costs more than some
threshold value (APICS)

Requirements (Source)
Carrier Contracts
(Customer)
Contracts that customers have with

specific freight carriers through which
suppliers have to work for the delivery
of products. Customer manages carrier
selection, shipment of purchased
product, and payment of carrier.
Completed Proposal
A document submitted in response

to the a request for proposal from
a customer with all the terms and
conditions of sale of a product or service
D3.1: Obtain and Respond to RFP/RFQ

Configuration Rules
The rules for the management of

product configuration, which includes
the management of critical sub
processes needed to manage the
life cycle of individual item numbers
including item masters, routings,
rationalization, and bill of materials.

Validate Order
Conformance Plan
Courses of action and processes that are

established to meet the requirements
placed on production by external
entities.

Environment
Conformance Rules
An affirmative indication or judgment

that a product or service has met
criteria translated into rules for meeting
external regulatory requirements

Environment
Consistently High
Adoption Rates
Indication of product and service

quality, i.e. customer satisfaction.
Consolidated Orders
The process of analyzing orders to

determine the groupings that result in
least cost/best service fulfillment and
transportation.

D2.5: Build Loads
3.6.4
Inputs/Outputs
Input/Output
Definition
Process
Process
A process that identifies opportunities

for performance improvement and
facilitates their realization through the
use of metrics, process development
methodologies/approaches, project
management principles, and reporting
tools that support strategic and
business plans.
EP.2: Manage Performance of Supply

Chain
Contract Carrier Rates
The rates charged by a carrier that

does not serve the general public, but
provides transportation for hire for one
or a limited number of shippers under a
specific contract.
D.6: Manage Transportation

Contract Status
Customer profile, which include

address data, credit and purchase
histories, customer preferences
including shipping, status, and delivery
requirements, etc.

Validate Order
Contract Terms
All the provisions and agreements of a

contract.

Validate Order
A promise in a contract that binds one

to a specific course of action. These
promises maybe made by either the
buyer of seller.

Requirements

Strategies
Corporate objectives are the goals and

mission of an organization.

Environment
Cost to Produce
The cost to produce and item during

a given period of time.Includes: the
amount of direct materials, direct labor,
and allocated overhead.
The options available on the return of

a repairable item, credit for the cost of
the item, repair of the repairable item,
receipt of a serviceable item from stock.

Shipment
Authorization
SR3.3: Request Excess Product Return
Authorization
Shipment
3.6.5
Inputs/Outputs
Input/Output
Definition
Process
Credit History
Report that portrays a potential

customers payment history and debt,
indicating the ability to pay in a timely
manner in the future.

Validate Order
Validate Order
Current Inventory Source

Data
Data which will provide measurement

of actual supplier performance against
internal and or external standards
to provide feedback to achieve and
maintain the performance required to
meet the customers needs.

Negotiate
Customer profile, which include

address data, credit and purchase
histories, customer preferences
including shipping, status, and delivery
requirements, etc.

Validate Order
Customer Data
(preference)
Customer profile, which includes

history, customer preferences, status,
and delivery requirements, etc.
Customer Inquiry
General customer inquiries for

information concerning products,
availability, cost, and requests for
quotes.

Customer Loyalty /
Recurring Visits
Input to customer profile, frequency

of visits, recurring, time frame, what
purchased, numbers and rings. Measure
of customer satisfaction with products
and service.
D4.6: Checkout
Customer Master
Database/Up to Date
This database contains all information

relative to customers as a group or
singly and is updated when ever
new information is received about a
customer, includes customer profiles.

Inventories
Customer Order
An order from a customer for a

particular product or a number of
products. It is often referred to as an
actual demand to distinguish it from a
forecasted demand.

Launch Program
Delivery Date
Customer Order Size,

Weight, and Freight Class
Coupled with cube and route, these

criteria determine type of carrier and
cost of shipment

Validate Order
3.6.6
Inputs/Outputs
Input/Output
Definition
Process

history, customer preferences, status,
D4.6: Checkout
Customer Quote
A statement of price, terms of sale, and

description of goods or services offered
by a supplier to a prospective purchaser;
a bid. When given in response to an
inquiry, it is usually considered an offer
to sell.

Customer Replenish
Signal
Replenish Signal
The part of the supply chain

requirements related to the customers
needs, including sales forecasts and
actual orders and backorders

SC Requirements
Customer Service
Requirements
Supply chain requirements related to

the customers needs, including service
requirements, sales forecasts and actual
orders/backorders.

Daily Replenishment
Requirements
Resources needed to meet Item

stocking schedule requirement.

Daily Shipment Volume
Daily Shipment Volume categorized by

customer, source, traffic lane, carrier, etc.
D1.5: Build Loads

Data About Return

Capabilities
Information required in the process

of integrating and maintaining the
accuracy of return execution.

Return Resources
ER.3: Manage Return Data Collection
The procedure that outlines the

cleansing of return data to insure its
validity and accuracy during the return
process.
Data System
Requirements
List of requirements of the data system

that insure cleansed data is compatible
and usable, or the data system
requirements to fully automate the
return process.
DC/Vendor Lead Time
The amount of time that normally

elapses between the time an order
is received and the time the order is
shipped.

A standard allowance that is assumed

on any given order for the movement of
items from one operation to the next.

Defective Product
Disposition Request
The customer request for disposition

instructions for a defective product from
the appropriate source.

Return
3.6.7
Inputs/Outputs
Input/Output
Definition
Process

The customer request for disposition

instructions for a defective product from
the appropriate source.

Return

The approved or disapproved Return

Product Authorization (RPA) for excess
inventory, unserviceable products and/
or serviceable or obsolete products as
defined by the terms and conditions of
a customer/supplier contract.
R1.3: Request Defective Product Return

Authorization
Return
Defective Products
Maintenance, Repair and Overhaul

spare parts used to support of
operations and maintenance.

Deliver Contract Terms
Deliver Contract Terms
Delivered End Items
Products that have been acknowledged

as received by the customer.
2.11: Load Product & Generate Shipping

Documentation
Shipping Docs
Deliver Return
Requirements
A determination or projection of the

requirements the supply chain must
meet in the handling and execution of
returns. (i.e. quantity, mix, timing)

Return Plans
Delivery Resources
Delivery Date
Those stocks or items on hand used

to support production (raw materials
and work in process items), supporting
activities (maintenance, repairs and
operating supplies), and customer
service (finished goods and spare parts).
Determination of the time required
from the receipt of the order until the
item should be delivered.

Delivery Date
Delivery Date
The process of measuring actual

supplier performance against internal
and/or external standards, providing
feedback to achieve and maintain the
performance required to meet the
customers business and/or competitive
needs.

Inventories
3.6.8
Inputs/Outputs
Input/Output
Definition
Process
Delivery Plans
A plan for a course of action over

specified time periods that involves
a projected appropriation of
supply resources to meet delivery
requirements.

Launch Program
Delivery Date
Return Resources
Delivery Date
SC Resources
Requirements
M1.5: Stage Product
As a whole with constituent parts, all

sources of demand in the delivery of a
product or service.
P4.3: Balance Delivery Resources and

Capabilities with Delivery Requirements
Delivery Resources and

Capabilities

things that add value in the delivery of
a product.

Delivery Resources
Claims for the refund of duties as a

result of a ruling by the a government
agency.

Requirements
Engineering Design
Final drawings, specifications, formulas,

part programs, etc.that describe
requirements of a product. The design
process consists of translating a set
of functional requirements into an
operational product, process, or service.
M3.1: Finalize Production Engineering
Enterprise Distribution
Model
Model of the distribution enterprise

including the flows, processes, inputs,
outputs, metrics, and best business
practices.
EOQ/ESQs
Economic Order Quantity - Result of a

calculation that determines the most
cost effective to quantity to order or
produce. Economic Shipping Quantity
- Result of a calculation that determines
the most cost effective quantity to ship.

3.6.9
Inputs/Outputs
Input/Output
Definition
Process

Characteristics
Equipment and facility traits and

specifications required to meet external
entities requirements.

Environment

Maintenance History
The process of documenting of the

timing and maintenance of equipment
and facilities including required
repairs, alterations, calibration,
servicing, replacement of parts
and other miscellaneous items to
maintain production capability of the
manufacturing fixed asset base

Facilities

Monitoring Information
Data gathered by measuring,

examining, testing, or gauging one or
more characteristics of equipment and
facilities and comparing it to planned.

Facilities

Replacement and
Disposition Plans
Actions relating to the planning,

financing and disposition of capital
outlays for such purposes as the
purchase of new equipment, the
introduction of new product lines, and
the modernization of plant facilities

Facilities

Schedules and Plans
Time-phased plans of present and

future load (capacity required) on all
resources (Equipment and Facilities)
based on the planned and released
supply authorizations (i.e., orders)
and the planned capacity (capacity
available) of these resources over a span
of time.
M1.1: Schedule Production Activities

Facilities
ETO Proposal
A proposal that may contain final

drawings, specifications, formulas,
part programs, etc.that describe
requirements of a product

Negotiate
ETO Request for Proposal
A document used to solicit vendor

responses when the functional
requirements and features are known.
ETO Spec or Design
A clear, complete and accurate

statement or drawing of the technical
requirements of a material, item
or service, and of the procedure to
determine if the requirements are met.
Excess Product
Disposition Request
Request disposition instructions for an

excess item from the Supplier.
3.6.10

Authorization
Inputs/Outputs
Input/Output
Definition
Process

The process of a customer requesting

authorization from a service provider,
for the return of excess. In addition to
discussing the excess, the customer and
service provider would discuss enabling
conditions such as return replacement
or credit, packaging, handling,
transportation and import / export
requirements to facilitate the efficient
return of excess to the service provider.
The customer may need to go through
several return authorization iterations
with multiple service providers before

Authorization
Authorization

The process of a customer obtaining

authorization, from a service provider,
for the return of excess product
Excess Products
Material in excess of the current

requirements.

Available data that characterizes and

quantifies raw material, work in process,
and finished goods inventories

Inventories
Make
External Regulatory
Information
Documentation and process standards

set by external entities (i.e. government,
trade officials, etc.)

Environment

Location
The physical storage location where

Finished Product inventory is held in
stock prior to use or shipment.

Inventories
The authorization to ship a finished

product that has been ordered.

D3.9: Pick Product
Deliver
Make
D2.9: Pick Product
Finish Goods Inventory

Target Levels
In a min-max inventory system, the

equivalent of the maximum. The target
inventory is equal to the order point
plus a variable order quantity.

Inventories
Delivery Resources
3.6.11
Inputs/Outputs
Input/Output
Definition
Process
Completion of customer checkout, sale

of the selected goods, cart transitions
from full to empty.
D4.6: Checkout
Full Cart Ready for

Checkout
Customer selected goods transferred to

the point of sale.

D4.6: Checkout
Full Shelf Locations
Determination of the best retail

locations for implementation of full
shelf equipment.

D4.4: Stock Shelf
Requirements established by a
government which must be met before
allowing the shipping, delivery of a
product or manufacture of an item.

Requirements
Documents the implement law

and requirements concerning the
import and export of items and the
manufacture of item.

Requirements
High Customer Services

Satisfaction Levels
Indication of product and service

quality.
A judgmental forecasting technique

based upon the a return history that
is analogous to a present situation,
such as the return history on a similar
product, and using the past pattern to
predict future returns.

Authorization
Authorization
Requirements
Return
Import/Export
Requirements
Requirements established by a
government or trading areas (i.e EU,
NAFTA etc) which must be met before
allowing the shipping or delivery of a
product across national boundaries.
ES.10: Manage Supplier Agreements

Requirements
Incoming Product
Information
Data concerning product on order and

due to be delivered to location agreed
in the order.
3.6.12
Inputs/Outputs
Input/Output
Definition
Process
The flow of information back into

the control system so that actual
performance can be compared with
planned performance.

M1.4: Package
M2.4: Package
M3.5: Package
M3.3: Issue Sourced/In-Process Product
M1.5: Stage Product
Deliver
Information from
Business Processes
Data arranged or presented from a set

of logically related tasks or activities
performed to achieve a defined
business outcome; so that the data
yields an understanding not available
from any single data element.
Information
Infrastructure Plan
A plan outlining the processes required

for managing, collecting, maintaining,
and communicating information and
masterdata to support planning and
execution processes.
Information Needed to
Create and Maintain IT
Interrelated computer hardware

and software along with people and
processes designed for the collection,
processing, and dissemination of
information for planning, decision
making, and control.
Information Needs
Analysis
Specifying the inputs, files, processing,

businesss rules and outputs for a
new system, but without expressing
computer alternatives and technical
details.
Installed Product
The process of preparing, testing and

installing the product at the customer
site. The standalone product is fully
functional upon completion, but there
may be requirment for subseqent
integration.

D2.15: Invoice
D1.15: Invoice
3.6.13
Inputs/Outputs
Input/Output
Definition
Process
Integrated
Supply Chain
Inventory
Information
Managing the flow of raw materials

and products in a supply chain based
on uncertain demand for the finished
products.

Inventory
Inventory

Plan
Communication of courses of action

over the appropriate time-defined
planning horizon and interval,
representing a projected appropriation
of supply chain resource and input
material to meet supply-chain
requirements as they affect the
customer.

Inventories
Internal Capacity
EM.9: Manage Supply Chain Make Risk

ES.9: Manage Supply Chain Source Risk
ED.9: Manage Supply Chain Deliver Risk
ER.9: Manage Supply Chain Return Risk
EP.9: Manage Supply Chain Plan Risk
The organic capability of an
organization to produce output per
time period.
Inventory
3.6.14

In business management, inventory
consists of a list of goods and materials
held available in stock. Also, those
stocks or items used to support
production (raw materials and workin-process items), supporting activities
(maintenance, repair, and operating
supplies), and customer service
(finished goods and spare parts)

SC Resources
Inputs/Outputs
Input/Output
Definition
Process


D2.9: Pick Product
Make
D3.9: Pick Product
Delivery Date
Product Resources
Delivery Date
D1.9: Pick Product
Make
Inventory Availability/
Delivery Date

Determination of the time required
from the receipt of the order until the
item should be delivered.

Delivery Resources
Delivery Date
Delivery Date
Inventory Capacity
Maximum rate of output for the

inventory managment and warehouse
process

Inventory in Stock
Stored products or service parts ready

for sale, as distinguished from stores,
which are usually components or raw
materials.
Inventory Rules
The rules that determining the desired

levels of items, whether raw materials,
work in process, or finished products
including order quantities and safety
stock levels.

Inventories
Inventories
3.6.15
Inputs/Outputs
Input/Output
Definition
Process
Inventory Status
A periodic report showing the inventory

on hand and usually showing the
inventory on order and some sales or
usage history for the products that are
covered in the stock status report.

Delivery Date
Inventory Strategy
The total supply chain inventory

strategy. Contains the plan for total
inventory limits or levels (including Raw
Material, Work In Process, Finished and
Purchased Finished Goods) including
replenishment models, ownership,
product mix, and stocking locations,
both inter and intra company.

Inventory
P1.3: Balance Supply Chain Resources
with SC Requirements
Return Resources
Item Master
A record of specific information for

each product, which defines the system
parameters with which to effectively
plan and execute using ERP (MRP, etc)
systems.

Requirements
Item Pick Sheet for

Stocking Schedule
A document that lists the material to

be picked to meet the schedule for the
planned movement of material from
a bulk storage area to an order pick
storage area.

Item Stocking
Requirements
The activities and techniques of

determining the desired levels of
items, whether raw materials, work in
process, or finished products. Demand
for inventory maybe dependant or
independent. Inventory functions are
anticipation, hedge, cycle (lot size),
fluctuation (safety, buffer or reserve),
transportation (pipeline), an service
parts.

Load, Shipping, Verify,

and Credit Information
The function that performs tasks

for the outgoing shipment of parts,
components, and products. It includes
packaging, marking, weighing, and
loading for shipment. Also, verify
the shipment and customer credit
information.

Shipping Docs
Loaded Retail Cart or

Pallet
Customer selected retail finished goods

transferred to the point of sale.

D4.4: Stock Shelf
3.6.16
Inputs/Outputs
Input/Output
Definition
Process
Load Information
Information relative to a load that is

built and shipped, i.e. customer, items,
destinations, weight, etc

Delivery Resources
D3.5: Build Loads
D2.5: Build Loads
D1.5: Build Loads

address and location data, credit
and purchase histories, customer
preferences including shipping, status,

Validate Order
Logistics Selection
Carrier selection and management for

inbound or outbound shipments (linked
to terms of delivery)

Lost or Dropped
Shopping Carts
On-line orders that are missing due

to internet, software, or hardware
malfunctions.
Indication of quality in workmanship

and design.
Loyalty Customer Profile

Changes
More units, higher average ring, etc.
D4.6: Checkout
Make/Buy Decision
The output of the process used to

determine whether a demand will
be supplied with internal capacity
or purchased through contract
manufacturing and/or contracted
services externally.

Return Resources
SC Resources
Capital Assets
Manage Integrated
Supply Chain Inventory
Information
Managing the flow of raw materials

and products in a supply chain based
on uncertain demand for the finished
products

Return
Return
Management Process
Reports
Reports which provide management

with the process information required
to evaluate prescribed activities to
ensure that the stated objectives of a
project, manufactured good, or service
are achieved.

3.6.17
Inputs/Outputs
Input/Output
Definition
Process
Manage Regulatory
Return Policy
The process of identifying and

complying with regulatory
documentation and process standards
set by external entities (i.e. government,
trade officials, etc.) when planning for
the Return and Recovery of Assets.

Condition
Manufacturers
Recommended
Maintenance Schedules &
Specifications
The scheduled activities, including

adjustments, replacements, and basic
cleanliness, that are recommended by
the manufacturer to forestall machine
breakdowns.

Facilities
Markdown Plans
Part of the Market Plan, which

establishes an allowance or deduction,
granted by the seller to the buyer,
usually when the buyer meets certain
stipulated conditions that reduce the
price of the products purchased. For
example, based upon paying early,
buying in quantity, etc.

Merchandise Category/
Classification
The categorization of goods based upon

the range of specifications met during
the manufacturing process.

Merchandising
Plan
The merchandising plan includes the

current market position, opportunity
and issue analysis, merchandising
objectives and strategies, action plans,
programs, projects, budgets, and pro
forma profit and loss statement and
management controls.
Methods, Procedures,
Processes
Methods, procedures and processes

required to produce distinct items,
such as parts that retain their identity
through the transformation process
and are intended to be completed after
receipt of a customer order, including
custom products that are designed,
developed, and produced in response
to a specific customer request.

Monitoring
3.6.18

Request disposition instructions for an
MRO item from the Supplier.

Authorization
Inputs/Outputs
Input/Output
Definition
Process
MRO Parts Availability
The on-hand MRO inventory balance

minus allocations, reservations,
backorders, and (usually) quantities held
for quality problems.

Facilities
MRO Product Return

Capabilities
See Product Return Capagilities

Return Resources
ER.2: Manage Performance of Return
Processes
Processes
MRO Products
Maintenance, Repair and Overhaul

spare parts used to support of
operations and maintenance.

MRO Return
The process of a customer requesting

authorization from a service provider,
for the return of an MRO product. In
addition to discussing the MRO issue,
the customer and service provider
would discuss enabling conditions
such as return replacement or credit,
packaging, handling, transportation
and import / export requirements to
facilitate the efficient return of the
MRO product to the service provider.
The customer may need to go through
several return authorization iterations
with multiple service providers before

Authorization
MRO Return
The process of a customer obtaining

authorization, from a service provider,
for the return of an MRO product

Authorization
On-demand
Replenishment
Requirements
Requirements for the triggering of

material movement to a work center
only when that work center is ready to
begin the next job.
On-Order/Backorder
An unfilled customer order or

commitment. A backorder is an
immediate (or past due) demand
against an item whose inventory is
insufficient to satisfy the demand.
Optional Payment
Payment at the time of order, maybe

partial or in full.

Validate Order
3.6.19
Inputs/Outputs
Input/Output
Definition
Process
Order Backlog
Orders that have been received and

entered into the order processing
system and are in a queue waiting to be
processed and shipped.

Delivery Date
SC Requirements
Shipping Docs
Delivery Date
Launch Program
Order Information
The function encompasses receiving

and entering all data necessary on
orders, so the order can be finalized and
entered into the order system.

Launch Program
Order Quote (CUSTOMER)
A statement of price, terms of sale, and

description of goods or services offered
by a supplier to a prospective purchaser;
a bid. When given in response to an
inquiry, it is usually considered an offer
to sell.

Validate Order
Order Rules
Rules for the function that encompasses

receiving, entering, and promising
orders from customers, distribution
centers, and interplant operations.

Inventories
Validate Order
Order Signal
Reserved inventory and/or planned

capacity and delivery date for a specific
order.

Delivery Date
Launch Program
Outsource Plan
A plan that describes how a company

will utilize third party business partners
to provide products and services which
the company chooses not to provide
with internal capacity. Outsource Plans
can vary in detail from simple policy
statements to highly detailed plans with
specifics about the third party business
partners, specifications for products and
services, performance expectations, and
contract considerations.

SC Resources
Capital Assets
Transportation
Return Resources
3.6.20
Inputs/Outputs
Input/Output
Definition
Process
Parts and Services

Consumed
The items and services utilized to

manufacture a product.

Facilities
Requirements
Payment
Receipt of payment for goods and

services per contract or purchase order.
D3.15: Invoice
D2.15: Invoice
D1.15: Invoice
Payment Terms
The process of authorizing payments

and paying suppliers for product or
services. This process includes invoice
collection, invoice matching and the
issuance of checks.


Information
Transportation modes are selected and

efficient loads are built.
D1.5: Build Loads

Shipment
Shipment
Planning Data
Execution information necessary to plan

the balance of supply chain resources
to demand requirements at both the
highest aggregate and lowest SKU
planning levels.

Product Resources
SC Requirements
Return Resources
SC Resources
Requirements
Delivery Resources
3.6.21
Inputs/Outputs
Input/Output
Definition
Process
Planning Decision
Policies
Any company policies that affect how a

planning process is defined, approved,
and performed.

Capital Assets
Processes
P5.3: Balance Return Resources with
Return Requirements
Inventory
P2.3: Balance Product Resources with
Transportation
Plan-o-gram Data
Data required to develop and build a

Plan-O-Gram display to help minimize
setup time by showing specific
placement of all items, by product
number, on the display.
D4.4: Stock Shelf
The relief of inventory and computation

of sales data at the time and place of
the sales, generally (may be manual)
through the use of bar-coding, or
magnetic media and equipment.
D4.6: Checkout
Preventative
Maintenance and
Planned and scheduled activities,

including adjustments, replacements,
and basic cleanliness, that forestall
machine and facility breakdowns. Also,
the established frequency to change
and maintain parts, based on failure
consequences, with frequency set per
part or machine type. (Well cared for
equipment and facilities will last longer
and cause fewer problems.)

Facilities
Process Procedures
A planned series of actions or

operations that advances returns from
one stage to another, or established
procedures to manage and execute all
activities in the process.

Processes
Processes
Return Plans
3.6.22
Inputs/Outputs
Input/Output
Definition
Process
Procurement Signal
(Supplier)
Any signal that indicates when to

produce or transport Items in a pull
replenishment system, or the signal that
sends the estimated need of parts or
services to the supplier.

Negotiate
Product
The end object of a transformation

process that includes physical objects,
information or services.

1.13: Receive and Verify Product by
Customer
D2.13: Receive and Verify Product by
Customer
Customer
Product/Category
Lifecycle
The time from initial research and

development to the time at which the
sales and support of the product to
customers are withdrawn.

Availability of a product by location that

is reserved, scheduled or available for
sale, or the number of products ready
to be or planned to be shipped to the
specific customer or market at the
specific time.

Product Resources
Product Data (linked/

related SKUs)
The properties and characteristics of

a product (e.g. the part number and
a text description of the product) and
the relationships to other items in the
product family and linked / related
SKUs.
Product Design
The product design is the translation

of a set of functional requirements
into an operational product that meets
both the enterprise and customer
expectations.
The product design is the translation

of a set of functional requirements
into an operational product that
meets both the enterprise and
customer expectations. Claims are
marketing information provided as
to performance, etc. Claims from the
users of the product indicate a need to
change the product design

Environment
3.6.23
Inputs/Outputs
Input/Output
Definition
Process
A product design approach that uses

quality measures to capture the extent
to which the design meets the needs of
the target market (customer attributes),
as well as its actual performance,
aesthetics, and cost.
Product Inventory
Location
The physical storage location where

product inventory is held in stock prior
to use or shipment.


Levels
The target for the total product

inventory, including e.g. raw material,
work in progress and finished goods.

Product Resources
Production
Capacity
The highest, sustainable output rate

which can be achieved with the current
product specifications, product mix,
worker effort, plant, and equipment.

