Scor 9.0

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 Company
Gerard McCool Accenture
Kevin F. Mansfield Air Products
Ben Cromwell AIT Group
Greg Grehawick Booz Allen Hamilton
Jörg Nienhaus Bosch
Arne Ziegenbein Bosch
Moses Muputisi BP
Kevin Farrington Brightstar
Robert Mansfield CCAT
Kevin McCormack DRK Research
Lars Magnusson Ericsson
Charles-Eric Roussel Essilor France
Sven Verstrepen Flanders Institute for Logistics
Srinivasan Sarangapani Genpact
Reinaldo Fioravanti Hewlett Packard
David Morrow IBM
Changrui Ren IBM China
Jin Dong IBM China
Gopal Chandrasekaran IBM GBS
John Paul iCognitive
Hitesh Patel IDS Scheer
Anand K. Sundar Infinite Strategies, Inc.
Mitul Devendra Shah Infosys
Robert Hagan International Paper
James Wynn Knowles Electronics
Taylor Wilkerson LMI
Iain D. Clarke Molson Coors Brewing Company
Ray VanderBok NewVectors
Melinda Davey NewVectors
Marc Bartos PMG Benchmarking
Dan Swartwood Pragmatek
Monty Boyle Pragmatek
George Wellock Pragmatek
Caspar Hunsche Process Core Group
Sam Fayez Productivity Apex
Tom Janoshalmi SAP
Deanna Yee Satellite Logistics Group
Joseph Francis Supply Chain Council
Enrico Camerinelli Supply-Chain Council
Melinda Spring Supply-Chain Council
Scott Sealing United Space Alliance
John Nyere United States Department of Defense
Sergio Cavalieri University of Bergamo
Jac Braat University of Tilburg
Nancy Craft Volvo
Amy H Buu Westinghouse
Ikhlaq Kashkari Xelocity

Table of Contents
• Introduction 1
• Metrics 2
o Reliability 2.1
o Responsiveness 2.2
o Agility 2.3
o Cost 2.4
o Asset Management 2.5
• Processes 3
o Plan 3.1
o Source 3.2
o Make 3.3
o Deliver 3.4
o Return 3.5
o Inputs and Outputs 3.6
• Best Practices 4
o SCOR 4.1
o GreenSCOR 4.2
o Risk Management 4.3
• Special Applications 5
o GreenSCOR 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 Council’s 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 SCC’s 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 Model’s 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 Copyright 2008 Supply Chain Council Inc.

Introduction
SCOR Scope
The SCOR-model has been developed to describe the business activities associated with all
phases of satisfying a customer’s 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 Plan
Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source
Return Return Return Return Return Return
Return Return
Suppliers’ Supplier Your Company Customer Customers’

Supplier Customer
Internal or External Internal or External
Figure 1 - SCOR is organized around five major management processes.
It spans: all customer interactions (order entry through paid invoice), all physical material
transactions (supplier’s supplier to customer’s 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.
Copyright 2008 Supply Chain Council Inc. 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 Schematic Comments
# Description

1 Top Level Plan Level 1 defines the scope and

Supply-Chain Operations Reference Model
(Process Types) content for the Supply-Chain

Source Make Deliver Operations Reference Model.
Here the basis of competition
performance targets are set.
Return Return
2 Configuration Level A company’s supply-chain

can be “configured-to-order”
(Process Categories)
at Level 2 from core “process
categories.” Companies
implement their operations
strategy through the
configuration they choose for
their supply-chain.
3 Process Element Level Level 3 defines a company’s

ability to compete successfully
(Decompose Processes)
in its chosen markets, and
consists of:
t Process element
P1.1
Identify, Prioritize, and definitions
Aggregate Supply-Chain
P1.3 P1.4
t Process element
Requirements
Balance Production Establish and information inputs, and
Resources with Supply- Communicate
outputs
P1.2 Chain Requirements Supply-Chain Plans
Identify, Assess, and t Process performance
Aggregate Supply-Chain metrics
Requirements
t Best practices, where
applicable

t System capabilities
required to support best
practices
t Systems/tools
Not in Scope
4 Implementation Level Companies implement specific

supply-chain management
(Decompose Process
Elements) 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.

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 Benchmarking Best Practices Process Reference

Reengineering Analysis Model
Capture the “as-is” Capture the “as-is”
state of a process state of a process
and derive the and derive the
desired “to-be” desired “to-be”
future state future state
Quantify the Quantify the

operational operational
performance of performance of
similar companies similar companies
and establish and establish
internal targets internal targets
based on “best-in- based on “best-in-
class” results class” results
Characterize the Characterize the

management management
practices and practices and
software solutions software solutions
that result in that result in
“best-in-class” “best-in-class”
performance performance
Figure 3 - SCOR is a business process reference model.

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 2’s 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

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)
SCC’s “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 Engineer-
to-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 Internal-Facing
Reliability Responsiveness Agility Costs Assets
Perfect Order Fulfillment !
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

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 Performance Attribute Definition Level 1 Strategic Metric

Attribute
Supply Chain The performance of the supply chain in Perfect Order Fulfillment
Reliability delivering: the correct product, to the correct (RL.1.1)
place, at the correct time, in the correct
condition and packaging, in the correct
quantity, with the correct documentation, to
the correct customer.
Supply Chain The speed at which a supply chain provides Order Fulfillment Cycle Time
Responsiveness products to the customer. (RS.1.1)
Supply Chain The agility of a supply chain in responding Upside Supply Chain
Agility to marketplace changes to gain or maintain Flexibility (AG.1.1)
competitive advantage.
Upside Supply Chain
Adaptability (AG.1.2)
Downside Supply Chain
Adaptability (AG.1.3)
Supply Chain The costs associated with operating the supply Supply Chain Management
Costs chain. Cost (CO.1.1)
Cost of Goods Sold (CO.1.2)
Supply The effectiveness of an organization in Cash-to-Cash Cycle Time
Chain Asset managing assets to support demand (AM.1.1)
Management satisfaction. This includes the management of
Return on Supply Chain Fixed
all assets: fixed and working capital.
Assets (AM.1.2)
Return on Working Capital
(AM.1.3)
Figure 5 – Definitions for SCOR Performance Attributes and listing of associated Level 1 metrics.

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.

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 New process added (Risk Management)
M1.7 New process added (GreenSCOR)
EM.9 New process added (Risk Management)
ED.9 New process added (Risk Management)
ER.9 New process added (Risk Management)
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.

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.

Introduction
SCOR 8.0 Comment SCOR 9.0 Section/ Section/Chapter
Chapter Description
Introduction Unchanged Section 1 Introduction
Plan Section 3, Chapter 1 Plan
Source Section 3, Chapter 2 Source
Make Section 3, Chapter 3 Make
Deliver Section 3, Chapter 4 Deliver
Return Section 3, Chapter 5 Return
Workflow Graphics Accompanies the process Section 3
Glossary No longer applicable
Process Terms Section 3 Processes
Metrics Section 2 Metrics
Best Practices Section Best Practices
Inputs and Outputs Section 3, Chapter 6 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 Special Applications
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.

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 Model’s 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 Council’s Technical Development Steering Committee,
which is comprised of elected representatives from the Council’s membership.
The Model change process is documented on the SCC’s 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.

Section 2
Metrics
RL.1.1
Perfect Order Fulfillment
The percentage of orders meeting delivery performance with complete and accurate
documentation and no delivery damage. Components include all items and quantities on-
time using the customer’s definition of on-time, and documentation – packing slips, bills of
lading, invoices, etc.
Qualitative Relationship Description

t An order is considered perfect if the products ordered are the products provided and the
quantities ordered match the quantities provided (% In Full).
t 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).
t Documentation supporting the order line is considered perfect if it is all accurate, complete, and
on time (Accurate Documentation).
t 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.

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 customer’s 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 customer’s 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 supplier’s ability to source products.
Hierarchical Metric Structure
Level 1 RL.1.1 Perfect Order Fulfillment
RL.2.1 % of Orders Delivered in Full
RL.2.2 Delivery Performance to Customer Commit Date

Level 2
RL.2.3 Documentation Accuracy
RL.2.4 Perfect Condition

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 customer’s 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.

RL.2.1
Level 2 RL.2.1 % of Orders Delivered in Full
Delivery Item Accuracy

Level 3
Delivery Quantity Accuracy

RL.2.2
Delivery Performance to Customer Commit Date
The percentage of orders that are fulfilled on the customer’s 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 customer’s 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.

RL.2.2
Level 2 RL.2.2 Delivery Performance to Customer Commit date
Customer Commit Date Achievement

Level 3 Time customer Receiving
Delivery Location Accuracy

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)

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 customer’s 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 2 RL.2.3 Documentation Accuracy
Shipping Documentation Accuracy

Level 3
Compliance Documentation Accuracy
Other Required Documentation Accuracy
Payment Documentation Accuracy

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 customer’s 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

RL.2.4
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

RL
Level 3 Reliability Metrics
Metric ID Metric Name Metric Definition Process

RL.3.1 # of complaints The number of products released M1.6: Release Product to Deliver
regarding missing without proper environmental
environmental documentation as a percent of total
documentation products released
RL.3.2 # of The number of recordkeeping related M1.6: Release Product to Deliver
recordkeeping regulatory violations received per year
related NOVs
RL.3.3 # of staff-related The number of environmental EM.2: Manage Production
environmental violations per year that are a result of Performance
violations personnel error or improper training
RL.3.4 % correct material The percent of total shipments that D1.10: Pack Product
documentation include the correct environmental D2.9: Pick Product
documentation D3.8: Receive Product from Source
or Make
RL.3.5 % Error-free % Error-free SR2.5: Return MRO Product
Returns Shipped Returns Shipped SR1.5: Return Defective Product
SR3.5: Return Excess Product
RL.3.6 % Identified MRO % Identified MRO SR2.2: Disposition MRO Product
Products Products Returned
Returned To Service
To Service
RL.3.7 % Item Location % Item Location D4.5: Fill Shopping Cart
Accuracy Accuracy
RL.3.8 % of assets in The percent of capital equipment that ES.5: Manage Capital Assets
compliance is in compliance with manufacturer
with scheduled recommended maintenance
maintenance requirements or maintenance best
requirements practice requirements.
RL.3.9 % of employees The number of employees trained EM.8: Manage Make Regulatory
trained on on environmental requirements as a Environment
environmental percent of total Make employees
requirements
RL.3.10 % of Excess Correct destination, according to the DR3: Deliver Return Excess Product
Product Returns schedule, with the correct part and SR3: Source Return Excess Product
Delivered documentation
Complete to
the Designated
Return Center

RL
RL.3.11 % of Faultless The number of invoices processed D1.15: Invoice
Invoices without issues and or errors divided by D2.15: Invoice
the total number of invoices. Examples D3.15: Invoice
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
RL.3.12 % Of Faultless Number of Faultless Installations D1.14: Install Product
Installations divided by Total Number of Units D2.14: Install Product
Installed.
RL.3.13 % of MRO returns % of MRO returns delivered to the DR2: Deliver Return MRO Product
delivered to the correct service provider location, within
correct service schedule, with the correct part and
provider location documentation
RL.3.14 % of products The number of products that meet M2.6: Release Finished Product to
meeting specified desired environmental performance Deliver
environmental specifications as a per cent of total
performance products produced
requirements
RL.3.15 % of products The number of products with proper M2.6: Release Finished Product to
with proper environmental labels in place as a per Deliver
environmental cent of total products produced
labeling (if
required)
RL.3.16 % of suppliers Number of suppliers that completely ES.7: Manage Supplier Network
meeting meet agreement environmental ES.2: Assess Supplier Performance
environmental criteria divided by the total number of D2.7: Select Carriers and Rate
metrics/criteria suppliers used. Shipments
ES.10: Manage Supplier
Agreements
D1.7: Select Carriers and Rate
Shipments
RL.3.17 % of suppliers Percent of suppliers used that have a S3.2: Select Final Supplier (S) and
with an EMS validated Environmental Management Negotiate
or ISO 14001 System or ISO 14000 certification S3.1: Identify Sources of Supply
certification
RL.3.18 % Orders/ Lines The number of orders / lines that are S2.2: Receive Product
Processed processed complete divided by the S1.2: Receive Product
Complete total orders / lines processed within the S3.4: Receive Product
measurement period

RL
RL.3.19 % Orders/ Lines The number of orders / lines that are S1.3: Verify Product
Received Defect received defect free divided by the S2.3: Verify Product
Free total orders / lines processed in the S3.5: Verify Product
measurement period.
RL.3.20 % Orders/ Lines The number of orders / lines that S1.2: Receive Product
Received On- are received on-time to the demand S2.2: Receive Product
Time To Demand requirements divided by the total S3.4: Receive Product
Requirement orders / lines for the demand
requirements in the measurement
period
RL.3.21 % Orders/ lines Percent of orders or lines received that S1.3: Verify Product
received with have the correct material content as S2.3: Verify Product
correct content specified in the product design specs S3.5: Verify Product
and supplier agreements.
RL.3.22 % Orders/ lines Percent of orders or lines received S1.2: Receive Product
received with that are packaged correctly with the S2.2: Receive Product
correct packaging right type and quantity of packaging S3.4: Receive Product
material.
RL.3.23 % Orders/ Lines The number of orders / lines that are S1.2: Receive Product
Received with received on-time with correct shipping S2.2: Receive Product
Correct Shipping documents divided by the total orders S3.4: Receive Product
Documents / lines processed in the measurement
period
RL.3.24 % Orders/ lines The number of orders / lines that are S1.3: Verify Product
received damage processed damage free divided by the S2.3: Verify Product
free total orders / lines processed in the S3.5: Verify Product
measurement period
RL.3.25 % Product The number of product orders / S1.4: Transfer Product
Transferred On- lines that are transferred on-time to S2.4: Transfer Product
Time to Demand demand requirements divided by the S3.6: Transfer Product
Requirement total orders / lines transferred in the
measurement period
RL.3.26 % Product The number of transactions processed S1.4: Transfer Product
Transferred without error divided by the total S2.4: Transfer Product
without transactions processed in the S3.6: Transfer Product
Transaction Errors measurement period.
RL.3.27 % Schedules The number of schedules that are S1.1: Schedule Product Deliveries
Changed within changed within the suppliers lead- S2.1: Schedule Product Deliveries
Supplier’s Lead time divided by the total number S3.3: Schedule Product Deliveries
Time of schedules generated within the
measurement period

RL
RL.3.28 % Shipping % Shipping Schedules that Support SR1.4: Schedule Defective Product
Schedules Customer Required Return by Date Shipment
that Support SR2.4: Schedule MRO Shipment
Customer SR3.4: Schedule Excess Product
Required Return Shipment
by Date
RL.3.29 Age of Product The age in months of the product ES.9: Manage Supply Chain Source
/ Customer Risk of customer risk data i.e. audit age, Risk
Data (months) assessments, performance, etc. 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 The age in months of the supplier ES.9: Manage Supply Chain Source
Risk Data risk data i.e. audit age, assessments, Risk
(months) performance, etc. EM.9: Manage Supply Chain Make
Risk
Risk
Risk
RL.3.31 Compliance Percentage of compliance D1.11: Load Vehicle & Generate
Documentation documentations are complete, correct, Shipping Documentation
Accuracy and readily available when and how D2.11: Load Product & Generate
expected by customer, Government Shipping Documentation
and other supply chain regulatory D3.11: Load Product & Generate
entities. Compliance documentations Shipping Documents
includes material safety data sheets M1.4: Package
M2.4: Package
M3.5: Package
RL.3.32 Customer Percentage of orders which is received D1.13: Receive & Verify Product by
Commit Date on time as defined by the customer Customer
Achievement D2.13: Receive & Verify Product by
Time Customer Customer
Receiving D3.13: Receive & Verify Product by
Customer

RL
RL.3.33 Delivery Item Percentage of orders in which all items D1.2: Receive, Enter & Validate
Accuracy ordered are the items actually provided, Order
and no extra items are provided D1.4: Consolidate Orders
D1.11: Load Vehicle & Generate
Shipping Documentation
D1.12: Ship Product
D1.13: Receive & Verify Product by
Customer
D2.2: Receive, Configure, Enter &
Validate Order
D2.4: Consolidate Orders
D2.11: Load Product & Generate
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 Percentage of orders which is delivered D1.2: Receive, Enter & Validate
Accuracy to the correct location and customer Order
entity D1.4: Consolidate Orders
D1.12: Ship Product
Customer
Validate Order
D2.12: Ship Product
Customer
Shipping Documents
D3.12: Ship Product
Customer

RL
RL.3.35 Delivery Quantity Percentage of orders in which all D1.2: Receive, Enter & Validate
Accuracy quantities received by the customer Order
match the order quantities (within D1.4: Consolidate Orders
mutually agreed tolerances) D1.11: Load Vehicle & Generate
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 P1.3: Balance Supply Chain
orders shipped within 24 hours of order Resources with SC Requirements
receipt. For services, this metric is the P4.4: Establish Delivery Plans
proportion for services that are filled so M1.3: Produce and Test
that the service is completed within 24 D1.3: Reserve Inventory and
hours Determine Delivery Date
D1.9: Pick Product
RL.3.37 Forecast Accuracy Forecast accuracy is calculated P1.1: Identify, Prioritize and
for products and/or families for Aggregate SC Requirements
arkets/distribution channels, in unit P2.1: Identify, Prioritize and
measurement. Common calculation Aggregate Product Requirements
(Sum Actuals - Sum of Variance) / Sum P3.1: Identify, Prioritize
Actuals to determine percentage error. and Aggregate Production
*monitoring the delta of Forecast Requirements
Accuracy over measured time periods P4.1: Identify, Prioritize and
can determine success rates. 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

RL
RL.3.38 Number of Number of violations issued by EP.8: Manage Plan Regulatory
notices of regulatory authorities per 12 month Requirements and Compliance
violation received period
RL.3.40 Number of Number of occurences where excessive SR3.1: Identify Excess Product
occurrences inventory is returned and followed Condition
where excessive
inventory is
returned and
followed
RL.3.41 Orders Delivered Percentage of orders which is delivered D1.13: Receive and Verify Product
Damage Free without damage by Customer
Conformance D2.13: Receive and Verify Product
by Customer
D3.13: Receive and Verify Product
by Customer
RL.3.42 Orders Delivered Percentage of orders which is delivered D1.13: Receive and Verify Product
Defect Free without defect by Customer
Conformance D2.13: Receive and Verify Product
by Customer
by Customer
RL.3.43 Other Required Percentage of other required D1.11: Load Vehicle & Generate
Documentation documentations (besides of Shipping Documentation
Accuracy compliance documentation, payment D2.11: Load Product & Generate
documentation and shipping Shipping Documentation
documentation) are complete, correct, D3.11: Load Product & Generate
and readily available when and how Shipping Documents
expected by customer, Government
and other supply chain regulatory
entities. This kind of documentations
includes quality certification
RL.3.44 Package The average time associated with M1.4: Package
Cycle Time Package
RL.3.45 Payment Percentage of payment D1.11: Load Vehicle & Generate
entities. Payment documentations Shipping Documents
includes invoice, contractual outline
agreement
RL.3.46 Reportable Number of reportable air, water, or solid ED.5: Manage Deliver Capital
Release Incidents waste accidental releases per year Assets
RL.3.47 Return Shipments Return Shipments Shipped on Time SR1.5: Return Defective Product
Shipped on SR2.5: Return MRO Product
Time SR3.5: Return Excess Product

RL
RL.3.48 Risk Mitigation % of sources with documented EP.9: Manage Supply Chain Plan
Plan contingency plans and % of sourced Risk
items with alternate or redundant ES.9: Manage Supply Chain Source
sources Risk
EM.9: Manage Supply Chain Make
Risk
Risk
Risk
RL.3.49 Schedule The percentage of time that a plant M1.1: Schedule Production
Achievement achieves its production schedule. This Activities
calculation is based on the number of M2.1: Schedule Production
scheduled end-items or total volume Activities
for a specific period. Note: over- M3.2: Schedule Production
shipments do not make up for under- Activities
shipments.
RL.3.50 Shipping Percentage of shipping D1.11: Load Vehicle & Generate
entities. Shipping documentations Shipping Documents
includes packing slips (customers), bill
of lading (carriers) and government or
customs documentation / forms
RL.3.51 Supplier The percent of mitigation plans ES.9: Manage Supply Chain Source
Mitigation Plans implemented for supplier risk. Risk
Implemented EM.9: Manage Supply Chain Make
(percent) Risk
Risk
Risk
RL.3.52 Supplier return Supplier return order cycle time ER.5: Manage Return Capital Assets
order cycle time reestablished and sustained for ER.6: Manage Return
reestablished and increased quantities produced given Transportation
sustained in 30 30 days, including supplier return order ER.7: Manage Return Network
days processing cycle time, pick-to-ship Configuration
cycle, transit time, etc.
RL.3.53 Total # of Total # of Confirmed MRO Conditions/ R2: Return MRO Product
Confirmed Total # of MRO Service Requests
MRO Conditions/ Initiated
Total
# of MRO Service
Requests
Initiated

RL
RL.3.54 VAR of product/ Value at Risk – the sum of the ES.9: Manage Supply Chain Source
customer probability of risk events times the Risk
performance - monetary impact of the events for the EM.9: Manage Supply Chain Make
specific product or customer. Risk
Risk
Risk
RL.3.55 Warranty and Number of returns within the warranty M1.3: Produce and Test
Returns period. Warranty is a commitment, M1.4: Package
either expressed or implied that a
certain fact regarding the subject
matter of a contract is presently true or
will be true.
RL.3.56 Warranty Costs Warranty costs include materials, labor M1.3: Produce and Test
and problem diagnosis for product M1.4: Package
defects. M2.3: Produce and Test
M2.4: Package
M3.4: Produce and Test
M3.5: Package
RL.3.57 Waste Processing Number of errors in waste transactions M1.7: Waste Disposal
Errors as a percent of total waste transactions M2.7: Waste Disposal
M3.8: Waste Disposal
RL.3.58 Yield The ratio of usable output from a M1.3: Produce and Test
process to its input. M1.4: Package
M2.4: Package
M3.5: Package
RL.3.59 Yield Variability The condition that occurs when the M1.3: Produce and Test
output of a process is not consistently M2.3: Produce and Test
repeatable either in quantity, quality, or M3.4: Produce and Test
combination of these.

RS.1.1
Order Fulfillment Cycle Time
The average actual cycle time consistently achieved to fulfill customer orders. For each indi-
vidual 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 organization’s
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.

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
RS.2.2 Make Cycle time

Level 2
RS.2.3 Deliver Cycle Time

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-to-
order 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 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.

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-to-
order 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.

RS.2.2
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

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 make-
to-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.

RS.2.3
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

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
Receive Product Cycle Time
Pick Product Cycle Time
Level 3 Stock Shelf Cycle Time
Install Cycle Time
Checkout Cycle Time
Fill Shopping Cart Cycle Time

RS
Level 3 Responsiveness Metrics

RS.3.1 Align Supply The average time associated with EP.10: Align Supply Chain Unit Plan
Chain Unit Plan aligning the supply chain unit plan with with Financial Plan
with Financial the financial plan
Plan Cycle Time
RS.3.2 Assess Delivery The average time associated with ED.2: Assess Delivery Performance
Performance assessing the performance of deliver
Cycle Time processes.
RS.3.3 Assess Supplier The average time associated with ES.2: Assess Supplier Performance
Performance assessing the performance of supplier
Cycle Time processes.
RS.3.4 Asset Turns Total gross product revenue ÷ Total net M1.4: Package
assets M2.4: Package
M3.5: Package
M2.3: Produce and Test,
RS.3.5 Authorize The average time associated with DR1.1: Authorize Defective Product
Defective Product authorizing the return of defective Return
Return Cycle Time product.
RS.3.6 Authorize Excess The average time associated with DR3.1: Authorize Excess Product
Product Return authorizing the return of excess Return
Cycle Time product.
RS.3.7 Authorize MRO The average time associated with DR2.1: Authorize MRO Product
Product Return authorizing the return of MRO product. Return
Cycle Time
RS.3.8 Authorize The average time associated with S1.5: Authorize Supplier Payment
Supplier Payment authorizing payment to suppliers. S2.5: Authorize Supplier Payment
Cycle Time S3.7: Authorize Supplier Payment
RS.3.9 Average Days # of days each engineering change S1.1: Schedule Product Deliveries
per Engineering impacts the delivery date divided by S2.1: Schedule Product Deliveries
Change the total # of changes. S3.3: Schedule Product Deliveries
RS.3.10 Average Days per # of days each schedule change S1.1: Schedule Product Deliveries
Schedule Change impacts the delivery date divided by S2.1: Schedule Product Deliveries
the total # of changes. S3.3: Schedule Product Deliveries
RS.3.11 Average Release Cycle time for implementing change S1.1: Schedule Product Deliveries
Cycle of Changes notices divided by total number of S2.1: Schedule Product Deliveries
changes. S3.3: Schedule Product Deliveries
RS.3.12 Balance Product The average time associated with P2.3: Balance Product Resources
Resources balancing product resources and with Product Requirements
with Product product requirements.
Requirements
Cycle Time

RS
RS.3.13 Balance The average time associated with P3.3: Balance Production Resources
Production the identifying, prioritizing, and with Production Requirements
Resources with aggregating product requirements.
Production
Requirements
Cycle Time
RS.3.14 Balance Return The average time associated with P5.3: Balance Return Resources
Resources balancing return resources and return with Return Requirements
with Return requirements. P5.2: Identify, Assess, and
Requirements Aggregate Return Resources
Cycle Time
RS.3.15 Balance Supply The average time associated with P1.3: Balance Supply Chain
Chain Resources balancing supply chain resources and Resources with SC Requirements
with Supply Chain supply chain requirements.
Requirements
Cycle Time
RS.3.16 Build Loads Cycle The average time associated with D1.5: Build Loads
Time building shipment loads. D2.5: Build Loads
D3.5: Build Loads
RS.3.17 Checkout Cycle The average time required for customer D4.6: Checkout
Time checkout.
RS.3.18 Consolidate The average time required for customer D1.4: Consolidate Orders
Orders Cycle Time order consolidation. D2.4: Consolidate Orders
RS.3.19 Current customer Current return order cycle time, DR1: Deliver Return Defective
return order cycle including customer return order Product,
time processing cycle time, transit time, DR2: Deliver Return MRO Product,
return processing and disposition cycle DR3: Deliver Return Excess Product
time, etc.
RS.3.20 Current logistics Current logistics order cycle time, D1: Deliver Stocked Product,
order cycle time including customer order processing D2: Deliver Make-to-Order Product,
cycle time, dock-to-stock cycle time, D3: Deliver Engineer-to-Order
pick-to-ship cycle, transit time, etc. Product
RS.3.21 Current Current manufacturing cycle time M1: Make-to-Stock,
manufacturing M2: Make-to-Order,
order cycle time M3: Engineer-to-Order
RS.3.22 Current supplier Current supplier return order cycle SR1: Source Return Defective
return order cycle time, including supplier return order Product
time processing cycle time, pick-to-ship SR3: Source Return Excess Product
cycle time, transit time etc.
RS.3.23 Customs The average time associated with ED.8: Manage Import/Export
Clearance Cycle clearing an order through customs Requirements
Time ES.8: Manage Import/Export
Requirements
RS.3.24 Deliver and/or The average time required to deliver D4.7: Deliver and/or Install
Install Cycle Time and install product.