Capital Assets
Production Orders
Planned & Actual Reports
A statement of the output of a

production facility for a specified
period, comparing planned to actual
production.

Production Plans
A master production plan used to

allocate capacity among manufacturing
resources and schedule finite
manufacturing activities or executing
the performance of a service.Production
Plan includes production capability.

SC Resources
Requirements
Delivery Resources
Return Resources
Launch Program
Facilities
M1.5: Stage Product
Delivery Date
Delivery Date
3.6.24
Inputs/Outputs
Input/Output
Definition
Production
Quality &
Policies
Process
Production Quality and

Policies
The operational techniques and

planned and systematic activities used
to fulfill requirements for quality in
the production process, or the quality
of the production, as defined by the
company. For example, a percentage
of parts produced without a need for
adjustment or repair. The production
policy indicates standard rules on
how the production quality should be
secured.

Facilities
Production
Requirements

sources of demand in the creation of a
product or service.


things that add value in the creation of
a product or performance of a service.

Production Rules
The rules directing or regulating the

movement of goods through the
entire manufacturing and repair cycle
(parameters of production) from the
requisitioning of raw material to the
delivery of the finished products.

3.6.25
Inputs/Outputs
Input/Output
Definition
Process
Production Schedule
A plan that authorizes the factory to

manufacture or repair a certain quantity
of a specific item.

Make
D3.9: Pick Product
D2.9: Pick Product
Delivery Date
Delivery Date
Launch Program
Production Status
Feedback on the production schedule

allowing for corrective action to a
production problem, or an indication
of how far in the production process a
specific part has progressed

Facilities
Product Location
Information
Attributes of the products storage

location.

The proportion of individual products

that make up the total production or
sales volume and plan that authorizes
the factory to manufacture a certain
quantity of a specific item, or the
portfolio of products the company has
to cover the targeted customer need
and the plans of how to manage that
portfolio.

Inventories
Product On Order
Product on order with a selected source.

Product Resources
3.6.26
Inputs/Outputs
Input/Output
Definition
Process

sources of demand for a product or
service in the supply chain.

Product Return
Capabilities
The capability of a system or resources

to produce a quantity output in a
particular time period; and, any element
or factor that constrains the system
or resources from achieving a higher
level of performance in respect to its
goal. The ability the supply chain has to
return products in a valid and accurate
way.

Return Plans
Return
Product Routings
Product routings represent the way

products are made and are integrated
with the Bill of Materials. Key elements
of proper Routings include proper
sequence of operations, work center
identification, relevant tolerances,
run times, lot size and setups. The
equivalent concepts for services are the
workflow processes and rules.

Inventory
Transportation
Requirements
Capital Assets
Product Sources

material and other resources used to
add value in the supply chain for a
product or services.

Product Resources
Projected Delivery
Requirements
The companys goal for the time to

ship the product after the receipt
of a customers order. The policy is
sometimes stated as our quoted
delivery time, or an estimate of the
customer delivery requirements of a
product or service, e.g. which kind of
packaging, should the parts be shipped
one by one or in bulks etc.

Projected Internal and

External Capacity
An estimate of the amount of product

or service a particular part of the
business (internal capacity) or a third
party business partner (external
capacity) is capable of producing over
a particular period of time when all
factors that control the production
processes are working optimally.

Transportation
Capital Assets
Return Resources
3.6.27
Inputs/Outputs
Input/Output
Definition
Process
Promotion activities - other than

advertising, publicity, and personal
selling - that stimulate, interest, trial or
purchase by final customers or others in
the marketing channel.

Promotional Plan
The plan for a promotional product

offering and how it is communicated
to the customer and includes public
relations, advertising, sales promotions,
and other tools to persuade customers
to purchase the product offering
Promotion Event
Calendar
Time phased promotion / event

tasks where the product offering is
communicated to the customer and
includes public relations, advertising,
sales promotions, and other tools to
persuade customers to purchase the
product offering during the year.
D4.6: Checkout
Purchase History
The amount of purchased products for

a certain time in history per specific
intervals
Quality &
Delivery
Performance
3.6.28

feedback to achieve and maintain the
performance required to meet the
customers business and/or competitive
needs.
Or, the extent to which the supplier
delivers according to quality
specification (e.g. product quality,
logistic quality) and to delivery
specification (in time, correct packaging
etc). Sometimes these two metrics are
connected in one.

Validate Order
Inputs/Outputs
Input/Output
Definition
Process

Performance

feedback to achieve and maintain
the performance required to meet
the customers business and/or
competitive needs.Or, the extent to
which the supplier delivers according
to quality specification (e.g. product
quality, logistic quality) and to delivery
specification (in time, correct packaging
etc). Sometimes these two metrics are
connected in one.
Rated Carrier Data
Contract rates and tariffs from carriers

by commodity, lane, mode, etc. for
shipments.

Receipt Data
A collection of related receipt data

records organized in a specific manner.

Processes
Receipt Discrepancy
Notification
Notification of a discrepancy relating to

a receipt, including: damage, packaging,
quantity, etc.

Acknowledgement that the product

received conforms to specified
requirements and criteria.

Requirements
Requirements
Requirements dictated by process

standards set by external entities (i.e.
government, trade officials, etc.).

Return Resources
3.6.29
Inputs/Outputs
Input/Output
Definition
Process
Replenishment
Quantities
In a fixed-reorder quantity system of

inventory control, the fixed quantity
that should be ordered each time the
available stock (on-hand plus on-order)
falls to or below the reorder point.
Any signal that indicates when to

produce or transport Items in a pull
replenishment system.

Delivery Date
Delivery Date
Launch Program
Reports, Information, and

Documents
Collecting data and organizing,

arranging or presenting the data so
that they yield an understanding not
available from any single data element.
The capability of a system or resource

to produce a quantity of output in a
particular time period, or the available
resources at a point in time able to
generate an output.

Launch Program
Delivery Resources
Data relative to the return process

utilized to compare the companys
actual results to selected values
identified as reference.

Processes
Return Defective
Product
Returned Defective
Product
3.6.30

Condition
Product being returned that is in a
defective condition.

Shipment
Shipment
R1.3: Receive Defective Product
Inputs/Outputs
Input/Output
Definition
Process
Product being returned as defined by

the terms and conditions of a customer/
supplier contract as available inventory
and disposition excess not usable for
sale.

Authorization
Shipment
Shipment
Product being returned for

maintenance, repair, or overhaul.

Authorization
Authorization
Returned Product
Information
Data concerning the return and

disposition of defective products,
excess inventory and/or serviceable or
obsolete products, or MRO product.
Return Inventory
Availability
Inventory relative to return process

available for use.

Authorization
Shipment
Shipment
Authorization
3.6.31
Inputs/Outputs
Input/Output
Definition
Process
Return Inventory for

Transfer
Inventory relative to return process

available for transfer to other
destination.

The goals and approach to the

management of return inventories.

Return Resources
Return Inventory Transfer

Data
The process of receipt and verification

of the returned item against the return
authorization and other documentation
and prepares the item for transfer.

Return Resources
Return Network
Configuration
The business rules that govern the flow

of unserviceable material through the
network, i.e. the network configuration.

Configuration
Return Performance
Performance measurement information

for the Return Process (the actual value
of measured for the criterion).

Processes
Return Plans
Courses of action over specified time

periods that represent the projected
appropriation of required return
resources and or assets to meet the
return process requirements.

Configuration
Return
Return Plans
Return Process
Capabilities
The capability of a system or resources

to produce a quantity output in a
particular time period

Return Resources
Chain

Definition and Policies
Definition and maintenance of the

information flow about the Returns
supply chain network for a group of
similar or complimentary items through
out their life cycle

Configuration
Return Resources
3.6.32
Inputs/Outputs
Input/Output
Definition
Process
Return Product
Authorization
Permission to accept an excess product

return for the designated return center,
after communicating with the customer.

DR3.2: Schedule Excess Return Receipt
The return history of product including

failure rates, failure causes, etc.

Processes
Return Production
Requirements

sources of demand in the creation of a
product or service.

Return Plans
The physical location where the

returned product inventory is held prior
to disposition

Return Regulatory
Requirements
Return requirements dictated by

process standards set by external
entities (i.e. government, trade officials,
etc.).

Return Resources
Requirements
SC Resources
Return Requirements

sources of demand for the return of a
product.

Requirements
Return Requirements
Return Resources
All resources that add value to, execute,

or constrain the processes for the return
of a product.

Return Requirements
Return Resources
Rules and Policies for conducting

business, i.e. developing and
maintaining customer and channel
performance standards of return
processes such as service levels, given
service requirements by supply chain
stakeholders/trading partners. Rules
and policies align the Return process
with the organizations business
strategy, goals and objectives.

Processes
Return Plans
3.6.33
Inputs/Outputs
Input/Output
Definition
Process
Return Schedule
Instructions
A list of operations and procedures for

scheduling the return of product.

Receipt
DR3.2: Schedule Excess Return Receipt
Authorization
DR2.2: Schedule MRO Return Receipt
Authorization
Returns Data
The properties, characteristics and

information relating to returns,
including failure information, excess,
obsolete, MRO, customer, etc.

Requirements
Inventories
Agreements
Guidelines, policies and agreements

for the transportation activities around
return process.

Guidelines, Policies,
and Agreements
Guidelines, policies and agreements

for the transportation activities around
return process.

Return Resources
Revised Aggregate
Forecast and Projections
An update to the aggregate SupplyChain Forecasts of Demand by Product

Family supporting the Market/Channel
Plans. Corresponding Projections,
supporting Make, Source, Deliver,
Inventory and Response Time Plans
through the Supply-Chain are produced
from these Forecasts Together, they
represent balanced Supply and
Demand.

Financial Plan
SC Requirements
Requirements
Revised Business
Assumptions
An update to the expected cause and

effect statements that are the base
for the Revised Aggregate Forecast
and Projections. These are reviewed
periodically with actual results to verify
the linkage of actual cause and effect.

Requirements
SC Requirements
Capital Assets
Financial Plan
3.6.34
Inputs/Outputs
Input/Output
Definition
Process
A revision to plan for capital

expenditures necessitated by either
changes in specific business plans or
factors and assumptions affecting a
business plan.

Transportation
Capital Assets
Return Resources
SC Resources
RFQ/RFP
Request for Quote - A document used to

solicit vendor responses when a product
has been selected and price quotations
are needed from several vendors.
Request for Proposal - A document used
to solicit vendor responses when the
functional requirements and features
are known but no specific product is in
mind.
Risk Management
Program for Process Area

Routing Guide
Information used to select modes,

transportation lanes, available carriers,
etc. Listing or routes, carriers & rates.

Satisfied Customer
Customers who are satisfied with the

product or service delivered by the
suppliers, including the aspects such as
time, quality, cost, etc.
D4.6: Checkout
Scheduled Defective
Product Return
Planned or scheduled returning of

material deemed defective for some
certain time or times

Shipment
Scheduled Deliveries
The required or agreed time or rate of

delivery of goods or services purchased
for a future period.
D3.5: Build Loads

D1.7: Select Carriers and Rate Shipments
D1.9: Pick Product
Scheduled Excess
Product Return
Planned or scheduled returning of

material deemed in excess of current
requirements for some certain time or
times.

Shipment
Scheduled Installation
The process of evaluating the design

and build schedules relative to
customer requested installation date to
determine installation schedule.
D3.5: Build Loads

Scheduled MRO Return
Planned or scheduled act of installing

something for some certain time or
times.

3.6.35
Inputs/Outputs
Input/Output
Definition
Process
Scheduled Receipts
Product due to arrive.

Make
Scrap Authorization
Permission to scrap material or item

outside of specifications and possessing
characteristics that make rework
impractical.

Requirements
Inventories
Service Levels
Performance targets in service related

measures (i.e. delivery performance,
lead times, etc.) compared to the
established service requirements.
Service levels are established by
balancing requirements against
operational strategy.

Processes
A set of minimum acceptable values

that describe service requirements of
a particular industry, channel, and/or
customer segment.

Processes
Shipment Documents
Legal documentation of the contents of

a shipment (e.g. way bill, bill of lading,
export papers, etc....).

Shipment Routes
Routes for shipping by consolidating

loads.

Shipments
Transactions related to sending the

product to the customer.

Delivery Date
SC Requirements
Shipping Docs
Shipping Documents
Legal documentation of the contents of

a shipment (e.g. way bill, bill of lading,
export papers, etc....).

Shipping Documents
Shipping Docs
3.6.36
Inputs/Outputs
Input/Output
Definition
Process
Shipping Export
Parameters and
Documentation
Shipping and documentation

requirements established by a
government which must be met before
allowing the shipping or delivery of a
product across national boundaries.

Shipping Documents
Shipping Docs
Requirements
Shipping History
The transaction history of the physical

shipment of an item to another internal
location or to a customer.

Shipping Docs
Shipping Documents
Requirements

Documentation
Shipping parameters, such as weight,

size, cube and route decide carrier
and cost. Legal documentation of the
contents of a shipment (e.g. way bill,
bill of lading, export papers, etc.) are
required.

Shipping Docs
Shipping Documents
(Customer)
Customer preferences including

shipping, status, and delivery
requirements, etc., and customer profile,
which includes address data, credit and
purchase histories,

Validate Order
Shipping Schedules
(internal or 3PL)
Scheduling of direct deliveries of

material to a specified location on a
plant floor near the operation where it is
to be used.
Ship-to Data
Data about the destination of a retun

delivery.

Shipment
Shipment
Authorization
Return
Authorization
3.6.37
Inputs/Outputs
Input/Output
Definition
Process
Data which will provide measurement

of actual supplier performance against
internal and or external standards
to provide feedback to achieve and
maintain the performance required to
meet the customers needs.

Source Return
Requirements
All sources of demand in the Source

Return of a product or service.

Return Plans
Sourcing Plans
An aggregate material requirements

plan used to schedule material
deliveries to meet production plan.

Delivery Date
Delivery Date
Delivery Resources
Requirements
Launch Program
Return Resources
SC Resources Function allocation
diagram
Industry established common practices,

rules, and methods of doing business.
The activities and techniques of

determining the desired levels of
items, whether raw materials, work in
process, or finished products. Demand
for inventory may be dependant or
independent. Inventory functions are
anticipation, hedge, cycle (lot size),
fluctuation (safety, buffer or reserve),
transportation (pipeline), and service
parts.

3.6.38
Inputs/Outputs
Input/Output
Definition
Process
Stocking Schedule
A timetable for the planned movement

of material from a bulk storage area to
an order pick storage area.
D4.4: Stock Shelf

Stock-out History
History of a lack of materials,

components, or finished goods that are
ordered.

Store Allocation
Instructions
A list of operations and procedures for

allocating storage needs for items in
inventory.
Store Shelf Inventory

Counts
The determination of inventory quantity

by actual count. Physical inventories
can be taken on a continuous, periodic
or annual basis.
D4.4: Stock Shelf

Strategic Plan
A longer range, high-level plan that

describes how a company intends to
conduct business. Improve its market
and competitive position, and increase
its earnings performance.

Processes
Financial Plan
Successful Installation /
Live System
The installation of product is completed

at the customer site, and the product is
fully functional.
Supplier Agreement
An agreement between supplier and

purchaser to perform or not to perform
specific acts or services or to deliver
merchandise, such as purchase order or
supplier contract.

Negotiate
Supplier Data
Data or information about the supplier.

This data can be organizational ,
product, information , financial.
Structured supplier data is needed to
set up and implement ERP or similar
systems.

Negotiate
The results of measuring the actual

supplier performance on cost,
quality, engineering, purchasing,
and so on, based on an agreed set of
measurements.

Supply Chain Execution

Data
Information necessary to plan the

balance of supply chain resources to
demand requirements at both the
highest aggregate and lowest SKU
planning levels.
3.6.39
Inputs/Outputs
Input/Output
Definition
Process
Supply Chain
Performance
Improvement Plan
A plan that describes goals and

objectives for a supply chain and the
steps that will be taken to reach those
goals and objectives from the current
performance levels.

Return Requirements
Chain
Supply-Chain
Performance Metrics
Standard measures that indicate how

well a supply chain performs within
certain categories of performance
known as Performance Attributes,
e.g. delivery reliability, flexibility
and responsiveness, cost, and asset
management.

Chain
Processes
Supply Chain Plans
Courses of action over specified time

periods that represent a projected
appropriation of total supply-chain
resources to meet total supply-chain
demand requirements.

Requirements
P1.4: Establish & Communicate SupplyChain Plans
Supply Chain
Requirements
Sources of demand for the integrated

supply chain of a product or service
at the appropriate level, horizon and
interval.

SC Requirements
Supply Chain Resources

sources of supply that are required
to add value in the supply chain of a
product or service at the appropriate
level, horizon and interval.

SC Resources
Systems Capability
The capability of a system to perform its

expected function
Tariffs & Duties
Charges established by a government

which must be met before allowing the
shipping or delivery of a product across
national boundaries.

Requirements
Transferred Product
Product being tranferred to the

appropriate stocking location within the
supply chain.

3.6.40
Inputs/Outputs
Input/Output
Definition
Process
The capability of a trasportation system

to perform its function.

Transportation
Validated Order
An order that has had the instructions

/ requirements validated i.e. the
information that the order contains
is accurate, consistent with previous
information and does not violate
business policies or rules.Note 1 - this
does not make the order committed
there may be other tasks to be
performed before a commitment can
be made. Note 2 - this order could
be customer, internal, purchase or
production.

Delivery Date

Authorization
A validated and approved Return

Product Authorization (RPA).

Authorization
Shipment
Shipment
Requests for returns that are valid.

Return
Receipt
Vendor/DC inventory
availability
Vendor/DC inventory available to a

customer to supply demands. (Where
the customer has access to the
suppliers inventory and the supplier has
access to the customers requirements
and inventory or vendor managed
inventory).
Vendor Merchandising
/ Co-op advertising
agreements
The plan for a promotional product

offering and how it is communicated
to the customer and includes public
relations, advertising, sales promotions,
and other tools to persuade customers
to purchase the product offering.
D4.4: Stock Shelf
Warehouse Operating
Constraints
Warehouse constraints are those

storage items that impact on the supply
chain efficiency, including material
handling equipment and personnel,
equipment maintenance, building
maintenance, and security personnel.
3.6.41
Inputs/Outputs
Input/Output
Definition
Process
Warranty Data
All data relevant to a warranty claim

for a customer for replacement, repair
or credit because the product received
did not meet a commitment, either
expressed or implied, concerning a
certain fact regarding the product

Condition
WIP Handling Rules,

Move Information and
Methods
The rules for handling WIP items in

the production and repair process.
These rules include the movement
and accounting for in-process items
between work locations, in inventory,
and movement inventory.

Location of inventory that is

specified as work in progress. This
can be intermediate storage in a
manufacturing facility prior to final
packaging or can be a class of materials
waiting final transformation to finished
products.

WIP Location Rules
The process and rules for establishing

and maintaining in-process item
inventory ownership and stocking
locations.

D2.9: Pick Product
WIP Move
Information
and Metholds
The process of recording and tracking

the movement of WIP items through
the production and repair process. This
process includes item stocking and
accounting requirements.
Year-to-Year for Like SKU/

Subclass
The sales or demand history that is

analogous to the present situation for
similar products, a SKU / Subclass.

3.6.42
Section 4
Best Practices
SCOR
Available-to-Promise (ATP) provides an availability and feasibility check concerning a
customer request or a customer order whereas three outputs can be distinguished:
1. the soonest delivery date concerning the customer request,
2. the confirmation of desired delivery date, item quantity, and item configuration
3. the selection of alternative, but deliverable product variants in case the desired delivery
parameters can not be fulfilled.
ATP is applicable over multiple sites in a global environment. Essentially, it is based on the
extrapolation of the available inventory in all relevant locations over time:
ATP is the uncommitted portion of a companys inventory and planned production
maintained in the master schedule to support customer-order promising. The ATP quantity
is the uncommitted inventory balance in the first period and is normally calculated for each
period, in which an MPS (Master Production Schedule) receipt is scheduled.
SCOR Process(es)
D1.3 (Reserve Resources and Determine Delivery Date)
Best Practice Need and Suitability Indicators
ATP is particularly suitable for environments where customers require on-time and fast deliveries.
Additional Comments
Three methods of ATP calculations are used: discrete ATP, cumulative ATP with look-ahead, and
cumulative ATP without look-ahead.
Discrete available-to-promise is calculated based on beginning inventory, planned production
according to the master production schedule (MPS) and customer commitments. For the first period,
the available-to-promise is the sum of the beginning inventory plus the planned production for the
first period minus customer commitments for the first period and all periods following the first period
up to, but not including, the next period for which production has been scheduled in the MPS. For
the following periods, there are two possibilities:
t If a master production quantity has been scheduled for the period the available-to-promise is
the quantity scheduled minus all customer commitments for the period and for all following
periods up to but not including, the next period for which a master production quantity has
been scheduled.
t If no master production quantity has been scheduled for the period the available-to-promise
is zero, even if deliveries in the period have been promised. The promised shipments often are
shown as backlog (customer commitments) in the period with the most recent production (MPS).
Cumulative available-to-promise is a calculation based on the available-to-promise (ATP) figure in
the master schedule. Two methods of computing the cumulative available-to-promise are used, with
and without look-ahead calculation. The cumulative with look-ahead ATP equals the ATP from the
previous period plus the MPS of the period minus the sum of the differences between the backlogs
and MPSs of all future periods until, but not to include, the period where point production exceeds
the backlogs. The cumulative without look-ahead procedure equals the ATP in the previous period
plus the MPS, minus the backlog in the period being considered.
4.1.1
SCOR
Impact on Supply Chain Performance Attributes/Metrics
Attribute
Experienced Impact
Reliability
improves on-time delivery resulting in a higher service level

(to commit date).
Responsiveness
reduces cycle times of certain administrative processes

(e.g. definition of delivery date, order placement)
Flexibility
allows determining whether flexibility is appropriate to cover future demand

fluctuations and to prioritize activities accordingly.
Costs
None (except for less contract penalties caused by late deliveries)
Asset
Management
Visibility of demand vs. production schedule and available inventory can result
in better inventory planning and lower inventory levels.
Key Best Practice Success Factors

Technology
Features
Available-to-promise requires implementation in an ERP-/SCM-/APS-software

solution.
Other Success
Factors
Appropriate data management guarantees exact ATP quantities.
Additional Resources
Cox, J. F.; Blackstone J. H. (2004): American Production and Inventory Control Society (APICS)
Dictionary, 11th edition, APICS The Educational Society for Resource Management, Alexandria, VA
Schnsleben, P. (2003): Integral Logistics Management Planning & Control of Comprehensive
Supply Chains, St. Lucie Press, Boca Raton, FL, p. 233-235
4.1.2
SCOR
Carrier Agreements
Carrier agreements are agreements between a company and its domestic and global
carriers (for both, inbound raw materials and outbound finished goods) specifying service
levels, payment terms, and other conditions. Such agreements can be established as part
of a larger initiative to decrease raw material and finished goods inventory, while improving
customer service.
Contractual partnership requirements can include:
t Perfect Order Fulfilment (as a primary goal),
t equipment condition
t shipping condition
t pick-up and delivery times,
t documentation.
Carrier performance in these fields is measured with immediate feedback and monthly
formal reports. By measuring all carriers on a regular basis, trends of performance can be
seen. This provides the opportunity to replace carriers performing poorly with those
performing exceptionally.
Furthermore, a transportation service agreement is signed with all domestic and global
carriers. Contract line items specify on-time delivery, plus the payment requirements for
services rendered.
SCOR Process(es)
S1.2, S2.2, S3.2 (Receive Product), ES.2 (Assess Supplier Performance), ES.7 (Manage Supplier
Network), ES.9 (Manage Supplier Agreements), D1.11, D2.11, D3.11 (Load Vehicle & Generate
Shipping Documentation)
Any company receiving or shipping materials using common or contract carriers such as trucking,
shipping, and airline companies. Also includes internal transportation providers (company owned
transportation group).
Additional Comments
The top performance of carriers is due to a thorough knowledge of the industry and the
requirements of a company, as well as the contract that is used with the carriers. Without a
competent transportation manager, the contract, alone, would be of little value. The combination of
trained, competent personnel and written agreements result in superior performance.
4.1.3
SCOR
Attribute
Experienced Impact
Reliability
Better partnerships with and management of carriers typically results in

improved on time deliveries.
Responsiveness
Carrier agreements often improve the ability to quickly book and execute
transportation, reducing lead times.
Flexibility
Partnerships tend to work both ways, leading carriers to make additional

capacity available to partners when needed, improving the ability to respond
quickly to demand increases.
Costs
Carrier agreements provide a tool for both shipper and carrier to identify and
take advantage of mutual cost savings.
Asset
Management
More efficient use of transportation assets to move customer orders.

Technology
Features
From the carrier side, their tracking systems support performance measurement
to a different degree (EDI, web-enabled carriers). Continuous on line tracking of
shipment would be beneficial.
Other Success
Factors
Anyone interfacing with the carrier needs to be familiar with the carrier
agreement specifications.
Formal recognition of carriers, for example, they can be certified on basis of six
months reliability/compliance to the agreement. Formal feedback on monthly
performance and immediate feedback on failures to comply with specifications.
None Identified
4.1.4
SCOR
Collaborative Planning, Forecasting and Replenishment (CPFR)
The CPFR reference model provides a general framework for the collaborative aspects of
planning, forecasting and replenishment processes. The model is considered a guideline
for trading partner collaboration, which should be tailored specially for the industry and
company readiness and maturity.
CPFR defines eight collaboration tasks:
t Collaboration Arrangement is the process of setting the business goals for the
relationship, defining the scope of collaboration and assigning roles, responsibilities,
checkpoints and escalation procedures.
t The Joint Business Plan then identifies the significant events that affect supply and
demand in the planning period, such as promotions, inventory policy changes, store
openings/closings, and product introductions.
t Sales Forecasting projects consumer demand at the point of sale.
t Order Planning/Forecasting determines future product ordering and delivery
requirements based upon the sales forecast, inventory positions, transit lead times, and
other factors.
t Order Generation transitions forecasts to firm demand.
t Order Fulfillment is the process of producing, shipping, delivering, and stocking
products for consumer purchase.
t Exception Management is the active monitoring of planning and operations for out-ofbounds conditions.
t Performance Assessment calculates key metrics to evaluate the achievement of business
goals, uncover trends or develop alternative strategies.
Based on this general framework, CPFR discusses collaboration scenarios (like
replenishment collaboration or collaborative assortment planning), collaboration roles
(who of the two partners involved is responsible for collaboration tasks), and organizational
implications within partner companies.
The CPFR industry standard is sponsored by VICS, the Voluntary Inter-industry Standards
body and the Uniform Code Council, UCC. The standard has also been adopted by the
Global Commerce Initiative, GCI.
SCOR Process(es)
P1 (Plan Supply Chain)
Companies that heavily rely on demand forecast accuracy and high volume replenishment are
primary beneficiaries of the standard.
Additional Comments
CPFR has primarily been adopted by the retail and consumer package goods industry. Wal-Mart was
the founding company of the process and recently announced adoption by 1,200 of its suppliers. The
process has also been adopted by the grocery industry as well as the chain drug store industry.
4.1.5
SCOR
Attribute
Experienced Impact
Reliability
Better Store in stock

Better customer service
Responsiveness
Faster Replenishment Cycle Times 12% - 30%
Flexibility
Forecast improvement
20% - 40%
Costs
Lower Logistics Cost
3% - 4%
Asset Management
Inventory Reduction
10% - 40% (AMR)
2% - 8%
2% - 8%

Technology Features
VICS CPFR interoperability technology standards documented and

published by the CPFR Working Group. Standards support EDI 830, EDI 852,
and XML Interoperability. Standards published for data modeling.
Other Success Factors
Careful selection of trading partners. Having a joint front-end agreement to

refer back to when the project gets off track.
www.cpfr.org
is the official website for the VICS CPFR Working group. This site contains multiple publications
on CPFR as well as the actual CPFR process mapping guidelines, data model formats, and CPFR
presentations.
Suleski, Janet (2001): Beyond CPFR: Retail Collaboration Comes of Age, AMR Research, April 1, 2001.
www.globalscorecard.net
The Global Scorecard. This site provides a Capability Assessment Tool designed to give you a
detailed understanding of your ECR (Efficient Consumer Response) capability and highlight specific
improvement opportunities for your company. ECR was an early foundation for CPFR.
www.drummondgroup.com
The Drummond Group on CPFR interoperability has certified technology companies. Test results are
available on their web site.
4.1.6
SCOR
Co-Located Procurement Representatives
Regionalized Procurement Representatives are positioned in local markets to support
corporate / procurement goals. Companies realize support is needed when cost and
delivery objectives are not consistent with organizational goals. This leading practice
involves identifying local procurement personnel to assist in creating a supply base to meet
internal and external product requirements. These local representatives will perform all
procurement related activities for the organization. Co-located procurement personnel
bring the knowledge of the local supply base, understand their organizations demand and
supply signals, and communication capability to work with company global commodity
leadership.
For companies expanding their sourcing scope and distance, having personnel local to
the market is a crucial element to maintaining supply chain performance. Local personnel
are used to support the understanding of the demand and supply signals, production
and logistics decisions. Companies that have sourced globally, but have not added local
resources find challenges that diminish supply chain response time. Listed are some of the
major factors: 1.) Communication (time, language, cultural) 2.) Lead time, 3.) Hidden Costs
(taxes, tariffs, etc.), 4.) Quality Returns and Repairs, 5.) Political and Geography Risks, 6.) Units
of Measure.
Cost is the huge driver in this Best Practice. For example, decisions affecting the supply
chain can be made more accurately and in a timelier manner by experts in the field who can
experience the day-to-day activities.
SCOR Process(es)
The best practice is most of all suitable for companies that source a large portion of their
procurement volume in low-wage countries with a different culture.
Additional Comments
Regular meetings at least once a year among peers should be organized to share priorities and to
align processes and reapplication opportunities.
4.1.7
SCOR
Attribute
Experienced Impact
Reliability
Increase Order Fill Rates
Responsiveness
Reduction in Product Lead-Time

Improved Supply Chain Response Time
Improved Source/Make Cycle Time
Flexibility
Improved Production Plan Achievement

Reduced Inventory Obsolescence
Costs
Impacts Purchase Order Costs

Reduced Quality Returns
Asset Management
Increase Capacity Utilization

Decrease Inventory Obsolescence

Technology Features
Accessibility, accuracy, timeliness and visibility of enterprise-wide

procurement information. Commercial software (of varying degrees of
sophistication) is available to support the procurement and planning
processes.
None identified
None Identified
4.1.8
SCOR
Convergence of SCOR, Six Sigma and Lean Methodology
SCOR, a cross-industry top-down standardized process analysis model, enables the efficient
and effective end-to-end evaluation of supply chains. By capturing operational baselines
and comparing to industry peers and competitors, SCOR level one metrics provide a
balanced measure of performance linked to the bottom line. Metrics and Best Practices
steer teams to proven solutions, and the building block design provides a common
language for both internal and external elements of a supply chain. SCOR therefore serves
as a strategic project identification and prioritization engine for Lean and Six Sigma teams
and provides the means to measure business impact.
The strength of Six Sigma and Lean is producing results. These powerful methodologies
can be used to gain efficiency and construct valuable processes because these disciplines,
by their nature, look down at finite areas, cells, or processes to improve. They cannot look
upward at organizational goals and select the best project on which to work.
SCOR also helps introduce the concepts of Six Sigma and Lean to transactional (non
manufacturing) areas not normally associated with productivity or quality initiatives. With
its cross functional makeup a SCOR project team will focus on reducing variability and
eliminate waste in areas such as accounting, customer service, and sales.
SCOR Process(es)
None Identified
Need to prioritize lean and six sigma project according to their effects on organizational goals.
Additional Comments
This Venn Diagram highlights tools of each methodology:
TOOLS
(Examples
only)
Kaizen
Kanban
Single Minute
Exchange of
Die (SMED)
Takt Time
Poke Yoke
SIX SIGMA
PFMEA
ANOVA
Gage R&R SPC Process Simulation
Multi-Vari Analysis
Regression Analysis
DOE (Design of Experiments)
Control Plans
7 Basic Quality Tools:
Pareto
Cause & Effect
Histograms
Control Charts
Scatter Diagrams
Graphs
Check sheets
PDCA/
SDCA
7 Mgmt Tools:
Relations Diagram
Affinity Diagram
Tree Diagram
Matrix Diagram
Matrix Data-Analysis
Arrow Diagram
PDPC
LEAN
COPQ/Financial Analysis
Program Mgmt
Multi-Level
Pareto Analysis/
SIPOC
Decomposing
Project Mgmt
Metrics
Process Mapping/
GAP Analysis
Value Stream Mapping/
Voice
of the
Geographic Mapping/
Customer
Thread Diagram
QFD (Quality Function
Deployment)
Standardized Work/
Best Practices
Supplier/Customer
Performance Scorecards
Inter-Company
Kanban
CPFR
Reference Model
Organization Map
SCORcard Level One
Operational Process
Metrics Level Two
Diagnostic Metrics Level
Three
SCOR
4.1.9
SCOR
Attribute
Experienced Impact
Reliability
Convergence of SCOR, Six Sigma and Lean Methodology (with SCOR

as a strategic project identification and prioritization engine) enables
organizations to improve the right performance attributes, which can be
any set of SCOR level one metrics.
Responsiveness
Flexibility
Costs
Asset Management
See other SCOR Best Practices and especially the Best Practices Six
Sigma and Lean Methodology for possible impacts.

Technology Features
None Identified
None Identified
There is a Supply Chain Council Special Interest Group on this Best Practice. Please contact the group,
if you would like to contribute to the convergence of SCOR, Six Sigma and Lean Methodology.
4.1.10
SCOR
Cross Docking
Cross docking is used in many distribution centers (DC) to increase inventory velocity while
maintaining shipping efficiency. In a traditional DC, the receiving process is disjointed from
the shipping process and storage acts as an intermediary between the two processes. Cross
docking actively links the receiving and shipping processes. In a DC, both cross docking (no
storage) and traditional (with storage) operations might take place.
Cross docking minimizes the need to put incoming inventory into storage and the number
of touches for each order. To accomplish this, the receiving activity is linked with open
order status. Each inbound shipment has a planned outbound already scheduled. When an
item is received, the system will look to the open order file to find its outgoing order. The
item is moved from receiving directly to the order staging area, order pick area, or into an
outbound vehicle.
Three common types of cross docking are:
1. Trans-shipment: The order received is already packaged for delivery to the customer
Ship
A
Receive
A
Customer A
Move
B
Customer B
C
Customer C
The Pennsylvania State University
2. Flow-through: Some sortation or break bulk is needed when the order is received
Pick
Allocate
Receive
Ship
Customer A
Customer B
Customer C
3. Merge-in-transit: Current inventory in storage at the DC is added to the incoming order

(see separate Best Practice).
Pick
Storage
Receive
Ship
Allocate
Customer A
Customer B
Customer C
(Courtesy: Robert Novack, Penn State University, University Park)

4.1.11
SCOR
SCOR Process(es)
D1.8 (Receive Product from Source or Make), D1.11 (Load Vehicle & Generate Shipping
Documentation), D1.12 (Ship Product)

t
t
t
Small shipment sizes (economies of scale through bundling shipments)

Constrained distribution center capacity
Perishability of products
Additional Comments
Suppliers usually need to make some type of investment (customized bar codes, special overpacks, or
unique pallet patterns) to participate in cross-docking.
Attribute
Experienced Impact
Reliability
None Identified
Responsiveness
None Identified
Flexibility
None Identified
Costs
Reduces transportation costs (compared to transportation without crossdock), because de-consolidation at cross-dock for multiple receivers allows
shippers to deliver larger shipments
Asset Management
Reduces average inventory level and (as a consequence) working capital

invested in inventory

Technology Features
Cross docking requires the use of a Warehouse Management System (WMS),

which needs to interface with the order management system. Bar codes
and RF scanners will allow the receiving function at the DC to become more
productive.
The use of EDI messages, especially of ASNs (Advance Ship Notices) is
highly beneficial. The shipper sends an ASN to the receiver as a notice that a
shipment has been sent, allowing the receiving facility to more productively
schedule order picking and outbound deliveries.
None Identified
None Identified
4.1.12
SCOR
Drum-Buffer-Rope Scheduling Technique
Drum-Buffer-Rope (DBR, also referred to as Synchronous Manufacturing, or Constraint
Management) is, in the Theory of Constraints (TOC), a technique used to manage resources
to maximize throughput.
The Drum is the systems constraint (or bottleneck) that sets the pace for the entire
organization. Such a bottleneck determines the final output of the system regardless of the
excess capacity that might be available on the other resources. (In DBR terminology, the
drum is also the schedule of the constraint.)
The Drum Buffer is a time offset (raw material will be released earlier than expected by the
conventional lead time) that helps exploit the drums capacity. Placing the buffer in front of
the drum we reduce/absorb the impact of uncertainty along the production chain from the
gating operations all the way to the constraint. The drum buffer can be seen as a powerful
tool in helping us prevent the drum from starving.
The Rope is the material release schedule tied to the drum. With the rope we make sure that
no material is released to the shop floor without the prior approval of the drum. The shop
floor has a virtual rope tying the drum to the gating operations, each time the drum finishes
a lot it will pull this rope to ask for more material to be released. This powerful concept
(global management vs. localized approach) has an immediate impact on both lead time
and WIP. Release only what is needed when it is needed!
SCOR Process(es)
M1.1 (Schedule Production Activities), M2.1 (Schedule Production Activities), M3.2 (Schedule
Production Activities)
t
t
t
t
High Work-in-progress (WIP) with deteriorating throughput

Unpredictable manufacturing lead times (e.g. due to many prioritized production orders)
Mature serial or mass production running at a fixed rate
The technique is mainly suitable for machine-limited capacities.
Additional Comments
In the application of Drum-Buffer-Rope (DBR), the effectiveness of the pace setting operation (drum)
is critical for maximizing throughput. The Overall Equipment Effectiveness (OEE) is the single metric
that reflects that effectiveness. OEE is the result of multiplying
t Availability (up-time)
Run time divided by scheduled time (also 1 minus downtime)
t Quality Rate (first pass yield)
First-pass good units produced divided by total units produced
t Performance Efficiency
Theoretical cycle time by the actual cycle time. Theoretical cycle time should be that, which was
promised by the production equipments manufacturer. (In practice theoretical cycle time often
is downgraded by industrial engineers applying factors such as personal fatigue and delay
to derive a standard cycle time, which is used to cost the product and provide planning an
attainable capacity quantity.)
4.1.13
SCOR
Additional Comments cont.
The difference between the OEE value and 1.0 indicates the percentage of production lost to
ineffective operations. Examining the components of OEE will enable root cause analysis and direct
corrective action.
Attribute
Experienced Impact
Reliability
Increases perfect order fulfillment, as manufacturing lead time

gets more predictable
Responsiveness
Increases with decreasing manufacturing lead time
Flexibility
None Identified
Costs
Higher equipment effectiveness reduces cost of goods sold
Asset Management
Reduces WIP, leads to a higher equipment effectiveness

Technology Features
None Identified
None Identified
Dictionary, 11th edition, APICS The Educational Society for Resource Management, Alexandria, VA,
USA
Goldratt, E. M., Cox, J. (1992): The Goal A Process of Ongoing Improvement, North River Press,
Norwich, CT, USA
Spencer, M. S.; Cox, J. F. (1997): The Constraints Management Handbook, The St. Lucie Press/APICS
Series on Constraints Management.
Umble, M.; Mokshagundam L. S. (1995): Synchronous Manufacturing Principles for World Class
Excellence, Spectrum Publishing Company.
Hansen, R. C. (2002): Overall Equipment Effectiveness, Industrial Press, New York, NY, USA.
Mondher, B.-H.: Synchronous Manufacturing Quick Reference Guide, Supply Chain Strategy and
Solutions, BearingPoint, Inc.
4.1.14
SCOR
Lean Methodology
Lean is a term coined in 1990 in the book The Machine that Changed the World by MIT researchers
to describe the effectiveness and efficiency of the Toyota Production System in comparison to the
traditional mass production approach to manufacturing. Lean practices actually date back to the
early 1900s when Sakichi Toyoda introduced jidoka (autonomation) into his loom operations. The
modern understanding of lean comes from the Toyota Production System developed by Taiichi
Ohno, which was inspired by Henry Fords River Rouge moving assembly line. Lean thinking is a
focus on creating process flow through the reduction of waste. The waste reduction in production
environments is typically targeted at the seven wastes: overproduction, waiting, transportation,
inappropriate processes, inventory levels, unnecessary motion, and defects. Lean Thinking is
applicable to all processes.
The typical enabler for lean improvement is through the use of Value Stream Mapping (VSM).
VSM is the process of walking and drawing the process steps (material and information) for one
product family from beginning to end, typically within a single facility, to create a current state map.
Current state maps are designed to highlight the process flow of an item through the value stream.
Following the current state map, a future state map is created. Future state maps are then developed
to identify process improvements that eliminate waste. Finally, a detailed implementation plan is
developed to transition from the current state to the future state, typically within an 8-12 month
period. VSM can also be applied similarly across suppliers to create supply chain value stream maps.
While lean excels at improving process efficiency, there are some limitations to lean application. Lean
implementations are typically limited by the inability to systematically identify and prioritize lean
projects, measure the effects of changes on the supply chain systems bottom line, and align and
communicate activities across organizations. See the Best Practice on Convergence of SCOR, Six
Sigma and Lean Methodology to overcome this limitation.
SCOR Process(es)
affects any SCOR process
t
t
t
t
Need for process cycle efficiency improvements

Need to reduce process cycle times
Elimination of non-value added process steps
Need to build a culture of lean thinking throughout
Additional Comments
Lean is a methodology and way of thinking to transform organizations into new levels of efficiency,
supported by a toolset for executing improvement projects that reduce process cycle time and
increase process cycle efficiencies. Execution is enabled through people, and must become the
way work is done within the organization. Application of lean tools is based on the effective use of
value stream mapping. This methodology relies heavily on the ability to record all steps throughout
processes and to determine value added versus non-value added activities. Lean is a methodology
supported by a toolset that is generally limited by the inability to strategically select projects that
provide the greatest value to the overall organization.
4.1.15
SCOR
Attribute
Experienced Impact
Reliability
enables organizations to determine how current process steps and

cycle efficiencies affect overall supply chain reliability. Details can be
displayed through value stream mapping.
Responsiveness
Process cycle-time decreases (typically by around 70%) through

eliminating non-value added process steps. Lean organizations have
the worker flexibility and adaptability to respond to surges and shocks in
production.
Flexibility
Lean creates process flow and allows for quick changeover between
functions, tools, and processes. Lean facilities typically have
considerable cross training, which creates highly flexible teams of
people and organizational layouts.
Costs
Cost reduction is a typical impact of lean as non-value added processes

are removed and efficiency increases. Response times are also reduced
which result in faster cash flow cycles.
Asset Management
Lean typically reduces inventory levels and ensures the efficient use
of assets with regard to customer demand. Suppliers are likewise
encouraged to improve cycle efficiencies to increase their available
inventory for customers to pull from.

Technology Features
Lean is people-oriented and can be successfully employed with minimal

technological requirements. Some technology (e.g. a data warehouse
with data extracted from an ERP source system) could potentially
support an organizations application of lean.
The successful transformation to lean is marked by the change in the

way people address their work. Lean thinking must become a part of
how work is done within an organization to have sustainable continuous
improvement.
4.1.16
SCOR
Womack, J. P., Jones, D. T. (1996): Lean Thinking Banish Waste and Create Wealth in Your Corporation,
Simon & Schuster, New York, NY
Suzaki, K. (1987): The New Manufacturing Challenge Techniques for Continuous Improvement,
Simon & Schuster, New York, NY
Keyte, B., Locher, D. (2004): The Complete Lean Enterprise Value Stream Mapping for Administrative
and Office Processes, Productivity Press, New York, NY
Liker, J. (2004): The Toyota Way 14 Management Principles From The Worlds Greatest Manufacturer,
McGraw-Hill, New York, NY
Marchwinski, C., Shook, J., (2004): Lean Lexicon A Graphical Glossary for Lean Thinkers, Lean
Enterprise Institute, Brookline, MA
http://www.lean.org (Lean Enterprise Institute), http://www.lean.mit.edu (Lean Aerospace Initiative),
http://www.superfactory.com (Superfactory)
4.1.17
SCOR
Merge-in-Transit
Merge-in-transit is a practice to combine items from multiple sources into a single customer
shipment. This includes items on stock in the distribution center, from which the shipment
is sent, items on stock in other distribution centers, items on stock elsewhere (e.g. at a plant
or a supplier) as well as make-to-order items. The items to be merged are cross-docked
from inbound receipt to outbound shipping (see Best Practice on Cross-Docking, type
three). Merging is usually performed in a shippers distribution center (DC) or in a carriers
terminal.
Merge-in-transit allows the shipper to reduce its inventory levels on selected items in its
DCs while still maintaining complete order integrity and reliable delivery. The practice
increases overall delivery times, though. To keep delivery reliability to customers, supply
chain information systems are required, which integrate among the shipper, its suppliers,
and its carriers.
For make-to-order (MTO) products, the order lead time should be greater than the
manufacturing lead time. Otherwise, the products should be manufactured and stocked
prior to the shipment. The point is emphasized here to ensure that the proper business
policy is adopted around defining MTO versus MTS (make-to-stock) products.
SCOR Process(es)
D1.8 (Receive Product from Source or Make), D1.9 (Pick Product)

t
t
Customer orders require commingling of products from different sources into a single shipment
Order lead time is sufficient to allow collect products from their source locations
Additional Comments
Merge-in-transit is a Place Postponement (see Best Practice on Postponement) for parts of the
supply chain.
4.1.18
SCOR
Attribute
Experienced Impact
Reliability
Delivery reliability is at risk, information technology is required to keep it.
Responsiveness
Delivery time and as a consequence order fulfillment time increases
Flexibility
Allows flexibility in a make-to-order manufacturing environment, if

manufacturing lead time is shorter than order lead time. DC flexibility
improves because of ability to cross-dock selected inbound items.
Costs
None Identified
Asset Management
Inventory level (and as a consequence working capital) is lower, as products

are kept on stock in fewer locations.

Technology Features
This practice will require the use of some type of warehouse management
system (WMS), bar code or RF scanner technology, and EDI (or some other
technology that would allow the transmission of data between supply chain
partners). It might also require the integration of MRP or other scheduling
technology with the WMS. All will need to interface with the order
management system.
Agreements with suppliers and carriers on:

t Delivery time requirements
t Inventory policies at the supplier locations and DCs
t Packaging items to produce the combined shipment, including
generation of packing slips and other documentation are required.
All involved parties must agree on the types and timing of information
exchange. Since DCs will have lower inventory levels as a result of using
this practice, extended stock-outs at suppliers or unreliable delivery times
by carriers would negatively impact the customer delivery experience.
None Identified
4.1.19
SCOR
Postponement
Postponement (delayed differentiation) is a supply chain concept where a product is kept as
long as possible in a generic state. Differentiation of the generic product into a specific endproduct is shifted closer to the consumer by postponing identity changes, such as assembly
or packaging, to the last possible supply chain location.
This allows keeping safety stock of one generic product instead of multiple specific endproducts. Especially in cases where the split of demand into specific end-products is
uncertain, postponement with its risk pooling effect leads to less safety stock required
and to a lower risk of obsolescence of end-products. Furthermore, as less value has been
added to the generic product than to the specific end-product, less capital is bound in each
stocked unit.
There are three ways to implement postponement:
t Product postponement
A modular structure of the product allows late differentiation,

e.g. adding country-specific power plugs shortly before shipment.
t Place postponement
Safety stock is kept in one central warehouse instead of regional warehouses.

t Time postponement
Processes which let the product become differentiated (e.g. coloring, flashing an EPROM
with software) take place as late as possible.
SCOR Process(es)
S1 (Source Stocked Product) , M1 (Make to Stock), D1 (Deliver Stocked Product)
t
t
Significant number of variants of an end product with an uncertain split of demand on variants.
Delivery time requested by customers must allow value-adding steps after receipt of
customer orders (or reliable demand forecast).
Additional Comments
Product postponement leads to economies of scale in procurement and production as well, since the
generic product will be produced in larger amounts than its variants.
4.1.20
SCOR
Attribute
Experienced Impact
Reliability
With the same safety stock, fill rate will typically increase.
Responsiveness
Order fulfillment cycle time increases, if value-adding steps are carried

out after receipt of a customer order (see need indicators)
Flexibility
Increases, because a wide range of specific end-products can be derived

from the stocked generic product.
Costs
None Identified (except from economies of scale, see additional

comment)
Asset Management
A lower safety stock level (without effect on fill rate) reduces fixed assets.