RS
RS.3.25 Enter Order, The average time associated with D3.3: Enter Order, Commit
Commit entering an order, committing Resources Launch Program
Resources & resources and program launch
Launch Program
Cycle Time
RS.3.26 Establish and The average time associated with P5.4: Establish and Communicate
Communicate establishing and communicating return Return Plans
Return Plans plans
Cycle Time
RS.3.27 Establish Delivery The average time associated with P4.4: Establish Delivery Plans
Plans Cycle Time establishing and communicating
deliver plans
RS.3.28 Establish The average time associated with P3.4: Establish Production Plans
Production Plans establishing and communicating
Cycle Time production plans
RS.3.29 Establish The average time associated with P2.4: Establish Sourcing Plans
Sourcing Plans establishing and communicating
Cycle Time source plans
RS.3.30 Establish Five point annual average of the sum P1.4: Establish & Communicate
Supply Chain of all gross inventories (raw materials Supply-Chain Plans
Plans & WIP, plant FG, field FG, field samples,
Cycle Time 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.
RS.3.31 External Event The average response time (in days) to ES.9: Manage Supply Chain Source
Response an external risk event from the time of Risk
(average days) the event (included detection lags) EM.9: Manage Supply Chain Make
Risk
Risk
Risk
RS.3.32 Fill Shopping Cart The average time associated with D4.5: Fill Shopping Cart
Cycle Time “filling the shopping cart”
RS.3.33 Finalize The average time associated with the M3.1: Finalize Production
Production finalization of production engineering Engineering
Engineering Cycle
Time
RS.3.34 Generate The average time associated with the D4.1: Generate Stocking Schedule
Stocking generating a stocking schedule
Schedule Cycle
Time

RS
RS.3.35 Identify Sources The average time associated with the S3.1: Identify Sources of Supply
of Supply Cycle identification of sources of supply
Time
RS.3.36 Identify, Assess The average time associated with P3.2: Identify, Assess and
and Aggregate the identifying, prioritizing, and Aggregate Production Resources
Production aggregating product requirements.
Resources
Cycle Time
RS.3.37 Identify, Assess, The average time associated with the P4.2: Identify, Assess and
and Aggregate identifying, assessing, and aggregating Aggregate Delivery Resources
Delivery delivery resource availability P4.3: Balance Delivery Resources
Resources Cycle and Capabilities with Delivery
Time Requirements
RS.3.38 Identify, Assess, The average time associated with the P3.2: Identify, Assess and
and Aggregate identifying, assessing, and aggregating Aggregate Production Resources
Product product resource availability P2.2: Identify, Assess and
Resources Cycle Aggregate Product Resources
Time
RS.3.39 Identify, Assess, The average time associated with the P1.2: Identify, Prioritize and
and Aggregate identifying, assessing, and aggregating Aggregate SC Resources
Supply Chain supply chain resource availability
Resources Cycle
Time
RS.3.40 Identify, Prioritize, The average time associated with P4.1: Identify, Prioritize and
and Aggregate the identifying, prioritizing, and Aggregate Delivery Requirements
Delivery aggregating delivery requirements
Requirements
Cycle Time
and Aggregate the identifying, prioritizing, and Aggregate Product Requirements
Product aggregating product requirements
Requirements
Cycle Time
RS.3.42 Identify, Prioritize, The average time associated with P3.1: Identify, Prioritize
and Aggregate the identifying, prioritizing, and and Aggregate Production
Production aggregating production requirements Requirements
Requirements
Cycle Time
RS.3.43 Identify, The average time associated with P5.1: Assess and Aggregate Return
Prioritize, and the identifying, prioritizing, and Requirements
Aggregate Return aggregating return requirements
Requirements
Cycle Time

RS
and Aggregate the identifying, prioritizing, and Aggregate SC Requirements
Supply Chain aggregating supply chain requirements
Requirements
Cycle Time
RS.3.46 Install Product The average time associated with D1.14: Install Product
Cycle Time product installation D2.14: Install Product
D3.14: Install Product
RS.3.47 In-stock % Percentage of materials, components, D4.4: Stock Shelf
or finished goods that are there when
needed.
RS.3.48 Invoice Cycle The average time associated with the D1.15: Invoice
Time generation and issuance of an invoice D3.15: Invoice
RS.3.49 Issue Material The average time associated with the M1.2: Issue Material
Cycle Time issuance of material to production
RS.3.50 Issue Sourced/In- The average time associated with the M2.2: Issue Sourced/In-Process
Process Product issuance of material to production Product
Cycle Time M3.3: Issue Sourced/In-Process
Product
RS.3.51 Load Product The average time associated with D2.11: Load Product & Generate
& Generate product loading and the generation of Shipping Documentation
Shipping shipping documentation D3.11: Load Product & Generate
Documentation Shipping Documents
Cycle Time
RS.3.52 Load Vehicle and The average time associated with D1.11: Load Vehicle & Generate
Generate product loading and the generation of Shipping Documentation
Shipping shipping documentation
Documentation
Cycle Time
RS.3.53 Maintain Source The average time associated with ES.3: Maintain Source Data
Data Cycle Time maintaining source data
RS.3.54 Manage Business The average time associated with EP.1: Manage Business Rules for
Rules for PLAN managing plan business rules Plan Processes
Processes Cycle
Time
RS.3.55 Manage Business The average time associated with ER.1: Manage Business Rules for
Rules for Return managing rules for returns Return Processes
Processes Cycle
Time
RS.3.56 Manage Capital The average time associated with ES.5: Manage Capital Assets
Assets Cycle Time managing capital assets
RS.3.57 Manage Deliver The average time associated with ED.1: Manage Deliver Business
Business Rules managing deliver business rules Rules
Cycle Time

RS
RS.3.58 Manage Deliver The average time associated with ED.5: Manage Deliver Capital
Capital Assets managing deliver capital assets Assets
Cycle Time
RS.3.59 Manage Deliver The average time associated with ED.3: Manage Deliver Information
Information Cycle managing deliver information
Time
RS.3.60 Manage Finished The average time associated with ED.4: Manage Finished Goods
Goods Inventories managing finished good inventory Inventories
Cycle Time
RS.3.61 Manage The average time associated with ED.8: Manage Import/Export
Import/Export managing import/export requirements Requirements
Requirements ES.8: Manage Import/Export
Cycle Time Requirements
RS.3.62 Manage Incoming The average time associated with ES.6: Manage Incoming Product
Product Cycle managing inbound raw material
Time
RS.3.63 Manage In- The average time associated with EM.4: Manage In-Process Products
Process Products managing WIP inventory (WIP)
(WIP) Cycle Time
RS.3.64 Manage The average time associated with EP.5: Manage Integrated Supply
Integrated Supply managing integrated supply chain Chain Capital Assets
Chain Capital capital assets
Assets Cycle Time
Integrated Supply managing integrated supply chain Chain Inventory
Chain Inventory inventory
Cycle Time
Integrated managing integrated supply chain Chain Transportation
Supply Chain transportation
Transportation
Cycle Time
RS.3.67 Manage MAKE The average time associated with EM.5: Manage Make Equipment
Equipment and managing production equipment and and Facilities
Facilities Cycle facilities
Time
RS.3.68 Manage MAKE The average time associated with EM.3: Manage Make Information
Information Cycle managing production information
Time
RS.3.69 Manage MAKE The average time associated with EM.8: Manage Make Regulatory
Regulatory managing compliance to the make Environment
Compliance Cycle regulatory environment
Time

RS
RS.3.70 Manage The average time associated with ER.2: Manage Performance of
Performance of managing the performance of supply Return Processes
Return Processes chain activities
Cycle Time
RS.3.71 Manage The average time associated with EP.2: Manage Performance of
Performance of managing the performance of return Supply Chain
Supply Chain activities
Cycle Time
RS.3.72 Manage PLAN The average time associated with EP.3: Manage Plan Data Collection
Data Collection collecting plan data
Cycle Time
RS.3.73 Manage Plan The average time associated with EP.8: Manage Plan Regulatory
Regulatory managing the planning of regulatory Requirements and Compliance
Requirements requirements and compliance
and Compliance
Cycle Time
RS.3.74 Manage Planning The average time associated with EP.7: Manage Planning
Configuration managing the planning of the supply Configuration
Cycle Time chain configuration
RS.3.75 Manage Product The average time associated with ES.4: Manage Product Inventory
Inventory Cycle managing raw material inventory
Time
RS.3.76 Manage Product The average time associated with ED.7: Manage Product Life Cycle
Life Cycle Time managing the product life cycle
RS.3.77 Manage The average time associated with EM.7: Manage Production Network
Production managing the production network
Network Cycle
Time
RS.3.78 Manage The average time associated with EM.2: Manage Production
Production managing production performance Performance
Performance
Cycle Time
RS.3.79 Manage The average time associated with EM.1: Manage Production Rules
Production Rules managing production rules
Cycle Time
RS.3.80 Manage Return The average time associated with EM.5: Manage Return CapitalAssets
Capital Assets managing return capital assets
Cycle Time
RS.3.81 Manage Return The average time associated with ER.3: Manage Return Data
Data Collection managing return data collection Collection
Cycle Time
RS.3.82 Manage Return The average time associated with ER.4: Manage Return Inventory
Inventory Cycle managing return inventory
Time

RS
RS.3.83 Manage Return The average time associated with ER.7: Manage Return Network
Network managing the return network Configuration
Configuration configuration
Cycle Time
RS.3.84 Manage Return The average time associated ER.7: Manage Return Network
Regulatory with compliance and regulatory Configuration
Requirements requirements for return products
and Compliance
Cycle Time
RS.3.85 Manage Return The average time associated with ER.6: Manage Return
Transportation managing return transportation Transportation
Cycle Time
RS.3.86 Manage Sourcing The average time associated with ES.1: Manage Sourcing Business
Business Rules managing source business rules Rules
Cycle Time
RS.3.87 Manage Supplier The average time associated with ES.10: Manage Supplier
Agreements Cycle managing supplier agreements Agreements
Time
RS.3.88 Manage Supplier The average time associated with ES.7: Manage Supplier Network
Network Cycle managing the supplier network
Time
RS.3.89 Manage The average time associated with EM.6: Manage Transportation (WIP)
Transportation managing (WIP) transportation
(WIP) Cycle Time
RS.3.90 Manage The average time associated with ED.6: Manage Transportation
Transportation managing transportation
Cycle Time
RS.3.91 Manufacturing The average time associated with EM.5: Manage Make Equipment
cycle time managing transportation and Facilities
reestablished and EM.6: Manage Make Transportation
sustained for 30 EM.7: Manage Make Network
days
RS.3.92 Negotiate & The average time associated with D3.2: Negotiate and Receive
Receive Contract negotiating and receiving a contract Contract
Cycle Time
RS.3.93 Obtain & Respond The average time associated with D3.1: Obtain and Respond to RFP/
to Request for obtaining and responding to RFQs/RFPs RFQ
Quote (RFQ)
/ Request for
Proposal (RFP)
Cycle Time

RS
RS.3.94 Order Fulfillment Any lead time during the order D1.2: Receive, Enter and Validate
Dwell Time fulfillment process where no activity Order
takes place, which is imposed by D1.3: Reserve Inventory and
customer requirements. Note that Determine Delivery Date
this dwell time is different from ‘idle D2.2: Receive, Configure, Enter and
time’ or ‘non-value-add lead time’, Validate Order
which is caused by inefficiencies in the D2.3: Reserve Inventory and
organization’s processes and therefore Determine Delivery Date
ultimately under responsibility of the D3.3: Enter Order, Commit
organization. This kind of idle time Resources Launch Program
should not be deducted from Order
Fulfillment Cycle Time.
RS.3.95 Pack Product The average time associated with D1.10: Pack Product
Cycle Time packing a product for shipment. D2.10: Pack Product
D3.10: Pack Product
RS.3.96 Pick Product The average time associated with D1.9: Pick Product
Cycle Time product pick D2.9: Pick Product
D3.9: Pick Product
RS.3.97 Pick Product from The average time associated with D4.3: Pick Product from Backroom
Backroom Cycle product pick from backroom
Time
RS.3.98 Plan Cycle Time The average time associated with Plan P1: Plan Supply Chain
Processes
RS.3.99 Plan Source Cycle The average time associated with P2: Plan Source
Time planning source activities
RS.3.100 Process Inquiry & The average time associated with D1.1: Process Inquiry and Quote
Quote Cycle Time processing inquiries and quotes D2.1: Process Inquiry and Quote
RS.3.101 Produce and Test The average time associated with M1.3: Produce and Test
Cycle Time production and test M2.3: Produce and Test
RS.3.102 Receive & Verify The average time associated with D1.13: Receive and Verify Product
Product by receiving and verifying an order at the by Customer
Customer Cycle customer site D2.13: Receive and Verify Product
Time by Customer
by Customer
RS.3.103 Receive and Verify The average time associated with D1.13: Receive and Verify Product
Product Cycle receiving and verifying an order at the by Customer
Time customer site D2.13: Receive and Verify Product
by Customer
by Customer
RS.3.104 Receive Defective The average time associated with DR1.3: Receive Defective Product
Product Cycle receiving defective product returns
Time from the customer

RS
RS.3.105 Receive Excess The average time associated with DR3.3: Receive Excess Product
Product Cycle receiving excess product returns from
Time the customer
RS.3.106 Receive MRO The average time associated with DR2.3: Receive MRO Product
Product Cycle receiving MRO product returns from
Time the customer
RS.3.107 Receive Product The average time associated with D4.2: Receive Product at the Store
Cycle Time receiving product
RS.3.108 Receive Product The average time associated with D1.8: Receive Product from Source
from Make/ receiving product from Make/Source or Make
Source D2.8: Receive Product from Source
Cycle Time or Make
D3.8: Receive Product from Source
or Make
RS.3.109 Receive Product The average time associated with D4.2: Receive Product at the Store
at Store Cycle receiving product at the customer store
Time
RS.3.110 Receive Product The average time associated with D1.8: Receive Product from Source
from Source or receiving a transfer of product to or Make
Make Cycle Time deliver processes from source or make D2.8: Receive Product from Source
or Make
or Make
RS.3.111 Receive, The average time associated with D2.2: Receive, Configure, Enter and
Configure, Enter receiving and verifying an order at the Validate Order
& Validate Order customer site
Cycle Time
RS.3.112 Receive, Enter & The average time associated with D1.2: Receive, Enter and Validate
Validate Order receiving and verifying an order at the Order
Cycle Time customer site
RS.3.113 Receiving Product Total elapsed time from time product S1.2: Receive Product
Cycle Time is received to time it is passed to next S2.2: Receive Product
process S3.4: Receive Product
RS.3.114 Release Finished The average time associated with M1.6: Release Product to Deliver
Product to Deliver releasing finished product to deliver M2.6: Release Finished Product to
Cycle Time Deliver
M3.7: Release Product to Deliver
RS.3.115 Reserve Inventory The average time associated with D2.3: Reserve Inventory and
& Determine reserving inventory and determining a Determine Delivery Date
Delivery Date delivery date
Cycle Time

RS
RS.3.116 Reserve The average time associated with D1.3: Reserve Inventory and
Resources and reserving resources and determining a Determine Delivery Date
Determine delivery date D2.3: Reserve Inventory and
Delivery Date Determine Delivery Date
Cycle Time
RS.3.117 Route Shipments The average time associated with D1.6: Route Shipments
Cycle Time routing shipments D2.6: Route Shipments
RS.3.118 Schedule The average time associated with DR1.2: Schedule Defective Return
Defective Return scheduling the receipt of the return of Receipt
Receipt Cycle defective product
Time
RS.3.119 Schedule Excess The average time associated with DR3.2: Schedule Excess Return
Return Receipt scheduling the receipt of the return of Receipt
Cycle Time excess product
RS.3.120 Schedule The average time associated with D3.4: Schedule Installation
Installation Cycle scheduling the installation of product
Time
RS.3.121 Schedule MRO The average time associated with DR2.2: Schedule MRO Return
Return Receipt scheduling the receipt of the return of Receipt
Cycle Time MRO product
RS.3.122 Schedule Product The average time associated with S1.1: Schedule Product Deliveries
Deliveries Cycle scheduling the shipment of the return S2.1: Schedule Product Deliveries
Time of MRO product S3.3: Schedule Product Deliveries
RS.3.123 Schedule The average time associated with M1.1: Schedule Production
Production scheduling production activities Activities
Activities Cycle M2.1: Schedule Production
Time Activities
M3.2: Schedule Production
Activities
RS.3.124 Select Carriers & The average time associated with D1.7: Select Carriers and Rate
Rate Shipments selecting carriers and rating shipments Shipments
Cycle Time D1.7: Select Carriers and Rate
Shipments
D3.7: Select Carriers & Rate
Shipments
RS.3.125 Select Supplier The average time associated with S3.2: Select Final Supplier(s) and
and Negotiate selecting a suppliler and negotiating Negotiate
Cycle Time
RS.3.126 Ship Product The average time associated with D1.12: Ship Product
Cycle Time shipping product D2.12: Ship Product
D3.12: Ship Product
RS.3.127 Source Return Average time associated with Sourcing SR1: Source Return Defective
Cycle Time Return Product
SR3: Source Return Excess Product

RS
RS.3.128 Stage Finished The average time associated with M1.5: Stage Product
Product Cycle staging finished product M2.5: Stage Finished Product
Time M3.6: Stage Finished Product
RS.3.129 Stock Shelf Cycle The average time associate with D4.4: Stock Shelf
Time stocking shelves
RS.3.130 Supply chain Time the supply chain is disrupted EP.8: Manage Plan Regulatory
down time due to by environmental compliance issues Requirements and Compliance,
compliance issues divided by the total potential available ES.8: Manage Import/Export
time Requirements
EM.8: Manage Make Regulatory
Environment
ED.8: Manage Import/Export
Requirements
ER.8: Manage Return Regulatory
Requirements and Compliance
RS.3.131 Time to reach and Amount of time needed to reach and ER.5: Manage Return Capital Assets
sustain current sustain current customer return order ER.6: Manage Return
customer return cycle time, including customer return Transportation
order cycle time order processing cycle time, transit ER.7: Manage Return Network
time, return processing and disposition Configuration
cycle time, etc.
RS.3.132 Time to reach and Amount of time needed to reach ED.5: Manage Deliver Capital
sustain current and sustain current logistics order Assets,
logistics order cycle time, including customer order ED.6: Manage Transportation
cycle time processing cycle time, dock-to-stock
cycle time, pick-to-ship cycle time,
transit time, etc.
RS.3.133 Time to reach and Amount of time needed to reach and EM.5: Manage Make Equipment
sustain current sustain current manufacturing cycle and Facilities
manufacturing time EM.6: Manage Make Transportation
order cycle time EM.7: Manage Make Network
RS.3.134 Time to reach and Amount of time needed to reach and ES.5: Manage Source Capital Assets
sustain current sustain current procurement cycle time, ES.6: Manage Incoming Product
purchase order including time to place a purchase ES.7: Manage Supplier Network
cycle time order and supplier lead time ES.10: Manage Supplier
Agreements
RS.3.135 Time to reach and Amount of time needed to reach and ES.5: Manage Source Capital Assets
sustain current sustain current supplier return order ES.6: Manage Incoming Product
supplier return cycle time, including supplier return ES.7: Manage Supplier Network
order cycle time order processing cycle time, pick-to- ES.10: Manage Supplier
ship cycle time, transit time, etc. Agreements
RS.3.136 Transfer Defective The average time associated transfer DR1.4: Transfer Defective Product
Product Cycle until product is moved to the next
Time process.

RS
RS.3.137 Transfer Excess The average time associated transfer DR3.4: Transfer Excess Product
Time process.
RS.3.138 Transfer MRO The average time associated transfer DR2.4: Transfer MRO Product
Time process.
RS.3.139 Transfer Product The average time associated transfer S1.4: Transfer Product
Cycle Time until product is moved to the next S2.4: Transfer Product
process. S3.6: Transfer Product
RS.3.140 Verify Product The average time associated with S1.3: Verify Product
Cycle Time verifying raw material product S2.3: Verify Product
S3.5: Verify Product
RS.3.141 Waste The time required to collect and M1.7: Waste Disposal
accumulation properly store production waste M2.7: Waste Disposal
time M3.8: Waste Disposal

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.

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 enterprise’s operating
plan, then the time incurred to undertake the adaptation isn’t necessarily a reflection of the supply
chain’s 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 chain’s
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

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.

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

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 indus-
tries 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

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

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.

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 FTE’s)
o Amount of time needed to recruit/hire/train additional staff to fill gap between underutilized
FTE’s 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

AG.2.1
Level 1 AG.1.1 Upside Supply Flexibility
Level 2 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
Procurement staff availablity

Level 3
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

AG.2.2
Upside Make Flexibility
The number of days required to achieve an unplanned sustainable 20% increase in produc-
tion 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.

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 FTE’s)
o Amount of time needed to recruit/hire/train additional labor to fill gap between
underutilized FTE’s 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)

AG.2.2
Level 2 AG.2.2 Upside Make Flexibility
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
Time needed to recruit/hire/train additional labor

Level 3
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

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)

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 FTE’s)
o Amount of time needed to recruit/hire/train additional labor to fill gap between underutilized
FTE’s 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)

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

AG.2.3
Level 2 AG.2.3 Upside Make Flexibility
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 equipment capacity utilization
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


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

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 FTE’s)
o Amount of time needed to recruit/hire/train additional staff / labor to fill gap between
underutilized FTE’s 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

AG.2.4
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

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

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 FTE’s)
o Amount of time needed to recruit/hire/train additional staff / labor to fill gap between
underutilized FTE’s 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

AG.2.5
Level 1 AG.1.1 Upside Supply Chain Flexibility
Level 2 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

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

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 FTE’s and
FTE’s 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.

AG.2.6
Level 1 AG.1.2 Upside Supply Chain Adaptability
Level 2 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

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)

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 FTE’s and
FTE’s 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.

AG.2.7
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

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

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 FTE’s and
FTE’s 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

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

AG.2.8
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)
Additional delivery volume
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

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

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 FTE’s)
o How much procurement staff/logistics labor can be recruited/hired and trained fill gap
between underutilized FTE’s and FTE’s 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

AG.2.9
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

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

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 FTE’s)
o How much customer service staff/logistics labor can be recruited/hired and trained fill gap
between underutilized FTE’s and FTE’s 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

AG.2.10
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

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

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.

AG.2.11
Level 1 AG.1.3 Downside Supply Adaptability
Level 2 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 Capital availability
Current capital requirements (accounting policy)
Demand sourcing - supplier constraints
Amount of decrease in inventory (Raw, Purchased FG)

obtained in 30 days

30 days

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)

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.

AG.2.12
Level 1 AG.1.3 Downside Supply Chain Adaptability
Level 2 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

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

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)

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

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.)

AG.2.13
Level 1 AG.1.3 Downside Supply Chain Adaptability
Level 2 AG.2.13 Downside Deliver Adaptability
Current Delivery volumes
Productivity-orders shipped per FTE

Internal and External (3PL) storage capacity needed for cur-
rent delivery volume
Current inventory on hand (FG)
Amount supplemental outsourced or leased resources or

facilities terminated in 30 days
Level 3
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

AG
Level 3 Agility Metrics

AG.3.1 % of labor used in Percent of labor used in logistics, not D1: Deliver Stocked Product
logistics, not used used in direct activity D2: Deliver Make-to-Order Product
in direct activity D3: Deliver Engineer-to-Order
Product
AG.3.2 % of labor used Percent of labor used in manufacturing, M1: Make-to-Stock
in manufacturing, not used in direct activity M2: Make-to-Order
not used in direct M3: Engineer-to-Order
activity
AG.3.3 Additional deliver Additional customer return volume DR1: Deliver Return Defective
return volume Product
DR2: Deliver Return MRO Product
DR3: Deliver Return Excess Product
AG.3.4 Additional Additional delivery volume D1: Deliver Stocked Product
Delivery volume D2: Deliver Make-to-Order Product
D3: Deliver Engineer-to-Order
Product
AG.3.5 Additional Time required in negotiating new ES.7: Manage Supplier Network
demand source/volume contracts/terms and ES.10: Manage Supplier
sourcing-supplier time required to find/obtain additional Agreements
constraints source
AG.3.6 Additional make Additional make volume to be EM.5: Manage Make Equipment
volume determined given increased resources and Facilities
EM.6: Manage Make Transportation
EM.7: Manage Make Network
AG.3.7 Additional source Additional supplier return volume ER.5: Manage Return Capital Assets
return volume ER.6: Manage Return
Transportation
ER.7: Manage Return Network
Configuration
AG.3.8 Additional Source Additional source volume ES.5: Manage Source Capital Assets
Volumes ES.6: Manage Incoming Product
ES.7: Manage Supplier Network
ES.10: Manae Supplier Agreements
AG.3.9 Additional source Additional source volume to be S1: Source Stocked Product
volumes obtained determined given ramped up resources S2: Source Make-to-Order Product
in 30 days S3: Source Engineer-to-Order
Product
AG.3.10 Amount How much capital can be obtained to EP.10: Align Supply Chain Unit Plan
additional capital fill gap between underutilized asset with Financial Plan
obtained in 30 capacity and assets needed to increase
days and sustain quantities delivered given
30 days

AG
AG.3.11 Amount How much assets/capacity can EP.5: Manage Integrated Supply
additional be obtained to fill gap between Chain Capital Assets,
equipment underutilized asset capacity and assets ES.5: Manage Capital Assets,
obtained in 30 needed to increased and sustain EM.5: Manage Make Equipment
days quantities produced given 30 days and Facilities,
in equipment such as manufacturing ED.5: Manage Deliver Capital
equipment, materials handling and Assets
packaging equipment, etc ER.5: Manage Return Capital Assets
AG.3.12 Amount How much assets/capacity can EP.5: Manage Integrated Supply
additional be obtained to fill gap between Chain Capital Assets, ES.5: Manage
internal space underutilized asset capacity and assets Capital Assets,
obtained in 30 needed to increased and sustain EM.5: Manage Make Equipment
days quantities produced given 30 days in and Facilities,
internal space ED.5: Manage Deliver Capital
Assets
ER.5: Manage Return Capital Assets
AG.3.13 Amount How much raw material inventory ES.4: Manage Product Inventory,
additional can be received and phased into EM.4: Manage In-Process Products,
inventory (raw) manufacturing and produced into WIP ED.4: Manage Finished Goods
received and and FG inventory, and sustained for Inventories
made (WIP, FG) in order fulfillment, including safety stock
30 days given 30 days
AG.3.14 Amount How much labor can be recruited/
additional labor hired and trained to fill gap between
recruited/hired/ underutilized FTE’s and FTE’s needed
trained in 30 days to increase and sustain quantities
produced given 30 days
AG.3.15 Amount How much labor can be recruited/
additional staff hired and trained to fill gap between
recruited/hired/ underutilized FTE’s and FTE’s needed
trained in 30 days to increase and sustain quantities
produced given 30 days
AG.3.16 Amount How much staff/labor can be recruited/
additional staff/ hired and trained fill gap between
labor recruited/ underutilized FTE’s and FTE’s needed to
hired/trained in increase and sustain quantities sourced
30 days given 30 days
AG.3.17 Amount decrease How much inventory can be shipped or ED.4: Manage Finished Goods
in inventory (FG) diverted without cost penalty to ramp Inventories
obtained in 30 down to decreased quantities delivered
days given 30 days notice (all else equal in
source and make, includes safety stock)
AG.3.18 Amount decrease How much inventory (raw material ES.4: Manage Product Inventory,
in inventory (Raw, and purchased finished goods) can be ED.4: Manage Finished Goods
Purchased FG) returned, sold or diverted without cost Inventories
obtained in 30 penalty to ramp down to decreased
days quantities delivered given 30 days
notice

AG
AG.3.19 Amount labor How much labor can be recruited/
recruited/hired/ hired and trained to fill gap between
trained in 30 days underutilized FTE’s and FTE’s needed
to increase and sustain quantities
delivered given 30 days
AG.3.20 Amount labor How much labor can be laid-off or EM.8: Manage Make Regulatory
that can be laid diverted to other activities, without cost Environment
off in 30 days penalty, to ramp down to decreased
quantities delivered given 30 days
notice
AG.3.21 Amount of How many capital equipment assets EP.5: Manage Integrated Supply
Equipment can be recycled, diverted or sold or Chain Capital Assets,
recycled, subleased without cost penalty, to ES.5: Manage Capital Assets,
diverted, or sold ramp down to decreased quantities EM.5: Manage Make Equipment
in 30 days delivered given 30 days notice and Facilities,
ED.5: Manage Deliver Capital
Assets
AG.3.22 Amount of How much inventory (raw material ED.4: Manage Finished Goods
inventory (Raw, and purchased finished goods) can Inventories
Purchased FG) be obtained, delivered and phased
obtained in 30 in and sustained for order fulfillment,
days including safety stock given 30 days
AG.3.23 Amount of staff How much staff can be laid-off or
that can be laid- diverted to other activities, without cost
off in 30 days penalty, to ramp down to decreased
quantities delivered given 30 days
notice
AG.3.24 Amount reduced How much manufacturing quantities EM.4: Manage In-Process Products,
inventory made (WIP and FG inventory), including ED.4: Manage Finished Goods
(WIP, FG) in 30 safety stock can be ramped down to Inventories
days decreased order fulfillment quantities
given 30 days notice
AG.3.25 Amount How much supplemental outsourced EP.5: Manage Integrated Supply
supplemental or leased resources or facilities can be Chain Capital Assets,
outsourced or terminated to ramp down to decreased ES.5: Manage Capital Assets,
leased resources quantities delivered given 30 days EM.5: Manage Make Equipment
or facilities notice and Facilities,
terminated in 30 ED.5: Manage Deliver Capital
Assets

AG
AG.3.26 Amount How much supplemental outsourced EP.5: Manage Integrated Supply
supplemental or leased resources or facilities can Chain Capital Assets,
outsourced or be obtained to increased and sustain ES.5: Manage Capital Assets,
leased resources quantities returned to suppliers given EM.5: Manage Make Equipment
or faciltiies 30 day. and Facilities,
obtained in 30 ED.5: Manage Deliver Capital
days Assets
AG.3.27 Capital The percentage of orders that are EP.10: Align Supply Chain Unit Plan
Availability fulfilled on the customer’s original with Financial Plan
commit date
AG.3.28 Capital The average time associated with EP.10: Align Supply Chain Unit Plan
Requirements Deliver Retail Processes with Financial Plan
(Acct/Finance
Policy)
AG.3.29 Current Capital Requirements on credit line, cash on EP.10: Align Supply Chain Unit Plan
Requirements hand and accounting procedures based with Financial Plan
on current sourcing situation
AG.3.30 Current capital Accounting procedures for selling/ EP.10: Align Supply Chain Unit Plan
requirements diverting/recycling assets with Financial Plan
(accounting
policy)
AG.3.31 Current Deliver current return volume, number of DR1: Deliver Return Defective
Return Volume orders returned Product
DR2: Deliver Return MRO Product
DR3: Deliver Return Excess Product
AG.3.32 Current Delivery Number of orders shipped D1: Deliver Stocked Product
Volume D2: Deliver Make-to-Order Product
Product
D4: Deliver Retail Product
AG.3.33 Current internal Current utilization of internal EP.5: Manage Integrated Supply
equipment equipment capacity, including Chain Capital Assets,
capacity manufacturing equipment, materials ES.5: Manage Capital Assets,
utilization handling and packaging equipment, EM.5: Manage Make Equipment
etc. and Facilities,
Assets
AG.3.34 Current Internal Current utilization of internal facility/ EP.5: Manage Integrated Supply
facility/storage storage capacity, including facilities, Chain Capital Assets,
capacity space. ES.5: Manage Capital Assets,
utilization EM.5: Manage Make Equipment
and Facilities,
Assets

AG
AG.3.35 Current Internal Current utilization of internal facility/ EP.5: Manage Integrated Supply
Storage capacity storage capacity, including facilities, Chain Capital Assets,
utilization space. ES.5: Manage Capital Assets,
EM.5: Manage Make Equipment
and Facilities,
Assets
AG.3.36 Current Inventory Current on hand inventories (finished ED.4: Manage Finished Goods
on hand (FG) goods), including safety stock required Inventories
to sustain current order fulfillment,
assuming optimized inventory practices
AG.3.37 Current Inventory Current on hand inventories (work EM.4: Manage In-Process Products,
on Hand (WIP, FG) in process and purchased finished ED.4: Manage Finished Goods
goods), including safety stock required Inventories
to sustain current order fulfillment,
AG.3.38 Current Make Amount of each item which are M1: Make-to-Stock
Volume manufactured M2: Make-to-Order
M3: Engineer-to-Order
AG.3.39 Current On-hand Current on hand inventories (raw ES.4: Manage Product Inventory,
inventories (Raw, material and purchased finished EM.4: Manage In-Process Products,
Purchased, FG) goods), including safety stock required ED.4: Manage Finished Goods
to sustain current order fulfillment, Inventories
AG.3.40 Current Purchase Sum of time to place a purchase order S1: Source Stocked Product
Order Cycle Times and supplier lead time S2: Source Make-to-Order Product
S3: Source Engineer-to-Order
Product
AG.3.41 Current source current return volume, number of SR1: Source Return Defective
return volume orders returned Product
AG.3.42 Current Source Amount of each item which are S1: Source Stocked Product
Volume purchased S2: Source Make-to-Order Product
Product
AG.3.43 Current Sourcing/ Current contract terms and nature of ES.10: Manage Supplier
Supplier items (commodity/sole source) Agreements
Constraints
AG.3.44 Customer return Customer return order cycle time DR1: Deliver Return Defective
order cycle time reestablished and sustained for Product
reestablished and increased quantities returned from DR2: Deliver Return MRO Product
sustained in 30 customer given 30 days, including DR3: Deliver Return Excess Product
days customer return order processing cycle
time, transit time, return processing and
disposition cycle time, etc.