Technology Features
None Identified
For product postponement, an intelligent, modular product structure

is a pre-requisite, so that logistics and/or supply chain management
have to be involved in the product development process. To support
the development process, logistics/supply chain management has to
provide a clear estimation of the effects of product design (especially the
number of variants) on production and logistics costs.
Dictionary, 11th edition, APICS The Educational Society for Resource Management, Alexandria, VA,
USA
Simchi-Levi, D.; Kaminsky, P.; Simchi-Levi, E. (1999): Designing and Managing the Supply Chain:
Concepts, Strategies, and Cases, McGraw-Hill/Irwin, p. 56
4.1.21
SCOR
Sales and Operations Planning (S&OP)
Sales and operations planning (S&OP) is a process to develop tactical plans that provide
management the ability to strategically direct its businesses by integrating customerfocused marketing plans for new and existing products with the management of the supply
chain.
The process brings together all the plans for the business (sales, distribution, inventory,
production, procurement) into one integrated set of plans. This set of plans typically covers
at an aggregate (product family) level a period of 8 to 18 months with monthly periods
and further years with half-year periods. S&OP is revised on a regular basis, most commonly
monthly, but at least twice a year.
The process must reconcile all supply, demand, and new-product plans at both the detail
and aggregate levels and tie to the business plan. It is the definitive statement of the
companys plans for the near to intermediate term, covering a horizon sufficient to plan for
resources and to support the annual business planning process.
Typically, Sales and Operations Planning includes four key monthly meetings:
1. Demand review (to align the sales forecasts for the next months)
2. Rough cut capacity planning review (to determine the available facilities and assess the
feasibility of the production plans)
3. Pre-top Management review (to agree upon points to be escalated to top management)
4. Top Management review (to get plans authorized, issues fixed and financial plans
committed).
SCOR Process(es)
t
t
t
t
t
Variability or misbalance in demand and/or supply, need to balance supply and demand across
the supply chain.
Conflicting measures and behavior in various departments
Inventory unbalanced across the supply chain
Asset Utilization below industry norms
Especially important if operations are to a large extend planned to forecasts
Additional Comments
None Identified
4.1.22
SCOR
Attribute
Experienced Impact
Reliability
Effective S&OP plans will allocate resources such that inventory is in place at
the correct locations at the correct time so that when customer orders come
in they can be fulfilled within normal procedures/processes
Responsiveness
S&OP points out where the supply chain has lead-time issues. It raises the
visibility of lead-time problems.
Flexibility
The S&OP process makes potential issues visible early, so that changes can
be made to accommodate the dynamics of the supply chain.
Costs
In particular, S&OP helps reduce the number and impact of expedites and
rush production orders both of which have a negative impact on supply
chain costs.
Asset Management
S&OP allows an enterprise to operate much closer to target production and

inventory plans, and thus leads to lower inventory levels and more efficient
use of assets.

Technology Features
S&OP is essentially a PEOPLE process that can be achieved with minimal

technology support. In some cases, Excel spreadsheets are adequate.
Accessibility, accuracy and timeliness of aggregate enterprise-wide data are
critical, though. Ideally strategic external data (e.g. customer forecasts, copacker capacity/costs) would be an important asset to the S&OP process.
Managers should have visibility to the plans of all departments. They should
also understand the impact of their deviations from plan on the other
departments and the enterprise as a whole. Performance to plan should be
measured. Top Management sponsorship and involvement is essential for
the success of S&OP.
Civerolo, J.; Rice, D.: Sales and Operations Planning Handbook, Gray Research.
4.1.23
SCOR
Six Sigma
Six Sigma is based on a philosophy of driving for near perfect process performance (3.4
defects per million opportunities for a defect) in order to satisfy customer needs and
improve financial performance. Individuals can be trained in the various roles of Six Sigma,
including Deployment Champions, Black, Green, and Yellow Belts. These practitioners
then lead project teams made up of people from the operation through the use of the
methodology to define and solve problems.
Six Sigma improvements are enabled through a rigorous methodology referred to as DMAIC
(named for the phases of Define, Measure, Analyze, Improve, and Control). The DMAIC
methodology for problem solving utilizes both process and statistical analyses to improve
product/process quality and drive reduction of defects and variation. The methodology
generally provides a systematic way to define the problem being addressed from both a
process and financial impact perspective, identify potential factors impacting performance,
narrow to the critical few root causes of defects or variation, and then establish procedures
to implement sustained performance improvements.
A couple of apparent limitations with Six Sigma are the lack of alignment of priorities,
understanding the interdependency between projects, i.e., incremental process
improvements versus process redesign, and the lack of methods to develop future
projects once the initial hit lists (pet-pains) become exhausted. See the Best Practice on
Convergence of SCOR, Six Sigma and Lean to overcome this limitation.
SCOR Process(es)
affects any SCOR process
t
t
Need for significant improvements for Product Quality or defect reduction

Need to reduce process variability
Additional Comments
Six Sigma provides a standard toolset for executing improvement projects to increase product quality
and reduce defects and process variability. Execution is enabled based on the Six Sigma steps of
Define, Measure, Analyze, Improve, and Control (DMAIC). Relies heavily on statistical data gathering
and root cause analysis. Six Sigma is a toolset and generally lacks an organized method for project
identification. Training in this methodology generally requires a costly investment.
4.1.24
SCOR
Attribute
Experienced Impact
Reliability
Suppliers and customers focusing on defect and variability reductions

will increase product quality product and perfect order fulfillment as a
consequence.
Responsiveness
Improve order fulfillment cycle time by reducing number of defective

products produced, held in inventory or shipped and returned for warranty.
Very important for new Product development deliveries.
Flexibility
None Identified
Costs
Reduces cost as process variability is minimized or removed. Reduces

product return due to defects.
Asset Management
None Identified

Technology Features
A data warehouse (with data extracted from ERP source system) and
electronic exchange of quality data with suppliers is useful.
Teams should be set up with strong participation of the people directly

working in the examined process. Six Sigma implementation should
start with a small, controllable scope. Incremental learning prepares the
organization for larger projects.
Tennant, Geoff (2000), Six Sigma: SPC and TQM in Manufacturing and Services
Pande, Peter S., Neuman, Robert P., Cavanagh, Roland R. (2000), The Six Sigma Way: How GE,
Motorola, and Other Top Companies are Honing Their Performance
Pande, Peter S., Holpp, Lawrence (2001), What Is Six Sigma?
Snee, Ronald D., Hoerl, Roger (2002), Leading Six Sigma: A Step-By-Step Guide Based on Experience
with GE and Other Six SIGMA Companies
Eckes, George (2003), Six Sigma for Everyone
http://www.isssp.com/
International Society of Six Sigma Professionals (ISSSP)
4.1.25
SCOR
The Statistical Test Count (STC) process is a method of validating inventory on-hand
values by physically counting and reconciling a statistical sample of the entire inventory
population. This sample is then extrapolated, which provides an indicative measure of
entire inventory population. Furthermore, with extrapolation the net and gross percentage
of error is determined.
One of the primary benefits of this process is a significant reduction in the time and
manpower required to perform an audit control over data gained with STC meets or
exceeds all requirements of both internal and external auditors. In contrast to physical
inventory and cycle count methods STC creates virtually no disruption to receiving/
shipping. Interim reporting allows for monitoring of early results.
STC provides a snapshot of piece count and inventory value accuracy level. Measurable
results on both are achieved that can be benchmarked year-to-year, facility-to-facility,
and network-to-network. Benchmarking is a proactive driver for inventory accuracy
improvement.
SCOR Process(es)
ES.4 (Manage Product Inventory), ES.5 (Manage Capital Assets), ED.4 (Manage Finished Product
Inventories), ED.5 (Manage Deliver Capital Assets)
Statistical Test Count is particularly beneficial in high SKU count environments.
Additional Comments
The Statistical Test Count process is based on validated statistical theorems that meet independent
auditor annual inventory validation requirements.
4.1.26
SCOR
Attribute
Experienced Impact
Reliability
Through constant measurement and root cause analysis, use of the STC
process promotes greater inventory accuracy to support perfect order
fulfillment.
Responsiveness
Unlike cycle count and physical inventory methods, STC does not impede
daily operations and does not require warehouse shut-down.
Flexibility
The STC process requires a low volume of counts that can be executed
during off-peak times as resource availability allows.
Costs
Significant cost avoidance as a result of decreased time and manpower to

perform a physical audit implementing STC typically delivers up to a 90%
cost reduction over physical inventory/cycle count methods.
Asset Management
The diagnostic capabilities of Statistical Test Count identify opportunities to

recover against previous inventory shrinkage (balance sheet implications).

Technology Features
STC uses part cost and other SKU characteristics to select a statistical
sample that is indicative of the entire inventory population. STC also uses
confidence intervals and other statistical tools to manage application of the
program over time.
STC does not require high investments in technology. It can be
implemented with common spreadsheet software, for example.
The STC process delivers the greatest value in an environment of strong

process discipline and commitment to continuous improvement.
Results of the STC process should embedded in established process
disciplines to address any unexpected deficiencies through adjusted sample
size and root cause analysis.
Statistical Test Count is currently not well documented in literature. The following books deal with
inventory accuracy in general:
Wild, T. (2004): Improving Inventory Record Accuracy: Getting your stock information right.
Brooks, R.B.; Wilson, L.W. (1995): Inventory Record Accuracy: Unleashing the Power of Cycle Counting
4.1.27
SCOR
Supplier Performance Assessment System
Assess Supplier Performance is the process of measuring actual supplier performance
against internal and/or external standards, providing feedback to achieve and maintain the
performance required to meet the customers business and/or competitive needs.
The supplier management program at a representative company has six elements:
1. Viability of supplier
Financial credit rating via D & B, Risk rating associate with overall financial health.
2. Supplier Capability
Quality of supplier deliveries in PPM for Engineering programs and Production parts
3. Dependability
On time delivery for Engineering programs and Production deliveries, number of stock
outs, average days of stock out
4. Responsiveness
Part lead time, inventory turns
5. Competitiveness
YTD part cost savings, number of parts on pull processes (JIT), electronic data exchange
6. Technical ability
Global reach, Engineering ability, Technology roadmaps
Each month, the source data is extracted from an ERP software for each supplier. A
report card is created and communicated to suppliers. Performance data is monitored by
commodity managers with the expectation that supplier responds to any variance to goals
or expected results.
This supplier performance data can be used to select suppliers for a preferred supplier
program. Preferred suppliers are given preference for all new business awards and
supporting Engineering development programs.
SCOR Process(es)
ES2 (Assess Supplier Performance)
t
t
Significant expenses for raw material and semi-finished products

(compared to own value-add)
Need to reduce number of suppliers
Additional Comments
Suppliers are an external extension of the manufacturing process. In todays competitive
environment, processes rely on dependable supply streams that react quickly to variability in
demand.
4.1.28
SCOR
Attribute
Experienced Impact
Reliability
Source data is from transactions logged in ERP system. No arguments

concerning their data vs. our data. Variance to goals is trigger for supplier
to present corrective actions. Supplier and customer can focus on
performance vs. data integrity. Detail data on delivery and quality are used
to identify chronic performance issues for improvement.
Responsiveness
Improve reaction time for demand inside of lead-time. Mind share is

maintained due to monthly performance scorecard. Very important for New
Product development deliveries.
Flexibility
Since new business is awarded to suppliers that perform well, suppliers are
in a continuous improvement mode.
Costs
Not an event, but expected throughout the year.
Asset Management
Suppliers are encouraged to improve inventory turns by implementing pull

systems for their parts.

Technology Features
A data warehouse (with data extracted from ERP source system) and
electronic exchange of performance data with suppliers is useful.
Supplier Management Process, Supplier Survey and Evaluation process, and

Supplier Performance Measurement process have to be defined;
Source of data, and performance expectations need to be communicated to
suppliers and stakeholders in the company (buyers, engineers). For critical
suppliers, a qualification process is recommended to align the operational
standards with the companys requirements.
None Identified
4.1.29
SCOR
Vendor Managed Inventory (VMI)
VMI is a concept for planning and control of inventory, in which the supplier has access
to the customers inventory data and is responsible for maintaining the inventory level
required by the customer. Re-supply is performed by the vendor through regularly
scheduled reviews of the on-site inventory. The on-site inventory is counted, damaged or
outdated goods are removed, and the inventory is restocked to predefined levels.
The supplier takes responsibility for the operational management of the inventory within
a mutually agreed framework of performance targets, which are constantly monitored and
updated to create an environment of continuous improvement.
Different styles of VMI agreements exist.
t Re-supply need not be on a scheduled basis. It can be more flexible to occur within
defined conditions, e.g. any day normal business hours.
t The customer can be included in the approval process: The supplier could propose a
replenishment (quantity, date) and the customer has to approve the order.
t Often (but not necessarily) VMI is combined with consignment. The supplier owns items
until they are taken from the VMI and used, i.e. items are to be paid when they are used.
SCOR Process(es)
P1, P2, P4, S1.1, S2.1, S3.3, ES.7, D1, D1.5, D1.6, D2.5, D2.6, D3.5, D3.6
Similar to conventional MRP planning of inventory, VMI implies manual planning and control tasks,
but shifts these tasks to the supplier. This manual effort should be invested in such items, which are
valuable and for which demand is unsteady or sporadic. For less valuable items with a continuous
demand order point technique and kanban are more suitable.
Additional Comments
VMI works well, where demand and inventory data is readily available, systems are integrated, and
economies of scale exist with large customers. Jointly Managed Information (JMI) is a derivation of
VMI to use when and where VMI is not operationally or commercially practicable.
Jointly-Managed Information is the automated collection, management, and integration of POS and
inventory data into supplier inventory/materials management algorithms, independent of physical
movements into the retail channel. This achieves many of the same benefits as VMI when there exists
a free flow of information among retail channel partners, without introducing what can be sensitive
financial relations between the parties. Retail partners often cannot or will not allow a vendor to
automatically replenish them.
4.1.30
SCOR
Attribute
Experienced Impact
Reliability
VMI helps to assure the availability of items thereby helping to ensure better
on-time delivery performance as well as greater fill rates.
Responsiveness
Less time is spent waiting for items, allowing the production to operate
more smoothly and quickly. With visibility of the demand cycle, you can
agree to an official lead time, which can be reduced, and be predictable.
Kraft, for example, realized a 15-20% reduction in lead times.
Flexibility
The supplier gains flexibility, when to re-supply, and as a consequence

when and how much to manufacture.
Costs
Inventory level decreases by up to 20% leading to lower inventory costs.

The supplier gets a clear view of demand and flexibility (see above), so that
he can achieve lower variable manufacturing costs
Asset Management
Transfer of ownership of inventory and payment terms vary depending on

the VMI agreement. VMI has a focus on working capital, with the goal being
both parties experiencing a working capital reduction. The effect will vary
depending on the details of the VMI agreement.

Technology Features
Specific capabilities must be in place for VMI to succeed. These include:

t Forecasting capability
t Replenishing capability
t Load building/order creation (at supplier)
t Reporting capability
t Electronic commerce infrastructure
The addition of technology such as ERP and SCM applications will enhance
these capabilities and hence the success of the VMI initiative. Depending
on the company size, the number of suppliers and the number of items
partners, technology may even be a prerequisite. In most VMI programs,
technology plays a major role. Adding technology increases the complexity
and cost of implementation, though.
Access to data such as inventory levels, demand and demand forecasts is
essential to a successful VMI program. VMI works very well in conjunction
with CPFR Collaborative Planning, Forecasting and Replenishment.
None Identified
http://www.cpfr.org/documents/ppt/VMI_vs._CPFR.ppt (VMI vs. CPFR)
4.1.31
SCOR
Wave Picking
Wave picking is a practice used in many DC operations to increase labor picking productivity
and reduce the labor cost per pick. In some DCs, orders are scheduled to be picked when they
are received. In contrast to that, Wave picking consolidates orders into waves where multiple
orders with similar characteristics are picked at one time. Orders can be consolidated by customer,
geography, or any other criteria that makes sense for the DC operation. In an operation where freight
consolidation for shipping is important, wave picking can help consolidate less-than-truckload (LTL)
shipments into truckload (TL) shipments.
Many times wave picking is performed in conjunction with batch picking. Batch picking aggregates
similar items across orders into a single pick. For example, assume that the DC has 15 orders each
containing Item A. In a single order pick environment, the order picker would make 15 separate trips
to the location containing Item A. In batch picking, the order picker would make 1 trip to the location
of Item A and pick 15 units. Most wave picking attempts begin with small batch picking initiatives.
The combination of batch and wave picking provides the most productivity.
Wave picking, in conjunction with batch picking, increases the total travel time for each order
picker, but the total time per item picked is reduced. This also allows the DC more flexibility when
scheduling its order picking crew. If multiple waves are picked during the day, care must be taken to
balance the number of orders across each wave as equally as possible. Waves can be planned based
upon the estimated time required to complete the wave. For example, if picker productivity is 120
units per hour and the shift consists of 10 pickers, the system can release work in 1 hour blocks to
make management more efficient. This makes the operation more predictable and measurable.
Wave picking increases DC picking and shipping productivity substantially. If managed
appropriately, customers should receive more consistent deliveries. Wave picking
SCOR Process(es)
D1.9 (Pick Product)

t
t
t
t
t
t
t
t
t
Low distribution center (DC) labor productivity

High DC order pick costs
High transportation costs
Ideally suited for environments where many customers place large numbers of similar orders.
Demand is fairly stable throughout the operating period (also be used where seasonality
temporarily increases volume in a DC).
Not too practical in a pallet pick environment
Works best with single line orders with the same SKU going to multiple customers.
Frequently seen in the retail sector where a single DC has many shipping locations, each
receiving a similar product mix.
Automated picking and conveyor systems make this practice more efficient.
Additional Comments
Waves must match the business environment for which they are being planned. Direct-to-consumer
businesses might schedule waves specific to days of delivery or might have a clean-up wave to catch
all next day orders not waved throughout the day.
4.1.32
SCOR
Attribute
Experienced Impact
Reliability
Wave picking can increase perfect order fulfillment since there are fewer
opportunities to mis-pick product.
Responsiveness
Delivery times to customer might increase (consolidation of orders

into waves requires holding them for a period of time before they are
picked).
Flexibility
Increases, because a wide range of specific end-products can be derived

from the stocked generic product.
Costs
None (except from economies of scale, see additional comment)
Asset Management
A lower safety stock level (without effect on fill rate) reduces fixed assets.

Technology Features
Efficient wave picking requires some type of Warehouse Management

System (WMS) software to prioritize orders and allocate them to an
appropriate wave. This practice also requires some type of interface
with the firms order management system and its Transportation
Management System (TMS).
Batch picking is best accomplished with an integrated sortation device
that takes the results of the batch pick and creates individual orders.
This is more costly from a capital investment perspective but greatly
reduces operating cost and increases the consistency of throughput.
Acceptable lead times must be defined between the DC and its

customers. This will facilitate the allocation of orders into waves.
Training of DC workers is necessary to implement the wave picking
process. Also, training will be required for sortation as a result of the
batch picking process.
Most implementations begin with a small group of customers or
geographic locations. Normally, these groups should provide some level
of stable demand.
None Identified
4.1.33
SCOR
Best Practice
Definition
Process
ABC Classification
None identified
Ability to Track Component/

Sub-Component
Manufacturing Country of
Origin
Component/lot tracking (lot traceability)

Requirements
Requirements
Accurate and Approved

Process Plans, Routings,
Specifications and
Procedures
M1.4: Package

Process Plans/Specifications

M2.4: Package

Work Instructions/Process
Plans
Electronic document management that

maintains current Standard Operating
Procedures (SOP)
M1: Make-to-stock
M2: Make-to- Order
Accurate and Low

Cost Batch Records for
Regulatory Compliance

Deliver
Accurate and Low Cost

Batch/Configuration
Records for Warranty and
Regulatory Tracking
M1.4: Package
M1: Make-to-stock
M2: Make-to- Order
M2.4: Package
Additional Capacity for

Overflow Demand
Outsource manufacturing and

work force augmentation providers
connected to production schedules via
the internet.

Advance Planning Engines

Applied to Returns
Advanced math model solvers that

optimize / minimize constraints, routing,
restocking priorities and costs.

Return Requirements
Advanced Ship
Notices Allow for Tight
Synchronization between
Blanket order support with scheduling

interfaces to external supplier systems

3: Schedule Product Deliveries
Integrated data sharing with repair

facility.

4.1.34
SCOR
Best Practice
Definition
Process
Advanced Shipping Notices

& UCC128 Container
Labeling
Bar coding; EDI; integrated

transportation/warehouse management

Customer
Customer
Shipping Docs
Shipping Documents
Customer
Alignment of Strategic and

Business Plans with LongTerm Capacity and Resource
Planning
None identified

Capital Assets
Transportation
All Functions and

Organizations Understand
Their Impact on Supply/
Demand Balancing,
Including Sales, Marketing,
Product Management,
Manufacturing, Customer,
Suppliers, Materials
Management, and Product
Development
None identified
All Key Participants in the

Supply Chain, Including
Strategic Partners, Have Full
Visibility of the Demand/
Supply Plan
Supply Chain Event Management

Systems
P2: Plan Source
Allow Source Suppliers Full

Visibility into the Current
Return Situations and the
Forecasted Return Activity
Shared supply chain forecasting and

event management functionality with
Source suppliers

Return Resources
Appointment Scheduling
for Pickup and Delivery of
Customer Shipments
Transportation Management System

(TMS) Maintenance Management

Arrange for Shipping

Insurance in Case Of InTransit Loss or Damage
Preventative management

Shipment
Requirements during Time
of Product Development/
Manufacture
Multi-country Export/Import
documentation compliance

Requirements
Attribute-Based Process
Planning
Computer aided process planning /

recipe management
4.1.35
SCOR
Best Practice
Definition
Process
Authorize Each Operation

to Assess the Quality of the
Previous Operations
None identified

Automated Configuration
Management
Configuration

Validate Order
Automated Conformance
Monitoring And Control
Internal automatic notification of

conformance, including holding of
product until requirements are met

Environment
Automated Conversion of
Engineering Drawings into
Product Specifications
None identified

Automated Directed Picking
A pick list displayed on a handheld

device that directs picks and relieves
inventory from backroom locations
Automated Disposition
Instructions for Returns
Based on Data Interchange
with Strategic Providers
Advanced planning and scheduling

capability coupled with decision
support logic.
Automated Documentation
for International Shipments


Automated Engineering
Specifications
Automated Intelligence (Heuristic) based engineering specifications system
Automated Inventory
Visibility and Planning
System to Highlight
Inventory in Excess of
Requirements
Automated inventory planning package

linked to real time demand data and
inventory business rules.

Condition
Automated Links To Existing

CAD & CAM Information
Electronic hypertext or links to existing

database of detail/parts/setup sketches/
drawings
Automated Notification
of Laboratory Regarding
Sample Availability
Interface between production system

and LIMS

Deliver
Automated Pick List
System generated pick-lists based on

picking / batching rules.

4.1.36
SCOR
Best Practice
Definition
Process
Automated Registry
of Inventory Return
Locations by Item to Speed
Identification of Proper
Return Location
None identified
Automated Replenishment
of Back Stock Based on
Minimum Stocking Levels
None identified
Automated Statistical
Process Control (SPC)
None identified
Automated Update of
Customer Excess Material
Return Transaction History
- Use trend analysis to influence

inventory level decisions. - Web-based
alerts to identify update occurred and
when pre-determined thresholds are
exceeded.
Automated Update of
Information
None identified
Automatic Customer
Payment
RFID, smart cart or customer self-service

charges goods to card upon store
departure.
D4.6: Checkout
Automatic Generation /
Configuration Of Tooling /
Set-Up Instructions
Parametric driven (Group Technology based) manufacturing design system
Automatic Generation And

Submission Of Conformance
Documents
Software specific to industry regulations

and standards (e.g. may be software
to produce MSDS documents, or FDA
requirements, etc.)

Environment
Bar Coding & Radio Frequency

Communications
2.8: Receive Product from Source or

Make
Make
Make

Verification
Automatic interface to inspection

systems
M2.4: Package
M1.4: Package
M3.5: Package
Automatic Link to Recipe

Management, PLC
Program, CNC Program
Systems, Etc., to Deliver
New Manufacturing
Documentation
Seamless application interface to

manufacturing planning documentation
and CAM systems
4.1.37
SCOR
Best Practice
Definition
Process
Automatic Multi-level Credit

Checking: Dollar Limits;
Days Sales Outstanding;
Margin Testing

Order
Validate Order
Automatic Notification
When to Begin and When to
Complete
Workflow/Groupware
Automatic Reservation of
Inventory and Dynamic
Sourcing of Product
for Single Shipment to
Customer
Integrated order management system

that treats each order line as a separate
order with integration to inventory
source and status; Real-time inventory
management

See detailed description in beginning of

this chapter


Completion

Product
Product
Pooling

Bar Coding is Used to

Minimize Handling Time
and Maximize Data
Accuracy
- Bar code interface for data collection

devices.- Generate bar coded receiving
documents.- Product serial number used
as identifier.- RFID

Blanket Purchase Orders

Cover Period Requirements
None identified
Integrated inbound/outbound
transportation planning (i.e. 1st truck
destination loaded last, etc.).
D1.5: Build Loads

D2.5: Build Loads
D3.5: Build Loads
Build Subassemblies to
Forecast at Highest Generic
Level in Bill of Material;
Maintain Flexibility While
Minimizing Cycle Time and
Inventory Position
None identified
4.1.38
SCOR
Best Practice
Definition
Process
Build Subassemblies/
Products to Forecast at
Highest Generic Level to
Minimize Make Cycle Time
None identified
M2: Make-to- Order
Business Intelligence (BI)
A data warehouse / data mart is the

source of all planning (master) data,
business rules and transaction data.
Analytical tools enable the ongoing
maintenance and improvement of the
business rules based on actual data.