AG
AG.3.45 Customer Service Customer service staff / Logistics labor
staff/Logistics availability
labor availability
AG.3.46 Demand Percentage of orders with on time and S1: Source Stocked Product
sourcing-supplier accurate documentation supporting S2: Source Make-to-Order Product
constraints the order, including packing slips, bills S3: Source Engineer-to-Order
of lading, invoices, etc. [Total number Product
of orders delivered with correct and
timely documentation] / [Total number
of orders delivered] x 100%
AG.3.47 Direct Labor Labor needed to meet current demand, EM.2: Manage Production
Availability productivity-units/orders per FTE Performance
AG.3.48 Internal and Internal and external (3PL) capacity ED.5: Manage Deliver
External (3PL) needed for current demand throughput Capital Assets, ED.6: Manage
equipment in fleet equipment, outside carrier Transportation
capacity needed loads, materials handling equipment,
for current etc.
delivery volume
AG.3.49 Internal and Internal and external (3PL) capacity ER.5: Manage Return Capital Assets
External (3PL) needed for current return throughput ER.6: Manage Return
Equipment in fleet equipment, outside carrier Transportation
capacity needed loads, materials handling equipment, ER.7: Manage Return Network
for current return etc. Configuration
volume
AG.3.50 Internal and Internal and External (3PL) Equipment ER.5: Manage Return Capital Assets
External (3PL) needed for current return volume ER.6: Manage Return
Equipment Transportation
needed for ER.7: Manage Return Network
current return Configuration
volume
AG.3.51 Internal and Internal and external (3PL) capacity ED.5: Manage Deliver
External (3PL) needed for current demand throughput Capital Assets, ED.6: Manage
storage capacity in facilities and space. Transportation
needed for
current delivery
volume
AG.3.52 Internal and Internal and external (3PL) capacity ER.5: Manage Return Capital Assets
External (3PL) needed for current return throughput ER.6: Manage Return
storage capacity in facilities and space. Transportation
needed for ER.7: Manage Return Network
current return Configuration
volume

AG
AG.3.53 Internal and Internal and external (outsourced) EM.5: Manage Make Equipment
External facilities/ capacity needed for current demand and Facilities
storage capacity throughput in facilities and space EM.6: Manage Make Transportation
needed for EM.7: Manage Make Network
current make
volume
AG.3.54 Internal and Internal and external (outsourced) EM.5: Manage Make Equipment
External capacity needed for current demand and Facilities
manufacturing throughput in manufacturing EM.6: Manage Make Transportation
equipment equipment EM.7: Manage Make Network
capacity needed
for current make
volume
AG.3.55 Internal Event The average response time (in days) to ES.9: Manage Supply Chain Source
Response an internal risk event from the time of Risk
(average days) the event (included detection lags) EM.9: Manage Supply Chain Make
Risk
Risk
Risk
AG.3.56 Logistics order Logistics order cycle time reestablished ED.5: Manage Deliver Capital
cycle time and sustained for increased quantities Assets,
reestablished and produced given 30 days, including ED.6: Manage Transportation
sustained in 30 customer order processing cycle time,
days dock-to-stock cycle time, pick-to-ship
cycle, transit time, etc
AG.3.57 Manufacturing Manufacturing cycle time reestablished EM.5: Manage Make Equipment
cycle time and sustained for increased quantities and Facilities
reestablished and produced given 30 days EM.6: Manage Make Transportation
sustained in 30 EM.7: Manage Make Network
days
AG.3.58 Options Rating Options Rating (0-100%) EP.9: Manage Supply Chain Plan
(0-100%) Risk
Risk
Risk
Risk
AG.3.59 Procurement Staff Staff availability in procurement ES.7: Manage Supplier Network
Availability
AG.3.60 Procurement Procurement staff / Logistics labor ES.7: Manage Supplier Network
staff/Logistics availability
labor availability

AG
AG.3.61 Productivity Productivity-order shipped per FTE to ED.2: Assess Delivery Performance
orders shipped meet current requirements
per FTE
AG.3.62 Productivity- Productivity orders returned per FTE ER.2: Manage Performance of
orders returned Return Processes
per FTE
AG.3.63 Productivity- Productivity-purchase order per FTE to ES.2: Assess Supplier Performance
Purchase orders meet current requirements
per FTE
AG.3.64 Productivity- Productivity-purchase order per FTE to EM.2: Manage Production
units/orders meet current requirements Performance
produced per FTE
AG.3.65 Purchase order Procurement order cycle time ES.7: Manage Supplier Network
cycle time reestablishment and sustained for ES.10: Manage Supplier
reestablished and increased quantities sourced given 30 Agreements
sustained in 30 days, including time to place a purchase
days order and supplier lead time
AG.3.66 Reduced delivery Reduced delivery volume to be ED.5: Manage Deliver Capital
volume determined given ramped down Assets
resources
AG.3.67 Reduced Make Reduced make volume to be EM.5: Manage Make Equipment
volume determined given ramped down and Facilities
resources EM.6: Manage Make Transportation
AG.3.68 Reduced Reduced source volume to be ES.5: Manage Source Capital Assets
source volumes determined given ramped down ES.6: Manage Incoming Product
accomplished in resources ES.7: Manage Supplier Network
30 days ES.10: Manage Supplier
Agreements
AG.3.69 Supplemental Including facilities, leasing building, EM.7: Manage Production Network
outsource/lease leasing manufacturing equipment,
availability materials handling and packaging
equipment, co packers, etc.
AG.3.70 Supplemental Including facilities, leasing building, EM.7: Manage Production Network
outsource/lease leasing manufacturing equipment,
termination materials handling and packaging
ability equipment, co packers, etc.
AG.3.71 Time needed Amount of time needed to increase EP.4: Manage Integrated Supply
to increase finished inventory for order fulfillment Chain Inventory
inventory (FG) for (time to receive/stock inventory)
additional order including safety stock to sustain 20%
fulfillment increase in quantities sourced

AG
AG.3.72 Time needed Amount of time needed to receive EP.4: Manage Integrated Supply
to increase and phase in raw material inventory Chain Inventory
inventory (WIP, for manufacturing and make WIP and
FG) for additional FG (work in process and purchased
order fulfillment finished goods) inventory, including
safety stock to sustain 20% increase in
quantities sourced
AG.3.73 Time needed Amount of time needed to obtain, EP.4: Manage Integrated Supply
to increase deliver and phase in inventory (raw Chain Inventory
inventory for material and purchased finished
additional order goods) for order fulfillment, including
fulfillment (Raw, safety stock to sustain 20% increase in
Purchase quantities sourced
AG.3.74 Time needed to Amount of time needed to obtain EP.10: Align Supply Chain Unit Plan
obtain additional capital to fill gap between current with Financial Plan
capital capital availability and capital needed
to sustain 20% increase in quantities
ordered
AG.3.75 Time needed to Amount of time needed to obtain EP.5: Manage Integrated Supply
obtain additional assets/capacity to fill gap between Chain Capital Assets
equipment underutilized asset capacity and assets ES.5: Manage Capital Assets
needed to sustain 20% increase in EM.5: Manage Make Equipment
quantities delivered in equipments and Facilities
Assets
AG.3.76 Time needed to Amount of time needed to obtain EP.5: Manage Integrated Supply
obtain additional assets/capacity to fill gap between Chain Capital Assets
internal space underutilized asset capacity and assets ES.5: Manage Capital Assets
needed to sustain 20% increase in EM.5: Manage Make Equipment
quantities delivered in internal space and Facilities
Assets
AG.3.77 Time needed Amount of time needed to obtain ES.5: Manage Source Capital Assets
to obtain supplemental outsourced or leased ES.6: Manage Incoming Product
supplemental resources or facilities to sustain 20% ES.7: Manage Supplier Network,
outsourced increase in quantities delivered EM.5: Manage Make Equipment
(3PL) or leased and Facilities
resources or EM.6: Manage Make Transportation
facilities EM.7: Manage Make Network
Assets
ED.6: Manage Transportation
ER.6: Manage Return
Transportation
Configuration

AG
AG.3.78 Time needed Amount of time needed to obtain ES.5: Manage Source Capital Assets
to obtain supplemental outsourced or leased ES.6: Manage Incoming Product
supplemental resources or facilities to sustain 20% ES.7: Manage Supplier Network,
outsourced or increase in quantities made EM.5: Manage Make Equipment
leased resources and Facilities
or facilities EM.6: Manage Make Transportation
Assets
ER.6: Manage Return
Transportation
Configuration
AG.3.79 Time needed to Amount of time needed to recruit/
recruit/hire/train hire/train additional labor to fill gap
additional labor between underutilized FTE’s and labor
needed to sustain 20% increase in
quantities manufactured
AG.3.80 Time needed to Amount of time needed to recruit/hire/
recruit/hire/train train additional staff to fill gap between
additional staff underutilized FTE’s and staff needed
to sustain 20% increase in quantities
delivered
AG.3.81 Time needed to Amount of time needed to recruit/
recruit/hire/train hire/train additional labor to fill gap
additional staff/ between underutilized FTE’s and labor
labor needed to sustain 20% increase in
quantities returned to suppliers

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 organization’s 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
CO.2.3 Cost to Make

Level 2
CO.2.4 Cost to Deliver
CO.2.5 Cost to Return
CO.2.7 Mitigation Cost (Cost To Mitigate Supply Chain)

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 CO.1.2 Cost of Goods Sold (COGS)
Level 2 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 CO.1.1 Total Supply Chain Management Cost (TSCMC)
Level 2 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

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 Supplier Management = material planning + planning procurement staff + supplier negotiation
and qualification + etc.
t 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 2 CO.2.2 Cost to Source
Supplier Management (see processes under Source)
Level 3 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 3 See “Cost of Goods Sold”

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 CO.1.2 Cost of Goods Sold (COGS)
Direct Material Cost
Level 3 Indirect Cost Related to Production
Direct Labor Cost

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 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.
t Customer Management = financing + post-sales customer service + handling disputes + field
repairs + enabling technologies + etc.
Data Collection
Discussion
Level 2 CO.2.4 Cost to Deliver
Sales (order) Management

(See processes under Deliver)
Level 3 Customer Management

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 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.
t 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

CO.2.5
Level 2 CO.2.5 Cost to Return
Cost to Source Return

Level 3
Cost to Deliver Return

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.

CO.2.6
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)

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 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)

CO
Level 3 Cost Metrics

CO.3.1 % Defective % Defective Product Scheduling Cost to SR1.4: Schedule Defective Product
Product Total Source Return Cost Shipment
Scheduling Cost
to Total Source
Return Cost
CO.3.2 % Excess Product % Excess Product Scheduling Cost to SR3.4: Schedule Excess Product
Scheduling Cost Total Source Return Cost Shipment
to Total Source
Return Cost
CO.3.3 % MRO % MRO Scheduling Cost to Total Source SR2.4: Schedule MRO Shipment
Scheduling Cost Return Cost
to Total Source
Return Cost
CO.3.4 % of % of authorization request transmitted SR3.3: Request Excess Product
authorization error-free/total authorization requests Return Authorization
request SR2.3: Request MRO Return
transmitted Authorization
error-free/total
authorization
requests
CO.3.5 % of excess Weight of packaging material that is M1.4: Package
packaging per not needed to protect the product M2.4: Package
unit during shipping as a per cent of total M3.5: Package
packaging material used
CO.3.6 % of paints used The volume of paint that does not EM.6: Manage Transportation (WIP)
that are non-toxic include toxic ingredients as a percent of
total paint volume used
CO.3.7 % of pallets that Number of reusable pallets used as a EM.6: Manage Transportation (WIP)
are reusable percent of total pallets used
CO.3.8 % of solid waste The weight of packaging material M1.3: Produce and Test
consisting of waste as a percent of total solid waste M3.4: Produce and Test
packaging generated. M2.3: Produce and Test
material
CO.3.9 % of trucks using Number of trucks using retreaded tires EM.6: Manage Transportation (WIP)
retread tires as a percent of trucks in the carrier fleet

CO
CO.3.10 % of vehicle fuel The portion of transfer vehicle fuels that M1.2: Issue Material
derived from are non-petroleum based S1.4: Transfer Product
alternative fuels M3.3: Issue Sourced/In-Process
Product
EM.6: Manage Transportation (WIP)
M2.2: Issue Sourced/In-Process
Product
CO.3.11 % of warehouse The percent of warehouse machines ES.4: Manage Product Inventory
loading using maintenance free batteries
machinery using
MFBs
CO.3.12 % packaging Weight of recycled packaging material M1.4: Package
material as a per cent of total packaging material M2.4: Package
consisting of used M3.5: Package
post-consumer
recycled content
CO.3.13 % packaging Weight of biodegradable packaging M1.4: Package
material that is material as a per cent of total packaging M2.4: Package
biodegradable material used M3.5: Package
CO.3.14 % packaging Weight of packaging material that can M1.4: Package
material that be effectively recycled as a per cent of M2.4: Package
is recyclable/ total packaging material used M3.5: Package
reusable
CO.3.15 Air emissions The weight of air pollutant emitted per M1.3: Produce and Test
weight of finished good produced M2.3: Produce and Test
CO.3.16 Assessment / Risk The cost of risk assessment and EP.9: Manage Supply Chain Plan
Management management activities for a specific Risk
Costs ($) area, supplier, product, etc.($) ES.9: Manage Supply Chain Source
Risk
Risk
Risk
Risk
CO.3.17 Cost of Cost of identifying the defective SR1.1: Identify Defective Product
identifying condition as a % of total Source cost Condition
the defective
condition
as a % of total
Source cost

CO
CO.3.18 Cost of Cost of Identifying the MRO Condition SR2.1: Identify MRO Product
Identifying as a % of Total Source Return Cost Condition
the MRO
Condition
as a % of Total
Source
Return Cost
CO.3.19 Cost of Cost of identifying the excess condition SR3.1: Identify Excess Product
identifying the as a % of total Source cost Condition
excess condition
as a % of total
Source cost
CO.3.20 Cost per Cost per request authorization SR1.5: Return Defective Product
request SR2.5: Return MRO Product
authorization SR3.5: Return Excess Product
SR1.3: Request Defective Product
Return Authorization
SR2.3: Request MRO Return
Authorization
SR3.3: Request Excess Product
CO.3.21 Cost to Align The sum of the costs associated with EP.10: Align Supply Chain Unit Plan
Supply Chain aligning supply chain performance with Financial Plan
Unit Plan with plans with financial plans.
Financial Plan
CO.3.22 Cost to Assess The sum of the costs associated with ED.2: Assess Delivery Performance
Delivery assessing delivery performance.
Performance
CO.3.23 Cost to Assess The sum of the costs associated with ES.2: Assess Supplier Performance
Supplier assessing supplier performance.
Performance
CO.3.24 Cost to Authorize The sum of the costs associated with DR1.1: Authorize Defective Product
Defective Product authorizing the return of defective Return
Return product.
CO.3.25 Cost to Authorize The sum of the costs associated with DR3.1: Authorize Excess Product
Excess Product authorizing the return of excess Return
Return product.
CO.3.26 Cost to Authorize The sum of the costs associated with DR2.1: Authorize MRO Product
MRO Product authorizing the return of product to be Return
Return maintained, repaired, or overhauled.
CO.3.27 Cost to Authorize The sum of the costs associated with S1.5: Authorize Supplier Payment
Supplier Payment authorizing supplier payment. S2.5: Authorize Supplier Payment
S3.7: Authorize Supplier Payment

CO
CO.3.28 Cost to Balance The sum of the costs associated with P3.3: Balance Production Resources
Production identifying, assessing and aggregating with Production Requirements
Resources with production resources.
Production
Requirements
CO.3.29 Cost to Balance The sum of the costs associated with P2.3: Balance Product Resources
Product balance of product resources with with Product Requirements
Resources product requirements.
with Product
Requirements
CO.3.30 Cost to Balance The sum of the costs associated with P1.3: Balance Supply Chain
Supply Chain balance of supply chain resources with Resources with SC Requirements
Resources with supply chain requirements.
Supply Chain
Requirements
CO.3.31 Cost to Build The sum of the costs associated with D1.5: Build Loads
Loads building transportation loads. D2.5: Build Loads
D3.5: Build Loads
CO.3.32 Cost to Checkout The sum of the costs associated with D4.6: Checkout
product checkout.
CO.3.33 Cost to The sum of the costs associated with D1.4: Consolidate Orders
Consolidate consolidating customer orders. D2.4: Consolidate Orders
Orders
CO.3.34 Cost to Deliver The sum of the costs associated with D4.7: Deliver and/or Install
and/or Install deliver and/or install
CO.3.35 Cost to Deliver Cost to Return From Customer (DRx) = DR1: Deliver Return Defective
Return Authorization Costs + Schedule Return Product
Costs + Receive Costs + Authorize MRO DR2: Deliver Return MRO Product
Return Costs + Schedule MRO Return
Costs + Receive MRO Return Costs +
Transfer MRO Product Costs + etc.
CO.3.36 Cost to Enter The sum of the costs associated D3.3: Enter Order, Commit
Order, Commit with entering the order, committing Resources Launch Program
Resources & resources & launching a program.
Launch Program
CO.3.37 Cost to The sum of the costs associated with P5.4: Establish and Communicate
Establish and establishing and communicating return Return Plans
Communicate plans.
Return Plans
CO.3.38 Cost to The sum of the costs associated with P1.4: Establish & Communicate
Establish and establishing and communicating Supply-Chain Plans
Communicate supply chain plans.
Supply Chain
Plans

CO
CO.3.39 Cost to Establish The sum of the costs associated with P4.4: Establish Delivery Plans
Delivery Plans establishing and communicating
deliver plans.
CO.3.40 Cost to Establish The sum of the costs associated with P3.4: Establish Production Plans
Production Plans establishing and communicating
production plans.
CO.3.41 Cost to Establish The sum of the costs associated with P2.4: Establish Sourcing Plans
Sourcing Plans establishing and communicating
source plans.
CO.3.42 Cost to Fill The sum of the costs associated with D4.5: Fill Shopping Cart
Shopping Cart filling a shopping cart.
CO.3.43 Cost to Finalize The sum of the costs associated with M3.1: Finalize Production
Production finalizing production engineering. Engineering
Engineering
CO.3.44 Cost to Generate The sum of the costs associated with D4.1: Generate Stocking Schedule
Stocking generating a stocking schedule.
Schedule
CO.3.45 Cost to Identify The sum of the costs associated with S3.1: Identify Sources of Supply
Sources of Supply identifying sources of supply.
CO.3.46 Cost to Identify, The sum of the costs associated with P4.2: Identify, Assess and
Assess, and identifying, assessing and aggregating Aggregate Delivery Resources
Aggregate delivery resources. P4.3: Balance Delivery Resources
Delivery and Capabilities with Delivery
Resources Requirements
Assess, and identifying, assessing and aggregating Aggregate Product Resources
Aggregate product resources.
Product
Resources
Assess, and identifying, assessing and aggregating Aggregate Production Resources
Aggregate production resources.
Production
Resources
CO.3.49 Cost to Identify, The sum of the costs associated with P5.2: Identify, Assess, and
Assess, and identifying, assessing and aggregating Aggregate Return Resources
Aggregate Return return resources. P5.3: Balance Return Resources
Resources with Return Requirements
CO.3.50 Cost to Identify, The sum of the costs associated with P1.2: Identify, Prioritize and
Assess, and identifying, assessing and aggregating Aggregate SC Resources
Aggregate Supply supply chain resources.
Chain Resources

CO
Prioritize, and identifying, assessing and aggregating Aggregate Delivery Requirements
Aggregate deliver requirements
Delivery
Requirements
Prioritize, and identifying, assessing and aggregating Aggregate Product Requirements
Aggregate deliver requirements.
Product
Requirements
CO.3.53 Cost to Identify, The sum of the costs associated with P3.1: Identify, Prioritize
Prioritize, and identifying, assessing and aggregating and Aggregate Production
Aggregate production requirements Requirements
Production
Requirements
CO.3.54 Cost to Identify, The sum of the costs associated with P5.1: Assess and Aggregate Return
Prioritize, and identifying, assessing and aggregating Requirements
Aggregate Return return requirements.
Requirements
Prioritize, and identifying, assessing and aggregating Aggregate SC Requirements
Aggregate supply chain requirements.
Supply Chain
Requirements
CO.3.56 Cost to Install The sum of the costs associated with D1.14: Install Product
Product product installation. D2.14: Install Product
CO.3.57 Cost to Invoice The sum of the costs associated with D1.15: Invoice
invoicing.
CO.3.58 Cost to Issue The sum of the costs associated with M1.2: Issue Material
Material issuing material.
CO.3.59 Cost to Issue The sum of the costs associated with M2.2: Issue Sourced/In-Process
Sourced/In- issuing sourced or in-process material. Product
Process Product M3.3: Issue Sourced/In-Process
Product
CO.3.60 Cost to Load The sum of the costs associated with D1.11: Load Vehicle & Generate
Product & loading product & generating shipping Shipping Documentation
Generate documentation. D2.11: Load Product & Generate
Shipping Shipping Documentation
Documentation D3.11: Load Product & Generate
Shipping Documents
CO.3.61 Cost to Maintain The sum of the costs associated with ES.3: Maintain Source Data
Source Data maintaining supplier data.

CO
CO.3.62 Cost to Manage The sum of the .Costs to Manage EP.1: Manage Business Rules for
Business Rules for Business Rules for PLAN Processes Plan Processes
PLAN Processes
CO.3.63 Cost to Manage The sum of the Cost to Manage ER.1: Manage Business Rules for
Business Rules for Business Rules for Return Processes Return Processes
Return Processes
CO.3.64 Cost to Manage The sum of the Costs to Manage Deliver ED.1: Manage Deliver Business
Deliver Business Business Rules Rules
Rules
CO.3.65 Cost to Manage The sum of the Costs to Manage Deliver ED.5: Manage Deliver Capital
Deliver Capital Capital Assets Assets
Assets
CO.3.66 Cost to Manage The sum of the Cost to Manage Deliver ED.3: Manage Deliver Information
Deliver Information
Information
CO.3.67 Cost to Manage The sum of the Costs to Manage ED.4: Manage Finished Goods
Finished Goods Finished Good Inventory Inventories
Inventories
CO.3.68 Cost to Manage The sum of the costs associated with ED.8: Manage Import/Export
Import/Export the management of import/export Requirements
Requirements requirements ES.8: Manage Import/Export
Requirements
CO.3.69 Cost to Manage The sum of the costs associated with EM.4: Manage In-Process Products
In-Process managing in-process products (WIP). (WIP)
Products (WIP)
CO.3.70 Cost to Manage The sum of the costs associated with ES.6: Manage Incoming Product
Incoming Product managing incoming product.
CO.3.71 Cost to Manage The sum of the costs associated with EP.5: Manage Integrated Supply
Integrated Supply managing integrated supply chain Chain Capital Assets
Chain Capital assets.
Assets
Integrated Supply managing the integrated supply chain Chain Inventory
Chain Inventory inventory.
Integrated managing integrated supply chain Chain Transportation
Supply Chain transportation.
Transportation
CO.3.74 Cost to Manage The sum of the costs associated with EM.5: Manage Make Equipment
MAKE Equipment managing Make equipment and and Facilities
and Facilities facilities.

CO
CO.3.75 Cost to Manage The sum of the Cost to Manage MAKE EM.3: Manage Make Information
MAKE Information Information
CO.3.76 Cost to Manage The sum of the Cost to Manage MAKE EM.8: Manage Make Regulatory
MAKE Regulatory Regulatory Compliance Environment
Compliance
CO.3.77 Cost to Manage The sum of the costs to Manage ER.2: Manage Performance of
Performance of Performance of Return Processes. Return Processes
Return Processes
CO.3.78 Cost to Manage The sum of the costs associated with EP.2: Manage Performance of
Performance of assessing supplier performance. Supply Chain
Supply Chain
CO.3.79 Cost to Manage The sum of the costs to Manage PLAN EP.3: Manage Plan Data Collection
PLAN Data Data Collection.
Collection
CO.3.80 Cost to Manage The sum of the costs to Manage EP.8: Manage Plan Regulatory
Plan Regulatory Plan Regulatory Requirements and Requirements and Compliance
Requirements Compliance.
and Compliance
CO.3.81 Cost to Manage The sum of the Cost to Manage EP.7: Manage Planning
Planning Planning Configuration Configuration
Configuration
CO.3.82 Cost to Manage The sum of the Cost to Manage Product ES.4: Manage Product Inventory
Product Inventory Inventory
CO.3.83 Cost to Manage The sum of the Cost to Manage Product ED.7: Manage Product Life Cycle
Product Life Cycle Life Cycle
CO.3.84 Cost to Manage The sum of the costs to manage the EM.7: Manage Production Network
Production production network
Network
CO.3.85 Cost to Manage The sum of the costs to manage EM.2: Manage Production
Production production performance. Performance
Performance
CO.3.86 Cost to Manage The sum of the costs to manage EM.1: Manage Production Rules
Production Rules production rules.
CO.3.87 Cost to Manage The sum of the costs to manage the ER.5: Manage Return Capital Assets
Return Capital capital assets associated with returns.
Assets
CO.3.88 Cost to Manage The sum of the costs to manage the EM.1: Manage Production Rules
Return Data capital assets associated with returns
Collection data collection.
CO.3.89 Cost to Manage The sum of the costs to manage the ER.4: Manage Return Inventory
Return Inventory capital assets associated with return
inventory.

CO
CO.3.90 Cost to Manage The sum of the costs to manage ER.7: Manage Return Network
Return Network the capital assets associated with Configuration
Configuration configuring the return network.
CO.3.91 Cost to Manage The sum of the costs associated with ER.8: Manage Return Regulatory
Return Regulatory managing compliance to return Requirements and Compliance
Requirements regulatory requirements.
and Compliance
CO.3.92 Cost to The sum of the costs associated with ER.6: Manage Return
Manage Return managing return transportation. Transportation
Transportation
CO.3.93 Cost to Manage The sum of the Costs to Manage Source ES.5: Manage Capital Assets
Source Capital Capital Assets
Assets
CO.3.94 Cost to Manage The sum of the costs associated with ES.1: Manage Sourcing Business
Sourcing Business Source business rules. Rules
Rules
CO.3.95 Cost to Manage The sum of the costs associated with ES.10: Manage Supplier
Supplier managing supplier agreements. Agreements
Agreements
CO.3.96 Cost to Manage The sum of the costs associated with ES.7: Manage Supplier Network
Supplier Network managing the supplier network.
CO.3.97 Cost to Manage The sum of the costs associated EM.6: Manage Transportation (WIP)
Transportation with managing Finished Good ED.6: Manage Transportation
Transportation
CO.3.98 Cost to Negotiate The sum of the costs associated with D3.2: Negotiate and Receive
& Receive negotiating and receiving contracts Contract
Contract
CO.3.99 Cost to Obtain The sum of the costs associated with D3.1: Obtain and Respond to RFP/
& Respond to obtaining and responding to Request RFQ
Request for Quote for Quote (RFQ) / Request for Proposal
(RFQ) / Request (RFP).
for Proposal (RFP)
CO.3.100 Cost to Pack The sum of the costs associated with D1.10: Pack Product
Product product packaging. D2.10: Pack Product
D3.10: Pack Product
CO.3.101 Cost to Package The sum of the costs associated with M1.4: Package
product packaging. M2.4: Package
M3.5: Package
CO.3.102 Cost to Pick The sum of the costs associated with D1.9: Pick Product
Product picking product. D2.9: Pick Product
D3.9: Pick Product
CO.3.103 Cost to Pick The sum of the costs associated with D4.3: Pick Product from Backroom
Product from picking product from backroom.
Backroom

CO
CO.3.104 Cost to Plan The sum of the costs associated with P4: Plan Deliver
Deliver planning the delivery of product.
CO.3.105 Cost to Plan Make The sum of the costs associated with P3: Pan Make
planning the making of product.
CO.3.106 Cost to Plan The sum of the costs associated with P5: Plan Return
Return planning the returning of product.
CO.3.107 Cost to Plan The sum of the costs associated with P2: Plan Source
Source planning source activities.
CO.3.108 Cost to Plan The sum of the costs associated with P1: Plan Supply Chain
Supply Chain planning supply chain activities.
CO.3.109 Cost to Process The sum of the costs associated with D1.1: Process Inquiry and Quote
Inquiry & Quote processing inquiry and quotes. D2.1: Process Inquiry and Quote
CO.3.110 Cost to Produce The sum of the costs associated with M1.3: Produce and Test
and Test production and test. M2.3: Produce and Test
CO.3.111 Cost to Receive & The sum of the costs associated with D1.13: Receive and Verify Product
Verify Product by receipt and verification at customer site. by Customer
Customer D2.13: Receive and Verify Product
by Customer
by Customer
CO.3.112 Cost to Receive The sum of the costs associated with DR1.3: Receive Defective Product
Defective Product receiving defective product returns.
CO.3.113 Cost to Receive The sum of the costs associated with DR3.3: Receive Excess Product
Excess Product receiving excess returns.
CO.3.114 Cost to Receive The sum of the costs associated with DR2.3: Receive MRO Product
MRO Product receiving MRO product returns.
CO.3.115 Cost to Receive The sum of the costs associated with S1.2: Receive Product
Product receiving product. S2.2: Receive Product
S3.4: Receive Product
CO.3.116 Cost to Receive The sum of the costs associated with D4.2: Receive Product at the Store
Product at Store receiving product at the store.
CO.3.117 Cost to Receive The sum of the costs associated with D1.8: Receive Product from Source
Product from transferring product from source or or Make
Source or Make make activities. D2.8: Receive Product from Source
or Make
or Make
CO.3.118 Cost to Receive, The sum of the costs associated with D1.2: Receive, Enter and Validate
Enter & Validate receiving, entering and validating a Order
Order customer order. D2.2: Receive, Configure, Enter and
Validate Order

CO
CO.3.119 Cost to Release The sum of the costs associated with M1.6: Release Product to Deliver
Finished Product releasing finished goods to deliver M2.6: Release Finished Product to
to Deliver processes. Deliver
CO.3.120 Cost to Reserve The sum of the costs associated with D1.3: Reserve Inventory and
Resources & reserving resources and determining a Determine Delivery Date
Determine delivery date. D2.3: Reserve Inventory and
Delivery Date Determine Delivery Date
CO.3.121 Cost to Route The sum of the costs associated with D1.6: Route Shipments
Shipments routing shipments. D2.6: Route Shipments
CO.3.122 Cost to Schedule The sum of the costs associated with DR1.2: Schedule Defective Return
Defective Product scheduling defective product receipt. Receipt
Receipt
CO.3.123 Cost to Schedule The sum of the costs associated with DR3.2: Schedule Excess Return
Excess Product scheduling excess product receipt. Receipt
Receipt
CO.3.124 Cost to Schedule The sum of the costs associated with D3.4: Schedule Installation
Installation scheduling product installation.
CO.3.125 Cost to Schedule The sum of the costs associated with DR2.2: Schedule MRO Return
MRO Product scheduling MRO product receipt. Receipt
Receipt
CO.3.126 Cost to Schedule The sum of the costs associated with S1.1: Schedule Product Deliveries
Product Deliveries scheduling product deliveries. S2.1: Schedule Product Deliveries
S3.3: Schedule Product Deliveries
CO.3.127 Cost to Schedule The sum of the costs associated with M1.1: Schedule Production
Production scheduling production activities. Activities
Activities M2.1: Schedule Production
Activities
Activities
CO.3.128 Cost to Select The sum of the costs associated with D1.7: Select Carriers and Rate
Carriers & Rate selecting carriers and rating shipments. Shipments
Shipments D2.7: Select Carriers and Rate
Shipments
D3.7: Select Carriers & Rate
Shipments
CO.3.129 Cost to Select The sum of the costs associated S3.2: Select Final Supplier (S) and
Final Supplier(s) with selecting final suppliers and Negotiate
and Negotiate negotiating supplier agreements.
CO.3.130 Cost to Ship The sum of the costs associated with D1.12: Ship Product
Product shipping products. D2.12: Ship Product
D3.12: Ship Product

CO
CO.3.131 Cost to Source The sum of the costs associated with SR1: Source Return Defective
Return SourceReturn Product
CO.3.132 Cost to Stage The sum of the costs associated with M1.5: Stage Product
Finished Product staging finished goods. M2.5: Stage Finished Product
M3.6: Stage Finished Product
CO.3.133 Cost to Stock The sum of the costs associated with D4.4: Stock Shelf
Shelf stocking shelves.
CO.3.134 Cost to Transfer The sum of the costs associated DR1.4: Transfer Defective Product
Defective Product transferring defective product for
disposition
CO.3.135 Cost to Transfer The sum of the costs associated DR3.4: Transfer Excess Product
Excess Product transferring excess product for
disposition
CO.3.136 Cost to Transfer The sum of the costs associated DR2.4: Transfer MRO Product
MRO Product transferring MRO product for
disposition
CO.3.137 Cost to Transfer The sum of the costs associated with S1.4: Transfer Product
Product transferring product to Make or Deliver S2.4: Transfer Product
processes S3.6: Transfer Product
CO.3.138 Cost to Verify The sum of the costs associated with S1.3: Verify Product
Product raw material verification. S2.3: Verify Product
CO.3.139 Customer Includes costs for invoicing, processing D1.15: Invoice,
Invoicing/ customer payments, and verifying D2.15: Invoice,
Accounting customer satisfaction. D3.15: Invoice
Costs
CO.3.140 Direct labor cost Direct cost spent on production labor EM.2: Manage Production
Performance
CO.3.141 Direct material Direct cost spent on material for EM.2: Manage Production
cost production Performance
CO.3.142 Distribution Costs The costs of distribution (warehousing P4.4: Establish Delivery Plans
and transportation of finished goods)
as a percent of total supply chain costs
CO.3.143 Energy The energy consumed by the Make M1.3: Produce and Test
consumption process per unit produced. M2.3: Produce and Test
P3: Plan Make
CO.3.144 Energy Cost per The cost of energy inputs for the Make P3: Plan Make
Unit process per unit produced.

CO
CO.3.145 Energy Costs the cost of energy inputs to S1.4 as a S1.4: Transfer Product
percent of total product transfer and S2.4: Transfer Product
storage costs. S3.6: Transfer Product
M2: Make-to- Order
D2: Deliver Make-to-Order Product
Products
DR1.3: Receive Defective Product
DR2.4: Transfer MRO Product
DR3.2: Schedule Excess Return
Receipt
CO.3.146 Energy efficient The percent of new equipment EM.5: Manage Make Equipment
upgrades purchased over the past year that and Facilities
is more energy efficient than the
equipment it replaces
CO.3.147 Environmental The cost of complying with P1: Plan Supply Chain
Compliance Cost environmental regulations and policies EP.8: Manage Plan Regulatory
as a percent of total supply chain costs. Requirements and Compliance
CO.3.148 Environmental The cost impact of compliance EP.8: Manage Plan Regulatory
non-compliance violations with environmental Requirements and Compliance
cost regulations and policies as a percent of
total supply chain costs.
CO.3.149 Event Risk (EVAR) The risk (probability X impact) of risk EP.9: Manage Supply Chain Plan
($) events. i.e. plant outage, transportation Risk
outage, product failure, etc. ES.9: Manage Supply Chain Source
Risk
Risk
Risk
Risk
CO.3.150 Excess product Excess product disposition costs as % SR3.2: Disposition Excess Product
disposition costs total Source cost
as % total
Source cost
CO.3.151 Finished Goods Finished goods inventory days D1: Deliver Stocked Products
Inventory Days of supply are calculated as gross D2: Deliver Make-to-Order Product
of Supply finished goods inventory ÷ (value of D3: Deliver Engineer-to-Order
transfers/365 days). Products
ED.4: Manage Finished Goods
Inventories

CO
CO.3.152 Gross Risk ($) The total unmitigated risk for a specific EP.9: Manage Supply Chain Plan
area, supplier, product, etc.($) Risk
ES.9: Manage Supply Chain Source
Risk
Risk
Risk
Risk
CO.3.153 Hazardous waste The weight of hazardous waste M1.3: Produce and Test
generated at generated from warehousing M3.4: Produce and Test
warehousing operations as a percent of the total ES.4: Manage Product Inventory
facilities as % waste generated
of total waste
generated
CO.3.154 Hedge Rating The amount of inventory in use as a risk EP.9: Manage Supply Chain Plan
(Inventory mitigation tactic (DOS) Risk
DOS for risk EM.9: Manage Supply Chain Make
management) Risk
Risk
Risk
CO.3.155 Indirect cost Indirect cost incurred in production EM.2: Manage Production
related to indirectly Performance
production
CO.3.156 Individual Process The specific rating (probability X EP.9: Manage Supply Chain Plan
Area Event Rating impact) of a specific event. Risk
(EVAR) ($) ES.9: Manage Supply Chain Source
Risk
Risk
Risk
Risk
CO.3.157 Industry Industry Benchmark Comparison (%) EM.9: Manage Supply Chain Make
Benchmark Risk
Comparison (%) ED.9: Manage Supply Chain Deliver
Risk
Risk
EP.9: Manage Supply Chain Plan
Risk

CO
CO.3.158 Mitigated Risk ($) The total mitigated risk for a specific EP.9: Manage Supply Chain Plan
area, supplier, product, etc.($) Risk
Risk
Risk
Risk
Risk
CO.3.159 Mitigation cost by The cost of mitigation for a specific risk EP.9: Manage Supply Chain Plan
Event ($) event ($) Risk
Risk
Risk
Risk
Risk
CO.3.160 MRO Disposition MRO Disposition Costs As % Total SR2.2: Disposition MRO Product
Costs As % Total Source cost
Source cost
CO.3.161 NPDES permitted The weight of water pollutant emitted M1.3: Produce and Test
water effluent per weight of finished good produced M2.3: Produce and Test
CO.3.162 Number of The annual hours of worker absences ES.4: Manage Product Inventory
worker absences that can be attributed to indoor air EM.5: Manage Make Equipment
due to poor IAQ quality issues and Facilities
CO.3.163 Order The aggregation of the following cost D1: Deliver Stocked Products
Management elements (contained in this glossary): D3: Deliver Engineer-to-Order
Costs Products
CO.3.164 Packaging The percent of packaging materials that M1.4: Package
material re-use are reused M3.5: Package
ES.4: Manage Product Inventory
CO.3.165 Packaging The cost of packaging materials used S1.4: Transfer Product
purchases during transfer operations
CO.3.166 Packaging Total volume of packaging material per EM.6: Manage Transportation (WIP)
volume unit divided by total unit volume
CO.3.167 Peak Time Energy % of total energy consumption that M2.1: Schedule Production
Use occurs during regional peak demand Activities
times M1.1: Schedule Production
Activities
CO.3.168 Pollution Compliance costs directed to pollution EM.8: Manage Make Regulatory
Prevention Ratio prevention activities as a percent of Environment
total compliance costs.

CO
CO.3.169 Product Product acquisition costs include S1: Source Stocked Product
Acquisition Costs costs incurred for the production of S2: Source Make-to-Order Product
product: sum of product management S3: Source Engineer-to-Order
and planning, supplier quality Product
engineering, inbound freight and
duties, receiving and product storage,
incoming inspection, product process
engineering and tooling costs.
CO.3.170 Product The cost of material and labor to S1.4: Transfer Product
Packaging costs package items for transfer divided by
the number of items transferred
CO.3.171 Product Shipped The average number of units D1.5: Build Loads
per delivery transferred per vehicle D2.5: Build Loads
D3.5: Build Loads
CO.3.172 Quantity per The average number of units S1.1: Schedule Product Deliveries
shipment transferred per vehicle S1.4: Transfer Product
M1.2: Issue Material
Product
Product
D1.5: Build Loads
D2.5: Build Loads
CO.3.173 Ratio of Ratio of Authorization Cost To Total SR3.3: Request Excess Product
Authorization Source Cost Return Authorization
Cost To Total
Source
Cost
CO.3.174 Ratio of Ratio of Authorization Cost to Total SR2.3: Request MRO Return
Authorization Source Return cost Authorization
Cost to Total
Source Return
cost
CO.3.175 Ratio of Ratio of authorization costs to total SR1.3: Request Defective Product
authorization source return cost Return Authorization
costs to total
source return cost

CO
CO.3.176 Residual Risk ($) The residual (gross – mitigated) risk for EP.9: Manage Supply Chain Plan
a specific area, supplier, product, etc.($) Risk
Risk
Risk
Risk
Risk
CO.3.177 Return Sum of the costs associated with return SR1.5: Return Defective Product
transportation transportion SR2.5: Return MRO Product
costs SR3.5: Return Excess Product
CO.3.178 Risk Mitigation The total supply chain risk mitigation ED.9: Manage Supply Chain Deliver
Costs (Deliver) cost of all DELIVER mitigation actions Risk
for a specific area, supplier, product,
etc. ($)
CO.3.179 Risk Mitigation The total supply chain risk mitigation EM.9: Manage Supply Chain Make
Costs (Make) cost of all MAKE mitigation actions for a Risk
specific area, supplier, product, etc. ($)
CO.3.180 Risk Mitigation The total supply chain risk mitigation EP.9: Manage Supply Chain Plan
Costs (Plan) cost of all PLAN mitigation actions for a Risk
specific area, supplier, product, etc. ($)
CO.3.181 Risk Mitigation The total supply chain risk mitigation ER.9: Manage Supply Chain Return
Costs (Return) cost of all RETURN mitigation actions Risk
etc. ($)
CO.3.182 Risk Mitigation The total supply chain risk mitigation ES.9: Manage Supply Chain Source
Costs (Source) cost of all SOURCE mitigation actions Risk
etc. ($)
CO.3.183 Scrap packaging The cost of packaging material that M1.4: Package
expense is scrapped as part of the packaging M2.4: Package
process M3.5: Package
CO.3.184 Supply / The percent of the assessed area EP.9: Manage Supply Chain Plan
Customer / (suppliers, customers, etc.) that has Risk
Product Base been systematically evaluated. ES.9: Manage Supply Chain Source
Rated (%) Risk
Risk
Risk
Risk
CO.3.185 Total Deliver The sum of the costs associated with P4: Plan Deliver
Costs the Deliver processes.

CO
CO.3.186 Total Excess The sum of the costs associated with SR3: Source Return Excess Product
Material Return the receipt of returned excess products
Costs from the customer
CO.3.187 Total Source The sum of the costs associated with SR2: Return MRO Product
Return Costs the return of raw materials to the
supplier.
CO.3.188 Transportation The costs of transportation per unit P4.1: Identify, Prioritize and
Costs shipped Aggregate Delivery Requirements
P4.3: Balance Delivery Resources
and Capabilities with Delivery
Requirements
CO.3.189 Value at Risk The sum of probability of risk events ED.9: Manage Supply Chain Deliver
(Deliver) times the monetary impact of the Risk
events in all Deliver activities. Risk event
here could be defined as the deviation
from expected metrics value for the
process.
CO.3.190 Value at Risk The sum of probability of risk events EM.9: Manage Supply Chain Make
(Make) times the monetary impact of the Risk
events in all Make activities. Risk event
process.
CO.3.191 Value at Risk The sum of probability of risk events ER.9: Manage Supply Chain Return
(Return) times the monetary impact of the Risk
events in all Return activities. Risk event
process.
CO.3.192 Value at Risk The sum of probability of risk events ES.9: Manage Supply Chain Source
(Source) times the monetary impact of the Risk
events in all Sourcing activities. Risk
event here could be defined as the
deviation from expected metrics value
for the process.
CO.3.193 VAR of Internal Value at Risk – the sum of the ES.9: Manage Supply Chain Source
Process probability of risk events times the Risk
Performance monetary impact of the events for the EM.9: Manage Supply Chain Make
specific process. Risk
Risk
Risk

CO
CO.3.194 VAR of Supplier Value at Risk – the sum of the ES.9: Manage Supply Chain Source
Performance probability of risk events times the Risk
monetary impact of the events for the EM.9: Manage Supply Chain Make
specific supplier (or aggregate supply Risk
base) ED.9: Manage Supply Chain Deliver
Risk
Risk
CO.3.195 Warehouse The cost of energy inputs for ES.4: Manage Product Inventory
energy costs warehouse operations as a % of total
storage costs
CO.3.196 Warehousing The annual weight of waste generated ES.4: Manage Product Inventory
solid waste from warehousing processes
CO.3.197 Waste produced The weight of waste (air, liquid and M1.3: Produce and Test
as % of product solid) divided by the weight of finished M2.3: Produce and Test
produced goods product produced.
CO.3.198 Waste storage The cost to store and manage M1.7: Waste Disposal
costs as % of production waste as a per cent of total M2.7: Waste Disposal
Make costs Make costs M3.8: Waste Disposal
CO.3.199 Water use The annual % reduction in water use ES.4: Manage Product Inventory
reduction per warehousing cost

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 cash-
to-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’

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-to-
cash 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 year’s
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

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

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 capital’s 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.

AM.1.2
Level 1 AM.1.2 Return on Supply Chain Fixed Assets
Supply Chain Revenue
CO.1.1 Supply Chain Management Costs

Level 2
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
Plan Fixed Asset Value

AM.1.3
Return on working capital is a measurement which assesses the magnitude of investment
relative to a company’s 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]

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 capital’s 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.

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
AM.2.6 Accounts Payable (Payables Outstanding)

Level 2
AM.2.7 Accounts Receivable (Sales Outstanding)
AM.2.8 Inventory
Supply Chain Revenue

AM
Level 3 Asset Management Metrics

AM.3.1 % of hazardous material in The weight of hazardous ED.4: Manage Finished Goods
inventory material in inventory as a Inventories
percent of total inventory
weight
AM.3.2 % of material that has a valid % of the product content S3.1: Identify Sources of Supply
“Take-back” program that has a supplier take-back
program for recycling or reuse.
AM.3.3 % of materials that are % of the product content that is S3.1: Identify Sources of Supply
recyclable/ reusable recyclable or reusable
AM.3.4 % of packaging/shipping The percent of scrap from M2.4: Package
materials reused internally packaging that is immediately
reused in the packaging process
AM.3.5 % of production materials The percent of scrap from M3.4: Produce and Test
reused production that is immediately M1.3: Produce and Test
reused in the production M2.3: Produce and Test
process
AM.3.6 % of products consisting of the weight of recycled material M3.4: Produce and Test
previously used components in the product as a percent of M1.3: Produce and Test
total product weight M2.3: Produce and Test
AM.3.7 Actual Asset Life Maintenance Measure of total lifecycle EM.5: Manage Make
Cost as % of Replacement maintenance cost of an asset Equipment and Facilities
Value 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 on-
going basis.
AM.3.8 Average age of Average age of Excess Inventory SR3: Source Return Excess
Excess Inventory Product
AM.3.9 Capacity Utilization A measure of how intensively M3.4: Produce and Test
a resource is being used to M1.3: Produce and Test
produce a good or service. M2.3: Produce and Test
Some factors that should M1.4: Package
be considered are internal M2.4: Package
manufacturing capacity, M3.5: Package
constraining processes, M1.1: Schedule Production
direct labor availability and Activities
key components/materials M2.1: Schedule Production
availability. Activities
Activities

AM
AM.3.10 Defective product Defective product disposition ER.2: Manage Performance of
disposition costs costs as % total Source Return Return Processes
as % total Source cost
Return cost
AM.3.11 Deliver Fixed Asset Value Deliver Fixed Asset Value - The ED.5: Manage Deliver Capital
current value of the supply Assets
chain assets used in the Deliver
process.
AM.3.12 Deliver Return Cycle Time The average time associated DR1: Deliver Return Defective
with returns. Product
DR2: Deliver Return MRO
Product
AM.3.13 Equipment energy efficiency The number of capital EM.5: Manage Make
equipment units that meet Equipment and Facilities
energy efficiency standards
as a per cent of total capital
equipment units
AM.3.14 Hazardous materials used The % of material (by weight) M1.3: Produce and Test
during production process as issued for production that is M2.3: Produce and Test
a % of all materials classified as hazardous material M3.4: Produce and Test
AM.3.15 Hazardous waste as % of total The % of waste (by weight) M1.7: Waste Disposal
waste generated from production M2.7: Waste Disposal
that is classified as hazardous M3.8: Waste Disposal
material
AM.3.16 Inventory Days of Supply (Raw Value of raw materials ÷ (COGS S1: Source Stocked Product
Material) ÷ 365). S2: Source Make-to-Order
Product
Product
AM.3.17 Inventory Days of Supply Total value of Work in Process ÷ M2: Make-to- Order
(WIP) (COGS ÷ 365). M3: Engineer-to-Order
AM.3.18 Make Fixed Asset Value The current value of the supply EM.5: Manage Make
chain assets used in the Make Equipment and Facilities
process
AM.3.19 Packaging as % of total The % by weight of packaging M1.2: Issue Material
material material to total raw material M2.2: Issue Sourced/In-Process
weight Product
Product
EM.6: Manage Transportation
(WIP)
AM.3.20 Plan Fixed Asset Value The current value of the supply EP.5: Manage Integrated
chain assets used in supply Supply Chain Capital Assets
chain integration

AM
AM.3.21 Rebuild or recycle rate Number of returned products SR1: Source Return Defective
that are rebuilt or recycled as a Product
percent of the total number of SR1.5: Return Defective
products returned Product
SR2: Return MRO Product
AM.3.22 Recyclable waste as % of total The % of waste (by weight) M1: Make-to-stock
waste generated from production that M2: Make-to- Order
is recyclable M3: Engineer-to-Order
AM.3.23 Recycle DOS Days of supply of recyclable ER.4: Manage Return Inventory
inventory awaiting processing
AM.3.24 Return Fixed Asset Value The current value of the supply ER.5: Manage Return Capital
chain assets used in the Return Assets
process
AM.3.25 Return for Recycle Rate Number of returns that are for DR3: Deliver Return Excess
recycling or re use as a per cent Product
of the total number of products
returned
AM.3.26 Return Rate Weight of products returned DR1: Deliver Return Defective
divided by the weight of Product
product shipped
AM.3.27 Source Fixed Asset Value The current value of the supply ES.5: Manage Capital Assets
chain assets used in the Source
process
AM.3.28 Value of defective Value of defective product DR1: Deliver Return Defective
product inventory/ total inventory in authorization Product
defective product inventory stage/ total defective product
value inventory value
AM.3.29 Value of Defective Inventory Inventory Awaiting Return SR1.1: Identify Defective
in Disposition Stage/ Total Product Condition
Inventory Value SR1.2: Disposition Defective
Product
SR2.2: Disposition MRO
Product
AM.3.30 Value of Defective Product Inventory awaiting return SR1.3: Request Defective
Inventory in Request Return authorization. Product Return Authorization
Authorization Stage/ Total DR1.1: Authorize Defective
Product Return
AM.3.31 Value of defective Value of defective product SR1.5: Return Defective
product inventory inventory in physical return Product
in physical return and transportation stage/ total
defective inventory value

AM
AM.3.32 Value of defective Value of defective product SR1.4: Schedule Defective
product in scheduling in scheduling stage/ total Product Shipment
stage/ total defective product
defective product
AM.3.33 Value of Excess Inventory Inventory Awaiting Return SR3.2: Disposition Excess
in Disposition Stage/ Total Product
Inventory Value
AM.3.34 Value of excess product Value of excess product SR3.5: Return Excess Product
inventory in physical return inventory in physcial return and
and transportation stage/tot transportation stage/tot
AM.3.35 Value of Excess Product Inventory Awaiting Return SR3.3: Request Excess Product
Inventory in Request Return Authorization Return Authorization
Authorization Stage/ Total Ex
AM.3.36 Value of excess Value of excess inventory in SR3.1: Identify Excess Product
inventory in identification stage/ total Condition
identification inventory value
stage/ total
inventory value
AM.3.37 Value of excess Value of excess inventory/ total SR3: Source Return Excess
inventory/ total inventory value Product
inventory value
AM.3.38 Value of excess Value of excess product SR3.4: Schedule Excess Product
product in scheduling inventory in scheduling stage/ Shipment
stage/ total total excess product inventory
excess product inv value
AM.3.39 Value of Unserviceable MRO Inventory awaiting disposition SR2.2: Disposition MRO
Inventory In Disposition Product
Stage/ Total MRO Inventory Va DR2: Deliver Return MRO
Product
AM.3.40 Value of unserviceable mro Value of unserviceable mro SR2.5: Return MRO Product
inventory in physical return inventory in physical return and
and transportation stage/ transportation stage/
AM.3.41 Value of Unserviceable MRO Inventory awaiting return SR2.3: Request MRO Return
Inventory in Request Return authorization Authorization
Authorization Stage/ Total
AM.3.42 Value of Unserviceable Value of Unserviceable MRO SR2.1: Identify MRO Product
MRO Inv. in Inventory In Identification Condition
Identification Stage/ Stage/Total MRO Inventory
Total MRO Inv. Value Value
AM.3.43 Value of Unserviceable Value of Unserviceable MRO SR2.4: Schedule MRO
MRO Inventory in Scheduling inventory in Scheduling Stage/ Shipment
Stage/Total MRO Inventory Total MRO Inventory Value

AM
AM.3.44 Value of Unserviceable Value of Unserviceable MRO ER.4: Manage Return Inventory
MRO Inventory in Inventory in Deliver Return
Deliver Return Process/ Process/ Total MRO Inv.
Total MRO Inv.

Section 3
Processes
P
Plan
The processes associated with determining requirements and corrective actions to achieve
supply chain objectives.
Process Categories
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.
P2: Plan Source The development and establishment of courses of action
appropriation of material resources to meet supply chain
requirements.
P3: Plan Make The development and establishment of courses of action
appropriation of production resources to meet production
requirements.
P4: Plan Deliver The development and establishment of courses of action
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.

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.
Performance Attributes 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 None identified
Understand Their Impact on Supply/
Demand Balancing, Including Sales,
Marketing, Product Management,
Manufacturing, Customer, Suppliers,
Materials Management, and Product
Development
Change in the Demand Signal Event-driven supply chain re-planning
Instantaneously “Reconfigures” the
Production and Supply Plans
Collaborative Planning, Forecasting, Collaborative Planning, Forecasting and Replenishment is a
Replenishment (CPFR) 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 None identified
Supply Flexibility Equal to Demand
Volatility
On-Line Visibility of All Supply- Enterprise resource planning system Customer relationship
Chain Demand Requirements and management system
Resources, both Currently Available
and Committed (Pegged)

P1
Best Practices cont. Description/Definition cont.
Sales and Operations Planning A process to develop tactical plans that provide management
(S&OP) 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 company’s 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 Supply chain planning optimization system
Making (e.g., Trade-Off between
Service Level and Inventory
Investment)
Supply/Demand Process is Highly Integrated supply chain planning system with interfaces to
Integrated from Customer Data all supply/demand data sources through public and private
Gathering to Order Receipt, through digitally enabled supply networks.
Production to Supplier Request
Re-Balancing of Full-Stream Supply/ Enterprise-wide planning system customer Relationship
Demand on a Daily Basis, Including Systems
Source-Make-Deliver Resources
and Requirements from “Customers’
Customer to Suppliers’ Supplier”
Identify and manage environmental Identify and manage environmental aspects and impacts of
impacts supply chain operations to mitigate the impacts mitigate the
impacts
Responsiveness and Flexibility Integrated process modeling and software reconfiguration
Are Emphasized By Developing tools
Expertise in Making Business
Processes Re-Programmable, Re-
Configurable and Continuously
Changeable

P1
Capability to Run “Simulated” Full- Supply chain modeling and visualization system
Stream Supply/Demand Balancing
for “What-If” Scenarios
Environmental Management Implement an Environmental Management System (EMS) to
System (EMS) 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 customer’s 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

P1
Revises Business Assumptions EP.10, EP.5
! P1.1 !
Customer Requirements
Revised Aggregate Forecast and Projections EP.10 Supply Chain Requirements P1.3
Shipments D1.11,D1.3
Planning Data EP.3
Order Backlog D1.11, D1.3, D2.3, D3.3
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 ! Supply Chain Requirements P1.3
Return Regulatory Requirement ER.8

Sourcing Plans P2.4
Revised Capital Plan EP.5, EP.6
Supply Chain Requirements P1.1
! P1.3
Supply Chain Performance Improvement Plan EP.2
Inventory Strategy EP.4
Planning Decision Policies EP.1
Supply Chain Resources P1.2
P1.4 ! Supply Chain Plans P2.1, P3.1, P4.1, P5.1, EM.7

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.

Supply Chain Reliability Forecast Accuracy
Supply Chain Responsiveness 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
Supply Chain Asset Management None Identified
Consider environmental impacts Consider environmental impacts when identifying
requirements
Digital Links (XML Based, EDI. Etc.) Real-time exchange of supply chain information between
Among Supply Chain Members 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 Standards Based (RosettaNet, eBXML, OAGI, etc) B2B
with Customer Replenishment “Pull- integration tools and systems
Based” Signals
Systems Support Accurate On-Line Advance Planning and Scheduling System, Supply Chain Event
Visibility of Full-Stream Demand Management Software
Requirements and Priorities
Supply Chain Advance Planning Collaboration among Supply Chain partners extends outwards
System to customers, spanning the supply chain. Planning, Re-
planning, Business Rules, Plan Changes
Collaboration among Operations Supply Chain Advanced Planning Systems, Supply Chain
Strategy Team Integration Systems, Integration between supply chain
advanced planning and ERP execution systems, Supply Chain
Capacity Planning Systems

P1.1
Inputs
Revises Business Assumptions
EP.10, EP.5
Revised Aggregate Forecast
and Projections Outputs
EP.10
Shipments
> P1.1 > Supply
P1.3
Chain Requirements
D1.11,D1.3
Planning Data
EP.3
Order Backlog
D1.11, D1.3, D2.3, D3.3

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.

Supply Chain Reliability None Identified
Supply Chain Responsiveness Identify, Assess, and Aggregate Supply Chain Resources Cycle
Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Supply Chain
Resources
Supply Chain Asset Management Inventory Days of Supply
Consider environmental impacts Consider environmental impacts when identifying
requirements
Lead Times Updated Monthly None identified
Review Product Profitability ABC and cost modeling.
Digital Links (XML Based, EDI. Etc.) Real-time exchange of supply chain information between
Among Supply Chain Members supply chain members collaborative planning systems,
Internet Trading Exchanges, B2B Integration and Application
Server Systems

P1.2
Inputs
Planning Data
EP.3
Inventory
Delivery Plans
P4.4
Make/Buy Decision
EP.5
Outputs
Outsource Plan
EP.5, EP.6 > P1.2 > Supply
P1.3
Chain Resources
Production Plans
P3.4
Return Regulatory
Requirement
ER.8
Sourcing Plans
P2.4
Revised Capital Plan
EP.5, EP.6

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.

Supply Chain Reliability Fill Rate
Supply Chain Responsiveness Balance Supply Chain Resources with Supply Chain
Requirements Cycle Time
Supply Chain Costs Cost to Balance Supply Chain Resources with Supply
Chain Requirements
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.

P1.3
Inputs
Supply Chain Requirements
P1.1
Supply Chain Performance
Improvement Plan
Outputs
EP.2
Inventory Strategy
> P1.3 > None Identified
EP.4
Planning Decision Policies
EP.1
Supply Chain Resources
P1.2

P1.4
Establish & Communicate Supply-Chain Plans
The establishment and communication of courses of action over the appropriate time-
defined (long-term, annual, monthly, weekly) planning horizon and interval, representing a
projected appropriation of supply-chain resources to meet supply-chain requirements.

Supply Chain Responsiveness Establish Supply Chain Plans Cycle Time
Supply Chain Costs Cost to Establish and Communicate Supply Chain
Plans
Collaboration among Operations Strategy Supply Chain Advanced Planning Systems, Supply
Team 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 Real-time exchange of supply chain information
Supply Chain Members 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 Advance Planning and Scheduling System
of Full-Stream Demand Requirements and
Priorities as Well as Resource Utilization and
Availability
Collaborate with supply chain partners Supply chain partners collaborate to improve the
environmental performance of the supply chain
Inputs Outputs
None Identified > P1.4 > 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.

Supply Chain Responsiveness Plan Source Cycle Time,
Supply Chain Asset Management Return on Supply Chain Fixed Assets,
Return on Working Capital,
Cash-To-Cash Cycle Time
Supply Chain Costs Cost to Plan Source
Select suppliers with EMS Select suppliers with active EMS systems
Track supplier environmental Processes to identify suppliers with good environmental
records records
Distinct and Consistent Linkages Bi-directional Digital Links (XML, EDI, etc) or Internet
Exist to Ensure Disruptions and procurement networks to customer service linkage
Opportunities in Material Resources
Are Quickly and Accurately
Communicated and Acted Upon
Joint Service Agreements with None identified
Suppliers Define the Levels of
“Flexibility” or Resource Upside
Available Within Stated Lead Times
and Agreed Upon Conditions
All Key Participants in the Supply Supply Chain Event Management Systems
Chain, Including Strategic Partners,
Have Full Visibility of the Demand/
Supply Plan
Purchase environmentally friendly Purchase environmentally friendly materials
materials
EDI Links Integrate Supplier Inter-company resource planning with EDI/Internet
Resource Information (Inventory, communication
Capacity Availability, Etc.) with Own
Resources

P2
Delivery Plans P4.4
Planning Data EP.3
Supply Chain Plans P1.4
Item Master EP.7
Source Return Requirements P5.4
! P2.1 ! Product Requirements P2.3
Order Signal D2.3, D3.3

Bill Of Materials EP.7
Product Routings EP.7
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
! P2.2 ! Product Requirements P2.3
Planning Data EP.3
! P2.3
Product Requirements P2.1
Product Sources P2.2
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

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.