Business Rules Are Clearly

Communicated with the
Customer
Convenient availability to business rules

and return criteria.

Processes
Capability to Run
Simulated Full-Stream
Supply/Demand Balancing
for What-If Scenarios
Supply chain modeling and visualization

system

Transportation

Simulated Full-Stream
Supply/Demand Balancing
Against Long-Term Capacity
Plans and Scenarios
Supply Chain modeling capabilities, i.e.

Advanced Planning Systems.

Capital Assets
Inventory
Capability Transfer to
Customer
None identified
Capability Transfer to
Organization
None identified

Capacity and Supply

Constraints Are Balanced
Against Demand during the
Planning Cycle
None identified

Product Resources
Capture and Maintain Mode

Specific Data


Carrier Agreement

this chapter

Shipping Docs
Shipping Documents
4.1.39
SCOR
Best Practice
Definition
Process

Performance Criteria at
Least Cost

Shipment
Shipment
Carrier/Route Optimization
Based on Continuous
Movement and
Consolidation/Pooling
Route scheduling, carrier selection, and

rating

Categorize 100% of Total

Inventory (Active, Usable,
Excess, Obsolete) for
Appropriate Action
None identified

Product Resources
Cellular and Demand Pull

Manufacturing
Support for cellular and demand pull

manufacturing execution
M2: Make-to- Order

M1: Make-to-stock
Change in the Demand

Signal Instantaneously
Reconfigures the
Production and Supply
Plans
Event-driven supply chain re-planning
Program
Changeover process flow element

identification, instructional directions to
conduct changeover, and measurement
tool, which can be used to prioritize
and track results of improvement
efforts. Software to identify operational
constraints to the MAKE processes to
assist in directing resources toward
bottleneck functional areas.

Facilities
Clarify in Advance
Hazardous Material
Packaging, Labeling and
Shipping Requirements
Overseas packaging, labeling and

shipping regulatory requirements are
given specific attention.

Clarify in Advance If the

Product to be Returned
Requires Specific, Formal
Authorization from the
Service Provider per Federal,
State or Local Regulation,
Prior to Returning
Participants at all customer and service

provider locations involved clearly
understand all regulatory requirements
at each step in the return process .

4.1.40
SCOR
Best Practice
Definition
Process
Clarify Point of Contact and

Return Location
Electronic rules for business

relationships and transactions.

Authorization
Collaboration among
Operations Strategy Team
Supply Chain Advanced Planning

Systems, Supply Chain Integration
Systems, Integration between supply
chain advanced planning and ERP
execution systems, Supply Chain
Capacity Planning Systems

Supply-Chain Plans
Collaborative Planning,
Forecasting, Replenishment
(CPFR)

this chapter
Collaborative Planning/
Scheduling
Interactive, on-line planning/scheduling

systems. Capacity planning systems with
accurate production capability data.
Collaborative Review and

Agreement of Business
Rules Prior to Contract
Execution
Web based access to current spend data

available from enterprise to part level
Combine Consolidation
Needs with Other Products/
Divisions/Companies
None identified
Communicate with
Customer before the Return
to Establish What Types of
Returns Are Acceptable<!>
None identified

Return
Return
Comparative Analysis of
Supplier Performance is
Used in Sourcing Decisions
Software application with data analysis

capability
Compare Local Customs

Requirements to Your
Process Procedures to
Ensure All Requirements
Are Accounted for Before
Shipping
None Identified

Inventory by lot of sourced/in-process or

discrete order /usage reporting by lot or
discrete order

Product
Comprehensive History
of Customer Interactions
Including Order History,
Claims, Problems, Etc.
None identified
4.1.41
SCOR
Best Practice
Definition
Process
Concurrent Engineering
is Used to Tightly Link
Sourcing into the Product
Development Process
Make/Buy Decision
Process (Outsourcing vs. In
Sourcing)
None identified
Confirm All Documentation

and Inspection
Requirements Before
Shipping
None Identified

Confirm Asset Return

Condition Codes Are
Clearly Understood by All
Employees, Especially Those
Who Are New to the Process
None identified
Confirm Changes in
Condition Code Policies Are
Promptly Communicated to
All Employees and SupplyChain Partners.
None identified
Consideration of Suppliers
Material Availability
in Companys Supply
Resources (Including
Suppliers Production Plans
& Capability, Inventory, and
Delivery Plans)
Digital linkage to supplier quoting,

planning, configuration and customer
service applications

Aggregate Production Requirements
Consignment Agreements
Are Used to Reduce Assets
and Cycle Time While
Increasing the Availability of
Critical Items

Consolidate Orders by
Customer, Source, Traffic
Lane, Carrier, Etc.
Integrated load planning and building

with warehouse management

Consolidate Shipments
Through Cross Docking
- Coordinate with Other
Shipments
None Identified
Transportation modeling and rate

analysis

Consolidation of
Inbound and Outbound
Requirements
Integrated inbound/outbound
transportation planning
D2.5: Build Loads

D1.5: Build Loads
D3.5: Build Loads
4.1.42
SCOR
Best Practice
Definition
Process
Consolidation of Return
Carriers
Outbound logistics software to assist

with route.

Shipment
Shipment
Historical trending, cause and effect

analysis, and Key Performance Indicators
Scheduling reviews of processes for
possible improvements
and Development is Driven
and Measured through the
Performance Review Process
None identified
is Planned through Process
Reviews and Customer
Feedback
Avenue to receive customer comments.

Processes
Continuous Replenishment
Programs; Vendor Managed
Inventory, Telemetry to
Automatically Communicate
Replenishment of Chemicals
Integrated demand/deployment
planning to customer location driven by
POS; Customer movement data

Validate Order
Order
Cost Accounting System to

Determine the Best Return
Process to Follow from a
Cost of Business Perspective
ABC costing system

Return Requirements
Cost Reduction and

or Cost Avoidance
Are Opportunities Are
Identified, Implemented
and Measured on a Periodic
Basis
None identified
Create and Maintain

Multiple Suppliers and
Multiple Supplier Sites to
Record Information about
Individuals and Companies
from Whom You Want to
Purchase Catalogue Goods
and Services
None Identified

4.1.43
SCOR
Best Practice
Definition
Process
Cross-Docking

this chapter

Shipping Documents
Make
Make
D3.12: Ship Product
Make
D1.12: Ship Product
Shipping Docs
D2.12: Ship Product
CRP & VMI Loads Optimized

for Utilization
Integration with CRP/VMI vendor

systems
D3.5: Build Loads

D1.5: Build Loads
D2.5: Build Loads
CRP/VMI
Integrated Load Building; Routing &

Scheduling with Advanced Ship Notice
(ASN)

Customer Access to Online

Tracking of Order Status and
Shipping Information
Internet-enabled package/shipment
tracking
Customer Initiated Package

Tracking
WEB based Shared systems
Customer Profile Drive

Recognition Upon Checkout
None identified
D4.6: Checkout
Customer Relationship
and Digital Linkages (XML,
EDI, Etc.) Provide Accurate
Visibility into Actual
Demand via Customer
Forecasts, Product Plans,
Production Plans, and
Inventory Positions
Tightly integrated supply chain or

demand planning with point of sale and
customer inventory systems

Customer Relationship
Management (CRM)
Software that provides customer input

and keeps the customer informed
about the planning of the production
and delivery process by managing
all contacts and communication with
the customer thorough all channels
including internet and traditional sales
and customer service channels.

4.1.44
SCOR
Best Practice
Definition
Process

Advanced Shipment
Notification Prior to
Shipment
Electronically link Return authorization,

Return schedule and shipping
documents. .

Customer Service Data

Validation Including GeoCoding
None identified

Enterprise for Visibility by
Discrete Business Units
Web based access to various levels of

enterprise data

Defective Products
Scheduling Identifies
Next Destination (Source,
Authorization
Defined Stocking Levels and

Criteria
None identified
Deliveries Are Balanced

Throughout Each Working
Day and Throughout the
Week
None identified


Collaboratively Developed
with Customers
Web-based access to plant scheduling

status, collaborative data-sharing
environment.
M2: Make-to- Order

Demand Planning, Demand

Flow Leadership
Software that provides multiple data

models including the business rules
and metrics for the entire supply chain
planning process. Algorithms use the
business rules and metrics as the drivers
for the planning engine.

Demand Priorities Reflecting

Strategic Customer
Relationships as Business
Policies Are Automatically
Followed in Allocating
Resources; First-In-FirstOut (FIFO) is Utilized as the
Default Scheduling Priority
Rules-based distribution planning

system. Trading partner agreements

Requirements

4.1.45
SCOR
Best Practice
Definition
Process
Demand-Pull
Manufacturing, Including
Active Reduction of
Manufacturing Systems
Time and WIP Through
the Use of Demand-Pull
Mechanisms and Visual
Controls
Support of demand-pull mechanisms

(Kanban, replenishment signals, etc.)
based on rate schedules and userdefined minimum/maximum trigger
points

M1: Make-to-stock
Demand-Pull Mechanisms;
Kanban Replenishment
Signals from Stockroom,
Intermediate Products, or
Subassembly Area
None identified

Product
Product
Design For Production
Table of manufacturing capacities or

design envelops (capacities; envelop
sizes; tank, vessel or batch sizes)
Equipment to Maximize
Flexibility and Avoid Line
Stoppages
Machine productivity and downtime

monitoring

M2.4: Package
M1.4: Package
M3.5: Package
Develop and Clarify

Mutually Understood Cycle
Times to Process Return
Authorizations
Clarification as to who will pay in-bound

and out-bound freight cost.

Authorization
Develop Local Receiving

Process Close to Repair
Minimize time spent in product

movement.

Develop Proactive Transit

Damage Programs
None Identified
Digital Linkage (EDI, XML,

Etc.) is Used to Provide RealTime Demand Information
and Handle Routine
Transactions
None identified
Digital Links (XML Based,

EDI. Etc.) Among Supply
Chain Members
Real-time exchange of supply chain

information between supply chain
members collaborative planning
systems, Internet Trading Exchanges,
B2B Integration and Application Server
Systems

Supply-Chain Plans
4.1.46
SCOR
Best Practice
Definition
Process
Direct Connection to
Customs Clearance
Electronic documentation submission

via EDI and/or internet.

Requirements
Requirements

Customer/Channel
Share production status with customers

and transportation providers via webbased tools. Auto-Tendering for direct
ship utilizing EDI/XML protocols.

M1.5: Stage Product
Direct Transfer of
Documents to Recipient and
Forwarder


Requirements
Requirements
Direct Transfer of
Documents to Recipient and
Forwarder
Bi-directional Digital Links (XML, EDI,

etc) or Internet procurement networks
to customer service linkage
P2: Plan Source

P4: Plan Deliver
Distinct and Consistent

Linkages Exist to
Ensure Disruptions and
Opportunities in Material
Resources Are Quickly and
Accurately Communicated
and Acted Upon
Multi-plant supply/demand planning

and execution
P3: Plan Make
Document Control
Control who can create, revise and

access information
Documents Generated
Automatically During
Shipment Preparation.


Requirements
Requirements
Download P.O. & Advanced

Ship Notices for Automated
Receiving and Put Away
Integration with Procurement Systems &

Electronic Commerce with Vendors

Make
Make
Make
Drive Deliveries Directly

to Stock or Point-Of-Use in
Manufacturing to Reduce
Costs and Cycle Time
Pay on receipt. Specify delivery location

and time (to the minute).Specify
delivery sequence

Drive Returns Directly

to Return Stock Point of
Disposition to Reduce Cost
and Cycle Time
Specify return disposition location and

time.

Drum-Buffer-Rope
Scheduling Technique

this chapter

4.1.47
SCOR
Best Practice
Definition
Process
Dunnage Control
System data field to specify where

the part / product shipping container
should be removed. Best practice is to
remove the dunnage as soon as possible
unless part / product damage will result.
Reuse of intermediate WIP containers for
finished goods.
Dynamic Deployment
Based on Constraint Based
Planning and Optimal
Scheduling
Advanced planning and scheduling

logic with constraint, cost, and resource
optimization

Dynamic Location
Assignment Including Lot
Control, Zoned Picking,
Quality Assurance
Real time inventory control, stock

locator, and rules based picking logic

Make
D3.9: Pick Product
D2.9: Pick Product
Make
D1.9: Pick Product
Dynamic Location
Assignment Including Lot
Control, Zoned Put Away,
Quality Assurance, ABC
Frequency of Access
Real time inventory control, stock

locator, and rules based put away logic

Make
Dynamic Return Restocking

Management
Dynamic prioritization of restocking

plans in order to rapidly re-sell products
that are in demand thus reducing new
inventory demand.

Return Requirements
Dynamic Simulation of
Picking Requirements
Optimized for Labor, Cost,
and Time
D3.9: Pick Product

D2.9: Pick Product
D1.9: Pick Product
EDI Links between

Manufacturing and
Distributor to Achieve
Visibility of Complete
and Expected Shipments
None identified

EDI Links Integrate Supplier

Resource Information
(Inventory, Capacity
Availability, Etc.) with Own
Resources
Inter-company resource planning with

EDI/Internet communication
P2: Plan Source
Efficient and Effective

Benchmarking Process
Leveraging Cross Industry
Metrics and Definitions
None identified

Chain
4.1.48
SCOR
Best Practice
Definition
Process
Efficient Consumer
Response (ECR); Quick
Response
Demand Planning, Deployment,

Scheduling
Electronic Catalogues/Malls
None identified
Electronic Commerce
(Customer Visibility of Stock
Availability, Use of HandHeld Terminals for Direct
Order Entry, Confirmation,
Credit Approval), OnLine Stock Check and
Reservation of Inventory
EDI applications and integrated order

management

Order
Validate Order
Electronic data collection

ofcompletion, quality, lot
trace ability, scrap, and labor
data
Reduce non-value added paperwork

while still maintaining process metrics
M3.5: Package

Can Be Used To Send Rfqs
and Technical Information
to and from Potential
Suppliers to Determine
Supplier Capability to Fulfill
Requirements So that They
May Be Added to Supplier
Network

Negotiate

is Used to Send Technical
Information to and from
Potential Suppliers
None identified
Electronic Documentation
and Imaging
Graphical display of drawings, diagrams,

recipes/formulas, specifications,
instructions, etc., to all users

Download of Shipping
Documents
None identified

Shipping Docs
Shipping Documents
Electronic Manifest and

Electronic Billing


Electronic Matching
Between POS Data and
Store Inventory (Shelves and
Back Room)
Integrated Software Systems

4.1.49
SCOR
Best Practice
Definition
Process

Transactions
Automated process control and/or

barcode data collection

Product
Product
M1.5: Stage Product
Electronic Reminders
of Possible Scheduled
Maintenance
Pull signals.

Return Processes
Electronic Sourcing and

Negotiation
Business Rules for electronic sourcing

process and hierarchy

Electronic Transfer of
Shipment Information to
Finance
None identified
D3.15: Invoice
D2.15: Invoice
D1.15: Invoice
Electronically Track
Shipment from Customer to
Service Provider
None Identified

Eliminate Special Deals

Sales to Reduce Returns and
Improve Forecast Accuracy
(Reduces Uncertainty,
Lowers Safety Stock
Requirements, Cheaper to
Administer)
None identified

Representatives to
Complete the Bill Of Lading
for the Customer Including
Carrier Routing, Weight,
Description and Class to
Minimize Guesswork &
Wrong Estimates
Clarification of policy if authorizations

are not processed within the expected
cycle time.

Authorization
Enable Real-Time Visibility

into Backlog, Order Status,
Shipments, Scheduled
Material Receipts, Customer
Credit History, and Current
Inventory Positions
None identified

Order
Validate Order
Enterprise Level Policies/

Rules with Local Execution
Web based access to enterprise level

business rules

Condition
Condition
4.1.50
SCOR
Best Practice
Definition
Process
Enterprise Level Spend

Analysis
None identified

Establish Designated
Processes for Scheduling
and Receiving Excess
Inventory
None Identified

Receipt
Establishment of Criteria to
Rank Suppliers
Utilize supplier delivery, quality, price

performance as well as any other criteria
such as terms and conditions
Evaluate Supplier Network

for Duplicates
Supplier Merge Programs for duplicates
Evaluate the Benefits of OutSourcing the Excess Material

Return Process
Enables customer to focus on core

competencies.

Return Processes
Excess Products Scheduling

Identifies Next Destination
(Source, Make, or Deliver) on
Facility & Equipment

Environmental / Safety
Audit System
System software to list checklist items,

report results of audit & forward actions
to be taken

Facilities
Facility Master Plan
Automated Item Cubing and Weighting

systems
Factory Floor Electronic

Decision Making
Information System
Software to capture actual performance

history / costs of operations with
capability of predicting best cost
action plans relating to maintaining
equipment and facilities.

Facilities
First In - First Out
Part / WIP location by date received for

those parts that must be stocked or
staged in a holding area
M.4: Manage In-Process Products

(WIP)
Forecasts Are Replaced

with Actual Customer
Replenishment Signals and
Orders Where Possible
B2B Integration and Application Server

Systems

Full Internal (And External

If Source Suppliers Share
in the Return Process
Responsibilities) Visibility to
Return Plans
Intranet and Extranet communications

tools

Return Plans
4.1.51
SCOR
Best Practice
Definition
Process
Full Visibility of Credit

History by Shipping
Personnel
None identified

Shipping Documents
Shipping Docs
Genealogy Tracking
Where-used listing of as-planned vs. asbuilt documentation
Goals / Performance Plans
None identified
Ideal Stock Position Based

on Days/Weeks of Supply
Pilot by Wal-Mart. IT

Identification of Suppliers
Who Will Participate in
Kanban Programs
Electronic Kanban Support
Procurement Split (Two
or More Suppliers Sharing
Purchase Requirements)
Programs
None identified
(VMI) Programs
Supplier managed inventories with

scheduling interfaces to external
supplier systems to replenish
Implement Employee
Involvement Programs
None Identified
Incorporates leading
practices such as Efficient
Consumer Response,
Collaborative Planning,
Forecasting, and
Replenishment, Vendor
Managed Inventory, and real
time point of consumption
reporting.
None Identified
In-Process Product (WIP)

Handling Rules
Tracking, genealogy

(WIP)
Integrate Return Planning

with Maintenance and
Inventory Planning to
Optimize the System
Both customer and Service Provider

departments are alerted at the same
time and viewing the same information.

Receipt
4.1.52
SCOR
Best Practice
Definition
Process
Integrated Business and

Supply-Chain Planning
Processes Where CrossFunctional Input is
Leveraged to Set Business
Rules
Supply Chain performance dashboard

capability.

Processes
Interface to suppliers shipping system

to financials

Shipping Docs
Shipping Documents
Integrated Demand and

Supply Planning - Demand
Planning, Supply Planning
and especially the Supply
Plan Execution Are no
longer disconnected. All
required planning and
execution data is integrated
and shared in between all
functional areas within an
organization.
Memory based planning systems

provide one single data model and
data mart (including the business rules)
for the entire supply chain planning
and execution process. Algorithms use
the business rules as the driver for the
planning engine.
Integrated Edit at Order

Entry Time
Customer Master Record
Integrated Facility
Management
None identified
Integrated Order
Management, Warehouse
Management, and
Transportation
Management Systems View
for analysis for all orders and
shipments the following
data: Logistics, Product,
Cost, GL Charging


Integrated Transportation
Visibility
- Advanced shipping notices - Real time

shipping tracking
Internet Exchanges
Internet Exchanges are a hosted,

business-to-business trading network.
Exchanges are an open procurement
network, accessible to any buyer and
focused on new Internet-enabled
purchasing models like spot buys
or reverse, buyer-driven auctions.
Exchanges will also support more
traditional catalog-based sales.
4.1.53
SCOR
Best Practice
Definition
Process
Internet Ordering
None identified
Internet Pooling
(Electronic brokerage
of shipments)
Internet Pooling (Electronic brokerage of

shipments

Inventory Allocation
Exception Process is Clearly
Defined and Jointly Owned
by Manufacturing and Sales
None identified

Inventory is Planned at the

Part Level, Based on Supply
and Demand Variability
None identified

Product Resources
Inventory Performance is
Measured at the Dollar and
Unit Levels
None identified

Product Resources
Inventory targets Are

Reviewed and Adjusted
Frequently
Digital Linkages using XML standards

(RosettaNet, eBXML, OAGI) to
automatically query inventory levels.

Product Resources
Involve Your Other SupplyChain Partners If Possible

to Leverage Transportation
throughout the Chain
Utilization of transportation
management system (TMS) to manage
returns. Maximization of TMS use, both
intra and inter-company within the
supply chain.
R.6: Manage Return Transportation
Item/Shelf Scanning Upon

Put-A-Way
Scan store shelves / bar codes to confirm

put-a-way.
D4.4: Stock Shelf
Items Are Relieved from

Inventory When Item is
Removed from Shelf
RFID, smart cart or customer self-service

reduces system inventory upon item
pick.
JIT Environment
Schedule visibility, on-line

communications between source and
demand
Joint Service Agreements

(JSA)

S3: Source Engineer-to-Order Product
Supply-Chain Plans
4.1.54
SCOR
Best Practice
Definition
Process

to Document Acceptable
Service Levels in Terms
of Installation Costs,
Collaborative planning tools with

the Source suppliers.(This would
be effective between customer and
supplier, and between internal functions
such as Field Service, Manufacturing,
Marketing and Order Management)


with Source Suppliers to
Share Responsibilities and
Costs of Returns
Collaborative planning tools with the

Source suppliers

Return Resources

with Suppliers Define the
Levels of Flexibility or
Resource Upside Available
Within Stated Lead
Times and Agreed Upon
Conditions
None identified
P2: Plan Source

Techniques

Labor Scheduling that

Matches Product Flow
Workforce management solution with

flexible rules.

Lead Times Updated

Monthly
None identified

Lean Manufacturing
Use a team based systematic approach

to identifying and eliminating wasteful,
or non-value adding activities within
your manufacturing organization
M1: Make-to-stock
Limit the Number of

Carriers, Treat Them as
Partners and Build a Strong
Relationship with Each One
Geared Toward Continually
Improving Service and
Lowering Cost
Utilization of transportation
management system (TMS) to manage
returns. Maximization of TMS use, both
intra and inter-company within the
supply chain.
Link Individual Performance

to Organizational and
Divisional Goals
None identified
M2: Make-to- Order

M1: Make-to-stock
Long Term Supplier

Agreements/Partnerships
Electronic rules for business

relationships and transactions: Vendormanaged Inventory Agreements,
Fab & Hold Agreements, Just-In-Time
Agreements.

4.1.55
SCOR
Best Practice
Definition
Process
Long-Term Return
Agreements / Partnerships
None identified

Authorization
Loyalty Card Data
Use for comparison to previous sales

activity/track new consumers, etc.

History Information
Electronic data collection of employee

actions and sourced/in-process product
lot used

Maintain Data and System

Integrity by Ensuring
Production Data, Inventory
Levels, and Schedule
Requirements Are 99+%
Accurate
Detailed production model that

synchronizes PLAN and MAKE activities
in real time.

Maintaining Repository
of Current Regulatory
Requirements
Electronic subscription and publication

of conformance documentation.
Electronic Document Management
System features.

Environment
Manage Information Across

100% of Shipments


Master Production
Scheduling Reflects
Management of Capacity
and/or Supply Constraints
None identified

Matching Shelf Stock to

Expectations
A software based system that corrects

shelf inventory levels based on actual
product present (possible RFID solution).
Identifies stock-outs from shrinkage or
item misplacement.