Supply Chain Responsiveness Identify, Prioritize, and Aggregate Product Requirements Cycle
Time
Supply Chain Costs Cost to Identify, Prioritize, and Aggregate Product
Requirements
Master Production Scheduling None identified
Reflects Management of Capacity
and/or Supply Constraints
Sales and Operations Agree to None identified
Limits of Short Term Flexibility
The Demand Plan is Updated None identified
Frequently to Reflect Actual
Consumption or Customer Forecast
Information
Capacity and Supply Constraints None identified
Are Balanced Against Demand
during the Planning Cycle
Categorize 100% of Total Inventory None identified
(Active, Usable, Excess, Obsolete) for
Appropriate Action

P2.1
Inputs
Production Plans
P3.4
Delivery Plans
P4.4
Planning Data
EP.3
Supply Chain Plans
P1.4 Outputs
Item Master
EP.7
> P2.1 > Product Requirements
P2.3
Source Return Requirements
P5.4
Order Signal
D2.3, D3.3
Bill Of Materials
EP.7
Product Routings
EP.7

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.

Supply Chain Responsiveness Identify, Assess, and Aggregate Product Resources Cycle Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Product Resources
Inventory Performance is Measured None identified
at the Dollar and Unit Levels
Capacity and Supply Constraints None identified
Are Balanced Against Demand
during the Planning Cycle
Identify recyclable/reusable Identify recyclable/reusable materials
materials
Identify green products Identify products that are manufactured to minimize
environmental impacts
Categorize 100% of Total Inventory None identified
(Active, Usable, Excess, Obsolete)
for Appropriate Action
Obsolete Inventory is Reviewed at None identified
the Part Number Level
Minimize packaging Work with suppliers to minimize packaging requirements and
use reusable packaging material
Inventory is Planned at the Part None identified
Level, Based on Supply and
Demand Variability
Inventory targets Are Reviewed and Digital Linkages using XML standards (RosettaNet, eBXML,
Adjusted Frequently OAGI) to automatically query inventory levels.

P2.2
Inputs
Inventory Availability
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Outputs
Product Availability > P2.2 > Product Requirements
Product On Order P2.3
S1.1, S2.1, S3.3
Product Inventory Target
Levels
ES.4
Planning Data
EP.3

P2.3
Balance Product Resources with Product Requirements
The process of developing a time-phased course of action that commits resources to meet
requirements.

Supply Chain Responsiveness Balance Product Resources with Product Requirements Cycle
Time
Supply Chain Costs Cost to Balance Product Resources with Product Requirements
Suppliers Share Responsibility for None identified
Balancing Supply and Demand
through Joint Service Agreements
Inputs
EP.1
Product Requirements > P2.3 Outputs
> None Identified
P2.1
Product Sources
P2.2

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.

Supply Chain Responsiveness Establish Sourcing Plans Cycle Time
Supply Chain Costs Cost to Establish Sourcing Plans
Blanket Purchase Orders Cover Period None identified
Requirements
Digital Linkage (EDI, XML, Etc.) is Used to None identified
Provide Real-Time Demand Information and
Handle Routine Transactions
Outputs
Inputs Sourcing Plans
None Identified > P2.4 > 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.

Supply Chain Responsiveness Order Fulfillment Cycle Time
Supply Chain Costs Energy Cost per Unit,
Energy consumption
Supply Chain Asset Management Cash-To-Cash Cycle Time,
Distinct and Consistent Linkages Exist to Multi-plant supply/demand planning and execution
Ensure that Disruptions and Opportunities
in Production Are Quickly and Accurately
Communicated and Responses Made
Reduce Make environmental impacts Identify processes that reduce environmental
impacts of manufacturing

P3
Planning Data EP.3
! P3.1 !
Order Signal D2.3, D3.3
Delivery Plans P4.4 Return Production Requirements P3.1, P5.4
Item Master EP.7
Bill Of Materials EP.7
Return Production Requirements P3.1, P5.4
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 ! Production Resources P3.3
D1.8, D4.2
Sourcing Plans P2.4
! P3.3
Planing Decision Policies EP.1
Production Resources P3.2
Production Requirements
P3.4 !
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.

Supply Chain Reliability Forcast Accuracy
Supply Chain Responsiveness Identify, Prioritize, and Aggregate Production Requirements
Cycle Time
Supply Chain Costs Cost to Identify, Prioritize, and Aggregate Production
Requirements
Consideration of Supplier’s Material Digital linkage to supplier quoting, planning, configuration
Availability in Company’s Supply and customer service applications
Resources (Including Supplier’s
Production Plans & Capability,
Inventory, and Delivery Plans)
Inputs
Planning Data
EP.3
Supply Chain Plans
P1.4
Order Signal
D2.3, D3.3
Delivery Plans Outputs
P4.4
Item Master > P3.1 > Return Production
Requirements
EP.7 P3.1, P5.4
Bill Of Materials
EP.7
Product Routings
EP.7
Return Production
Requirements
P3.1, P5.4

P3.2
Identify, Assess and Aggregate Production Resources
things that add value in the creation of a product or performance of a service.

Supply Chain Responsiveness Identify, Assess, and Aggregate Product Resources Cycle Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Production Resources
Obsolete Inventory is Reviewed at None identified
the Part Number Level
Consider environmental production Environmental constraints are considered as part of
constraints production capacity
Inputs
Equiptment and Facilities
Replacement and Disposition
Plans
EM.5
Planning Data
EP.3
Outputs
Production Schedule > P3.2 > Production
P3.3
Resources
M1.1, M2.1, M2.2. M3.2
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Sourcing Plans
P2.4

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.

Supply Chain Responsiveness Balance Production Resources with Production Requirements
Cycle Time
Supply Chain Costs Cost to Balance Production Resources with Production
Requirements
Balance environmental Balance environmental requirements as well as supply/
requirements demand requirements
Inputs
Planing Decision Policies
Outputs
EP.1
Production Resources > P3.3 > None Identified
P3.2

P3.4
Establish Production Plans
projected appropriation of supply resources to meet production and operating plan
requirements.

Supply Chain Responsiveness Establish Production Plans Cycle Time
Supply Chain Costs Cost to Establish Production Plans
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 Digital Linkages using XML standards (RosettaNet, eBXML,
and Scheduled Only When There is OAGI) to automatically query production capacity and ATP and
No Detrimental Impact on Overall schedule unplanned orders.
Product Delivery Plan
Outputs
Inputs Production Plans
None Identified > P3.4 > 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

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.

Supply Chain Costs Cost to Plan Deliver,
Total Deliver Costs
Return on Supply Chain Fixed Assets,
Distinct and Consistent Linkages Bi-directional Digital Links (XML, EDI, etc) or Internet
Exist to Ensure Disruptions and procurement networks to customer service linkage
Opportunities in Material Resources
Are Quickly and Accurately
Communicated and Acted Upon
Proactive Education of Customers None identified
to Set Expectations and Encourage
Close Working Relationships
(Knowledge of Long-Lead Items,
Visibility to Supply Resources,
Agreement on Levels of Flexibility)
Minimize vehicle fuel use Plan the use of high-efficiency, low-emissions,or alternative-
fuel vehicles where possible

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
! P4.1 !
Service Levels EP.1
Delivery Requirements P4.3
Markdown Plans
Item Stocking Requirements D4.2
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/ESQ’s A
Resource Availability D3.3

Planning Data EP.3
! P4.2 !
Load Information D1.5, D2.5, D3.5
Productin Plans P3.4 Delivery Resources and Capabilities P4.3
Sourcing Plans P2.4
Inventory Availability/Delivery Date D1.3, D2.3
Finish Goods Inventory Target Levels SD.4
! P4.3
Delivery Resources and Capabilities P4.2
Delivery Requirements P4.1
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

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.

Supply Chain Responsiveness Identify, Prioritize, and Aggregate Delivery Requirements Cycle
Time
Supply Chain Costs Transportation Costs,
Cost to Identify, Prioritize, and Aggregate Delivery
Requirements
Customer Relationship and Digital Tightly integrated supply chain or demand planning with point
Linkages (XML, EDI, Etc.) Provide of sale and customer inventory systems
Accurate Visibility into Actual
Demand via Customer Forecasts,
Product Plans, Production Plans,
and Inventory Positions
levels.
Ideal Stock Position Based on Days/ Pilot by Wal-Mart. IT
Weeks of Supply
Planogram Flexibility for Seasonal/ None identified
Promotional changes
Electronic Matching Between POS Integrated Software Systems
Data and Store Inventory (Shelves
and Back Room)
Eliminate “Special Deals” Sales None identified
to Reduce Returns and Improve
Forecast Accuracy (Reduces
Uncertainty, Lowers Safety
Stock Requirements, Cheaper to
Administer)
RFID and Other Tagging POG software/field force

P4.1
Unplanned Orders Are Accepted Digital Linkages using XML standards (RosettaNet, eBXML,
and Scheduled Only When There is OAGI) to automatically query production capacity and ATP and
No Detrimental Impact on Overall schedule unplanned orders.
Product Delivery Plan
Forecasts Are Replaced with Actual B2B Integration and Application Server Systems
Customer Replenishment Signals
and Orders Where Possible
Matching Shelf Stock to A software based system that corrects shelf inventory levels
Expectations based on actual product present (possible RFID solution).
Identifies stock-outs from shrinkage or item misplacement.
Aggregate requirements Aggregate requirements to minimize transportation
requirements

P4.1
Inputs
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
Product Routings
EP.7
Item Master
EP.7 Outputs
Service Levels Delivery Requirements
EP.1
Markdown Plans
> P4.1 > P4.3
Item Stocking Requirements
DC/Vender Lead Time D4.2
Promotion/Event Plans
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/ESQ’s

P4.2
Identify, Assess and Aggregate Delivery Resources
things that add value in the delivery of a product or service.

Supply Chain Responsiveness Identify, Assess, and Aggregate Delivery Resources Cycle Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Delivery Resources
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 Outputs
P3.4
Sourcing Plans > P4.2 > Delivery Resources and
Capabilities
P2.4 P4.3
Inventory Availability/Delivery
Date
D1.3, D2.3
Delivery Return Requirements
P5.4
Finish Goods Inventory Target
Levels
SD.4

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.

Supply Chain Responsiveness None Identified
Supply Chain Costs Transportation Costs,
Cost to Identify, Assess, and Aggregate Delivery Resources
Demand Priorities Reflecting Rules-based distribution planning system. Trading partner
Strategic Customer Relationships as agreements
Business Policies Are Automatically
Followed in Allocating Resources;
First-In-First-Out (FIFO) is Utilized as
the Default Scheduling Priority
Maximize loads, minimize runs Maximize load size; minimize transportation runs
Inputs
EP.1
Inputs
Delivery Resources and
Capabilities
P4.2
Delivery Requirements
P4.1

P4.4
Establish Delivery Plans
projected appropriation of delivery resources to meet delivery requirements.

Supply Chain Responsiveness Establish Delivery Plans Cycle Time
Supply Chain Costs Distribution Costs,
Cost to Establish Delivery Plans
To Address Conditions which None identified
Cannot be Adequately Satisfied
During the Current Planning Period,
Each Functional Area Develops
Prioritized Recommendations for the
Subsequent Planning Period
Plans Which Do Not Violate Business None identified
Rules Are Communicated Openly
and Cross-Functionally for Execution
Specific Changes to the Plan Are None identified
Agreed to Cross-Functionally,
According to Defined Business Rules
Maximize loads, minimize runs Maximize load size; minimize transportation runs
Plans that Violate Business Rules None identified
(e.g. Joint Service Agreements)
Are Addressed Cross-Functionally,
Considering Total Business Impacts
(Revenue, Cost, Quality, Customer
Service, Etc.)
Outputs
Delivery Plans
Inputs
None Identified > P4.4 > 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

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.

Supply Chain Costs Cost to Plan Return
Planning and Forecasting Collaborative planning and forecasting with RETURN
Outsourced Return process 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.

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
! P5.1 !
Business Rules for Return Processes ES.1, ER.1 Return Requirements P5.3
Actual Sales History D1.2, D2.2, D3.3 Item Stocking Requirements D4.2
Contractual Obligations
Revised Business Assumptions EP.10, EP.5
Planning Data EP.3
Delivery Plans P4.4
Revised Aggregate Forecast and Projections EP.10
Return Regulatory Requirements ER.8 A

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
! P5.2 !
Outsource Plan EP.5, EP.6 Return Resources P5.3
Return Process Workflow Definiton and Policies ER.7 Item Stocking Requirements D4.2
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 A
Business Rules for Return Processes ES.1, ER.1
! P5.3
Return Resources P5.2
Return Requirements P5.1
Supply Chain Performance Improvement Plan EP.2
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
P5.4 ! 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.

Supply Chain Responsiveness Identify, Prioritize, and Aggregate Return Requirements Cycle
Time
Supply Chain Costs Cost to Identify, Prioritize, and Aggregate Return
Requirements
Use Historical Based Return Rate None identified
Forecasts
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.

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 Outputs
Actual Sales History > P5.1 > Return
P5.3
Requirements
D1.2, D2.2, D3.3
Contractual Obligations
Revised Business Assumptions
EP.10, EP.5
Planning Data
EP.3
Delivery Plans
P4.4
Production Plans
P3.4
Supply Chain Plans
P1.4

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.

Supply Chain Responsiveness Balance Return Resources with Return Requirements Cycle
Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Return Resources
Allow Source Suppliers Full Visibility Shared supply chain forecasting and event management
into the Current Return Situations functionality with Source suppliers
and the Forecasted Return Activity
Joint Service Agreements with Collaborative planning tools with the Source suppliers
Source Suppliers to Share
Responsibilities and Costs of
Returns
Rapid Reconfiguration of Return Use of RETURN tracking and projection systems and flexible
Capacity partner agreements that allow the rapid addition of RETURN
capacity to match unexpected demand.

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 Outputs
Budget Constraints
EP.10
> P5.2 > Return
P5.3
Resources
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
Revised Capital Plan
EP.5, EP.6

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.

Supply Chain Responsiveness Balance Return Resources with Return Requirements Cycle
Time
Supply Chain Costs Cost to Identify, Assess, and Aggregate Return Resources
Advance Planning Engines Applied Advanced math model “solvers” that optimize / minimize
to Returns constraints, routing, restocking priorities and costs.
Cost Accounting System to ABC costing system
Determine the Best Return Process
to Follow from a Cost of Business
Perspective
Dynamic Return Restocking Dynamic prioritization of restocking plans in order to rapidly
Management re-sell products that are in demand thus reducing new
inventory demand.
Inputs
Return Resources
P5.2
Return Requirements
Outputs
P5.1
EP.1
Improvement Plan
EP.2

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.

Supply Chain Responsiveness Establish and Communicate Return Plans Cycle Time
Supply Chain Costs Cost to Establish and Communicate Return Plans
Rapid, Dynamic Reconfiguration of The ability to reset and reconfigure the RETURN process
Return Process to Meet Demand 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 Intranet and Extranet communications tools
Suppliers Share in the Return
Process Responsibilities) Visibility to
Return Plans
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
Process Procedures
ER.1, ER.2, ER.8
Inputs
None Identified > P5.4 > Deliver Return Requirements
P4.1, P4.2
Source Return Requirements
P2.1
Return Rules and Policies
ER.1
Return Production
Requirements
P3.1

EP
Enable Plan
The collection of processes associated with managing and monitoring Plan process data,
performance and relationships.
Process Categories
EP.1: Manage Business Rules for The process of establishing, maintaining, and enforcing
Plan Processes 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.
EP.2: Manage Performance of The process of measuring actual integrated Supply Chain
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.
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
EP.4: Manage Integrated Supply The process of establishing total supply chain inventory
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.
EP.5: Manage Integrated Supply The process of defining capacity strategy (i.e. internal versus
Chain Capital Assets contract manufacturing or internal versus 3rd Party Logistics)
and then acquiring, maintaining and dispositioning an
organization’s capital assets to operate the integrated supply
chain.
EP.6: Manage Integrated Supply The process of defining an integrated supply chain
Chain Transportation transportation strategy and maintaining the information
which characterizes total supply chain transportation
requirements, and the management of transporters both inter
and intra company.

EP
EP.7: Manage Planning The process of defining and maintaining the information
Configuration 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.
EP.8: Manage Plan Regulatory The process of identifying and complying with regulatory
Requirements and Compliance documentation and process standards set by external entities
(i.e. government, trade officials, etc.) when planning for the
integrated supply chain network.
EP.9: Manage Supply Chain Plan The process of identifying, coordinating and managing
Risk 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.
EP.10: Align Supply Chain Unit Plan The process of revising the long-term supply chain capacity
with Financial Plan 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.

EP
! EP.1 !
Strategic Plan Service Levels P4.1
Service Requirements Planning Decision Policies P4.1, EP.4, EP.5, EP.6, P1.3,
Business Plan P2.3, P3.3, P4.3, P5.3, ED.1
Supply Chain Performance Metrics ES.4, EM.2, ED.2,
EP.2
Return Process Capabilities P5.2
ER.2
Continuous Improvement Process ! ! Supply Chain Performance Improvement Plan P1.3,
P5.3
Business Plan
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
EP.4 !
Integrated Supply Chain Inventory Information EP.4
Planning Decision Policies EP.1 ! Integrated Supply Chain Inventory Information EP.4
Inventory Strategy P1.3, P5.2
Capacity Constraints
Revised Business Assumptions P1.1, P5.1, ED.7

Make/Buy Decision P1.2, P5.2
! EP.5 !
Product Routings EP.7 Projected Internal and External Capacity P5.2
Planning Decision Policies EP.1 Revised Capital Plan P1.2, P5.2
Capacity Constraints Production Capacity EM.1, EM.2
Outsource Plan P1.2, P5.2
Make/Buy Decision P1.2, P5.2
! EP.6 !
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.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
Internal Information
Monitoring ! EP.9 ! Risk Management Program for Process Area
Internal Adjustments
!EP.10 !
Revised Business Assumptions P1.1, P5.1, ED.7
Strategic Plan
Revised Aggregate Forecast and Projections P1.1, P5.1
Business Plan
Budget Constraints P5.2

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.

Supply Chain Responsiveness Manage Business Rules for Return Processes Cycle Time
Supply Chain Costs Cost to Manage Business Rules for PLAN Processes

Integrated Business and Supply- Supply Chain performance dashboard capability.
Chain Planning Processes Where
Cross-Functional Input is Leveraged
to Set Business Rules
Outputs
Inputs
Service Levels
Strategic Plan
Service Requirements > EP.1 > Planning Decision Policies
P4.1
Business Plan 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.

Supply Chain Responsiveness Manage Performance of Supply Chain Cycle Time
Supply Chain Costs Cost to Manage Performance of Supply Chain
Efficient and Effective None identified
Benchmarking Process Leveraging
Cross Industry Metrics and
Definitions
Sound Project Management None identified
Process and Methodology
Reliable Continuous Improvement None identified
Process and Methodology.
Manage environmental Manage environmental performance of the supply chain.
performance
Inputs
Outputs
Metrics Return Process Capabilities
ES.4, EM.2, ED.2, ER.2
Continuous Improvement
> EP.2 > Supply Chain Performance
P5.2
Process Improvement Plan

P1.3, P5.3
Business Plan

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.

Supply Chain Responsiveness Manage PLAN Data Collection Cycle Time
Supply Chain Costs Cost to Manage PLAN Data Collection
Integrated Demand and Supply Memory based planning systems provide one single data
Planning - Demand Planning, model and data mart (including the business rules) for
Supply Planning and especially the entire supply chain planning and execution process.
the Supply Plan Execution Are no Algorithms use the business rules as the driver for the
longer disconnected. All required planning engine.
planning and execution data is
integrated and shared in between
all functional areas within an orga
Single Data Source for Decision A data warehouse/data mart is the source of all planning
Support and Business Rules (master) data, business rules and transaction data. Analyzing
tools enable the ongoing maintenance and improvement of
the business rules based on actual data.
Outputs
Inputs
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

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.

Supply Chain Responsiveness Manage Integrated Supply Chain Inventory Cycle Time
Supply Chain Costs Cost to Manage Integrated Supply Chain Inventory
Capability to Run Multiple Supply Chain modeling capabilities, i.e. Advanced Planning
“Simulated” Full-Stream Supply/ Systems.
Demand Balancing Against Long-
Term Capacity Plans and Scenarios
Inputs
Product Routings
EP.7
Outputs
Integrated Supply Chain
Inventory Information Integrated Supply Chain
EP.4
> EP.4 > Inventory Information
EP.4
EP.1 Inventory Strategy
P1.3, P5.2
Capacity Constraints
Sourcing Plans
P2.4

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
organization’s capital assets to operate the integrated supply chain.

Supply Chain Responsiveness Manage Integrated Supply Chain Capital Assets Cycle Time
Supply Chain Costs Cost to Manage Integrated Supply Chain Capital Assets
Alignment of Strategic and Business None identified
Plans with Long-Term Capacity and
Resource Planning
Use of Cross Functional Teams to None identified
Execute the Process of Developing
Long-Term Capacity and Resource
Plans
Factor environmental considerations Factor environmental considerations/restrictions into capacity
into planning planning
Capability to Run Multiple Supply Chain modeling capabilities, i.e. Advanced Planning
“Simulated” Full-Stream Supply/ Systems.
Demand Balancing Against Long-
Term Capacity Plans and Scenarios
Outputs
P1.1, P5.1, ED.7
Make/Buy Decision
Inputs P1.2, P5.2
Product Routings Projected Internal and External
EP.7
Planning Decision Policies > EP.5 > Capacity
P5.2
EP.1 Revised Capital Plan
Capacity Constraints P1.2, P5.2
Production Capacity
EM.1, EM.2
Outsource Plan
P1.2, P5.2

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.

Supply Chain Responsiveness Manage Integrated Supply Chain Transportation Cycle
Time
Supply Chain Costs Cost to Manage Integrated Supply Chain Transportation
Considerations emissions in Integrate environmental emissions considerations
transportation decisions to transportation decisions. Feature: Implement
Environmental Management System
Alignment of Strategic and Business None identified
Plans with Long-Term Capacity and
Resource Planning
Capability to Run “Simulated” Full- Supply chain modeling and visualization system
Stream Supply/Demand Balancing for
“What-If” Scenarios
Use of Cross Functional Teams to None identified
Execute the Process of Developing
Long-Term Capacity and Resource Plans
Outputs
Make/Buy Decision
P1.2, P5.2
Projected Internal and External
Inputs Capacity
Product Routings P5.2
EP.7 > EP.6 > Revised Capital Plan
P1.2, P5.2
EP.1 Outsource Plan
Capacity Constraints P1.2, P5.2
Transportation Capacity
EM.1, EM.2

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.

Supply Chain Responsiveness Manage Planning Configuration Cycle Time
Supply Chain Costs Cost to Manage Planning Configuration
New Items Introductions Are part of the None identified
Sales and Operations Planning Process
at the General Management Business
Team Level
Use of Platform Teams in the New None identified
Product Development Process
Incorporates leading practices such None Identified
as Efficient Consumer Response,
Collaborative Planning, Forecasting,
and Replenishment, Vendor Managed
Inventory, and real time point of
consumption reporting.
SKU Rationalization None identified
ABC Classification None identified
Material content classification Material content classification (HAZMAT recycleable, etc.)
Outputs
Item Master
P2.1, P3.1, P4.1, P5.1
Inputs
None Identified > EP.7 > 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
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.

Supply Chain Reliability Number of notices of violation received
Supply Chain Responsiveness Supply chain down time due to compliance issues
Supply Chain Costs Environmental Compliance Cost,
Cost to Manage Plan Regulatory Requirements and
Compliance,
Environmental non-compliance cost
Monitor supplier environmental Determine supplier environmental compliance performance/
compliance Actively participate in regulation development
Environmental Management System Implement an Environmental Management System (EMS) to
(EMS) track and manage environmental performance and to track
performance against regulatory requirements
Inputs Outputs
None Identified > EP.8 > Regulatory Requirements
P5.2

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.

Supply Chain Agility 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 ($)
Supply Chain Asset Management Residual Risk ($),
Mitigated Risk ($),
Individual Process Area Event Rating (EVAR) ($),
Supply / Customer / Product Base Rated (%),
Event Risk (EVAR) ($),
Gross Risk ($)
Supply Chain Network Configured This practice relies on a risk evaluation of the supply chain to
to Mitigate Risk 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.

EP.9
Supply Chain Business Rules This practice involves establishing business rules (e.g.,
Configured to mitigate risk 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 chain’s
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 This practice involves managing supply chain information
Configured to Minimize Risk 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 network’s 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.

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 Outputs
Monitoring
> EP.9 > Risk Management Program for
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.

Supply Chain Responsiveness Align Supply Chain Unit Plan with Financial Plan Cycle
Time
Supply Chain Costs Cost to Align Supply Chain Unit Plan with Financial
Plan
Re-Planning Process Links the Supply Chain None identified
Operation with the Business Strategy and
the Marketing Strategy
Re-Planning Process Exists in Multi-Levels Business to business Internet capability to share
of the Supply-Chain between Business common data.
Enterprises
Strategic Sales and Operations Planning None identified
Process in Place and Managed at the
Executive Level
Outputs
P1.1, P5.1, ED.7
Inputs
Strategic Plan > EP.10 > Revised Aggregate Forecast
and Projections
Business Plan P1.1, P5.1
Budget Constraints
P5.2

S
Source
The processes associated with ordering, delivery, receipt and transfer of raw material items,
subassemblies, product and/or services.
Process Categories
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, 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 The processes of ordering and receiving product or material that is
Product 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-to- The processes of identifying and selecting sources of supply,
Order Product 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

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, 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.

Supply Chain Responsiveness Source Cycle Time,
Supply Chain Costs Cost to Source,
Product Acquisition Costs
Inventory Days of Supply (Raw Material)
Utilize green purchasing practices Utilize green purchasing practices

S1
Sourcing Plans P2.4
Replenishment Signal M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3 Product On Order P2.2, ES.10
DR3.4 ! S1.1 ! Scheduled Receipts S1.2, S3.4, M1.1, M2.1, M3.2, D1.8,
D4.2
Procurement Signal (Supplier)
Supplier Performance ES.2
Logistics Selection ES.6
Production Schedule M1.1, M2.1, M2.2, M3.2
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
! 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
Return Production uirements P3.1, P5.4

Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 ! S1.3 ! Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Product Inventory Location ES.4 Exising Inventory Data ES.4, ED.4

Finished Goods Inventory Location ED.4 Loaded Retail Cart or Pallet D4.4
Receipt Verification S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Replenishment Signal M1.2, M2.2, M3.3, D1.3, D2.3, ! S1.4 ! Transferred Product S1.5, S2.5, S3.7
Inventory Availability P2.2, P3.2, ES.4, M1.2, M2.2, M3.3,
D3.3 D1.3, D1.8, D1.9, D2.3, D2.9, D3.9, D4.2, D4.3
WIP Inventory Location EM.6 Daily Replenishment Requirements D4.1
Transferred Product S1.4, S2.4, S3.6

Payment Terms ES.10 ! S1.5

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.

Supply Chain Reliability % Schedules Changed within Supplier’s Lead Time
Supply Chain Responsiveness Average Release Cycle of Changes,
Average Days per Engineering Change,
Schedule Product Deliveries Cycle Time,
Average Days per Schedule Change
Supply Chain Costs Cost to Schedule Product Deliveries,
Quantity per shipment
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 Electronic Kanban support
Are Used to Notify Suppliers of the
Need to Deliver Product
Supplier managed inventories with VMI agreements allow suppliers to manage (replenish)
scheduling interfaces to external inventory
supplier systems
Utilize EDI Transactions to Reduce EDI interface for 830, 850, 856 & 862 transactions
Cycle Time and Costs
Advanced Ship Notices Allow for Blanket order support with scheduling interfaces to external
Tight Synchronization between supplier systems
Source and Make Processes
Consignment Agreements Are Used Consignment inventory management
to Reduce Assets and Cycle Time
While Increasing the Availability of
Critical Items

S1.1
Inputs
Sourcing Plans
P2.4 Outputs
Replenishment Signal Product On Order
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3 > S1.1 > Scheduled Receipts
P2.2, ES.10
Return Inventory Transfer Data S1.2, S3.4, M1.1, M2.1, M3.2,

DR1.4, DR2.4, DR3.3, DR3.4 D1.8, D4.2
Supplier Performance Procurement Signal (Supplier)
ES.2
Logistics Selection
ES.6
Production Schedule
M1.1, M2.1, M2.2, M3.2

S1.2
Receive Product
The process and associated activities of receiving product to contract requirements.

Supply Chain Reliability % 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
Supply Chain Responsiveness Receiving Product Cycle Time
Supply Chain Costs Cost to Receive Product
Deliveries Are Balanced Throughout None identified
Each Working Day and Throughout
the Week
levels.
Supplier Delivers Directly to Point Electronic Tag tracking to Point of Use (POU) destination
of Use
Bar Coding is Used to Minimize t Bar code interface for data collection devices.
Handling Time and Maximize Data t Generate bar coded receiving documents.
Accuracy t Product serial number used as identifier.
t RFID
Supplier Certification Programs Skip lot/sampling inspection logic
Are Used to Reduce (Skip Lot) or
Eliminate Receiving Inspection
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.

S1.2
Inputs
MRO Products
DR2.4
Product Outputs
D1.13, D2.13, D3.13
Defective Products > S1.2 > Receipt Verification
ES.1, ES.2, ES.6, ES.8,S1.3, S1.4,
DR1.4 S2.3, S2.4, S3.5, S3.6
Scheduled Receipts
S1.1, S2.1, S3.3
Excess Products
DR3.4

S1.3
Verify Product
The process and actions required determining product conformance to requirements and
criteria.

Supply Chain Reliability % Orders/ Lines Received Defect Free,
% Orders/ lines received with correct content
Supply Chain Responsiveness Verify Product Cycle Time
Supply Chain Costs Cost to Verify Product
Supplier Replaces Defective Electronic Tag tracking to Point of Use (POU) destination
Material at Customer’s Facility with
Good Product as Required
Monitor product compliance Review product for compliance with environmental
specifications, including product packaging
the Week
of Use
Bar Coding is Used to Minimize t Bar code interface for data collection devices
Handling Time and Maximize Data t Generate bar coded receiving documents
t RFID
Inputs Outputs
> S1.3 > Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 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.

Supply Chain Reliability % Product Transferred On-Time to Demand Requirement,
% Product Transferred without Transaction Errors
Supply Chain Responsiveness Transfer Product Cycle Time
Supply Chain Costs Energy Costs,
Cost to Transfer Product,
Product Packaging costs,
% of vehicle fuel derived from alternative fuels,
Packaging purchases,
Drive Deliveries Directly to Stock or Pay on receipt. Specify delivery location and time (to the
Point-Of-Use in Manufacturing to minute).Specify delivery sequence
Reduce Costs and Cycle Time
Implement pollution prevention Implement rigorous and comprehensive pollution prevention
program program and include environmentally preferable purchasing
Utilize alternative fuel vehicles Utilize alternative fuel vehicles
Utilize high efficiency vehicles Utilize high fuel efficiency vehicles
Capability Transfer to Organization None identified

S1.4
Outputs
Inputs Exising Inventory Data
Product Inventory Location ES.4, ED.4
ES.4 Loaded Retail Cart or Pallet
Finished Goods Inventory D4.4
Location Transferred Product
ED.4
> S1.4 > Inventory Availability
S1.5, S2.5, S3.7
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 P2.2, P3.2, ES.4, M1.2, M2.2,
Replenishment Signal M3.3, D1.3, D1.8, D1.9, D2.3,
M1.2, M2.2, M3.3, D1.3, D2.3, D2.9, D3.9, D4.2, D4.3
D3.3 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.

Supply Chain Responsiveness Authorize Supplier Payment Cycle Time
Supply Chain Costs Cost to Authorize Supplier Payment
Pay on Receipt Electronic Invoice Processing
Inputs
Transferred Product
S1.4, S2.4, S3.6 > S1.5 Outputs
> None Identified
Payment Terms
ES.10

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).

Supply Chain Reliability Perfect Order Fulfillment
Source Cycle Time
Supply Chain Costs Product Acquisition Costs,
Cost to Source
Supply Chain Asset Management Inventory Days of Supply (Raw Material),
Automated Statistical Process None identified
Control (SPC)

S2
D3.3
Product On Order P2.2, ES.10
! S2.1 !
DR3.4 Procurement Signal (Supplier)
Source Execution Data M2.2 Scheduled Receipts S1.2, S3.4, M1.1, M2.1, M3.2, D1.8,
Sourcing Plans P2.4 D4.2
Defective Products DR1.4

Excess Products DR3.4
MRO Products DR2.4
Product D1.13, D2.13, D3.13
! S2.2 ! 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 ! S2.3 ! Receipt Verification S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Finished Goods Inventory Location ED.4

WIP Inventory Location EM.6 Inventory Availability P2.2, P3.2, ES.4, M1.2, M2.2, M3.3,
D3.3
Product Inventory Location ES.4
! 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


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.

Average Days per Schedule Change,
Schedule Product Deliveries Cycle Time
Supply Chain Costs Cost to Schedule Product Deliveries,
Utilize EDI Transactions to Reduce EDI interface for 830, 850, 856 & 862 transactions
Cycle Time and Costs
Mechanical (Kanban) Pull Signals Electronic Kanban support
Are Used to Notify Suppliers of the
Need to Deliver Product
Consignment Agreements Are Used Consignment inventory management
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 Blanket order support with scheduling interfaces to external
Tight Synchronization between supplier systems
levels.

S2.1
Inputs
Replenishment Signal
M1.2, M2.2, M3.3, D1.3, D2.3, Outputs
D3.3 Product On Order
Production Schedule P2.2, ES.10
M1.1, M2.1, M2.2, M3.2 > S2.1 > Procurement Signal (Supplier)
Return Inventory Transfer Data Scheduled Receipts
DR1.4, DR2.4, DR3.3, DR3.4 S1.2, S3.4, M1.1, M2.1, M3.2,
Source Execution Data D1.8, D4.2
M2.2
Sourcing Plans
P2.4
Logistics Selection
ES.6
Supplier Performance
ES.2

S2.2
Process Element: Receive Product

Supply Chain Reliability % Orders/ Lines Received On-Time To Demand
Requirement,
% Orders/ Lines Processed Complete,
% Orders/ lines received with correct packaging,
% Orders/ Lines Received with Correct Shipping
Documents
t RFID
which the supplier has access to the customer’s 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 Skip lot/sampling inspection logic
Used to Reduce (Skip Lot) or Eliminate
Receiving Inspection
Each Working Day and Throughout the
Week
Supplier Delivers Directly to Point of Electronic Tag tracking to Point of Use (POU) destination
Use

S2.2
Inputs
Defective Products
DR1.4
Outputs
Excess Products
DR3.4 > S2.2 > Receipt Verification
ES.1, ES.2, ES.6, ES.8, S1.3, S1.4,
MRO Products S2.3, S2.4, S3.5, S3.6, ED.8
DR2.4
Product
D1.13, D2.13, D3.13

S2.3
Verify Product
criteria.

Supply Chain Reliability % Orders/ Lines Received Defect Free,
% Orders/ lines received with correct content
the Week
of Use
Supplier Replaces Defective Electronic Tag tracking to Point of Use (POU) destination
Material at Customer’s Facility with
Good Product as Required
t RFID
of Use
Inputs Outputs
Receipt Verification > S2.3 > Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 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.

Supply Chain Reliability % Product Transferred On-Time to Demand Requirement,
% Product Transferred without Transaction Errors
Cost to Transfer Product
Capability Transfer to Customer None identified
Inputs
Finished Goods Inventory
Location Outputs
ED.4 Inventory Availability
WIP Inventory Location P2.2, P3.2, ES.4, M1.2, M2.2,
EM.6 M3.3, D1.3, D1.8, D1.9, D2.3,
M1.2, M2.2, M3.3, D1.3, D2.3, D3.3
> S2.4 > Transferred Product
D2.9, D3.9, D4.2, D4.3
S1.5, S2.5, S3.7

Product Inventory Location
ES.4 Existing Inventory Data
ES.4, ED.4
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5

S2.5

Inputs
Transferred Product Outputs
S1.4, S2.4, S3.6 > S2.5 > None Identified
Payment Terms
ES.10

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.

Source Cycle Time
Supply Chain Costs Cost to Source,
Product Acquisition Costs
Inventory Days of Supply (Raw Material)

S3
Business Rules for Source Processes ES.1
! S3.1 !
Sourcing Plans P2.4
Supplier Data ES.7 ETO Request for Proposal
Current Inventory Source Data ES.3
ETO Spec or Design

Supplier Data ES.7
ETO Proposal
! S3.2 ! Procurement Signal (Supplier)
Supplier Agreement ES.10, ES.5, ES.7, S3.3, EM.6

D3.3
Procurement Signal (Supplier)
Supplier Agreement ES.10, S3.2
DR3.4
! 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
Product D1.13, D2.13, D3.13

Scheduled Receipts S1.1, S2.1, S3.3 ! S3.4 ! Receipt Verification ES.1, ES.2, ES.6, ES.8, S1.3, S1.4,
S2.3, S2.4, S3.5, S3.6, ED.8

! S3.5 ! Receipt Verification S1.2, S1.3, S2.2, S2.3, S3.4, S3.5
Product Inventory Location ES.4

Replenishment Signal M1.2, M2.2, M3.3, D1.3, D2.3, Inventory Availability P2.2, P3.2, ES.4, M1.2, M2.2, M3.3,
D3.3
Finished Goods Inventory Location ED.4 ! S3.6 ! D1.3, D1.8, D1.9, D2.3, D2.9, D3.9, D4.2, D4.3
Existing Inventory Data ES.4
WIP Inventory Location EM.6
Receipt Verification S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5


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.

Supply Chain Reliability % of suppliers with an EMS or ISO 14001 certification
Supply Chain Responsiveness Identify Sources of Supply Cycle Time
Supply Chain Costs Cost to Identify Sources of Supply
Supply Chain Asset Management % of material that has a valid “Take-back” program,
% of materials that are recyclable/ reusable
Product Data Management & Electronic None identified
Document Management Are Used to
Manage Technical Documents and
Requirements for Engineer to Order Product
Electronic Data Interchange is Used to Send None identified
Technical Information to and from Potential
Suppliers
On Line RFQ Processes Linked into the None identified
Document Management Process Reduces
Cycle Time and Product Management Costs
Purchase recycled product Purchase products from recyclers or remanufactures
Concurrent Engineering is Used to Tightly None identified
Link Sourcing into the Product Development
Process Make/Buy Decision Process
(Outsourcing vs. In Sourcing)
Purchase previously used supplies Purchase previously used supplies
Supplier Development Programs Are None identified
Used to Get Local Suppliers to Invest in
Developing New Technologies

S3.1
Inputs
Business Rules for Source
Processes
ES.1
Sourcing Plans
P2.4 > S3.1 > ETO RequestOutputs
for Proposal
Supplier Data
ES.7
Current Inventory Source Data
ES.3
ETO Spec or Design

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.

Supply Chain Reliability % of suppliers with an EMS or ISO 14001 certification
Supply Chain Responsiveness Select Supplier and Negotiate Cycle Time
Supply Chain Costs Cost to Select Final Supplier(s) and Negotiate
Select firms with EMS Select firms that have implemented an EMS
Utilize Concurrent Engineering with None identified
Suppliers to Allow Them to Provide
Engineering and Product Performance Test
Data
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 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
Electronic Data Interchange Can Be Used Electronic Data Interchange
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
Supplier Certification Programs Can Reduce None identified
the Cycle Time for Certifying Existing
Suppliers to Provide New Technologies
On Line RFQ Processes Linked into the None identified
Document Management Process Reduces
Cycle Time and Product Management Costs
On-Line Availability to Supplier Financials to Internet web sites for financial evaluation
Determine Potential Supplier Viability to be
Added to Supplier Network

S3.2
Inputs
Business Rules for Source
Processes Outputs
ES.1
Supplier Data
> S3.2 > Procurement Signal (Supplier)
Supplier Agreement
ES.7
ES.10, ES.5, ES.7, S3.3, EM.6
ES.3
ETO Proposal

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.

Schedule Product Deliveries Cycle Time,
Average Days per Schedule Change
Supply Chain Costs Quantity per shipment,
Cost to Schedule Product Deliveries
Mechanical (Kanban) Pull Signals Are Used Electronic Kanban support
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 EDI interface for 830, 850, 856 & 862 transactions
and Costs
Advanced Ship Notices Allow for Tight Blanket order support with scheduling interfaces to
Synchronization between Source and Make external supplier systems
Processes
Consignment Agreements Are Used to Consignment inventory management
Reduce Assets and Cycle Time While
Increasing the Availability of Critical Items

S3.3
Inputs
Logistics Selection
ES.6
M1.2, M2.2, M3.3, D1.3, D2.3, Outputs
D3.3 Procurement Signal (Supplier)
Supplier Agreement Scheduled Receipts
ES.10, S3.2
> S3.3 > S1.2, S3.4, M1.1, M2.1, M3.2,
D1.8, D4.2
DR1.4, DR2.4, DR3.3, DR3.4 Product On Order
Supplier Performance P2.2, ES.10
ES.2
Sourcing Plans
P2.4
Production Schedule
M1.1, M2.1, M2.2, M3.2

S3.4
Receive Product

Supply Chain Reliability % Orders/ Lines Processed Complete,
% Orders/ Lines Received with Correct Shipping Documents,
% Orders/ lines received with correct packaging,
% Orders/ Lines Received On-Time To Demand Requirement
of Use - (Dock to Line or End
Destination)
t RFID
Deliveries Are Balanced None identified
Throughout Each Working Day and
Throughout the Week
Vendor Managed Inventory VMI is a concept for planning and control of inventory, in which
the supplier has access to the customer’s 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.

S3.4
Inputs
Outputs
Product
D1.13, D2.13, D3.13
Scheduled Receipts
> S3.4 Receipt Verification
> ES.1, ES.2, ES.6, ES.8, S1.3, S1.4,
S2.3, S2.4, S3.5, S3.6, ED.8
S1.1, S2.1, S3.3

S3.5
Verify Product
criteria.

Supply Chain Reliability % Orders/ lines received with correct content,
% Orders/ Lines Received Defect Free
Supplier Replaces Defective Material Electronic Tag tracking to Point of Use (POU) destination
at Customer’s Facility with Good
Product as Required
the Week
t RFID
of Use
Inputs Outputs
Receipt Verification > S3.5 > Receipt Verification
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 S1.2, S1.3, S2.2, S2.3, S3.4, S3.5

S3.6
Transfer Product
chain. This includes all of the activities associated with repackaging, staging, transferring,
and stocking product.

Supply Chain Reliability % Product Transferred without Transaction Errors,
% Product Transferred On-Time to Demand Requirement
Supply Chain Costs Cost to Transfer Product,
Energy Costs
Capability Transfer to Organization None identified
Inputs
Product Inventory Location Outputs
ES.4
Replenishment Signal P2.2, P3.2, ES.4, M1.2, M2.2,
M1.2, M2.2, M3.3, D1.3, D2.3,
D3.3 > S3.6 > M3.3, D1.3, D1.8, D1.9, D2.3,
D2.9, D3.9, D4.2, D4.3
Finished Goods Inventory Existing Inventory Data
Location ES.4
ED.4
Transferred Product
WIP Inventory Location S1.5, S2.5, S3.7
EM.6
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5

S3.7

Inputs
Transferred Product Outputs
S1.4, S2.4, S3.6 > S3.7 > None Identified
Payment Terms
ES.10

ES
Enable Source
The collection of processes associated with managing and monitoring Source process data,
Process Categories
ES.1: Manage Sourcing Business The process of defining requirements and establishing,
Rules 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.
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
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
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.
ES.5: Manage Capital Assets The process of acquiring, maintaining and dispositioning an
organization’s capital assets located at a supplier’s facility and/
or outside source, which are used to operate the supply chain.
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

ES
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.
ES.8: Manage Import/Export The process of identifying and complying with import/export
Requirements regulatory documentation and process standards set by
external entities (eg, government).
ES.9: Manage Supply Chain Source The process of managing Source risks within an overall Supply
Risk 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 organization’s or the suppliers’s 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.
ES.10: Manage Supplier The management of existing purchase orders or supplier
Agreements contracts. This includes managing volume/step pricing,
resolving issues, enforcing terms and conditions and
maintaining an accurate status for existing purchase orders or
contracts.

ES
Business Rules for Return Processes P5.1, P5.2, ES.7,
! ES.1 !
Supplier Data ES.7 SR1.1, SR2.1, SR3.1,DR1.1, DR2.1, DR3.1, ER.4, ER.5, ER.7,
Receipt Verification S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5 ER.8
Business Rules for Source Processes ES.4, S3.1, S3.2
! ES.2 !
Supplier Data ES.7 Quality and Delivery Performance
Receipt Verification S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5 Supplier Performance ES.7, S1.1, S2.1, S3.3
! ES.3 !
Supplier Data ES.7
Sourcing Plans P2.4 Quality and Delivery Performance
Quality & Delivery Peformance
Existing Inventory Data S1.4, S2.4. S3.6, D1.8

Sourcing Plans P2.4 Product Inventory Location S1.4, S2.4, S3.6
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
! ES.4 ! Product Inventory Target Levels P2.2
MRO Parts Availability EM.5
Supply Chain Performance Metrics EP.2, ED.1, ED.5
Parts and Services Consumed EM.5
! ES.5 !
Parts and Services Consumed EM.5
Supplier Agreement ES.10, S3.2 Capital Assets ES.8
Import/Export Requirements ES.8
! ES.6 !
Contact Carrier Rates ES.8 Logistics Selection S1.1, S2.1, S3.3

! ES.7 ! Supplier Data ES.1, ES.10, ES.2, ES.3, S3.1, S3.2
! ES.8 !
Parts and Services Consumed EM.5 Contract Carrier Rates ES.6, ED.6
Capital Assets ES.5 Import/Export Requirements ES.5, ES.6, ES.10
Monitoring
Internal Information ! ES.9 ! Internal Adjustments
Risk Management Programs for Process Area

Supplier Data ES.7
Product On Order S1.1, S2.1, S3.3
! ES.10 ! 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.

Supply Chain Responsiveness Manage Sourcing Business Rules Cycle Time
Supply Chain Costs Cost to Manage Sourcing Business Rules
Optimized Supply-Chain Processes, Web based access to preferred and recommended suppliers,
Optimized Supplier Count, Supplier supplier performance data & spend data stratified by
and Part Rationalization commodity, business unit/site, supplier, part type, process
type
Collaborative environmental Collaborative environmental management processes with
management processes suppliers, including EMS integration
Long Term Supplier Agreements/ Electronic rules for business relationships and transactions:
Partnerships Vendor-managed Inventory Agreements, Fab & Hold
Agreements, Just-In-Time Agreements.
Enterprise Level Policies/Rules with Web based access to enterprise level business rules
Local Execution
Electronic Sourcing and Negotiation Business Rules for electronic sourcing process and hierarchy
Enterprise Level Spend Analysis None identified
Outputs
Inputs Business Rules for Return
Processes
Supplier Data P5.1, P5.2, ES.7, SR1.1, SR2.1,
ES.7 > ES.1 > SR3.1,DR1.1, DR2.1, DR3.1, ER.4,
ER.5, ER.7, ER.8
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5 Business Rules for Source
Processes
ES.4, S3.1, S3.2

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.

Supply Chain Reliability % of suppliers meeting environmental metrics/criteria
Supply Chain Responsiveness Assess Supplier Performance Cycle Time
Supply Chain Costs Cost to Assess Supplier Performance
Comparative Analysis of Supplier Software application with data analysis capability
Performance is Used in Sourcing Decisions
Supplier “Cost of Nonconformance” Software application to automate data collection and
Data is Collected, Analyzed and Used in reporting
Performance Reporting
Cost Reduction and or Cost Avoidance Are None identified
Opportunities Are Identified, Implemented
and measured on a Periodic Basis
Supplier environmental performance criteria Develop a set of environmental performance criteria
for all suppliers
Performance Expectations and Business Web based access / availability to business rules and
Rules Are Clearly Communicated Prior to the performance criteria
Initiation of Business with the Supplier
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 None identified
is Driven and Measured through the
Performance Review Process

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 Outputs
Supplier Data Quality and Delivery
ES.7 > ES.2 > Performance
Receipt Verification Supplier Performance
S1.2, S1.3,. S2.2, S2.3, S3.4, S3.5 ES.7, S1.1, S2.1, S3.3

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

Supply Chain Responsiveness Maintain Source Data Cycle Time
Supply Chain Costs Cost to Maintain Source Data
Supplier and Material Web based access to supplier/source data
Rationalization
Automated Update of Supplier None identified
Performance Information
On Demand Access of Supplier/ Web based access to current supplier/source data
Source Data
Data Accessibility across the Web based access to various levels of enterprise data
Enterprise for Visibility by Discrete
Business Units
Access to supplier environmental management and
compliance data
Inputs
Outputs
Supplier Data
ES.7 Quality and Delivery
Sourcing Plans > ES.3 > Current Inventory Source Data
Performance
P2.4
ES.7, S3.1, S3.2, ED.7
Quality & Delivery Peformance

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.

Supply Chain Responsiveness Manage Product Inventory Cycle Time
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
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

ES.4
Energy-efficient buildings Utilize energy-efficient lighting and heating systems
throughout warehouse and production areas
Periodic Review of Metrics and Real time view of data.
Strategy with Comparisons to
Industry Benchmarks
Reusable pallets Utilize reusable pallets
Inputs Outputs
Existing Inventory Data Product Inventory Location
S1.4, S2.4. S3.6, D1.8 S1.4, S2.4, S3.6
Sourcing Plans Product Inventory Target
P2.4 Levels
Business Rules for Source P2.2
Processes
ES.1
> ES.4 > MRO Parts Availability
EM.5
Inventory Availability Supply Chain Performance
S1.4, S2.4, S3.6, M1.2, M2.2, Metrics
M3.3, D1.8, D4.2 EP.2, ED.1, ED.5
Parts and Services Consumed
EM.5

ES.5
Manage Capital Assets
The process of acquiring, maintaining and dispositioning an organization’s <capital assets>
located at a supplier’s facility and/or outside source, which are used to operate the supply
chain.

Supply Chain Reliability % of assets in compliance with scheduled maintenance
requirements
Supply Chain Responsiveness Manage Capital Assets Cycle Time
Supply Chain Costs Cost to Manage Source Capital Assets
Changeover Reduction / Changeover process flow element identification, instructional
Continuous Improvement Program 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 Automatically generated TPM repair schedules integrated
Program 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 System software to list checklist items, report results of audit &
/ Safety Audit System forward actions to be taken
Inputs
Parts and Services Consumed
EM.5 Outputs
Supplier Agreement > ES.5 > Capital
ES.8
Assets
ES.10, S3.2
Import/Export Requirements
ES.8

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.

Supply Chain Responsiveness Manage Incoming Product Cycle Time
Supply Chain Costs Cost to Manage Incoming Product
Real-Time Optimized Shipment Transportation Management System (TMS) Maintenance
Method Selection (Air Parcel, Management
Ground Parcel, LTL, etc.) Based on
Customer Service Requirements
Automated Documentation for Transportation Management System (TMS) Maintenance
International Shipments Management
Backhaul Trading Exchange Pooling
Capture and Maintain Mode Transportation Management System (TMS) Maintenance
Specific Data Management
Integrated Order Management, Transportation Management System (TMS) Maintenance
Warehouse Management, and Management
Transportation Management
Systems View for analysis for all
orders and shipments the following
data: Logistics, Product, Cost, GL
Charging
Real-Time Shipment Tracking, (via Transportation Management System (TMS) Maintenance
internet) Management
Measurement of Carrier Transportation Management System (TMS) Maintenance
Performance for On-time Delivery Management
and Completeness
Electronic Manifest and Electronic Transportation Management System (TMS) Maintenance
Billing Management
Appointment Scheduling for Transportation Management System (TMS) Maintenance
Pickup and Delivery of Customer Management
Shipments

ES.6
Manage Information Across 100% Transportation Management System (TMS) Maintenance
of Shipments Management
Rating & Routing Internet Pooling (Electronic brokerage of shipments
Inputs
ES.8 > ES.6 > Logistics Selection
Outputs
Contact Carrier Rates
ES.8 S1.1, S2.1, S3.3
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5

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.

Supply Chain Responsiveness Manage Supplier Network Cycle Time
Supply Chain Costs Cost to Manage Supplier Network
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
Vendor Managed Inventory VMI is a concept for planning and control of inventory,
in which the supplier has access to the customer’s
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 Can Reduce
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 Electronic Data Interchange
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 Internet web sites for financial evaluation
Determine Potential Supplier Viability to be

ES.7
Identification of Suppliers Who Will Supplier managed inventories with scheduling
Participate in Vendor Managed Inventory interfaces to external supplier systems to replenish
(VMI) Programs
Identification of Suppliers Who Will Electronic Kanban Support
Participate in Kanban Programs
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.
Supplier Certification Programs Can Reduce None identified
the Cycle Time for Certifying Existing
Suppliers to Provide New Technologies
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.
Identification of Suppliers Who Will None identified
Participate in Procurement Split (Two
or More Suppliers Sharing Purchase
Requirements) Programs
Utilize Concurrent Engineering with Internet, EDI, FAX
Suppliers to Allow Them to Provide
Engineering and Product Performance Test
Data to Qualify as Part of Potential Supplier
Network

ES.7
Inputs
Processes
ES.1, ER.1
Outputs
ES.3 > ES.7 > Supplier Data
ES.1, ES.10, ES.2, ES.3, S3.1, S3.2
Supplier Agreement
ES.10, S3.2
ES.2

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).

Supply Chain Responsiveness Customs Clearance Cycle Time,
Manage Import/Export Requirements Cycle Time
Supply Chain Costs Cost to Manage Import/Export Requirements
Direct Transfer of Documents to Electronic documentation submission via EDI and/or internet.
Recipient and Forwarder
Ability to Track Component/Sub- Component/lot tracking (lot trace-ability)
Component Manufacturing Country
of Origin
Direct Connection to Customs Electronic documentation submission via EDI and/or internet.
Clearance
Track foreign environmental Maintain and manage current foreign environmental
requirements regulations
Assessing Export/Import Multi-country Export/Import documentation compliance
Requirements during Time of
Product Development/Manufacture
Inputs
Parts and Services Consumed Outputs
EM.5
Capital Assets
> ES.8 > Contract
ES.6, ED.6
Carrier Rates
ES.5 Import/Export Requirements

Receipt Verification ES.5, ES.6, ES.10
S1.2, S1.3, S2.2, S2.3, S3.4, S3.5

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
organization’s or the suppliers’s 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.

Supply Chain Reliability 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)
Supply Chain Responsiveness External Event Response (average days)
Supply Chain Agility Internal Event Response (average days)
Supply Chain Costs Mitigation Cost ($),
Assessment / Risk Management Costs ($),
Mitigation cost by Event ($)
Supply Chain Asset Management Individual Process Area Event Rating (EVAR) ($),
Residual Risk ($),
Gross Risk ($),
Mitigated Risk ($)
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 chain’s 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.

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.

Configured to Minimize Risk 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.


ES.9
Sourcing Opportunities Many businesses need to improve performance through
Prioritization to Improve Cost & reliable Sourcing of more cost-effective supplies & services to
Security of Supply 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 The process of coordinated risk management places a strong
Coordination with Partners 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 network’s performance.
Inputs Outputs
Monitoring > ES.9 > Internal Adjustments
Risk Management Programs
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.

Supply Chain Responsiveness Manage Supplier Agreements Cycle Time
Supply Chain Costs Cost to Manage Supplier Agreements
Enterprise Level Spend Analysis None identified
Local Execution
Long Term Supplier Agreements/ Electronic rules for business relationships and transactions:
Partnerships Vendor-managed Inventory Agreements, Fab & Hold
Agreements, Just-In-Time Agreements.
Optimized Supply-Chain Processes, Web based access to preferred and recommended suppliers,
Optimized Supplier Count, Supplier supplier performance data & spend data stratified by
and Part Rationalization commodity, business unit/site, supplier, part type, process type
Inputs
Supplier Agreement
ES.10, S3.2 Outputs
Supplier Data Payment Terms
ES.7
Product On Order
> ES.10 > Supplier Aggrement
S1.5, S2.5, S3.7
S1.1, S2.1, S3.3 ES.10, S3.2

ES.8

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.
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).
Enable Make The collection of processes associated with managing and monitoring
Make process data, performance and relationships.

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.

Supply Chain Reliability Yield
Make Cycle Time
Supply Chain Agility Upside Make Adaptability,
Downside Make Adaptability,
Supply Chain Costs Cost to Make,
Cost of Goods Sold
levels.
Link Individual Performance to None identified
Organizational and Divisional Goals
Performance Results that Are Data warehouse, report writing, real time database and
Compared to Benchmarks (i.e. Executive Information systems that are easily accessible. Use
Capacity, Scheduling) and Readily of web-based technologies for dissemination of information.
Available to Employees
Provide Continuous Formal Training Examples would be TQM, Six Sigma.
to Employees
Production Level Loading Capacity planning

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 Electronic document management that maintains current
Instructions/Process Plans 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 Electronic dispatch and data collection with external interface
Customer Visibility of Orders to internet.
Demand-Pull Manufacturing, Support of demand-pull mechanisms (Kanban, replenishment
Including Active Reduction of signals, etc.) based on rate schedules and user-defined
Manufacturing Systems Time and minimum/maximum trigger points
WIP Through the Use of Demand-
Pull Mechanisms and Visual Controls
Posted Performance Results Data warehouse, report writing, real time data base and EI
systems
Paperless Production Order and Electronic dispatch and data collection. Allow customer
Inventory Tracking 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/ Electronic batch recording/configuration
Configuration Records for Warranty
and Regulatory Tracking

M1
Information Feedback M1.2, M1.3, M1.4, M1.5, M1.6,
! M1.1 !
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
M3.7, Production Schedule P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
Equipment and Facilities Schedules and Plans EM.5 M3.3, D1.3, D1.8, D2.3, D2.9, D3.3, D3.9, D4.2
Preventative Maintenance and Calibration
Schedule EM.5
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3, Information Feedback M1.1, M2.1, M3.2
! M1.2 !
D1.8, D4.2 Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3,
Production Schedule M1.1, M2.1, M2.2, M3.2 D1.8, D4.2
WIP Location Rules EM.6 Product Location Information EM.6
WIP Handling Rules, Move Information and Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Methods EM.4
M1.3 ! Information Feedback M1.1, M2.1, M3.2

Delivery Plans P4.4 ! M1.5 ! Information Feedback M1.1, M2.1, M3.2

Finished Product Release D1.8, D2.9, D3.9, D4.2
Waste Produced M1.3 ! 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.

Supply Chain Reliability Schedule Achievement
Supply Chain Responsiveness Schedule Production Activities Cycle Time
Supply Chain Costs Peak Time Energy Use,
Cost to Schedule Production Activities
Supply Chain Asset Management Capacity Utilization
Cross Training/Certification HR/certification support
Additional Capacity for Overflow Outsource manufacturing and work force augmentation
Demand providers connected to production schedules via the internet.
Real Time Feedback from Allow dynamic re-synchronization of MAKE activities by tying
Production, Raw Materials, and in real time status information to scheduler.
Finished Goods Inventory and Test
Activities
Utilize off-peak shifts Utilize off-peak shifts for production workers (e.g.,shift 1 =
11:00–19:00)
Schedule air emissions after sunset Schedule air emission emitting activities after sunset
Maintain Data and System Integrity Detailed production model that synchronizes PLAN and MAKE
by Ensuring Production Data, activities in real time.
Inventory Levels, and Schedule
Requirements Are 99+% Accurate
Schedule Minimizes Changeover Algorithms that manage set up times/costs, cleaning times,
Costs between Products and ideal job sequences (e.g., color sequencing light to dark)
Schedule Includes Preventative Interface between maintenance management system and
Maintenance Program scheduling system
Drum-Buffer-Rope Scheduling (DBR, also referred to as Synchronous Manufacturing or
Technique Constraint Management) A technique used to manage
resources to maximize throughput.
Schedule high energy consumption Schedule electricity consuming (large amounts) activities from
at night sunset to sunrise

M1.1
Schedule Reflects Current Plant Schedule undated by on line reporting and status systems and
Status (Equipment Availability, re-sequence activities
Other Jobs and Resource
Availability) On Line
Produce Products to Unique Order entry specifications linked to manufacturing order
Provide Scheduling Output Back Allow dynamic re-synchronization of MAKE activities by tying
to Material and Labor Planning in real time status information to scheduler
Systems
Pull Mechanisms and Visual
Controls
Schedule Optimizes Use of Shared Scheduling utilizing optimization techniques Required
Resources Such as Tooling and production resources included in routing/process instructions
Production Equipment
Inputs
Scheduled Receipts
S1.1, S2.1, S3.3
Information Feedback
M1.2, M1.3, M1.4, M1.5, M1.6, Outputs
M2.2, M2.3, M2.4, M2.5, M2.6,
Production Schedule
M3.3, M3.4, M3.5, M3.6, M3.7,
Equipment and Facilities
> M1.1 > P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
M3.3, D1.3, D1.8, D2.3, D2.9,
Schedules and Plans D3.3, D3.9, D4.2
EM.5
Production Plans
P3.4
Preventative Maintenance and
Calibration Schedule
EM.5

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).