Maximize Data Integrity

and System Accuracy by
Ensuring 99%+ Accuracy
of BOM Configuration,
Inventory Levels, and
Schedule Requirements
None identified
Measure Customer Service
Advanced Shipping Notices (ASN)

Parcel and Container Routing and
Rating Compliance Labeling Real time
shipment tracking
Measured and Compared

with Same Activity Previous
Period
DSS or portal tool that shows previous

period performance and comparison for
store management (whether it is a year
ago, period ago, etc.).
4.1.56
SCOR
Best Practice
Definition
Process
Performance for On-time
Delivery and Completeness


Measurement, Monitoring
and Adjustment of Service
or Product Installation
None identified
Measuring Process Metrics

and Feedback to Operators
Electronic data collection of completion,

quality, scrap, labor and equipment data
and dissemination of information on
factory floor
Mechanical (Kanban) Pull

Signals Are Used to Notify
Suppliers of the Need to
Deliver Product

Merge-in-Transit

this chapter

Make
D1.9: Pick Product
Migrate From Build to Stock

to Configure to Order; Build
Subassemblies to Forecast
at the Highest Generic
Level in the Bill of Material/
Recipe/Formula
None identified
M1: Make-to-stock
Minimize Capital Assets

Required and Maintenance
Costs
Outsourcing strategies including the use

of Application Service Providers (ASPs),
web-based maintenance/diagnostic
assistance and MRO parts.

Facilities
Minimize Operator Induced

Errors
Automatic download of production

equipment with setup parameters
Graphical display of setup, changeover,
or layout
M2.4: Package
M3.5: Package
M1.4: Package
Minimizing In-Process
Product (WIP)
WIP Storage Management System

Efficient Space Utilization Implementing
Pull Systems

(WIP)
Minimum Product Handling
Move high frequency used inventory

close to point of use. For example, the
system should provide the frequency
of picks by part number so that high
frequency picks can be moved to
convenient locations or part pick
quantities increased.

(WIP)
MRO Scheduling Identifies

Next Destination (Stores or
Repair Station) on Return
Authorization
4.1.57
SCOR
Best Practice
Definition
Process
Multi-country Export/
Import documentation
compliance
None identified

Requirements
Multiple Locations
Throughout Store
Planned and tracked via a plan-ogram system;Location specific product

labeling.
New Items Introductions

Are part of the Sales and
Operations Planning Process
at the General Management
Business Team Level
None identified
Note and Communicate

Shelf Life Requirements
Carefully Before Shipping
Hazardous material regulations are

given specific attention.

Notification of Existing/
Future Event or Promotions
None identified
D4.6: Checkout
Obsolete Inventory is
Reviewed at the Part
Number Level
None identified

Product Resources
D4.4: Stock Shelf
Off Peak Stocking
The majority of stocking is completed

with minimal impact to or visibility from
the customer.
D4.4: Stock Shelf
On Demand Access of
Supplier/Source Data
Web based access to current supplier/

source data
On Line Access and

Notification of Tooling and
Equipment Information
Delivery of tooling and equipment

details drawings
On Line Document
Management and
Automated Supplier
Approval Processes Can
Reduce the Cycle Time
and Costs Associated
With Managing Supplier
Evaluations and Get Them
into the Supplier Network
Faster
ERP

Negotiate
On Line RFQ Processes

Linked into the Document
Management Process
Reduces Cycle Time and
Product Management Costs
None identified

Negotiate
4.1.58
SCOR
Best Practice
Definition
Process
On-Demand Access of
Production Information
Data Collection and Display Systems

designed for efficient performance of
value-added operations in production.
This could include using PLC, Machine
Interface, bar code, Radio Frequency
Communication, Radio Frequency
Identification, Magnetic Stripe, Smart
Cards, etc., to enable data collection
On-Demand Access to
Available to Promise (ATP),
Production Schedules and
Inventory Status by Internal
Operations and Customers
None identified
On-Line Availability to
Supplier Financials to
Determine Potential
Supplier Viability to be
Internet web sites for financial

evaluation

Negotiate
Online Real-Time Customer

Entry and Edit
On-line Customer Service Module CRM

(Customer resource Management)
software is getting a big push in the
E-Commerce/E-Business areas and
generally provides a means to fulfill this
requirement
On-Line Rule Base
None identified
On-Line Visibility of All

Supply-Chain Demand
Requirements and
Resources, both Currently
Available and Committed
(Pegged)
Enterprise resource planning system

Customer relationship management
system
Operations and Network

Analysis
None identified
Optimize Packing
No packing and unpacking time

required. Recyclable or no containers
where appropriate. No discarded
material.

(WIP)
Optimized Supply-Chain
Processes, Optimized
Supplier Count, Supplier
Web based access to preferred and

recommended suppliers, supplier
performance data & spend data
stratified by commodity, business unit/
site, supplier, part type, process type

4.1.59
SCOR
Best Practice
Definition
Process
Order Entry is Organized

by Customer Segment
Customers Receive
Differentiated Service
Based on Volume of
Business Customer Team
is Empowered to Fully
Service Customer Requests,
Including Formal Orders and
Ad Hoc Requests Customers
Have One Point of Contact
for All Products
None identified

Validate Order
Organize to Enhance
Flexibility: Few Job
Classifications, SelfDirected Work Force, Flat
Management Structure,
Cross-Functional Work
Teams
Support for modular skills inventory

with links to training databases,
compensations systems, and operator
instructions
M2: Make-to- Order

M1: Make-to-stock
Outsource If Not a Core

Competency
Use 4PL to manage and move.
Packaging Operation is an
Integral Part of the Overall
Production Process
None identified
M3.5: Package
M1.4: Package
M2.4: Package
Paperless Order Tracking

and Customer Visibility of
Orders
Electronic dispatch and data collection

with external interface to internet.
M2: Make-to- Order
M1: Make-to-stock
Paperless Production
Control

M3.5: Package
M2.4: Package
M1.4: Package
Paperless Production Order

and Inventory Tracking
Electronic dispatch and data collection.

Allow customer access to production
status and inventories using internet
technologies and web site features.
M1: Make-to-stock
Partnership with Outside

Design Firms to Provide
Skills and Capacity, as
Needed
None identified
Pay on Receipt

4.1.60
SCOR
Best Practice
Definition
Process
Performance Expectations
and Business Rules Are
Clearly Communicated Prior
to the Initiation of Business
with the Supplier
Web based access / availability to

business rules and performance criteria
Performance Results
that Are Compared to
Benchmarks (i.e. Capacity,
Scheduling) and Readily
Available to Employees
Data warehouse, report writing,

real time database and Executive
Information systems that are easily
accessible. Use of web-based
technologies for dissemination of
information.
M1: Make-to-stock
Periodic Review of
Metrics and Strategy with
Comparisons to Industry
Benchmarks

Inventories
Periodic Review of
Standards
Process for establishing and maintaining

review schedules

Performance
Planning and Forecasting

Outsourced Return process
Collaborative planning and forecasting

with RETURN outsourcing partners (3PL,
reverse drop shippers, etc.)
P5: Plan Return
Planogram Flexibility for

Seasonal/Promotional
changes
None identified

Plans that Violate Business

Rules (e.g. Joint Service
Agreements) Are Addressed
Cross-Functionally,
Considering Total Business
Impacts (Revenue, Cost,
Quality, Customer Service,
Etc.)
None identified
Plans Which Do Not

Violate Business Rules Are
Communicated Openly
and Cross-Functionally for
Execution
None identified
Data warehouse, report writing, real

time data base and EI systems
M1: Make-to-stock
M2: Make-to- Order
Postponement

this chapter

M2: Make-to- Order
M1: Make-to-stock
4.1.61
SCOR
Best Practice
Definition
Process
Postponement and PreKitting Of Accessories into

Modular Packages that
Allow Flexibility While
Maintaining Control
None identified
M3.5: Package
M2.4: Package
M1.4: Package
Pre-Certify Supplier
Capability to Send Return
Products Correctly to
Minimize the Need for
- Push inspection to SOURCE - Receiving

quality criteria connected to ISO 9000
practices

Pre-Defined Manufacturing
Design Rules
Libraries of manufacturing capabilities

or design envelopes
Predictive Maintenance
Monitoring (Heat, Noise,
Lubrication Composition &
Vibration)
Database for equipment to contain

expected results of analysis, allow entry
of test readings, and have capability of
generating desired reports, which could
highlight suggested actions based upon
readings obtained, track maintenance
completed, contain a help-file to be
consulted

Facilities
Priority-Based Inventory
Reservations, for Key
Customers, with FIFO
Allocation for All Others
None identified

Proactive Education
of Customers to Set
Expectations and Encourage
Close Working Relationships
(Knowledge of Long-Lead
Items, Visibility to Supply
Resources, Agreement on
Levels of Flexibility)
None identified
P4: Plan Deliver

Order entry specifications linked to

manufacturing order

M2: Make-to- Order
Product Data Management

& Electronic Document
Management Are Used
to Manage Technical
Documents and
Requirements for Engineer
to Order Product
None identified
Product Design
Collaboration with
Customers
On-line design tools facilitated by

internet connections.
4.1.62
SCOR
Best Practice
Definition
Process
Capacity planning
M1: Make-to-stock
M2: Make-to- Order
Production Reporting/
Status
Real time monitoring of production

status and In-Process Product (WIP)
Proof of Performance
(Promotion Management)
Scan store shelves / bar codes to confirm

put-a-way. Scan using handheld and
match with ad.
D4.4: Stock Shelf
Provide Continuous Formal

Training to Employees

M1: Make-to-stock
M2: Make-to- Order
Provide Product or Service

Training to Employees or
FAQs Online
None identified
Provide Scheduling Output

Back to Material and Labor
Planning Systems
Allow dynamic re-synchronization of

MAKE activities by tying in real time
status information to scheduler
Provide Single Source

of Information on the
Customer (Single Group
/ Owner Responsible
for Accuracy / Quality of
Customer Data)
Secure E-Commerce Server and

integrated Order Management System
(OMS) Warehouse Management System
(WMS) and Transportation Management
System (TMS)
Provide Visibility to and

Quickly Escalate Delinquent
Accounts for Resolution
D1.15: Invoice
D3.15: Invoice
D2.15: Invoice
Publish Return Policy
Easy access to return business rules.

Return Processes
Push Product on Trailer

Arrival
System prioritization of items coming off

trucks vs. picked from back room.

Push-Based Forecasts Are

Replaced with Customer
Replenishment Pull-Based
Signals
Standards Based (RosettaNet, eBXML,

OAGI, etc) B2B integration tools and
systems


Reserving Inventory, Which
Can Be Converted into an
Order in a Single Step
None identified


Reserving Inventory, Which
Can be Converted into
an Order, But Does Not
Generate Build Signal or
Reserve Inventory Capacity
None identified
4.1.63
SCOR
Best Practice
Definition
Process
Rapid Reconfiguration of
Return Capacity
Use of RETURN tracking and projection

systems and flexible partner agreements
that allow the rapid addition of RETURN
capacity to match unexpected demand.

Return Resources
Rapid Replenishment, VMI,

EDI
None identified
Rapid, Dynamic
Reconfiguration of Return
Process to Meet Demand
The ability to reset and reconfigure the

RETURN process capacity, routings, etc.
by transmitting new requirements and
directives using mathematical models,
the Internet, outsourcing and flexible
partnership agreements. Also requires
integration with the CRM system for real
time redirection of customer returns
based upon cost and capacity.

Return Plans
Real Time Data on Current

Status
Dynamic calculation of safety stock

based on actual sales.

Inventories
Real Time Feedback from

Production, Raw Materials,
and Finished Goods
Inventory and Test Activities
Allow dynamic re-synchronization of

MAKE activities by tying in real time
status information to scheduler.
Real Time Package Tracking
Tracking and tracing
Real Time Performance

Measurement Reporting
Systems
Systems to collect production

information online generate reports
upon request by operators, and
track progress against schedule and
standards.

Performance

techniques
Electronic collection of quality data and

on-line SPC.

Real Time Return

Anticipation
Having real time data on return demand

and including it in the plan and forecast.
Requires a connection with customers,
call centers or CRM system, possibly to
the store level with retail returns. The
return demand needs to be included in
the production plan as soon as possible
because upon repair it may be the next
piece of serviceable inventory to satisfy
demand.

Requirements

Techniques
Electronic collection of defect data and

on-line SPC.

4.1.64
SCOR
Best Practice
Definition
Process
Real-Time Optimized
Shipment Method Selection
(Air Parcel, Ground Parcel,
LTL, etc.) Based on Customer


Real-Time Shipment
Tracking, (via internet)


Re-Balancing of Full-Stream
Supply/Demand on a Daily
Basis, Including SourceMake-Deliver Resources
and Requirements from
Customers Customer to
Suppliers Supplier
Enterprise-wide planning system

customer Relationship Systems

Communicate Directly with
the Buyer to Efficiently
Resolve Any Discrepancies
Buyers name for every receipt is clearly

visible on Receiver.

Receiving Equipment
and Packaging Materials
to Transfer Product Are
Planned for In Advance and
Readily Available When
Needed
Include packaging materials in inventory

management system and treat as any
other inventory to minimize potential of
stock-out.

Reduce Chances of Operator

Error
Automatic download of production

equipment with batch recipes/part
programs

Reduce In-Process Product

(WIP) Handling
Reduction of WIP handling through

automation (i.e. AGVs and ASRS) and
process improvement (i.e. reduction of
handling steps, shorter move paths)

Activities, Including Queue,
Move, and Set-Up Times


Paperwork While Still
Measuring Process Metrics
Electronic data collection of completion,

quality, lot tractability, scrap, and labor
data
M2.4: Package
M1.4: Package
Reliable Continuous
Improvement Process and
Methodology.
None identified

Chain
4.1.65
SCOR
Best Practice
Definition
Process
Remote (Sales, Customers)

Order Entry Capability
None identified

Validate Order
Order
Removal of Obsolete Capital

Assets
Automated Calculation of ABC Velocity

Movement
Removal of Obsolete Stock
Automated Calculation of ABC Velocity

Movement
Re-Planning Process Exists

in Multi-Levels of the
Supply-Chain between
Business Enterprises
Business to business Internet capability

to share common data.

with Financial Plan
Re-Planning Process Links

the Supply Chain Operation
with the Business Strategy
and the Marketing Strategy
None identified

with Financial Plan
Responsiveness and
Flexibility Are Emphasized
By Developing Expertise in
Making Business Processes
Re-Programmable,
Re-Configurable and
Continuously Changeable
Integrated process modeling and

software reconfiguration tools
Return Process Electronically

Tracks Transfer from Station
to Station
Utilize Bar coding

Review Batch Records by

Exception
Electronic batch records linked to

process plans/recipes and exceptions
flagged

Deliver
Review Product Profitability
ABC and cost modeling.

Review Transfer Cycle Time

Trends and Determine If
Equipment Capacity is
Properly Balanced with
Projected Usage
Periodic review of capital asset plan to

determine if additional equipment, if
needed, can be funded.

RFID and Other Tagging
POG software/field force

Sales and Operations Agree

to Limits of Short Term
Flexibility
None identified

Sales and Operations

Planning (S&OP)

this chapter
4.1.66
SCOR
Best Practice
Definition
Process
Scan Displays for Promotion

Conformance
None identified
D4.4: Stock Shelf
Schedule Includes
Preventative Maintenance
Program
Interface between maintenance

management system and scheduling
system

Schedule Minimizes
Changeover Costs between
Products
Algorithms that manage set up times/

costs, cleaning times, and ideal job
sequences (e.g., color sequencing light
to dark)

Schedule Optimizes Use

of Shared Resources Such
as Tooling and Production
Equipment
Scheduling utilizing optimization

techniques Required production
resources included in routing/process
instructions

Schedule Reflects Current

Plant Status (Equipment
Availability, Other Jobs and
Resource Availability) On
Line
Schedule undated by on line reporting

and status systems and re-sequence
activities

Segregate In-Bound Carcass

Return Cost from Other
Transportation Costs
None Identified
Select Carriers by Least Cost

per Shipment and Rate
Using Actual Rates Prior to
Release to Billing
Rules based carrier selection and actual

rate database
D3.7: Select Carriers & Rate Shipments

Shipments
Shipments (
Service Provider Utilizes

Web-Based Communicate
to Identify New and
Discontinued Repair Sites to
Customers
Continuously updated authorized repair

sites

Configuration
Set Up Electronic or Preauthorized Returns
None identified

Return
Return
Shipment Tracking
None identified
D3.12: Ship Product

D1.12: Ship Product
Customer
Customer
Shipping Docs
D2.12: Ship Product
4.1.67
SCOR
Best Practice
Definition
Process
Shipment Tracking and

Tracing

Short Move Paths
Software that allows for input of the

distance that particular parts/WIP need
to be moved. This software then need
to provide a report based on the cubic
feet of material times distance moved by
part number.
Single Data Source for

Decision Support and
Business Rules
A data warehouse/data mart is the

source of all planning (master) data,
business rules and transaction data.
Analyzing tools enable the ongoing
maintenance and improvement of the
business rules based on actual data.
Single Point of Contact

for All Order Inquiries
(Including Order Entry)
None identified

SKU Rationalization
None identified
Sound Project Management

Process and Methodology
None identified

Chain
Specific Changes to the

Plan Are Agreed to CrossFunctionally, According to
Defined Business Rules
None identified
Stage Product or Service

Adoption
None identified
Staging Based on In-store

Zones
Items are staged for re-stocking

based on zones within the store. This
minimizes restocking effort.
Standard Inventory Policy to

Determine Excess
None Identified

Return Processes
Standard Operating
Procedures and
Methodology
None identified

Standards and
Measurements Aligned to
Maximize Supply Chain
Performance
Internal/external benchmarking,
industry standards, customer/supplier
alignment agreements, visibility of key
performance indicators

Performance
4.1.68
SCOR
Best Practice
Definition
Process

this chapter

(WIP)
Inventories
Stocking is Completed in
Zones
Each area of the store has its own

stocking plan and items are routed
specifically to that area.
D4.4: Stock Shelf
Storage and Configuration

Management for Release
and Revision Control of Final
Documents
Product data management (PDM) or

Electronic Data Management (EDM)
feature set
Storage Location Zoning
Automated or Optimized Slotting

(Storage Location) Systems
Strategic Safety Stock of

Selected Materials, Items, or
Subassemblies to Decouple
Sourced Product Issuance
Cycle Time from Supplier
Lead Time
Use of safety stock algorithms to

minimize stock levels.

Product
Product
Strategic Sales and

Operations Planning Process
in Place and Managed at the
Executive Level
None identified

with Financial Plan
Substitution
Trained staff or automated systems

(Internet) that recommend up-sell,
cross-sell, and/or substitution.See Up
and cross selling
Supplier Cost of
Nonconformance Data
is Collected, Analyzed
and Used in Performance
Reporting
Software application to automate data

collection and reporting
Supplier and Material

Rationalization
Web based access to supplier/source

data
Supplier Certification
Programs Are Used to
Reduce (Skip Lot) or
Eliminate Receiving
Inspection

4.1.69
SCOR
Best Practice
Definition
Process
Supplier Certification
Programs Can Reduce the
Cycle Time for Certifying
Existing Suppliers to Provide
New Technologies
None identified

Negotiate
Supplier certification
programs can reduce
the cycle time for initial
certification of New
Suppliers or Certifying
Existing Suppliers that
Wish to Provide New
Technologies
Supplier Delivers Directly to

Point of Use
Electronic Tag tracking to Point of Use

(POU) destination

Supplier Delivers Directly to

Point of Use - (Dock to Line
or End Destination)

(POU) destination
Supplier Delivery to
Production Process at Point
of Use
EDI link to suppliers sales order and

inventory systems

Product
Product
Supplier Development
Programs Are Used to
Get Local Suppliers to
Invest in Developing New
Technologies
None identified
Supplier Managed
Inventories with Scheduling
Interfacs to External
Supplier Systems
VMI agreements allow suppliers to

manage (replenish) inventory
Supplier Managed Inventory

of Parts
E.D.I. linkage of Inventory Information

Facilities
Assessment System

this chapter

Material at Customers
Facility with Good Product
as Required

(POU) destination

4.1.70
SCOR
Best Practice
Definition
Process
Suppliers Share
Responsibility for Balancing
Supply and Demand
through Joint Service
Agreements
None identified

Supply Chain Advance

Planning System
Collaboration among Supply Chain

partners extends outwards to
customers, spanning the supply
chain.Planning,Re-planning,Business
Rules,Plan Changes

Supply-Chain Plans
Supply Chain is Designed

to Have Supply Flexibility
Equal to Demand Volatility
None identified
Supply/Demand Process
is Highly Integrated from
Customer Data Gathering
to Order Receipt, through
Production to Supplier
Request
Integrated supply chain planning

system with interfaces to all supply/
demand data sources through public
and private digitally enabled supply
networks.
Systematic Disposition Of
Equipment
Rules for deciding appropriate

disposition.

Facilities
Systems Support Accurate

On-Line Visibility of
Full-Stream Demand
Advance Planning and Scheduling

System, Supply Chain Event
Management Software

Systems Support Accurate

On-Line Visibility of
Full-Stream Demand
as Well as Resource
Utilization and Availability
Advance Planning and Scheduling

System

Supply-Chain Plans
The Demand Plan is

Updated Frequently to
Reflect Actual Consumption
or Customer Forecast
Information
None identified

To Address Conditions
which Cannot be
Adequately Satisfied During
the Current Planning
Period, Each Functional
Area Develops Prioritized
Recommendations for the
Subsequent Planning Period
None identified
4.1.71
SCOR
Best Practice
Definition
Process
Tools Support Balanced

Decision Making (e.g.,
Trade-Off between Service
Level and Inventory
Investment)
Supply chain planning optimization

system
Total Preventative
Maintenance Program
Automatically generated TPM repair

schedules integrated with MRP systems,
electronic equipment repair history,
parts listings, part stores inventory &
reorder points, automatic store room
parts purchases, Shop floor access to
electronic data base of equipment line
drawings, electrical wiring diagrams,
parts listing reference guide and part
cost lists.

Facilities
Transportation Modeling
and Rate Analysis
None identified

Shipment
Shipment
Two-Bin Floor Stock

Located at Work Center for
B And C Components Controlled by Operators and
Replenished When One Bin
is Empty
None identified

Product
Unique Identifier Tag for

Each Repairable Asset
Asset management software using bar

code, RFI tag, etc.
Unplanned Orders Are

Accepted and Scheduled
Only When There is No
Detrimental Impact on
Overall Product Delivery
Plan
Digital Linkages using XML standards

(RosettaNet, eBXML, OAGI) to
automatically query production capacity
and ATP and schedule unplanned
orders.

Up and Cross Selling and/or

Substitution
Trained staff or automated systems

(Internet) that recommend up-sell,
cross-sell, and/or substitution.