Supply Chain Responsiveness Issue Material Cycle Time
Cost to Issue Material,
% of vehicle fuel derived from alternative fuels
Supply Chain Asset Management Packaging as % of total material
Strategic Safety Stock of Selected Use of safety stock algorithms to minimize stock levels.
Materials, Items, or Subassemblies
to Decouple Sourced Product
Issuance Cycle Time from Supplier
Lead Time
11:00–19:00)
Back Flush Material at Order Flexible back flush logic
Completion
Complete Lot History Inventory by lot of sourced/in-process or discrete order /usage
reporting by lot or discrete order
Demand-Pull Mechanisms; Kanban None identified
Replenishment Signals from
Stockroom, Intermediate Products,
or Subassembly Area
Supplier Delivery to Production EDI link to supplier’s sales order and inventory systems
Process at Point of Use
Electronic Material Move Automated process control and/or barcode data collection
Transactions

M1.2
Inputs
Outputs
S1.4, S2.4, S3.6, M1.2, M2.2,
M1.1, M2.1, M3.2
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2 > M1.2 > S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
WIP Location Rules
Product Location Information
EM.6
EM.6
WIP Handling Rules, Move
Information and Methods
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
EM.4

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.

Supply Chain Reliability Warranty Costs,
Yield Variability,
Warranty and Returns,
Fill Rate,
Yield
Supply Chain Responsiveness Produce and Test Cycle Time,
Asset Turns
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
Supply Chain Asset Management % of products consisting of previously used components,
Capacity Utilization,
Hazardous materials used during production process as a
% of all materials,
% of production materials reused
Maintain Accurate Lot/Batch History Electronic data collection of employee actions and
Information 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.
Implement pollution prevention Implement rigorous and comprehensive pollution
program prevention program and include environmentally
preferable purchasing
Authorize Each Operation to Assess the None identified
Quality of the Previous Operations
Provide Continuous Formal Training to Examples would be TQM, Six Sigma.
Employees
Reduce Chances of Operator Error Automatic download of production equipment with
batch recipes/part programs

M1.3
Accurate and Approved Process Plans/ Electronic document management
Specifications
Paperless Production Control Electronic dispatch of operations
Reduce Non-Value Added Paperwork Electronic data collection of completion, quality, lot
While Still Measuring Process Metrics tractability, scrap, and labor data
Reduce Non-Value Added Activities, Use principals of Lean Manufacturing.
Including Queue, Move, and Set-Up
Times
Measuring Process Metrics and Feedback Electronic data collection of completion, quality,
to Operators 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 Machine productivity and downtime monitoring
to Maximize Flexibility and Avoid Line
Stoppages
Inputs Outputs
None Identified
> M1.3 > Information Feedback
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.

Warranty and Returns
Supply Chain Responsiveness Asset Turns,
Package Cycle Time
Supply Chain Costs % packaging material that is recyclable/reusable,
% packaging material consisting of post-consumer recycled
content,
% of excess packaging per unit,
Packaging material re-use,
Scrap packaging expense,
% packaging material that is biodegradable,
Cost to Package
Retrieve packaging after Retrieve packaging after installation for reuse
installation
Postponement and Pre-Kitting Of None identified
Accessories into Modular Packages
that Allow Flexibility While
Maintaining Control
Up-to-Date Shop Packet/ Electronic Work Instructions
Specification for Each Unique
Production Event/Demand
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 Electronic document management
Plans, Routings, Specifications and
Procedures

M1.4
Reduce Non-Value Added Electronic data collection of completion, quality, lot tractability,
Paperwork While Still Measuring scrap, and labor data
Process Metrics
Design/Upgrade Production Machine productivity and downtime monitoring
Equipment to Maximize Flexibility
and Avoid Line Stoppages
Packaging Operation is an Integral None identified
Part of the Overall Production
Process
Automatic Label and Seal Automatic interface to inspection systems
Verification
Use multi-purpose packaging Use multi-purpose packaging that can be used by customer
Use recyclable packaging Use recyclable packaging
Inputs Outputs
None Identified
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.

Supply Chain Responsiveness Stage Finished Product Cycle Time
Supply Chain Costs Cost to Stage Finished Product
Transactions
Direct Ship from Factory to Share production status with customers and transportation
Customer/Channel providers via web-based tools. Auto-Tendering for direct ship
utilizing EDI/XML protocols.
Inputs
Production Plans Outputs
P3.4 > M1.5 > Information Feedback
Delivery Plans M1.1, M2.1, M3.2
P4.4

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.

Supply Chain Reliability # of complaints regarding missing environmental
documentation,
# of recordkeeping related NOVs
Supply Chain Costs Cost to Release Finished Product to Deliver
Accurate and Low Cost Batch Electronic batch records
records for Regulatory Compliance
Ensure environmental Ensure all required environmental documentation is obtained
documentation
Review Batch Records by Exception Electronic batch records linked to process plans/recipes and
exceptions flagged
Implement HAZMAT “pharmacy” Implement hazardous materials “pharmacy” system
system
Include supplier environmental Include supplier environmental information in addition to
information product environmental information
Automated Notification of Interface between production system and LIMS
Laboratory Regarding Sample
Availability
Outputs
Inputs Information Feedback
None Identified > 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.

Supply Chain Reliability Reportable Release Incidents
Waste Processing Error
Supply Chain Responsiveness Waste accumulation time
Supply Chain Agility Waste storage capacity utilization
Supply Chain Costs Waste storage costs as % of total Make costs
Supply Chain Asset Management Hazardous waste as % of total waste
Recyclable waste as % of total waste
Daily HAZMAT inspection Daily inspection of any hazardous waste storage areas
Waste accumulation Envirnomental EMS covering waste accumulation processes
Meanagement System (EMS)
Storm water prevention plans Storm water prevention and spill control plans for waste
accumulation areas
Inputs Outputs
Waste Produced > M1.7 > None Identified
M1.3

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 Make-
to-Order are: Build-to-Order (BTO), Assemble-to-Order (ATO), Configure-to-Order (CTO), and
postponement.

Supply Chain Reliability Yield,
Perfect Order Fulfillment
Supply Chain Responsiveness Make Cycle Time
Supply Chain Agility Downside Make Adaptability,
Upside Make Adaptability,
Cost of Goods Sold,
Cost to Make
Supply Chain Asset Management Inventory Days of Supply (WIP),
Cash-To-Cash Cycle Time,
Accurate and Approved Work Electronic document management that maintains current
Instructions/Process Plans Standard Operating Procedures (SOP)
to Employees

M2
Delivery Schedules Are Web-based access to plant scheduling status, collaborative
Collaboratively Developed with data-sharing environment.
Customers
systems
Organize to Enhance Flexibility: Support for modular skills inventory with links to training
Few Job Classifications, Self- databases, compensations systems, and operator instructions
Directed Work Force, Flat
Management Structure, Cross-
Functional Work Teams
Production Level Loading Capacity planning
Cellular and Demand Pull Support for cellular and demand pull manufacturing execution
Manufacturing

M2
Equipment and Facilities Schedules and Plans EM.5
Schedule EM.5
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
! M2.1 ! 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
M3.7

WIP Handling Rules, Move Information and Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2,
Methods EM.4
! M2.2 !
M3.3, D1.8, D4.2
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3, Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
D1.8, D4.2 Source Execution Data S2.1
Production Schedule M1.1, M2.1, M2.2, M3.2 Product Location Information EM.6
WIP Location Rules EM.6 Information Feedback M1.1, M2.1, M3.2

Delivery Plans P4.4 ! M2.5 ! Information Feedback M1.1, M2.1, M3.2
M2.6 ! Production Plans P3.4

Delivery Plans P4.4

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.

Supply Chain Costs Cost to Schedule Production Activities,
Peak Time Energy Use
Pull Mechanisms and Visual Controls
Maintain Data and System Integrity Detailed production model that synchronizes PLAN and MAKE
by Ensuring Production Data, activities in real time.
Requirements Are 99+% Accurate
Schedule high energy consumption Schedule electricity consuming (large amounts) activities from
at night sunset to sunrise
Demand Pull Mechanisms Repetitive scheduling and sequencing

M2.1
Inputs
Production Plans
P3.4
Schedules and Plans Outputs
EM.5
Preventative Maintenance and > M2.1 > Production Schedule
P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
Calibration Schedule M3.3, D1.3, D1.8, D2.3, D2.9,
EM.5 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

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).

Supply Chain Responsiveness Issue Sourced/In-Process Product Cycle Time
Supply Chain Costs % of vehicle fuel derived from alternative fuels,
Cost to Issue Sourced/In-Process Product,
Complete Lot History Inventory by lot of sourced/in-process or discrete order /usage
reporting by lot or discrete order
Utilize maintenance free batteries Utilize maintenance free batteries in warehouse/short haul
vehicles
Transactions
or Subassembly Area
Completion

M2.2
Outputs
Inputs Production Schedule
M1.1, M2.1, M2.2, M3.2
Information and Methods Inventory Availability
EM.4 S1.4, S2.4, S3.6, M1.2,
M2.2, M3.3, D1.8, D4.2
S1.4, S2.4, S3.6, M1.2, M2.2, > M2.2 > Replenishment Signal
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
M3.3, D1.8, D4.2
Production Schedule Source Execution Data
M1.1, M2.1, M2.2, M3.2 S2.1
WIP Location Rules Product Location Information

EM.6 EM.6
M1.1, M2.1, M3.2

M2.3
Produce and Test

Yield,
Yield Variability
Asset Turns
Supply Chain Costs % of solid waste consisting of packaging material,
NPDES permitted water effluent,
Energy consumption,
Air emissions,
Waste produced as % of product produced
Supply Chain Asset Management % of production materials reused,
Hazardous materials used during production process as a % of
all materials,
Capacity Utilization,
% of products consisting of previously used components
Reduce Chances of Operator Error Automatic download of production equipment with batch
recipes/part programs
Times

M2.3
Plans/Specifications
Authorize Each Operation to None identified
Assess the Quality of the Previous
Operations
Maintain Accurate Lot/Batch Electronic data collection of employee actions and sourced/in-
History Information process product lot used
Just-In-Time Demand Flow Demand-pull mechanisms
Techniques
Up-to-Date Shop Packet/ Electronic work instructions
Specifications
Real Time quality control Electronic collection of quality data and on-line SPC.
techniques
Real Time Statistical Control Electronic collection of defect data and on-line SPC.
Techniques
Outputs
Inputs
None Identified
M1.1, M2.1, M3.2

M2.4
Package

Supply Chain Reliability Warranty Costs
Supply Chain Responsiveness Asset Turns,
Package Cycle Time
Supply Chain Costs % of excess packaging per unit,
Cost to Package,
% packaging material that is recyclable/reusable,
content,
% packaging material that is biodegradable
Supply Chain Asset Management % of packaging/shipping materials reused internally,
Capacity Utilization
Retrieve packaging after installation Retrieve packaging after installation for reuse
Plans/Specifications
Maintaining Control
Up-to-Date Shop Packet/ Electronic Work Instructions
Specification for Each Unique
Production Event/Demand
Verification
Reduce Non-Value Added Electronic data collection of completion, quality, lot
Paperwork While Still Measuring tractability, scrap, and labor data
Process Metrics

M2.4
Process
Inputs Outputs
None Identified
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.

Transactions
Inputs
Production Plans Outputs
P3.4 > M2.5 > Information Feedback
M1.1, M2.1, M3.2
Delivery Plans
P4.4

M2.6
Release Finished Product to Deliver

Supply Chain Reliability % of products with proper environmental labeling (if
required),
% of products meeting specified environmental performance
requirements
Supply Chain Responsiveness Release Finished Product to Deliver Cycle Time
Availability
exceptions flagged
system
Outputs
Inputs Finished Product Release
None Identified
> M2.6 > D1.8, D2.9, D3.9, D4.2
M1.1, M2.1, M3.2

M2.7
Waste Disposal

Reliability Reportable Release Incidents
Waste Processing Errors
Responsiveness Waste accumulation time
Agility Waste storage capacity utilization
Costs Waste storage costs as % of Make costs
Asset Hazardous waste as % of total waste
Waste accumulation Environmental EMS covering waste accumulation processes
Management System (EMS)
program program and include environmentally preferable purchasing.
Inputs
Waste Produced- From M2.3 Waste produced during the produce and test process
including scrap material and non-conforming product.
Inputs
Outputs
Waste Produced
M2.3
> M2.7 > None Identified

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).

Supply Chain Reliability Yield
Make Cycle Time
Supply Chain Agility Upside Make Adaptability,
Downside Make Adaptability,
Supply Chain Costs Cost to Make,
Cost of Goods Sold
Inventory Days of Supply (WIP),
Delivery Schedules Are Web-based access to plant scheduling status, collaborative
Collaboratively Developed with data-sharing environment.
Customers
Product Design Collaboration with On-line design tools facilitated by internet connections.
Customers
Organize to Enhance Flexibility: Few Support for modular skills inventory with links to training
Job Classifications, Self-Directed databases, compensations systems, and operator instructions
Work Force, Flat Management
Structure, Cross-Functional Work
Teams
systems
Pull Mechanisms and Visual
Controls

M3
Order Information D3.3
Engineering Design ! M3.1 ! Methods, Procedures, Processes M3.2

Schedule EM.5
! M3.2 !
Production Schedule P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
M2.2, M2.3, M2.4, M2.5, M2.6, M3.3, M3.4, M3.5, M3.6,
M3.3, D1.3, D1.8, D2.3, D2.9, D3.3, D3.9, D4.2
M3.7
Methods, Procedures, Processes M3.1
Equipment and Facilities Schedules and Plans EM.5
WIP Location Rules EM.6

Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3, Information Feedback M1.1, M2.1, M3.2
! M3.3 !
D1.8, D4.2 Product Location Information EM.6
WIP Handling Rules, Move Information and Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Methods EM.4 Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3,
Delivery Plans P4.4

Production Plans P3.4 ! M3.6 ! Information Feedback M1.1, M2.1, M3.2
M3.7 ! Finished Product Release D1.8, D2.69, D3.9, D4.2

Information Feedback M1.1, M2.1, M3.2

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.

Supply Chain Responsiveness Finalize Production Engineering Cycle Time
Supply Chain Costs Cost to Finalize Production Engineering
Automated Conversion of None identified
Engineering Drawings into Product
Specifications
Automated Configuration Configuration
Management
Inputs Outputs
Order Information
D3.3
> M3.1 > Methods,
Processes
Procedures,
Engineering Design 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.

Supply Chain Costs Cost to Schedule Production Activities
Additional Capacity for Overflow Outsource manufacturing and work force augmentation
Demand providers connected to production schedules via the internet.
11:00–19:00)
Schedule Minimizes Changeover Algorithms that manage set up times/costs, cleaning times,
Costs between Products and ideal job sequences (e.g., color sequencing light to dark)
Schedule high energy consumption Schedule electricity consuming (large amounts) activities
at night from sunset to sunrise
Maximize Data Integrity and None identified
System Accuracy by Ensuring 99%+
Accuracy of BOM Configuration,
Requirements

M3.2
Build Subassemblies to Forecast None identified
at Highest Generic Level in Bill
of Material; Maintain Flexibility
While Minimizing Cycle Time and
Inventory Position
Schedule Includes Preventative Interface between maintenance management system and
Maintenance Program scheduling system
Schedule Reflects Current Plant Schedule undated by on line reporting and status systems
Status (Equipment Availability, Other and re-sequence activities
Jobs and Resource Availability) On
Line
Demand Pull Mechanisms Repetitive scheduling and sequencing
Inputs
EM.5
Scheduled Receipts
S1.1, S2.1, S3.3 Outputs
Information Feedback Production Schedule
M1.2, M1.3, M1.4, M1.5, M1.6,
M2.2, M2.3, M2.4, M2.5, M2.6,
> M3.2 > P3.2, S1.1, S2.1, S3.3, M1.2, M2.2,
M3.3, D1.3, D1.8, D2.3, D2.9,
M3.3, M3.4, M3.5, M3.6, M3.7 D3.3, D3.9, D4.2
Methods, Procedures,
Processes
M3.1
Schedules and Plans
EM.5
Production Plans
P3.4

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).

Supply Chain Responsiveness Issue Sourced/In-Process Product Cycle Time
Supply Chain Costs Cost to Issue Sourced/In-Process Product,
or Subassembly Area
Transactions
Completion
Two-Bin Floor Stock Located at Work None identified
Center for “B” And “C” Components
- Controlled by Operators and
Replenished When One Bin is Empty

M3.3
Inputs
Outputs
WIP Location Rules
EM.6 Information Feedback
M1.1, M2.1, M3.2
S1.4, S2.4, S3.6, M1.2, M2.2, Product Location Information
M3.3, D1.8, D4.2
> M3.3 > Replenishment Signal
EM.6
Information and Methods S1.1, S1.4, S2.1, S2.4, S3.3, S3.6

EM.4 Inventory Availability
Production Schedule S1.4, S2.4, S3.6, M1.2, M2.2,
M1.1, M2.1, M2.2, M3.2 M3.3, D1.8, D4.2

M3.4
Produce and Test

Supply Chain Reliability Yield Variability,
Yield,
Warranty Costs
Asset Turns
Supply Chain Costs Hazardous waste generated at warehousing facilities as % of
total waste generated,
Air emissions,
NPDES permitted water effluent,
Energy consumption,
% of solid waste consisting of packaging material
Supply Chain Asset Management Hazardous materials used during production process as a % of
all materials,
% of production materials reused,
% of products consisting of previously used components
Implement Employee Involvement None Identified
Programs
to Employees

M3.4
Real Time quality control Electronic collection of quality data and on-line SPC.
techniques
Authorize Each Operation to None identified
Assess the Quality of the Previous
Operations
Real Time Statistical Control Electronic collection of defect data and on-line SPC.
Techniques
Times
Just-In-Time Demand Flow Demand-pull mechanisms
Techniques
Maintain Accurate Lot/Batch Electronic data collection of employee actions and sourced/in-
History Information process product lot used
Specifications
Inputs Outputs
None Identified > M3.4 > Information Feedback
M1.1, M2.1, M3.2

M3.5
Package

Supply Chain Reliability Warranty Costs
Supply Chain Responsiveness Package Cycle Time,
Asset Turns
Supply Chain Costs Packaging material re-use,
% packaging material that is recyclable/reusable,
Cost to Package,
% packaging material that is biodegradable,
content,
% of excess packaging per unit
Maintaining Control
Process
Verification

M3.5
Specifications
Electronic data collection of Reduce non-value added paperwork while still maintaining
completion, quality, lot trace ability, process metrics
scrap, and labor data
Inputs Outputs
None Identified > M3.5 > Information Feedback
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.

Transactions
Inputs
Delivery Plans Outputs
P4.4
Production Plans
M1.1, M2.1, M3.2
P3.4

M3.7
Release Product to Deliver

Supply Chain Responsiveness Release Finished Product to Deliver Cycle Time
system
Availability
exceptions flagged
Outputs
Inputs Finished Product Release
None Identified
> M3.7 > D1.8, D2.9, D3.9, D4.2
M1.1, M2.1, M3.2

M3.8
Waste Disposal

Waste Processing Error
Supply Chain Responsiveness Waste accumulation time
Supply Chain Agility Waste storage capacity utilization
Supply Chain Costs Waste storage costs as % of total Make costs
Supply Chain Asset Management Hazardous waste as % of total waste
Waste accumulation Environmental EMS covering waste accumulation processes
Management System (EMS)
Storm water prevention plans Storm water prevention and spill control plans for waste
accumulation areas
Inputs Outputs
Waste Produced > M3.8 > None Identified
M3.4

EM
EM: Enable Make
The collection of processes associated with managing and monitoring Make process data,
Process Categories
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.
EM.2: Manage Production The process of developing and maintaining performance
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.
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.
EM.4: Manage In-Process Products The process of establishing and maintaining limits or levels,
(WIP) replenishment models, ownership, product mix and stocking
locations for In-Process Product (WIP).
EM.5: Manage Make Equipment The process of specifying maintaining and dispositioning
and Facilities MAKE’s capital assets to operate the supply chain production
processes. This includes repair, alteration, calibration and
other miscellaneous items to maintain production capabilities.
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).
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.
EM.8: Manage Make Regulatory The process of identifying and complying with regulatory
Environment documentation and process standards set by external entities
(eg government)
EM.9: Manage Supply Chain Make The process of managing Make risks within an overall supply
Risk 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.

EM
Business Plan
Transportation Capacity EP.6
! EM.1 !
Corporate Objectives and Strategies
Production Plans P3.4 Production Rules
Inventory Capacity
Production Capacity EP.5
Product Design
Business Plan
Transportation Capacity EP.6
! EM.2 !
Corporate Objectives and Strategies Production Rules
Production Plans P3.4 Production Quality & Policies
Inventory Capacity Supply Chain Performance Metrics EP.2, ED.1, ED.5
Production Capacity EP.5
Product Design/Quality
! EM.3 !
Systems Capabilities
Information Needed to Create and Maintain IT Reports, Information and Documents
Information from Business Processes Information Infrastructure Plan
Information Needs Analysis
! EM.4 !
Capacity Requirements
Production Orders Planned & Actual Reports WIP Handling Rules, Move Information and
Returned Product Information Methods EM.6, M1.2, M2.2, M3.3
Incoming Product Information
Equipment and Facilities Maintenance History

Budgets Parts and Services Consumed ES.4, ES.5, ES.8
Manufacturer’s Recommended Maintenance Equipment and Facilities Schedules and Plans M1.1,
! EM.5 !
Schedules & Specifications M2.1, M3.2
Equipment and Facilities Monitoring Information Equipment and Facilities Replacement and
MRO Parts Availability ES.4 Disposition Plans P3.2, EM.6
Production Plans P3.4 Production Status EM.7
Production Quality and Policies Preventative Maintenance and Calibration
Schedule M1.1, M2.1, M3.2
Equipment and Facilities Replacement and
Disposition Plans EM.5
Production Orders Planned & Actual Reports
! EM.6 !
WIP Handling Rules, Move Information and WIP Move Information and Methods
Methods EM.4 WIP Location Rules M1.2, M2.2, M3.3, D2.9
Capacity Requirements WIP Inventory Location S1.4, S2.4, S3.6
Projected Delivery Requirements EM.7
Product Location Information M1.2, M2.2, M3.3
! EM.7 !
Planning Data EP.3 Cost to Produce
Production Status EM.5 Internal Capacity
Supply Chain Plans P1.4 Projected Delivery Requirements EM.6, ED.6
! EM.8 !
Equipment and Facilities Characteristics
External Regulatory Information Conformance Rules
Corporate Objectives and Strategies Conformance Plan
Product Design/Claims
Monitoring
Internal Information ! EM.9 ! Risk Management Program for Process Area

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.

Supply Chain Responsiveness Manage Production Rules Cycle Time
Supply Chain Costs Cost to Manage Production Rules
Attribute-Based Process Planning Computer aided process planning / recipe management
Automatic Generation / Parametric driven (Group Technology - based) manufacturing
Configuration Of Tooling / Set-Up design system
Instructions
Design For Production Table of manufacturing capacities or design envelops
(capacities; envelop sizes; tank, vessel or batch sizes)
Automated Engineering Automated Intelligence (Heuristic) - based engineering
Specifications specifications system
Automatic Notification When to Workflow/Groupware
Begin and When to Complete
Genealogy Tracking Where-used listing of as-planned vs. as-built documentation
Pre-Defined Manufacturing Design Libraries of manufacturing capabilities or design envelopes
Rules
Document Control Control who can create, revise and access information
Automated Links To Existing CAD & Electronic hypertext or links to existing database of detail/
CAM Information parts/setup sketches/drawings
On Line Access and Notification of Delivery of tooling and equipment details drawings
Tooling and Equipment Information
Electronic Documentation and Graphical display of drawings, diagrams, recipes/formulas,
Imaging specifications, instructions, etc., to all users

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

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.

Supply Chain Reliability # of staff-related environmental violations
Supply Chain Responsiveness Manage Production Performance Cycle Time
Supply Chain Costs Cost to Manage Production Performance
Real Time Performance Systems to collect production information online generate
Measurement Reporting Systems reports upon request by operators, and track progress against
schedule and standards.
Develop environmental Develop environmental performance standards.
performance standards.
Periodic Review of Standards Process for establishing and maintaining review schedules
Standards and Measurements Internal/external benchmarking, industry standards,
Aligned to Maximize Supply Chain customer/supplier alignment agreements, visibility of key
Performance performance indicators
Inputs
Business Plan
EP.6 Inputs
Corporate Objectives and Production Rules
Strategies
Production Plans > EM.2 Production Quality & Policies
> Supply Chain Performance
P3.4 Metrics
Inventory Capacity EP.2, ED.1, ED.5
Production Capacity
EP.5
Product Design/Quality

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.

Supply Chain Responsiveness Manage MAKE Information Cycle Time
Supply Chain Costs Cost to Manage MAKE Information
On-Demand Access to Available None identified
to Promise (ATP), Production
Schedules and Inventory Status by
Internal Operations and Customers
On-Demand Access of Production Data Collection and Display Systems designed for efficient
Information 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 Enter, Process, and Deliver information about the
Systems manufacturing process to management using information
systems that span the enterprise
Include product’s environmental Include product’s environmental attributes information
attributes
Continuous Improvement Historical trending, cause and effect analysis, and Key
Performance Indicators Scheduling reviews of processes for
possible improvements
Inputs
Systems Capabilities Outputs
Information Needed to Create Reports, Information and
and Maintain IT > EM.3 > Information Infrastructure
Documents
Information from Business
Processes Plan
Information Needs Analysis

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).

Supply Chain Responsiveness Manage In-Process Products (WIP) Cycle Time
Supply Chain Costs Cost to Manage In-Process Products (WIP)
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.
Minimizing In-Process Product WIP Storage Management System Efficient Space Utilization
(WIP) Implementing Pull Systems
In-Process Product (WIP) Handling Tracking, genealogy
Rules
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.

EM.4
Vendor Managed Inventory VMI is a concept for planning and control of inventory, in which
the supplier has access to the customer’s 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.
First In - First Out Part / WIP location by date received for those parts that must
be stocked or staged in a holding area
Inputs
Capacity Requirements Outputs
Production Orders Planned &
Actual Reports
> EM.4 > WIP Handling Rules, Move
Returned Product Information EM.6, M1.2, M2.2, M3.3
Incoming Product Information

EM.5
Manage MAKE Equipment and Facilities
The process of specifying maintaining and dispositioning MAKE’s capital assets to operate
the supply chain production processes. This includes repair, alteration, calibration and other
miscellaneous items to maintain production capabilities.

Supply Chain Responsiveness Manage MAKE Equipment and Facilities Cycle Time,
Supply chain down time due to compliance issues
Supply Chain Costs Energy efficient upgrades,
Cost to Manage MAKE Equipment and Facilities,
Number of worker absences due to poor IAQ
Supply Chain Asset Management Actual Asset Life Maintenance Cost as % of Replacement Value,
Equipment energy efficiency
Predictive Maintenance Monitoring Database for equipment to contain expected results of
(Heat, Noise, Lubrication analysis, allow entry of test readings, and have capability of
Composition & Vibration) 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
Changeover Reduction / Changeover process flow element identification, instructional
Continuous Improvement Program 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 Rules for deciding appropriate disposition.
Equipment
Minimize Capital Assets Required Outsourcing strategies including the use of Application
and Maintenance Costs Service Providers (ASPs), web-based maintenance/diagnostic
assistance and MRO parts.
Supplier Managed Inventory of E.D.I. linkage of Inventory Information
Parts
Facility & Equipment Environmental System software to list checklist items, report results of audit &
/ Safety Audit System forward actions to be taken
Utilize energy-star (or similar) Utilize energy-star (or similar) equipment whenever possible
equipment

EM.5
system
Factory Floor Electronic Decision Software to capture actual performance history / costs of
Making Information System operations with capability of predicting “best cost action plans”
relating to maintaining equipment and facilities.
Total Preventative Maintenance Automatically generated TPM repair schedules integrated
Program 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 Equipment and Facilities
Budgets Maintenance History
Manufacturer’s Recommended Parts and Services Consumed
Maintenance Schedules & ES.4, ES.5, ES.8
Specifications Equipment and Facilities
Schedules and Plans
Equipment and Facilities Moni-
toring Information > EM.5 > M1.1, M2.1, M3.2
MRO Parts Availability Equipment and Facilities
ES.4 Replacement and Disposition
Plans
Production Plans P3.2, EM.6
P3.4
Production Status
Production Quality and Poli- EM.7
cies
M1.1, M2.1, M3.2

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).

Supply Chain Responsiveness Manage Transportation (WIP) Cycle Time
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
Utilize retread tires Utilize retread tires
Utilize non-wood or recycled pallets Utilize non-wood pallets or recycled pallets
Reduce In-Process Product (WIP) Reduction of WIP handling through automation (i.e. AGVs and
Handling 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.

EM.6
Inputs
Replacement and Disposition
Plans
EM.5
Production Orders Planned & Outputs
Actual Reports WIP Move Information and
> EM.6 > WIP Location Rules
Methods
EM.4 M1.2, M2.2, M3.3, D2.9

Capacity Requirements WIP Inventory Location
S1.4, S2.4, S3.6
Projected Delivery
Requirements
EM.7
Supplier Agreement
ES.10, S3.2
Product Location Information
M1.2, M2.2, M3.3

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.

Supply Chain Responsiveness Manage Production Network Cycle Time,
Supply chain down time due to compliance issues
Supply Chain Costs Cost to Manage Production Network
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 Outputs
Planning Data Cost to Produce
EP.3
Production Status > EM.7 > Internal Capacity
EM.5 Projected Delivery
Requirements
Supply Chain Plans EM.6, ED.6
P1.4

EM.8
Manage Make Regulatory Environment
standards set by external entities (eg government)

Supply Chain Reliability % of employees trained on environmental requirements
Supply Chain Responsiveness Manage MAKE Regulatory Compliance Cycle Time
Supply Chain Costs Cost to Manage MAKE Regulatory Compliance,
Pollution Prevention Ratio
Automated Conformance Internal automatic notification of conformance, including
Monitoring And Control holding of product until requirements are met
Automatic Generation And Software specific to industry regulations and standards
Submission Of Conformance (e.g. may be software to produce MSDS documents, or FDA
Documents requirements, etc.)
Maintaining Repository of Current Electronic subscription and publication of conformance
Regulatory Requirements documentation. Electronic Document Management System
features.
Inputs
Characteristics Outputs
External Regulatory > EM.8 > Conformance Rules
Information Conformance Plan
Corporate Objectives and
Strategies
Product Design/Claims

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.