Specification for Each
Unique Production Event/
Demand
M2.4: Package
M1.4: Package

Specifications

M3.5: Package
4.1.72
SCOR
Best Practice
Definition
Process
Use an Exchange System

Where Customer is
Issued a Serviceable Item
Upon Submitting an
Unserviceable Item
None identified

Return
Use Demand Planning
Demand Planning Systems to forecast

returns, predict yield rates for reusable
products or components, determine
demand in a resale market, and project a
revenue stream.
P5: Plan Return
Use Historical Based Return

Rate Forecasts
None identified

Requirements
Use of CAD/CAE
Applications to Simulate
Design, Cost and
Manufacturing Process
None identified
Use of Cross Functional

Teams to Execute the
Process of Developing LongTerm Capacity and Resource
Plans
None identified

Capital Assets
Transportation
Use of Platform Teams in the

New Product Development
Process
None identified
Use of Speed Racks for

Automated Material
Handling
None identified
D1.9: Pick Product

D2.9: Pick Product
Utilize Concurrent
Engineering with Suppliers
to Allow Them to Provide
Engineering and Product
Performance Test Data
None identified

Negotiate
Utilize Concurrent
Engineering with Suppliers
to Allow Them to Provide
Engineering and Product
Performance Test Data to
Qualify as Part of Potential
Supplier Network
Internet, EDI, FAX
Utilize EDI and EFT for

Payment to Speed Closing
of Receivables and to
Reduce Processing Costs
D3.15: Invoice
D2.15: Invoice
D1.15: Invoice
Utilize EDI Transactions

to Reduce Cycle Time and
Costs
EDI interface for 830, 850, 856 & 862

transactions

S2.1: Schedule Product Deliverie
4.1.73
SCOR
Best Practice
Definition
Process
Utilize Enterprise
Information Systems
Enter, Process, and Deliver information

about the manufacturing process to
management using information systems
that span the enterprise
Utilize Internet-Based
Freight Bidding Built Around
Shared Shipping Volume
Projections
None Identified
Utilize Invoice-less Freight

Payment
None Identified
Utilize Real-World Cases in

Employee Training
None Identified

Return Processes
Utilize Web-Based
Collaboration between
Asset Manager and Repair
Sites Regarding Capacity
and Scheduling
Total return asset visibility throughout

the network

Configuration
Utilize Web-Based
Collaboration between
Customer and Service
Provider on In-Bound
Return Forecasts and Asset
Tracking
Shared return forecasts

Configuration
Utilize Web-Based
Collaboration to Identify
Potential New Repair Sites
Prior to Their Selection
Shared knowledge of resource

availability and bottlenecks

Configuration
Value Pricing Based on Cost

to Serve; EDLP; Cost Plus
Pricing
Activity Based Costing; Integrated Order

Management by Customer by Line Item

Validate Order
Order

this chapter

D1.5: Build Loads
(WIP)
D3.5: Build Loads
M1: Make-to-stock
4.1.74
SCOR
Best Practice
Definition
Process
View for Analysis for All

Orders and Shipments the
Following Data: Logistics,
Product, Cost, GL Charging

D.6: Manage Transportation
Wave picking

this chapter
D1.9: Pick Product
4.1.75
4.1.76
GreenSCOR
Best Practice
Process
Access to supplier environmental

data
Access to supplier environmental management

and compliance data
ES.3
Aggregate requirements
Aggregate requirements to minimize

transportation requirements
P4.1

repair
Estimate damage to product and do not physically

return product that is beyond economical repair
or offers no diagnostic value
DR1.1, DR2.1
Balance environmental
requirements
Balance environmental requirements as well as

supply/demand requirements
P1.3, P3.3
Benchmark practices
M1.3, M2.3, M3.4
Bulk Packaging
Package larger groups of items in a single package

(bulk)
M1.4, M2.4, M3.5
Bundle deliveries
Bundle deliveries of different products into single

shipment when possible
S1.1, S2.1, S3.3
Collaborate with supply chain

partners
Supply chain partners collaborate to improve the

environmental performance of the supply chain
P1.4
Collaborative environmental
management processes
Collaborative environmental management

processes with suppliers, including EMS
integration
ES.1
Communicate environmental
requirements
Include environmental requirements in

communications.
P1.4

requirements
P1.1, P1.2
Consider environmental production

constraints
Environmental constraints are considered as part

of production capacity
P3.2
Considerations emissions in
transportation decisions
Integrate environmental emissions considerations

to transportation decisions. Feature: Implement
EP . 6
Consolidate shipments where

possible
Consolidate shipments where possible
DR2.2

consumption
D1.4, D2.4, D3.5
Daily inspection of any hazardous waste storage

areas
M1.7, M2.7, M3.8
Develop environmental
performance standards.
EM.2
Develop supplier partnerships
Develop a partnership with suppliers to help

them implement and maintain environmentally
sustainable business practices
ES.2
Enable direct shipments between customers to

reduce overall transportation and handling.
SR.3, DR.3
4.2.1
GreenSCOR
Best Practice
Process
Energy-efficient buildings
Utilize energy-efficient lighting and heating

systems throughout warehouse and production
areas
ES.4
Energy-efficient HVAC systems
Utilize energy-efficient HVAC systems
ES.4
Ensure environmental
documentation
Ensure all required environmental documentation

is obtained
M1.6

(EMS)
Implement an Environmental Management

System (EMS) to track and manage environmental
performance and to track performance against
regulatory requirements
P1, EP.8
Environmental performance
standards.
EP.1
Establish environmental
partnerships
Establish environmental partnerships with

suppliers
S3.2
Establish environmental
requirements
Establish supplier environmental requirements
ES.7
Establish spill controls for finished goods

inventory storage
D1.3, D2.3
Factor environmental considerations

into planning
Factor environmental considerations/restrictions

into capacity planning
EP.5
Identify and manage environmental

impacts
Identify and manage environmental aspects and

impacts of supply chain operations to mitigate the
impacts mitigate the impacts
P1
Identify green products
Identify products that are manufactured to

minimize environmental impacts
P2.2
Identify items to return
Identify MRO items that will need planned

maintenance during the planning horizon
P5.1
Identify recyclable/reusable
materials
Identify recyclable/reusable materials
P2.2
Identify take-back programs
Identify products in take-back programs that are

near end of life
P5.1

program
Implement comprehensive pollution prevention

program and include environmentally preferable
purchasing.
M1.3, M2.3
Implement an EMS
Implement an EMS
EM.2, EM.8, M1.3,

M2.3, M3.4, EM.1,
M3.7, M1.6, M2.6

system
Implement hazardous materials pharmacy

system
M1.6, M2.6, M3.7,

EM.5
4.2.2
GreenSCOR
Best Practice
Process

program
Implement rigorous pollution prevention program
EM.8, EM.4, EM.6,

S1.4, S2.4, S3.6,
M1.2, M2.2, M2.7,
M3.3, M3.8
Include environmental costs in inventory carrying

costs
D1.3, D2.3
Include environmental requirements
Include environmental requirements in deliver

rules
ED.1
Include products environmental

attributes
Include products environmental attributes

information
EM.3
Include supplier environmental

information
Include supplier environmental information in

addition to product environmental information
M1.6
Minimize need for frequent shipments by

accurately determining product needs
S1.1, S2.1, S3.3
Integrate environmental
considerations
Integrate environmental considerations into the

business rules.
EP.1
Manage environmental
performance
Manage environmental performance of the supply

chain.
EP.2
Manage foreign environmental

requirements
Manage foreign environmental requirements
ED 8
ED.4
Material content classification
Material content classification (HAZMAT

recycleable, etc.)
EP.7
Maximixe Container Loading
Re-design container shapes to minimize material

used but retain amount of product stored
M1.4, M2.4, M3.5
P4.3, P4.4
Measure environmental impacts
Measure environmental impacts of the supply

chain
P1
Minimize energy use
Plans are created to minimize energy use
P3.4
Minimize Make emissions
Plans are established to minimize emissions (e.g.,

release VOCs after dark)
P3.4
Minimize packaging
Work with suppliers to minimize packaging

requirements and use reusable packaging
material
P2.2, P4.2
Minimize vehicle fuel use
Plan the use of high-efficiency, low-emissions,or

alternative-fuel vehicles where possible
P4
Review product for compliance with

environmental specifications, including product
packaging
S1.3, S2.3, S3.5
4.2.3
GreenSCOR
Best Practice
Process
Monitor supplier environmental

compliance
Determine supplier environmental compliance

performance/Actively participate in regulation
development
EP.8
ED.7
Pollution prevention program
Implement comprehensive pollution prevention

program and include environmentally preferable
purchasing.
M3.4
Product take-back programs
Select firms that offer product take-back

programs
S.3.2
M2.3, M3.4, M1.3
Purchase environmentally friendly

materials
Purchase environmentally friendly materials
P2
S3.1
Purchase recycled product
Purchase products from recyclers or

remanufactures
S3.1
Reduce Make environmental

impacts
Identify processes that reduce environmental

impacts of manufacturing
P3
D1.12, D2.12,
D3.10, M1.4, M2.4,
M3.5
Reusable pallets
Utilize reusable pallets
ES.4
D1.6, D2.6
Schedule air emission emitting activities after

sunset
M1.1, M2.1, M3.2

at night
Schedule electricity consuming (large amounts)

activities from sunset to sunrise
M1.1, M2.1, M3.2
Schedule to maximize
transportation capacity
Schedule to maximize transportation capacity
D3.4
D1.7
Select carriers that have adopted an EMS

or otherwise demonstrated environmental
commitment
D1.5, D1.7, D2.5,

D2.7, D3.6
Select carriers with good records
Select carriers with good environmental records
D1.5
Select complaint carriers
Select carriers that have not violated

environmental laws
D1.7
Select firms with EMS
Select firms that have implemented an EMS
S3.2
Select ISO 14001 firms
Select firms that are ISO 14001 certified or similar
S3.2
P2, S1, S2, S3
4.2.4
GreenSCOR
Best Practice
Process
Spill control
Spill control
ED.4
Storm water management plans
Implement storm water management and spill

response plans
ES.4
Stormwater prevention plans
Stormwater prevention and spill control plans for

waste accumulation areas
M1.7
Supplier environmental
performance criteria
Develop a set of environmental performance

criteria for all suppliers
ES.2
Take-back program
Take-back program at end of product life
ED.7
Track foreign environmental

requirements
Maintain and manage current foreign

environmental regulations
ES.8
Track supplier environmental

records
Processes to identify suppliers with good

environmental records
P2
Use multi-purpose packaging that can be used by

customer
M1.4, M2.4, M3.5
Use non-toxic solvents
Use non-toxic solvents for machinery cleaning
EM.5
M1.4, M2.4, M3.5
Use reusable packaging
Use reusable packaging where possible
P4.2
S1.4, S2.4, S3.6,

M1.2, M2.2, M3.3,
EM.6
Utilize energy-star (or similar)

equipment
Utilize energy-star (or similar) equipment

whenever possible
EM.5
S1, S2, S3
S1.4, S2.4, S3.6,

M1.2, M2.2, M3.3
Utilize maintenance free batteries in warehouse/

short haul vehicles
M2.2, ES.4
Utilize non-toxic materials
Utilize non-toxic solvents and cleaning materials
EM.5
Utilize non-wood or recycled pallets
Utilize non-wood pallets or recycled pallets
EM.6
Utilize off-peak shifts for production workers

(e.g.,shift 1 = 11:0019:00)
M1.1, M1.2, M3.2
EM.6
Waste accumulation EMS
M1.7, M2.7, M3.8
4.2.5
4.2.6
Risk Management
Supply Chain Risk Management (SCRM)
Supply chain risk management is the systematic identification, assessment and mitigation
of potential disruptions in logistics networks with the objective to reduce their negative
impact on the logistics networks performance.
A high number of potential disruptions can negatively impact supply chain performance.
Potential disruptions can either occur within the supply chain (e.g. insufficient quality,
unreliable suppliers, machine break-down, uncertain demand, etc.) and outside (e.g.
flooding, terrorism, labor strikes, natural disasters, etc.). Both are considered in an integral
three-phase approach for supply chain risk management:
Phase 1 - Risk Identification: What can go wrong? What is uncertain? Based on a
description of a supply chain with SCOR, each single process should be looked at with
regards to potential disruptions that may negatively harm the performance and which
countermeasures are already in place. Result of this phase is a list of the relevant supply
chain risks.
Phase 2 - Risk Assessment: How likely is it that a certain potential incident will occur? What
is the impact? The likelihood of occurrence and the negative impact on SCOR performance
measures of each supply chain risk should be qualitatively or quantitatively evaluated.
Result of this phase is a list of serious risks that can be visualized in a risk portfolio with the
dimension probability of occurrence and negative impact.
Phase 3 Risk Mitigation: How can the risks be controlled and monitored? Mitigation
measures (e.g. improved planning methods, alternative suppliers, response plans,
redundant infrastructure, etc.) should be evaluated for the serious risks. After having
checked the cost-efficiency of the alternative measures, the appropriate measures should
be chosen and implemented. A risk can be mitigated by deceasing the likelihood that it
will occur of by decreasing its impact if it does occur. Alternatives to mitigation include
acceptance, transfer, and risk sharing.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Supply chain risk management is suitable especially for supply chains in uncertain environments,
with low redundancies in terms of material and capacity buffers as well as high requirements on the
supply chain performance. Risk management is particularly applicable to organizations that have a
low tolerance for risk in their business strategy.
4.3.1
Risk Management
Additional Comments
Examples for typical supply chain risks are raw material shortage, supplier failures, increased
material price, machine break-down, uncertain demand, inaccurate forecasts, change orders and
transportation failure. Other risks not directly related to the supply chain are for example product
liability risk or strategy risk. Therefore supply chain risks are only a part of all business risks. Hence,
supply chain risk management should be integrated in an enterprise risk management.
For the implementation of supply chain risk management in organisations the process and
responsibilities have to be clearly defined. The resources, e.g. staff, budget, should be assigned by
the top management. The participating staff members need to be motivated and skilled.
Attribute
Experienced Impact
Reliability
The over-all objective of SCRM is to increase the reliability of the supply

chain and decrease the variability of the order fulfillment.
Responsiveness
The variability of the order fulfillment cycle time is reduced and the
recovery time from disruptions is shortened.
Flexibility
Due to the proactive proceeding the supply chain is better prepared for
sudden changes and thus more flexible.
Costs
The logistics costs are reduced in the long run.
Asset Management
The variability of inventories in the supply chain is reduced.

Technology Features
Modeling and simulation tools are frequently employed to identify and

assess risks as well as mitigation approaches. Advanced planning tools
can be employed to rapidly reconfigure the supply chain in response
to a disruption. Moreover, software for well-established assessment
techniques, e.g. FMEA, FTA, ETA, exists.
The risk management process should be carried out cross-functional

and - if possible - together with representatives from all companies of the
supply chain.
4.3.2
Risk Management
Brindley, C. (ed.) (2004): Supply Chain Risk A Reader. Ashgate Publishing Limited.
Handfield, R., Blackhurst, J., Craighead, C.W. (2007): Supply Chain Risk Management: Minimizing
Disruptions in Global Sourcing. CRC press.
Modarres, M. (2006): Risk Analysis in Engineering Techniques, Tools, and Trends. Taylor & Francis.
Sheffi, Y. (2005): The Resilient Enterprise Overcoming Vulnerability for Competitive Advantage. The
MIT Press.
Ziegenbein, A. (2007): Supply Chain Risk Identification, Assessment and Mitigation. vdf
Hochschulverlag Zrich (in German).
(2004) A Guide to Project Management Body of Knowledge. PMBOK guide Project Management
Institute, Inc
(2002). Risk Management Guide for DoD Acquisition Defense Acquisition University US
Department of Defense.
There is a Supply Chain Council Special Interest Group on Risk Management in SCOR model. Please
contact the group at [email protected], if you would like to contribute to this topic.
4.3.3
Risk Management
A key aspect of supply chain risk management is identification. Identification involves
creating a list of potential events that could harm any aspect of the supply chains
performance. Risk identification allows an organization to take steps to create plans to
manage risks before they occur. This is typically more cost effective then waiting to react to
adverse events when they occur.
Some methods for identifying risk are:
t Looking at historical problems Historical problems may have a high chance of
recurring. Those problems may have happened to the organization itself or to others.
t Researching industry trends Other organizations and industry groups may have
already researched risks that are applicable.
t Group of experts brainstorming People with experience in different areas of your
organization and supply chain have lots of knowledge of risks. Getting them together
increases the knowledge sharing.
t Supply chain mapping Visual maps of supply chains reveal supply chain structures,
dependencies, and handoffs that may contain risk. SCOR mapping and Value Stream
Mapping are two types of supply chain mapping that can be used.
t Assessment surveys Well designed surveys can be an effective way to quickly gather
information on risks in your supply chain.
t Site visits Site visits to supply chain partners allow you to collect detailed and less
filtered information on risks.
t Information audits Data system audits can reveal issues and trends from the past. It
can show areas of the supply chain that have had poor performance in the past and are
thus more likely to perform poorly in the future.
t Delphi method
t Risk checklists
t cause-effect-diagrams and
t critical path method
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Best Practice Need Indicators
Any organization interested in managing risks must first identify them.
4.3.4
Risk Management
Additional Comments
In the Plan step of SCOR, an organization can create plans for identifying risk on an ongoing basis.
Risks can be classified into Source Risks, Make Risks, Deliver Risks, and Return risks.
t Source risk identification Standardized source assessments and surveys are effective. Some
companies have already developed such assessments.
t Make risk identification Internal risks to an organization that have been extensively studied
and include: Sarbanes-Oxley Compliance; fiscal, environmental, and social responsibility; health
and labor laws; loss of manufacturing capability (due to labor loss, property loss, ...); quality
management; increases in production costs; link to source risks (interruptions and increases in
costs); capacity (over and under); intellectual property; and personnel management.
t Deliver risk identification Visibility of customers improves the ability to identify Deliver risks.
t Return risk identification Data on returns needs to be tracked to identify risks. Excessive returns
may reveal risks earlier in the process.
Attribute
Experienced Impact
Reliability
Identifying risk is the first step towards reducing the potential for risk which
increases the reliability of the supply chain.
Responsiveness
None Identified
Flexibility
None Identified
Costs
None Identified
Asset Management
None Identified

Technology Features
Non Identified
Non Identified
Institute, Inc
(2002). Risk Management Guide for DoD Acquisition Defense Acquisition University US Department
of Defense.
Hoeft, S., Davey M., Newsome, D., (May-June 2007) Proactively Managing Risk: The New Waste.
Defense AT&L.
4.3.5
Risk Management
Once areas of risk have been identified, an organization needs to monitor their internal and
external environment. This helps them to predict when risky events are becoming more
likely. It also helps to identify new risks and is tightly linked to the best practice of Supply
Chain Risk Identification.
SCORs focus on supply chain metrics enables Supply Chain Risk monitoring. Real time
metrics and periodic reports give decisions makers knowledge upcoming risks. Statistical
analysis of key metrics can reveal trends. Visibility into supplier and customer metrics
increases the ability to monitor. Reports on risk monitoring can be combined with existing
management reviews and meetings.
Monitoring can also include monitoring qualitative sources of information such as news or
weather reports to identify events that are precursors to risks.
In the Plan step, an organization can plan methods for monitoring Source, Make, Deliver,
and Return risks. These methods may include specific metrics to monitor and watch-out
lists of precursor events. It may also include monitoring the environment external to the
organizations supply chain.
t Deliver risk monitoring can be done with customer service metrics.
t Make risk monitoring can be done automatically through an organizations data systems
such as an ERP system.
t Source risk monitoring is enhanced with visibility into suppliers metrics.
It is important to monitor indicators that would appear early in a risk event or, better, even
before it occurs by indicating an increasing likelihood. If monitoring only reveals a risk well
after its first occurrence, it will likely be too late to adequately respond to it.
Monitoring can also be used to test the effectiveness of risk controls. If a plan to mitigate
or prevent a risk has been implemented, monitoring can check to see if the corresponding
metrics show no signs of the risk occurring.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Risk monitoring is used when an organization desires to be proactive in risk mitigation and take
actions prior to an actual risk occurrence.
Additional Comments
None Identfied
4.3.6
Risk Management
Attribute
Experienced Impact
Reliability
Monitoring risk will allow the company to be proactive in risk response

preventing a disruption from impacting supply chain performance resulting
in continuous, reliable delivery.
Responsiveness
None Identified
Flexibility
None Identified
Costs
If risk is discovered early, then is more potential to prevent it or at least

minimize the impact of it on costs.
Asset Management
None Identfied

Technology Features
Automated metrics reporting

Automated information collection
Risk monitoring programs need to have a clear process for escalating

information that would indicate a disruption will or has occurred. This
process will ensure that monitoring leads to proper actions being taken.
None Identified
4.3.7
Risk Management
Supply Chain Risk assessment provides management with an understanding of where the
greatest risks may exist in order to prioritize resources for risk mitigation and management.
Performing such assessments will involve clarifying the nature of the risk, understanding
conditions that may lead to the event, knowing how frequently such events have happened
or can be expected to happen, and the potential impact of such events. The team can then
prioritize addressing the risks.
t
t
t
t
Risk assessment is typically made up of two measures: Likelihood and Impact.

Likelihood measures the probability that the event will occur. With formal probability,
a likelihood of 0 means the event will never occur and a likelihood of 1 means the
event will surely occur. The exact probability may be difficult to determine unless
there is historical data that can be used to find the frequency of the event occurring.
Alternatively an organization can use a subjective likelihood, or degree of belief, based
on the opinions of experts. A time horizon is necessary to define the probability in a
useful way (e.g., the likelihood that an event will occur in the next year or the likelihood
that the event will occur in the next 50 years).
Impact measures the consequences on the organization if the event occurs. It can be
measured directly, for example in terms of dollars. It can also be measured on a scale, for
example from zero to one with zero being very little negative consequence, 0.5 being
a medium amount of consequence, and one being a very bad consequence. Methods
for measuring impact include what-if simulations, financial models, and opinions of
teams of experts. Impact may also be measured in terms of other SCOR metrics besides
financials.
Summary risk score A summary risk score can be calculated for each risk by
multiplying the Impact times the Probability to get an expected value of the risk. Then
risks can be ranked by risk score. Also the risks can be shown on a map or graph. An
example is shown below.
$120,000
$100,000
Impact
$80,000
$60,000
$40,000
$20,000
$0
0
0.2
0.4
0.6
0.8
Probability
t
4.3.8
Other methods for assessment include:

- Failure Mode Effects Analysis (FMEA)
- Fault Tree Analysis (FTA)
- Event Tree analysis (ETA)
Risk Management
A risk assessment tool in the form of qualitative and quantitative spreadsheet which can be
used by management teams to organize the assessment of risks to an organization. The tool
can contain also contain information on relevant causes of those risks and their assessment,
mitigation options and the impact of various mitigation plans. This helps establish standards
for the measurement, reporting, and limiting of risk. The tool can contain risk categories
from other known best practices such as COSO.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Risk assessment is a tool for quantifying the potential impact of supply chain disruptions and is a key
tool for prioritizing mitigation activities. Risk assessment should be used to increase the veracity of a
supply chain risk management program and better support resource allocations.
Additional Comments
Risk management is widely discussed, but practitioners have differing views of the categories,
significance, and how to integrate mitigation plans into the overall project or operational plan. A
frequent issue is that management focuses on the highest impact risks, overlooking more frequent
occurrences. This tool should help standardize risk management vocabulary and practices within an
organization. Can help embed risk management in the operating and project plan.
A best practice is to have project teams update the assessment/ plan as complete project milestones,
such as file permits, FEL3,etc. Keeps risk mitigation plan integrated with overall project, such as by
eliminate risk mitigation plans which as no longer pertinent.
Attribute
Experienced Impact
Reliability
Good risk assessments will identify the most significant risks to be mitigated
and, therefore, decrease the likelihood of disruptions to reliability.
Improves reliability by facilitating risk mitigation plans.
Responsiveness
None Identified
Flexibility
and, therefore, increase the ability to increase flexibility.
Costs
and, therefore, best allocate cost resources to mitigate risks.
Improves cost control by identifying factors which can costs to exceed
forecast, and by facilitating risk mitigation plans.
Asset Management
None Identified
4.3.9
Risk Management
Technology Features
Some more sophisticated methods of risk assessment involve the use of

simulations to derive approximations for the impact of risks. A variety of
different types of supply chain simulation software are available and may be
used for this purpose.
Microsoft Excel software, or equivalent.
Procedure for use of this Best Practice in the context of the firms vocabulary
and policies.
Standard assessment criteria
Training on that procedure for management, risk assessment professionals,
and supply chain professionals.
Institute, Inc
(2002). Risk Management Guide for DoD Acquisition Defense Acquisition University US Department
of Defense.
Hoeft, S., Davey M., Newsome, D., (May-June 2007) Proactively Managing Risk: The New Waste.
Defense AT&L.
Failure Mode and effect analysis.
Enterprise Risk Management Integrated Framework. Committee of Sponsoring Organizations of
the Treadway Commission (COSO)
4.3.10
Risk Management
Sourcing Risk Mitigation Strategies
For most manufacturing operations, over 70% of cost is associated with purchased
goods and services. These organizations may identify some goods or services as posing
unacceptable supply risk, in case of suppliers business rationalization, excessive demand,
fire, work outage, etc This best practice identifies some Risk Mitigation strategies.
Source risk mitigation strategies can include:
t Multiple sources of supply
t Strategic agreements with suppliers
t Supplier partnerships
t CPFR
t Joint product design and delivery
t Etc.
SCOR Process(es)
EP.9, ES.9
This practice fits well with companies that have a few, significant supplier or a supplier base that
is constrained or powerful. It also is useful of the supplier base or the raw materials purchased are
inherently high risk.
Additional Comments
None Identified
Attribute
Experienced Impact
Reliability
To improve reliability through appropriate mitigation plans
Responsiveness
None Identified
Flexibility
None Identified
Costs
By avoiding various negative outcomes, can avoid costs.
Asset Management
None Identified

Technology Features
None Identified
None Identified
Various Institute for Supply Management (ISM), other documents.
4.3.11
Risk Management
Open communication is necessary for effective risk management, where the term open
refers to the possibility to directly reach the right person who can better handle the
information about a crisis situations wherever in the organization (i.e. refer to the NokiaEricssons case in Sheffi, 2005).
Managers require direct communication channels up, down and across their business units
to help identify risks and take appropriate actions.
The communication should also be fast and reliable: suitable methods of communication
(from phone call to e-mail messages or even more advanced means) and redundant
communication capabilities should be identified.
Periodic reports shared within the partners of the supply chain can definitively help in
coordinating efforts related to risk management activities and initiatives.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Open crisis communication is needed when a coordinated response is needed to prevent or respond
to supply chain disruptions.
Additional Comments
This practice aims at smoothing the problems due to lack of communication within companys
functions or within different companies among the supply chain.
Establishing an open, reliable and fast communication channel means allow people to work with the
right information in the right place at the right time, in order to ensure coordinated Risk Management
activities
Attribute
Experienced Impact
Reliability
It improves the reliability by fastening and ensuring communication

through the organization and the supply chain so that material flows in a
predictable manor.
Responsiveness
It can help in implementing faster response by reduce the lag between

events and people awareness
Flexibility
It can help during planning activities providing the most valued information
to decision makers within the whole supply chain
Costs
It can reduce the costs by ensuring prompt and proper reaction to

disruptive events, thanks to reliable information sharing within the supply
chains partners
Asset Management
None Identified
4.3.12
Risk Management
Technology Features
Using intranet to communicate the organizations efforts and involve all

employees in managing risk.
Risk management portal with access for all required partners.
t
t
t
Holding quarterly meetings of a risk management committee to review

and discuss the organizations exposure and protection measures.
Promoting awareness of risk management issues through monthly,
quarterly and annual reports.
Encouraging people to discuss mistakes.
Best Practices in Risk Management: Private and Public Sectors Internationally Treasury Board
of Canada Secretariat. Accessed on 10/25/2007 at http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/
RiskManagement/rm-pps1_e.asp
Sheffi, Y. (2005): The Resilient Enterprise Overcoming Vulnerability for Competitive Advantage. The
MIT Press.
4.3.13
Risk Management
Risk Management Programs Coordination with Partners
The process of coordinated risk management places a strong emphasis on cooperation
among departments within a single company and among different companies of a supply
chain to effectively manage the full range of risks as a whole. A closer coordination of risk
management activities performed throughout the supply chain is intended to conserve
resources and increase effectiveness.
The adoption of a common process framework within the supply chain can foster the share
of information in order to improve existing initiatives and removal duplicated or ineffective
activities. Moreover, sharing business continuity programs with supply-side and customerside partners, can help in identifying overlapping areas or uncovered issues.
Risk Management coordination could be achieved by the establishment of a Risk
Management Coordination Committee, whose purpose is advises and coordinates the
identification and inclusion of risk management treatments within the overall risk
management process (see, Comcover reference)
This practice is at the basis of the shared risk approach.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Coordinated risk management is essential in situations where a significant amount of potential risk
lies outside of the subject organizations control, e.g., in other business units, upstream in supplier
supply chains, or downstream in customer supply chains. In these cases, risk is best mitigated
through close coordination with partners that can directly act on the potential risks.
Additional Comments
One important pre-requisite of coordinated risk management is that supply-side partners should be
seen from a collaborative rather than a competitive viewpoint. This in order to share best practices,
recovery objectives, strategy information, expectations and mutual aid options.
In order to identify critical suppliers, it is possible to send them surveys regarding their business
continuity programs. Recurring meetings (some face-to-face) can lead to decreased availability risk
and far-greater levels of business continuity program maturity for both organizations.
Another important pre-requisite is an appropriate visibility into customer events (i.e. inventory level,
sales volume, demand forecasts). This is intended to allow for early detection of risky situations or
conditions.
4.3.14
Risk Management
Attribute
Experienced Impact
Reliability
Coordinated action will reduce the potential for overall supply chain
disruption and, therefore, provide a better ability to deliver product reliably.
Responsiveness
Coordination of mitigation and recovery activities can increase the speed of

response as well as result in a more coordinated and faster supply chain.
Flexibility
Having coordinated response programs in place will speed general

communication and coordination across the supply chain, improving the
ability to coordinate reactions to surges or decreases in demand.
Costs
By sharing common activities within the supply chain and removing useless
or ineffective process, this practice can contribute to cost reduction
Asset Management
None Identified

Technology Features
- Information sharing and communication systems

- Knowledge base management systems
Coordinated risk management is most effective when coordination is

geared toward shared responses to risk and focused on best meeting
customer requirements.
Comcovers Awards for Excellence in Risk Management 2004: National Capital Authority. Australian
Government Comcover. Accessed on 10/25/2007 at: http://www.finance.gov.au/COMCOVER/
docs/2004_NCA.pdf
4.3.15
Risk Management
Supply chain business rules configured to mitigate risk
This practice involves establishing business rules (e.g., customer priority, supplier priority,
production routing, transportation routing, etc.) based on minimizing the risk to the supply
chain. Under this practice, business rules are established or configured in response to the
corporate risk management plan with a goal of reducing either the likelihood of a disruption
occurring or the impact to the supply chain should a disruption occur.
Business rule reconfiguration typically includes an assessment of the impact of each rule
change on the overall supply chain before actual implementation.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
This practice is useful in organizations where the cost of supply chain disruptions is high, either from
a profit or brand image perspective. Using a risk mitigation configuration will reduce the potential for
a disruption and reduce the recovery time after a disruption occurs.
Additional Comments
None Identified
Attribute
Experienced Impact
Reliability
Designing rules for risk mitigation will reduce the potential for a supply
chain disruption improving the overall reliability of delivery. In addition,
business rules can keep redundancy in the supply chain to further ensure
reliability.
Responsiveness
Some disruption mitigation approaches (e.g., postponed manufacturing)

may improve the responsiveness of the supply chain.
Flexibility
By designing rules for mitigating risk, the supply chain is better constructed
to redirect capacity in the event of a node failure. This capability will
increase flexibility.
Costs
Designing rules for risk mitigation reduces the costs associated with a
disruption by providing existing plans for disruption response.
Asset Management
Designing rules for risk mitigation reduces the costs associated with a
disruption by providing existing plans for disruption response.

Technology Features
None Identified
None Identified
None Identified
4.3.16
Risk Management
Supply chain information configured to minimize risk
This practice involves managing supply chain information networks to minimize the risk
to the supply chain. This includes information sharing with partners as well as internal
locations. This helps all parties to be quickly informed of a real or potential disruption and
respond quickly and appropriately to minimize the disruption impact.
To be effective, this practice needs to include clear identification of what information each
supply chain partner needs in order to reduce the overall risk in the supply chain and
agreement on information sharing details:
t Formats
t Frequencies
t Technologies
t Processes
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Additional Comments
None Identified
Attribute
Experienced Impact
Reliability
Sharing risk information across the supply chain will minimize the disruption
response time and ensure reliable delivery of products and services.
Responsiveness
Sharing information will minimize disruption response time and speed the
delivery of products and services following a disruption.
Flexibility
Having set information sharing processes place will speed the response to
demand fluctuations and other disruptions improving the flexibility of the
supply chain.
Costs
None Identified
Asset Management
None Identified

Technology Features
Information sharing protocols (e.g., EDI, XML. Etc.)
None Identified
None Identified
4.3.17
Risk Management
Supply chain network configured to mitigate risk
This practice relies on a risk evaluation of the supply chain to guide the design of the supply
chain network. Node locations, transportation routes, capacity size and location, number of
suppliers, number of production locations, etc. are all determined in a fashion that mitigates
potential disruptions to the ability to deliver product and service to the end customer.
This practice relies on the information collected through risk identification and risk
assessment processes to identify nodes that are at a high risk of disruption due to the
location of the node. Location specific risks can include tactical strike risks, natural disaster
risks, single point of failure risks, etc.
SCOR Process(es)
EP.9, ES.9, EM.9, ED.9, ER.9
Additional Comments
This practice generally involves making significant changes to the supply chain. The changes tend
to be very difficult and expensive to undo, therefore, great care should be taken in reconfiguring the
supply chain network.
Attribute
Experienced Impact
Reliability
Designing for risk mitigation will reduce the potential for a supply chain
disruption improving the overall reliability of delivery
Responsiveness
Some disruption mitigation approaches (e.g., postponed manufacturing)

may improve the responsiveness of the supply chain.
Flexibility
By designing for mitigating risk, the supply chain is better constructed to

redirect capacity in the event of a node failure. This capability will increase
flexibility.
Costs
Designing for risk mitigation reduces the costs associated with a disruption
by locating inventory and other assets outside of high risk geographic areas.
Asset Management
Designing for risk mitigation reduces the costs associated with a disruption
by locating assets outside of high risk geographic areas.
4.3.18
Risk Management
Technology Features
A risk enabled supply chain network will often rely on network modeling
as well as electronic order routing and EDI links between facilities and
partners.
This practice will be most successful when coupled with other risk
management practices such as coordinated programs and visibility of risks.
None Identified
4.3.19
Risk Management
Sourcing Opportunities Prioritization to Improve Cost & Security of Supply
Many businesses need to improve performance through reliable Sourcing of more costeffective supplies & services to meet customers needs and growth opportunities. This Best
Practice covers strategic sourcing approaches for reducing Total Cost of Ownership, and
simultaneously assessing supply risk in case of business rationalization, excessive demand,
fire, work outage, etc
SCOR Process(es)
ES.9, EP.9
For organizations which use goods and services in a variety of uses, making it more difficult to
determine which goods and services deserve priority for cost improvements and risk mitigation.
Additional Comments
None Identified
Attribute
Experienced Impact
Reliability
To improve reliability through appropriate mitigation plans.
Responsiveness
None Identified
Flexibility
None Identified
Costs
Helps prioritize improvement efforts.
Asset Management
None Identified

Technology Features
Data from ERP system on goods and services and where used. Data form
ERP system on revenues associated with specific offerings where above
goods and services are used.
Management support.
Strategic sourcing references on demand identification, ABC and Risk Analysis, Stakeholders analysis,
and demand segregation per the training materials.
4.3.20
Section 5
GreenSCOR
Introduction
Sustainable business models and environmental accounting are growing business concerns.
However, there are multiple approaches to measuring the total environmental footprint of
an organization or supply chain with no agreed upon standards. The SCOR Model, which is a
proven framework for defining supply chain scope and process operations as well as measuring
supply chain performance, provides an excellent foundation for environmental accounting in
the supply chain.
In that regard, the Supply Chain Council is proposing a set of strategic environmental metrics
that can be added to the SCOR Model to effectively allow the SCOR Model to be used as a
framework for environmental accounting. The proposed metrics are listed in the table below.
Metric
Units
Basis
Carbon
Emissions
Tons CO2
Equivalent
This is the unit of measure currently used for green

house gas emissions and is a measure of the climate
impact from CO2 and other global warming air
emissions.
Air Pollutant
Emissions
Tons or kg
This would include emissions of major air pollutants

(COx, NOx, SOx, Volatile Organic Compounds (VOC)
and Particulate). These are the major emissions that
U.S. EPA tracks.
Liquid Waste
Generated
Tons or kg
This includes liquid waste that is either disposed of

or released to open water or sewer systems (these
emissions are generally listed on water emissions
permits).
Solid Waste
Generated
Tons or kg
The total solid waste generated by the process.
% Recycled
waste
Per cent
The per cent of the solid waste that is recycled.
These five metrics can be measured for each of the SCOR Level 3 processes and then aggregated
to create a Level 2 and Level 1 metric. These metrics are readily available for most organizations.
Environmental agencies and industry associations have developed emissions factors based on
process throughput, energy consumption, etc. for calculating these emissions. Alternatively
emissions values can be directly collected through monitoring programs or common documents
(e.g., regulatory reports, waste shipping documents, environmental permits, etc.).
By adding these metrics to the SCOR Model, an organization can use the existing SCOR based
methods for defining supply chain scope and configuration. Once that process is complete,
these metrics allow for targeted, structured data collection and calculation of metrics which
ultimately provide a total view of supply chain environmental performance. The figure below
illustrates the aggregation of these metrics along the SCOR process structure.
5.1.1
GreenSCOR
Total Carbon Footprint
Air+Liquid+Solid-% Recyc=Total Environmental Footprint
Level 1
Tier 3
S1
Level 2
Tier 1
M1
M1
D1
S1
Your Company
S1
M1
D1
S1
M1
Customer
D1
D1
S1
Level 3
Tier 2
D1
M2.1
M2.2
M2.3
Schedule
production
Activities
Issue
Product
Produce
and Test
Carbon
Air
Liquid
Solid
% Recyc
Carbon
Air
Liquid
Solid
% Recyc
Carbon
Air
Liquid
Solid
% Recyc
M2
D2
S2
Carbon
Air
Liquid
Solid
% Recyc
M2.4
M2.5
M2.6
Package
Stage
Product
Release
Product to
Deliver
Carbon
Air
Liquid
Solid
% Recyc
Carbon
Air
Liquid
Solid
% Recyc
Carbon
Air
Liquid
Solid
% Recyc
Using the SCOR Model as an environmental accounting framework has additional benefits as
well. First, the framework clearly ties the various emissions to the originating processes. This
provides a structure for not just measuring performance, but identifying where action can be
taking to improve performance.
Second, the hierarchal nature of the SCOR Model allows for strategic environmental footprint
goals to be easily translated to targets in specific activities. Likewise, when strategic goals are
not being met, the framework provides a structure for root cause analysis as well as end-to-end
supply chain optimization around environmental performance.
Lastly, as with other SCOR Model metrics, these metrics have clear definitions and a tie to process
activities that provide a foundation for effective benchmarking. This capability allows companies
to compare environmental performance of their supply chain using the same methods currently
used for comparing business performance. Through benchmarking, managers can go beyond
measuring environmental performance and understand that performance in the context of
their industry peers performance.
The remainder of this appendix details these environmental metrics and their decomposition
levels in the same format used elsewhere in the SCOR Model.
The Supply Chain Council believes that this metrics structure provides an effective tool for
environmental supply chain accounting. However, this approach is not currently in use, and,
therefore, these metrics are not included as fully approved SCOR metrics. Please provide feedback
to the Supply Chain Council on the effectiveness of this metrics structure as it is applied to your
supply chain operations.
5.1.2
GreenSCOR
Performance Attribute: Supply Chain Costs
Total Supply Chain Carbon Footprint
The sum of the carbon equivalent emissions associated with the SCOR Level 2 processes to
Plan, Source, Make, Deliver, and Return.
Level 1
Plan Carbon Emissions

Source Carbon Emissions
Level 2
Make Carbon Emissions

Deliver Carbon Emissions
Return Carbon Emissions

None Identified
Total Supply Chain Carbon Footprint = Plan Carbon Emissions + Source + Make + Deliver + Return
Calculation
Total Supply Chain Carbon Footprint = sum of emissions from energy and fuel consumption and
process related emissions
Data Collection
Carbon emissions are generally calculated using emission factors such as those created by the U.S.
Environmental Protection Agency, National Environmental Research Laboratory, and various industry
associations. The emission factors are generally based on energy consumption, fuel type and
consumption, or process throughput. Alternatively, actual emissions can be monitored from discrete
sources .
Discussion
Often, a supply chain represents partial use of a facility, production line, vehicle, etc. Therefore, the
carbon emissions from this infrastructure must be apportioned based on the proportional use of the
supply chain.
5.1.3
GreenSCOR
Process Number: P1, P2, P3, P4, P5
The sum of carbon emissions associated with Plan.
Level 1
Level 2
Plan Make Carbon Emissions

Plan Supply Chain Carbon Emissions
Plan Source Carbon Emissions
Level 3
Plan Make Carbon Emissions

Plan Deliver Carbon Emissions
Plan Return Carbon Emissions

None Identified
Plan Carbon Emissions = Sum of Plan Carbon Emissions (Plan + Source + Make + Deliver + Return)
Calculation
Plan carbon emissions can be calculated using published emission factors. In most organizations, the
Carbon emissions from the planning process will consist exclusively of energy consumed to support
planning tools and infrastructure, including facilities.
Data Collection
Carbon emissions are generally calculated using emission factors such as those created by the
U.S. Environmental Protection Agency, National Environmental Research Laboratory, and various
industry associations. The emission factors are generally based on energy consumption, fuel type and
sources .
Discussion
Often, energy consumption will have to be allocated to various processes based on factors such as
square footage, unit volume, revenue, or other factors.
5.1.4
GreenSCOR
Process Number: S1, S2, S3

The sum of the carbon emissions associated with Source.
Level 1
Total Supply Chain Management Carbon Footprint
^
Level 2

Supplier Management
Level 3
(See processes under Source)
Material Aquisition Management

(See processes under Source)

None Identified
Source Carbon Emissions = Sum of Carbon Emissions for (Supplier Management + Material Acquisition
Management)
Calculation
t
t
Supplier Management = material planning + planning procurement staff + supplier negotiation

and qualification + etc.
Material Acquisition Management = bidding and quotations + ordering + receiving + incoming
material inspection + material storage + payment authorization + sourcing business rules and
rqmts. + inbound freight and duties + etc.
Data Collection
sources .
Discussion
5.1.5
GreenSCOR
Process Number: M1, M2, M3

The sum of the carbon emissions associated with Make.
Level 1
Total Supply Chain Management Carbon Footprint
^
Level 2
Level 3
Indirect Emissions Related to Production

Direct Production Emissions

None Identified
Make Carbon Emissions = Sum of Direct Labor, and Direct non-Material Product-related Cost
(equipment) and of Indirect Product-related Cost
Calculation
None Identified
Data Collection
sources .
Discussion
5.1.6
GreenSCOR
Process Number: D1, D2, D3
The sum of the carbon emissions associated with Deliver and/or Install
Level 1
^
Level 2

Sales (order) Management
Level 3
Customer Management

None Identfied
Deliver Carbon Emissions = Sum of Carbon Emissions of ( Sales order management + Customer
Management )
Calculation
t
t
Sales order management = inquiry & quotations + order entry & maintenance + channel
management + order fulfillment + distribution + transportation + outbound freight and duties +
installation + customer invoicing / accounting + new product release / phase-in + etc.
Customer Management = financing + post-sales customer service + handling disputes + field
repairs + enabling technologies + etc.
Data Collection
sources .
Discussion
5.1.7
GreenSCOR
Process Number: SRx, DRx
The sum of the carbon emissions resulting from returning a product to the supplier.
Level 1
^
Level 2
Level 3
Source Return Carbon Emissions

Deliver Return Carbon Emissions

None Identified
Cost to Return = Sum of Cost to Return ( to Sources + from Customers )
Calculation
t
t
Cost to Return to Source (SRx) = Verify Defective Product Emissions + Disposition of Defective
Product Emissions + Identify MRO Condition Emissions + Request MRO Return Authorization
Emissions + Schedule MRO Shipment Emissions + Return MRO Product Emissions + etc.
Cost to Return From Customer (DRx) = Authorization Emissions + Schedule Return Emissions +
Receive Emissions + Authorize MRO Return Emissions + Schedule MRO Return Emissions + Receive
MRO Return Emissions + Transfer MRO Product Emissions + etc.
Data Collection
sources .
Discussion
5.1.8
GreenSCOR
Total Supply Chain Environmental Footprint
The sum of the air, liquid, and solid waste emissions associated with the SCOR Level 2 processes
to Plan, Source, Make, Deliver, and Return.
Level 1
Total Supply Chain Air Emissions

Level 2
Total Supply Chain Liquid Emissions

Total Supply Chain Solid Waste Emissions
% Waste Recycled

None Identified
Total Supply Chain Environmental Footprint = Total Supply Chain Air Emissions + Total Supply Chain
Liquid Emissions + (Total Supply Chain Solid Waste Emissions * (1 - % waste recycled))
Calculation
Total Supply Chain Environmental Footprint = sum of air, liquid, and solid waste emissions from energy
and fuel consumption and process related emissions less the sum of waste that is effectively recycled.
Data Collection
Emissions are generally calculated using emission factors such as those created by the U.S. Environmental
Protection Agency, National Environmental Research Laboratory, and various industry associations
as well as direct waste stream measurement. The emission factors are generally based on energy
consumption, fuel type and consumption, or process throughput. Alternatively, actual emissions can
be monitored from discrete sources (e.g., smoke stacks or waste generating processes).
Discussion
emissions from this infrastructure must be apportioned based on the proportional use of the supply
chain.
5.1.9
GreenSCOR
The sum of the Air emissions associated with the SCOR Level 2 processes to Plan, Source,
Make, Deliver, and Return.
Level 1
^
Level 2

Plan Air Emissions
Source Air Emissions
Level 3
Make Air Emissions

Deliver Air Emissions
Return Air Emissions

None Identified
Total Supply Chain Air Emissions = Plan Air Emissions + Source + Make + Deliver + Return
Calculation
Total Supply Chain Air Emissions = sum of emissions from energy and fuel consumption and process
related emissions
Data Collection
Air emissions are generally calculated using emission factors such as those created by the U.S.
associations. The emission factors are generally based on energy consumption, fuel type and
sources .
Discussion
chain.
5.1.10
GreenSCOR
The sum of the Liquid emissions associated with the SCOR Level 2 processes to Plan, Source,
Make, Deliver, and Return.
Level 1
^
Level 2

Plan Liquid Emissions
Source Liquid Emissions
Level 3
Make Liquid Emissions

Deliver Liquid Emissions
Return Liquid Emissions

None Identified
Total Supply Chain Liquid Emissions = Plan Liquid Emissions + Source + Make + Deliver + Return
Calculation
Total Supply Chain Liquid Emissions = sum of emissions from process related emissions
Data Collection
Liquid emissions are generally calculated using emission factors such as those created by the U.S.
associations. The emission factors are generally based on process throughput. Alternatively, actual
emissions can be monitored from discrete sources.
Discussion
chain.
5.1.11
GreenSCOR
The sum of the solid waste emissions associated with the SCOR Level 2 processes to Plan,
Source, Make, Deliver, and Return.
Level 1
^
Level 2
Plan Solid Waste Emissions

Source Solid Waste Emissions
Level 3
Make Solid Waste Emissions

Deliver Solid Waste Emissions
Return Solid Waste Emissions

None Identified
Total Supply Chain Solid Waste Emissions = Plan Solid Waste Emissions + Source + Make + Deliver +
Return
Calculation
Total Supply Chain Solid Waste Emissions = sum of emissions from process related emissions
Data Collection
Solid Waste emissions are generally calculated using emission factors such as those created by the U.S.
associations. The emission factors are generally based on process throughput. Alternatively, actual
emissions can be monitored from discrete sources.
Discussion
chain.
5.1.12
GreenSCOR
Total Supply Chain % Recycled
The portion of the solid waste effectively recycled or reused associated with the SCOR Level 2
processes to Plan, Source, Make, Deliver, and Return.
Level 1
^
Level 2
Total Supply Chain % Recycled

Plan % Recycled
Source % Recycled
Level 3
Make % Recycled
Deliver % Recycled
Return % Recycled

None Identified
Total Supply Chain % Recycled = (Plan % Recycled * Plan Solid Waste Emissions + Source % Recycled *
Source Solid Waste Emissions + Make % Recycled * Make Solid Waste Emissions + Deliver % Recycled *
Deliver Solid Waste Emissions + Return % Recycled * Return Solid Waste Emissions) / Total Supply Chain
Solid Waste Emissions
Calculation
Total Supply Chain % Recycled = Total Supply Chain Solid Waste Emissions that are Effectively Recycled /
Data Collection
The amount of solid waste that is recycled is generally available through process records for reuse or
invoices or bills of lading from recycling partners.
Discussion
This metrics is intended to measure the waste that is actually recycled rather than the waste that can
be recycled. It is intended to reflect the true current environmental performance of the supply chain.
5.1.13
5.1.14

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SCOR

Supply Chain Operations

Copyright 2008 Supply Chain Council Inc.

Supply-Chain Council, 2008. All rights reserved.

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

Figure 1 - SCOR is organized around five major management processes.

Copyright 2008 Supply Chain Council Inc.

Level 1 defines the scope and

Process Element Level

Level 3 defines a companys

Identify, Prioritize, and

Identify, Assess, and

Supply-Chain Operations Reference Model

Companies implement specific

Figure 2 - SCOR is a hierarchical model with specific boundaries in regard to scope.

Copyright 2008 Supply Chain Council Inc.

Capture the as-is

Figure 3 - SCOR is a business process reference model.

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

Performance Attributes and Level 1 Strategic Metrics

Perfect Order Fulfillment

Order Fulfillment Cycle Time

Figure 4 - SCOR Performance Attributes and Level 1 Metrics

Performance Attributes and Associated Level 1 Metrics

Performance Attribute Definition

Level 1 Strategic Metric

The performance of the supply chain in

Perfect Order Fulfillment

The speed at which a supply chain provides

Order Fulfillment Cycle Time

The agility of a supply chain in responding

Upside Supply Chain

The costs associated with operating the supply

Supply Chain Management

The effectiveness of an organization in

Cash-to-Cash Cycle Time

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

Renumbered existing EP.9 to EP.10 (to facilitate Risk Management)

New process added (Risk Management)

Renumbered existing ES.9 to ES.10 (to facilitate Risk Management)

New process added (Risk Management)

New process added (GreenSCOR)

New process added (GreenSCOR)

New process added (GreenSCOR)

New process added (Risk Management)

New process added (Risk Management)

New process added (Risk Management)

Figure 6, Summary of process number changes

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

SCOR 9.0 Section/

Accompanies the process

Inputs and Outputs

Inputs and Outputs

Consolidated with glossary

Consolidated with glossary