Supply Chain Reliability Supplier Mitigation Plans Implemented (percent),
Value at Risk (Make),
Age of Supplier Risk Data (months),
Age of Product / Customer Risk Data (months),
VAR of product/customer performance -
Hedge Rating (Inventory DOS for risk management),
Internal Event Response (average days)
Supply Chain Costs Mitigation Cost ($),
Mitigation cost by Event ($),
Assessment / Risk Management Costs ($)
Supply Chain Asset Residual Risk ($),
Management Individual Process Area Event Rating (EVAR) ($),
Mitigated Risk ($),
Gross Risk ($)
Supply Chain Business Rules This practice involves establishing business rules (e.g., customer
Configured to mitigate risk 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.

EM.9
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 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.
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 This practice relies on a risk evaluation of the supply chain to
Configured to Mitigate Risk 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.

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.

EM.9
Crisis Communications Open communication is necessary for effective risk management,
Planning 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 Outputs
Monitoring > EM.9 > Risk Management Program for
Process Area

D
Deliver
The processes associated with performing customer-facing order management and order
fulfillment activities.
Process Categories
D1: Deliver Stocked The process of delivering product that is sourced or made based on
Product 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 The processes of delivering product that is sourced, configured,
Product 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.
D3: Deliver Engineer-to- The process of obtaining, responding to, and allocating resources for
Order Product 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 The collection of processes associated with managing and monitoring
Deliver process data, performance and relationships.

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.

Supply Chain Responsiveness Deliver Cycle Time,
Supply Chain Agility Upside Deliver Adaptability,
Downside Deliver Adaptability,
Supply Chain Costs Cost to Deliver,
Finished Goods Inventory Days of Supply,
Order Management Costs
Electronic Catalogues/Malls None identified
Efficient Consumer Response (ECR); Demand Planning, Deployment, Scheduling
Quick Response
Internet Ordering None identified
Rapid Replenishment, VMI, EDI None identified

D1
Customer Inquiry ! D1.1 ! Customer Quote D1.2
Optional Payment
Validated Order D1.3
Customer Order D3.4, ED.2
(Customer) Customer Replenish Signal Actual Sales History P5.1
! D1.2 !
Order Rules ED.1 Shipping Preferences (Customer) ED.3
(Customer) Deliver Contract Terms 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
Delivery Plan P4.4

Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3, Delivery Date D1.4, D2.4
! D1.3 !
D1.8, D4.2 Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Sourcing Plans P2.4 Order Backlog P1.1, P4.1
Production Schedule M1.1, M2.1, M2.2, M3.2 Inventory Availability/Delivery Date P4.2
Validated Order D1.2 Shipments P1.1
Delivery Date D1.3, D2.3 ! 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
! D1.6 !
Rated Carrier Data Shipment Routes D1.7, D2.7
Routing Guide
Shipment Routes D1.6, D2.6 ! D1.7 ! Scheduled Deliveries D1.9

D1
Authorization to Scrap SR1.2, SR2.2, SR3.2
! D1.8 !
Scheduled Receipts S1.1, S2.1, S3.3 Existing Inventory Data ES.4, ED.4
Finished Product Release M1.6, M2.6, M3.7
Authorization to Return to Service SR1.2, SR2.2, SR3.2
! D1.9
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
D1.10
Order Backlog P1.1, P4.1
Shipping History ED.8
! D1.11 !
Shipping Documents
Shipping Parameters and Documentation ED.6 Load, Shipping, Verify, and Credit Information SR1.5,
Shipping Export Parameters and Documentation ED.8 SR2.5, SR3.5
Shipments P1.1
Delivered End Items
D1.12
D1.13 ! 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

Supply Chain Responsiveness Process Inquiry & Quote Cycle Time
Supply Chain Costs Cost to Process Inquiry & Quote
Quote Capability, without None identified
Reserving Inventory, Which Can Be
Converted into an Order in a Single
Step
Single Point of Contact for All Order None identified
Inquiries (Including Order Entry)
Inputs Outputs
Customer Inquiry
> D1.1 > Customer Quote
D1.2

D1.2
Receive, Enter and Validate Order
Receive orders from the customer and enter them into a company’s 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
customer’s credit. Optionally accept payment.

Supply Chain Responsiveness Receive, Enter & Validate Order Cycle Time,
Order Fulfillment Dwell Time
Supply Chain Costs Cost to Receive, Enter & Validate Order
Remote (Sales, Customers) Order None identified
Entry Capability
Enable Real-Time Visibility into None identified
Backlog, Order Status, Shipments,
Scheduled Material Receipts,
Customer Credit History, and Current
Inventory Positions
Value Pricing Based on “Cost to Activity Based Costing; Integrated Order Management by
Serve”; EDLP; Cost Plus Pricing Customer by Line Item
Automatic Multi-level Credit Integrated Order/Financial Management
Checking: Dollar Limits; Days Sales
Outstanding; Margin Testing
Continuous Replenishment Integrated demand/deployment planning to customer
Programs; Vendor Managed location driven by POS; Customer movement data
Inventory, Telemetry to
Automatically Communicate
Replenishment of Chemicals
Electronic Commerce (Customer EDI applications and integrated order management
Visibility of Stock Availability, Use
of Hand-Held Terminals for Direct
Order Entry, Confirmation, Credit
Approval), On-Line Stock Check and
Reservation of Inventory

D1.2
Outputs
Optional Payment
Validated Order
D1.3
Customer Order
D3.4, ED.2
Inputs Actual Sales History
(Customer) Customer Replenish P5.1
Signal Shipping Preferences
Order Rules (Customer)
ED.1 ED.3
(Customer) Deliver Contract > D1.2 > Validated Order
Terms D1.3
Customer Quote Purchase History
D1.1 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

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.

Supply Chain Reliability Delivery Performance to Customer Commit Date,
Fill Rate,
Supply Chain Responsiveness Reserve Inventory & Determine Delivery Date Cycle Time,
Supply Chain Costs Cost to Reserve Resources & Determine Delivery Date
Include environmental costs Include environmental costs in inventory carrying costs
Inventory Allocation Exception None identified
Process is Clearly Defined and
Jointly Owned by Manufacturing
and Sales
Priority-Based Inventory None identified
Reservations, for Key Customers,
with FIFO Allocation for All Others
Automatic Reservation of Inventory Integrated order management system that treats each order
and Dynamic Sourcing of Product line as a separate order with integration to inventory source
for Single Shipment to Customer 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 None identified
and Distributor to Achieve Visibility
of Complete Finished Goods
Inventory and Expected Shipments

D1.3
Inputs
Delivery Plan
Outputs
P4.4 Delivery Date
D1.4, D2.4
S1.4, S2.4, S3.6, M1.2, M2.2, Replenishment Signal
M3.3, D1.8, D4.2 S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Sourcing Plans
P2.4
> D1.3 > Order Backlog
P1.1, P4.1
Production Schedule Inventory Availability/Delivery
M1.1, M2.1, M2.2, M3.2 Date
P4.2
Validated Order
D1.2 Shipments
P1.1
Production Plans
P3.4

D1.4
Consolidate Orders
The process of analyzing orders to determine the groupings that result in least cost/best
service fulfillment and transportation.

Supply Chain Responsiveness Consolidate Orders Cycle Time
Supply Chain Costs Cost to Consolidate Orders
Consolidate Orders by Customer, Integrated load planning and building with warehouse
Source, Traffic Lane, Carrier, Etc. management
Consolidate to minimize energy Consolidate to minimize fuel/energy consumption
consumption
Combine Consolidation Needs None identified
with Other Products/Divisions/
Companies
Inputs Outputs
Delivery Date
D1.3, D2.3
> D1.4 > Daily
D1.5
Shipment Volume

D1.5
Build Loads
Transportation modes are selected and efficient loads are built.

Supply Chain Responsiveness Build Loads Cycle Time
Cost to Build Loads
Consolidation of Inbound and Integrated inbound/outbound transportation planning
Outbound Requirements
which the supplier has access to the customer’s 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 Integration with CRP/VMI vendor systems
Utilization
Outputs
Inputs Load Information
Daily Shipment Volume
D1.4
> D1.5 > P4.2, D1.6, D2.6, D3.6
Plan and Build Loads
Information
SR1.4, SR2.4, SR3.4

D1.6
Route Shipments
Loads are consolidated and routed by mode, lane and location.

Supply Chain Responsiveness Route Shipments Cycle Time
Supply Chain Costs Cost to Route Shipments,
Energy Costs
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 Route to minimize fuel consumption
consumption
Inputs
Load Information Outputs
D1.5, D2.5, D3.5
Rated Carrier Data
> D1.6 > Shipment
D1.7, D2.7
Routes
Routing Guide

D1.7
Select Carriers and Rate Shipments
Specific carriers are selected by lowest cost per route and shipments are rated and tendered.

Supply Chain Responsiveness Select Carriers & Rate Shipments Cycle Time
Supply Chain Costs Cost to Select Carriers & Rate Shipments
Select complaint carriers Select carriers that have not violated environmental laws
Select carriers using retread tires Select carriers using retread tires
Select Carriers by Least Cost per Rules based carrier selection and actual rate database
Shipment and Rate Using Actual
Rates Prior to Release to Billing
Inputs Outputs
Shipment Routes
D1.6, D2.6
> D1.7 > Scheduled
D1.9
Deliveries

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.

Supply Chain Responsiveness Receive Product from Source or Make Cycle Time
Supply Chain Costs Cost to Receive Product from Source or Make
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 Integration with Procurement Systems & Electronic Commerce
Notices for Automated Receiving with Vendors
and Put Away
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. Merging is usually
performed in a shipper’s distribution center (DC) or in a
carrier’s terminal.

D1.8
Inputs
Authorization to Scrap
SR1.2, SR2.2, SR3.2
S1.4, S2.4, S3.6, M1.2, M2.2, Outputs
M3.3, D1.8, D4.2
Production Schedule
M1.1, M2.1, M2.2, M3.2 > D1.8 > S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Scheduled Receipts Existing Inventory Data
S1.1, S2.1, S3.3 ES.4, ED.4
M1.6, M2.6, M3.7
Authorization to Return to
Service
SR1.2, SR2.2, SR3.2

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.

Supply Chain Reliability Fill Rate
Supply Chain Responsiveness Pick Product Cycle Time
Supply Chain Costs Cost to Pick Product
Dynamic Simulation of Picking Rules based picking logic and simulation
Requirements Optimized for Labor,
Cost, and Time
Use of Speed Racks for Automated None identified
Material Handling
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. Merging is usually
performed in a shipper’s distribution center (DC) or in a
carrier’s terminal.
Wave picking A practice used in many DC operations to increase labor
picking productivity and reduce the labor cost per pick. In
some DC’s, 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 Outputs
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
> D1.9 > None Identified
Shipment Routes
D1.7, D2.6, D3.5

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.
Supply Chain Reliability % correct material documentation
Supply Chain Responsiveness Pack Product Cycle Times
Supply Chain Costs Cost to Pack Product
None Identified None Identified
Inputs Outputs
None Identified > D1.10 > None Identified

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.

Supply Chain Reliability Documentation Accuracy,
Supply Chain Responsiveness Load Product & Generate Shipping Documentation Cycle Time
Supply Chain Costs Cost to Load Product & Generate Shipping Documentation
Shipment Tracking None identified
Full Visibility of Credit History by None identified
Shipping Personnel
Advanced Shipping Notices & Bar coding; EDI; integrated transportation/warehouse
UCC128 Container Labeling management
Electronic Generation and None identified
Download of Shipping Documents
Integrated Credit Checking Interface to supplier’s shipping system to financials

D1.11
Outputs
Order Backlog
P1.1, P4.1
Inputs
Shipping History
Shipping Parameters and ED.8
Documentation
ED.6 > D1.11 > Shipping Documents
Load, Shipping, Verify, and
Shipping Export Parameters
Credit Information
and Documentation
SR1.5, SR2.5, SR3.5
ED.8
Shipments
P1.1
Delivered End Items

D1.12
Ship Product
The process of shipping the product to the customer site.

Supply Chain Responsiveness Ship Product Cycle Time
Supply Chain Costs Cost to Ship Product
Supply Chain Asset None Identified
Management
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 Retrieve packaging after installation for reuse
installation
Inputs Outputs

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.

Perfect Condition,
Supply Chain Responsiveness Receive & Verify Product by Customer Cycle Time
Supply Chain Costs Cost to Receive & Verify Product by Customer
Outputs
Inputs
None Identified
> D1.13 > Product
S1.2, S2.2, S3.4, D1.14, D2.14,
D3.14

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.

Supply Chain Reliability Perfect Condition,
% Of Faultless Installations
Supply Chain Responsiveness Install Product Cycle Time
Supply Chain Costs Cost to Install Product
Joint Service Agreements to Collaborative planning tools with the Source suppliers.
Document Acceptable Service (This would be effective between customer and supplier,
Levels in Terms of Installation Costs, and between internal functions such as Field Service,
Installation Cycle Time, Etc. Manufacturing, Marketing and Order Management)
Inputs Outputs
Product
D1.13, D2.13, D3.13
> D1.14 > Installed Product
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.

Supply Chain Reliability % of Faultless Invoices,
Supply Chain Responsiveness Invoice Cycle Time
Supply Chain Costs Cost to Invoice
Utilize EDI and EFT for Payment to EDI transaction and network services
Speed Closing of Receivables and
to Reduce Processing Costs
Electronic Transfer of Shipment None identified
Information to Finance
Provide Visibility to and Quickly Integrated accounts receivables
Escalate Delinquent Accounts for
Resolution
Inputs
Installed Product > D1.15 > Payment Outputs
D1.14, D2.14, D3.14

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.

Deliver Cycle Time
Supply Chain Agility Downside Deliver Adaptability,
Upside Deliver Flexibility,
Energy Costs,
Finished Goods Inventory Days of Supply

D2
Customer Inquiry ! D2.1 ! Order Quote (Customer) D2.2
Location of Customers ED.7

Purchase History ED.3
Configuration Rules ED.1 Credit History D1.2, D2.2, D3.1
Order Quote (CUSTOMER) D2.1
Contract Terms
Order Rules ED.1
! D2.2 ! Optional Payment
Booked Order D2.3, ED.3
Customer Address Data ED.3
Credit History D1.2, D2.2, D3.1 Customer Order Size, Weight, and Freight Class ED.6
Shipping Preferences (Customer) ED.3
Actual Sales History P5.1
Delivery Plans P4.4 Delivery Date D1.4, D2.4

Production Plans P3.4 Order Signal P2.1, P3.1
Order Backlog P1.1, P4.1
! D2.3 !
Sourcing Plans P2.4
Booked Order D2.2 Inventory Status
Inventory Availability S1.4, S2.4, S3.6, M1.2, M2.2, M3.3, Customer Order D3.4, ED.2
D1.8, D4.2 Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Production Schedule M1.1, M2.1, M2.2, M3.2 Available to Promise Date
Inventory Availability/Delivery Date P4.2
Delivery Date D1.3, D2.3 ! D2.4 ! Consolidated Orders D2.5
Consolidated Orders D2.5 ! D2.5 ! Load Information P4.2, D1.6, D2.6, D3.6
! D2.6 !
Rated Carrier Data
Shipment Routes D1.7, D2.7
Scheduled Deliveries D1.9
Routing Guide
Shipment Routes D1.6, D2.6 ! D2.7

D2
D2.8
! D2.9
WIP Location Rules EM.6
D1.8, D4.2
D2.10
Advance Ship Notice D2.13

Shipping Parameters and Documentation ED.6
Shipping Export Parameters and Documentation ED.8 !D2.11 ! Shipping History ED.8
Shipping Documents
Delivered End Items
D2.12
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 D1.15, D2.15
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.

Supply Chain Responsiveness Process Inquiry & Quote Cycle Time
Supply Chain Costs Cost to Process Inquiry & Quote
Quote Capability, without Reserving None identified
Inventory, Which Can Be Converted
into an Order in a Single Step
Quote Capability, without Reserving None identified
Inventory, Which Can be Converted
into an Order, But Does Not
Generate Build Signal or Reserve
Inventory Capacity
Single Point of Contact for All Order None identified
Inquiries (Including Order Entry)
Inputs Outputs
Customer Inquiry > D2.1 > Order
D2.2
Quote (Customer)

D2.2
Receive, Configure, Enter and Validate Order
Receive orders from the customer and enter them into a company’s order processing
system. Orders can be received through phone, fax, or through electronic media. Configure
your product to the customer’s specific needs, based on standard available parts or options.
“Technically” examine order to ensure an orderable configuration and provide accurate
price. Check the customer’s credit. Optionally accept payment.

Supply Chain Responsiveness Receive, Configure, Enter & Validate Order Cycle Time,
Supply Chain Costs Cost to Receive, Enter & Validate Order
Automated Configuration Management Configuration
Electronic Commerce (Customer Visibility EDI applications and integrated order management
of Stock Availability, Use of Hand-
Held Terminals for Direct Order Entry,
Confirmation, Credit Approval), On-Line
Stock Check and Reservation of Inventory
Value Pricing Based on “Cost to Serve”; EDLP; Activity Based Costing; Integrated Order
Cost Plus Pricing Management by Customer by Line Item
Enable Real-Time Visibility into Backlog, None identified
Order Status, Shipments, Scheduled Material
Receipts, Customer Credit History, and
Current Inventory Positions
Order Entry is Organized by Customer None identified
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
Remote (Sales, Customers) Order Entry None identified
Capability
Automatic Multi-level Credit Checking: Dollar Integrated Order/Financial Management
Limits; Days Sales Outstanding; Margin
Testing

D2.2
Outputs
ED.7
Purchase History
ED.3
Contract Status
Inputs ED.3
Configuration Rules Credit History
ED.1 D1.2, D2.2, D3.1
Order Quote (CUSTOMER) Optional Payment
D2.1
Contract Terms
> D2.2 > Booked Order
D2.3, ED.3
Order Rules Customer Address Data
ED.1 ED.3
Credit History Customer Order Size, Weight,
D1.2, D2.2, D3.1 and Freight Class
ED.6
Shipping Preferences
(Customer)
ED.3
Actual Sales History
P5.1

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.

Supply Chain Reliability % of Orders Delivered In Full,
Supply Chain Responsiveness Order Fulfillment Dwell Time,
Reserve Resources and Determine Delivery Date Cycle Time
Supply Chain Costs Cost to Reserve Resources & Determine Delivery Date
Dynamic Deployment Based on Advanced planning and scheduling logic with constraint, cost,
Constraint Based Planning and and resource optimization
Optimal Scheduling
Available-to-Promise (ATP) Available-to-Promise (ATP) provides an availability and feasibility
check concerning a customer request or a customer order.
Include environmental costs Include environmental costs in inventory carrying costs
Automatic Reservation of Integrated order management system that treats each order
Inventory and Dynamic Sourcing line as a separate order with integration to inventory source and
of Product for Single Shipment to status; Real-time inventory management
Customer
Establish spill controls Establish spill controls for finished goods inventory storage

D2.3
Outputs
Inputs Delivery Date
Delivery Plans D1.4, D2.4
P4.4 Order Signal
Production Plans P2.1, P3.1
P3.4 Order Backlog
Sourcing Plans P1.1, P4.1
P2.4
Booked Order > D2.3 > Inventory Status
Customer Order
D2.2 D3.4, ED.2
Inventory Availability Replenishment Signal
S1.4, S2.4, S3.6, M1.2, M2.2, S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
M3.3, D1.8, D4.2
Available to Promise Date
Production Schedule
M1.1, M2.1, M2.2, M3.2 Inventory Availability/Delivery
Date
P4.2

D2.4
Consolidate Orders
The process of analyzing orders to determine the groupings that result in least cost/best
service fulfillment and transportation.

Supply Chain Responsiveness Consolidate Orders Cycle Time
Supply Chain Costs Cost to Consolidate Orders
Consolidate Orders by Customer, Integrated load planning and building with warehouse
Source, Traffic Lane, Carrier, Etc. management
consumption
Inputs Outputs
Delivery Date
D1.3, D2.3
> D2.4 > Consolidated
D2.5
Orders

D2.5
Build Loads

Supply Chain Costs Cost to Build Loads,
Utilization
Build Load in Stop Sequence Integrated inbound/outbound transportation planning (i.e. 1st
truck destination loaded last, etc.).
Inputs Outputs
Consolidated Orders
D2.4
> D2.5 > Load Information
P4.2, D1.6, D2.6, D3.6

D2.6
Route Shipments
Loads are consolidated and routed by mode, lane, and location.

Supply Chain Costs Cost to Route Shipments,
Energy Costs
levels.
Route to minimize fuel Route to minimize fuel consumption
consumption
Inputs Outputs
Rated Carrier Data Shipment Routes
Load Information
D1.5, D2.5, D3.5
> D2.6 > Scheduled Deliveries
D1.7, D2.7
Routing Guide D1.9

D2.7
Select Carriers and Rate Shipments

Select Carriers by Least Cost per Shipment Rules based carrier selection and actual rate database
and Rate Using Actual Rates Prior to Release
to Billing
Inputs
Outputs
Shipment Routes
D1.6, D2.6

D2.8
put-away location, putting away and recording location for goods received from either Make
or Source. May include quality inspection.

and Put Away
Dynamic Location Assignment Real time inventory control, stock locator, and rules based
Including Lot Control, Zoned picking logic
Picking, Quality Assurance
Inputs Outputs

D2.9
Pick Product
The series of activities including retrieving orders to pick, verifying inventory availability,
packing area in response to an order.

Use of Speed Racks for Automated None identified
Material Handling
Cost, and Time
Inputs
Production Schedule
M1.1, M2.1, M2.2, M3.2
WIP Location Rules
Outputs
EM.6
M1.6, M2.6, M3.7
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2

D2.10
Pack Product

Inputs Outputs

D2.11
Load Product & Generate Shipping Docs
customer credit.

Supply Chain Responsiveness Load Product & Generate Shipping Documentation Cycle
Time
Advanced Shipping Notices & UCC128 Bar coding; EDI; integrated transportation/warehouse
Container Labeling management
Electronic Generation and Download of None identified
Shipping Documents
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
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.

D2.11
Outputs
Inputs
Advance Ship Notice
Shipping Parameters and D2.13
Documentation
ED.6 > D2.11 > Shipping
ED.8
History
Shipping Export Parameters

and Documentation Shipping Documents
ED.8 Delivered End Items

D2.12
Ship Product

Inputs Outputs

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.

Inputs Outputs
Advance Ship Notice

D2.11
> 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.

% Of Faultless Installations
Joint Service Agreements to Collaborative planning tools with the Source suppliers.
Document Acceptable Service (This would be effective between customer and supplier,
Levels in Terms of Installation Costs, and between internal functions such as Field Service,
Installation Cycle Time, Etc. Manufacturing, Marketing and Order Management)
Inputs Outputs
Product
D1.13, D2.13, D3.13
D1.15, D2.15

D2.15
Invoice
the invoice.

% of Faultless Invoices
Supply Chain Responsiveness Deliver Cycle Time
Supply Chain Costs Customer Invoicing/ Accounting Costs
Supply Chain Asset Management Days Sales Outstanding
Resolution
Inputs
Outputs
Installed Product
D1.14, D2.14, D3.14
> D2.15 > Payment

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.

Supply Chain Deliver Cycle Time,
Responsiveness Order Fulfillment Cycle Time
Supply Chain Agility Upside Deliver Flexibility,
Downside Deliver Adaptability,
Energy Costs,
Order Management Costs,
Finished Goods Inventory Days of Supply
Supply Chain Asset Return on Working Capital,
Management Cash-To-Cash Cycle Time,

D3
Customer address Data ED.3
RFQ/RFP ! D3.1 ! Completed Proposal D3.2
Purchase History ED.3
Credit History D2.2, ED.3
Shipping Preferences (Customer) ED.3
Optional Payment
! D3.2 !
Completed Proposal D3.1 Location of Customers ED.7
Order Rules ED.1 Approved Contract D3.3
Customer Order Size, Weight, and Freight Class ED.6

Delivery Plans P4.4 Actual Sales History P5.1
! D3.3 !
Sourcing Plans P2.4 Order Information M3.1
Production Plans P3.4 Resource Availability P4.2, D4.1
Production Schedule M1.1, M2.1, M2.2, M3.2 Replenishment Signal S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Approved Contract D3.2 Order Backlog P1.1, P4.1
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 ! Load Information P4.2, D1.6, D2.6, D3.6
Scheduled Deliveries D1.9
! D3.6
Rated Carrier Data
Routing Guide
D3.7
D3
D3.8

D1.8, D4.2
! D3.9
D3.10
Shipping Export Parameters and Documentation ED.8

Shipping Parameters and Documentation ED.6 !D3.11 ! Shipping History ED.8
Shipping Documents
D3.12
D3.13! Product S1.2, S2.2, S3.4, D1.14, D2.14, D3.14
Product D1.13, D2.13, D3.13 !D3.14 ! Installed Product D1.15, D2.15
D3.15! Payment

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.

Supply Chain Responsiveness Obtain & Respond to Request for Quote (RFQ) / Request for
Proposal (RFP) Cycle Ti
Supply Chain Costs Cost to Obtain & Respond to Request for Quote (RFQ) /
Request for Proposal (RFP)
Partnership with Outside Design None identified
Firms to Provide Skills and Capacity,
as Needed
Use of CAD/CAE Applications None identified
to Simulate Design, Cost and
Manufacturing Process
Outputs
Contract Status
ED.3
Customer address Data
ED.3
Inputs Completed Proposal
RFQ/RFP
> D3.1 > D3.2
Purchase History
ED.3
Credit History
D2.2, ED.3
Shipping Preferences
(Customer)
ED.3

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.

Supply Chain Responsiveness Negotiate & Receive Contract Cycle Time
Supply Chain Costs Cost to Negotiate & Receive Contract
Outputs
Inputs Optional Payment
Completed Proposal
D3.1
> D3.2 > Customer Order
D3.4, ED.2
Order Rules Location of Customers
ED.1 ED.7
Approved Contract
D3.3
Customer Order Size, Weight,
and Freight Class
ED.6

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.

Supply Chain Responsiveness Enter Order, Commit Resources & Launch Program Cycle
Time,
Supply Chain Costs Cost to Enter Order, Commit Resources & Launch Program
Outputs
Customer Order
Inputs
D3.4, ED.2
Delivery Plans
Actual Sales History
P4.4
P5.1
Sourcing Plans
Order Information
P2.4
Production Plans
> D3.3 > M3.1
P3.4
P4.2, D4.1
Production Schedule
M1.1, M2.1, M2.2, M3.2
S1.1, S1.4, S2.1, S2.4, S3.3, S3.6
Approved Contract
Order Backlog
D3.2
P1.1, P4.1
Order Signal
P2.1, P3.1

D3.4
Schedule Installation
The process of evaluating the design and build schedules relative to customer requested
installation date to determine installation schedule.

Supply Chain Responsiveness Schedule Installation Cycle Time
Supply Chain Costs Cost to Schedule Installation
Schedule to maximize Schedule to maximize transportation capacity
transportation capacity
Inputs Outputs
Customer Order > D3.4 > Scheduled Installation
D1.2, D2.3, D3.2, D3.3 D3.5

D3.5
Build Loads

Supply Chain Costs Cost to Build Loads
Utilization
levels.
Build Load in Stop Sequence Integrated inbound/outbound transportation planning (i.e.
1st truck destination loaded last, etc.).
consumption
Outputs
Inputs
Scheduled Installation > D3.5 > Load Information
P4.2, D1.6, D2.6, D3.6
D3.4
Scheduled Deliveries
D1.9

D3.6
Route Shipments
Loads are consolidated and routed by mode, lane, and location.

Supply Chain Costs Cost to Route Shipments
Carrier/Route Optimization Based Route scheduling, carrier selection, and rating
on Continuous Movement and
Consolidation/Pooling
Inputs
Load Information
D1.5, D2.5, D3.5
Rated Carrier Data
> D3.6 Outputs
> None Identified
Routing Guide

D3.7
Select Carriers & Rate Shipments

Inputs 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.

and Put Away
Inputs
Product S1, S2, S3, M1, M2, M3
Outputs

D3.9
Pick Product
The series of activities including retrieving orders to pick, verifying inventory availability,
packing area in response to an order.

Cost, and Time
Inputs
Production Schedule
M1.1, M1.2, M2.2, M3.2
Outputs
M1.6, M2.6, M3.7 > D3.9 > None Identified
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2

D3.10
Pack Product

Inputs Outputs
None Identified

D3.11
Load Product & Generate Shipping Docs
customer credit.

Supply Chain Reliability Documentation Accuracy
Supply Chain Responsiveness Load Product & Generate Shipping Documentation Cycle Time
Electronic Generation and None identified
Download of Shipping Documents
Shipping Personnel
Inputs
Shipping Export Parameters Outputs
and Documentation
ED.8 > D3.11 > Shipping
ED.8
History
Shipping Parameters and

Documentation Shipping Documents
ED.6

D3.12
Ship Product

Supply Chain Reliability % of Orders Delivered In Full,
Inputs Outputs
None Identified

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.

% of Orders Delivered In Full,
Perfect Condition
Outputs
Inputs
None Identified
> D3.13 > Product
S1.2, S2.2, S3.4, D1.14, D2.14,
D3.14

D3.14
Install Product
The process of preparing, testing and installing the product at the customer site. The
product is fully functional upon completion.

Supply Chain Reliability Perfect Condition
None Identified None identified
Inputs Outputs
Product
D1.13, D2.13, D3.13
D1.15, D2.15

D3.15
Invoice
the invoice.

Supply Chain Reliability % of Faultless Invoices,
Supply Chain Responsiveness Invoice Cycle Time
Supply Chain Costs Cost to Invoice
Utilize EDI and EFT for Payment to EDI transaction and network services
Speed Closing of Receivables and to
Reduce Processing Costs
Resolution
Inputs Outputs
None Identified
> D3.15 > Payment

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.

Supply Chain Responsiveness Deliver Cycle Time,
Supply Chain Agility Downside Deliver Adaptability,
Upside Deliver Adaptability,
Supply Chain Costs Cost to Deliver

D4
Resource Availability D3.3
Vendor/DC inventory availability
! D4.1 !
Store Allocation Instructions
Daily Replenishment Requirements S1.4 Stocking Schedule D4.4
Shipping Schedules (internal or 3PL)
Stocking Requirements P4.4
On-demand Replenishment Requirements
! D4.2 !
Item Stocking Requirements P4.1 Item Pick Sheet for Stocking Schedule
Replenishment Quantities
! D4.3 !
On-Order/Backorder
Inventory in Stock Load Retail Cart or Pallet D4.4
Item Pick Sheet for Stocking Schedule D4.2 Assorted by Shelf Order
D1.8, D4.2
Vendor Merchandising / Co-op advertising
! D4.4 !
agreements
Full Shelf Locations D4.5
Stocking Schedule D4.1
Store Shelf Inventory Counts P4.1
Plan-o-gram Data
Loaded Retail Cart or Pallet S1.4, D4.3
Lost or Dropped Shopping Carts

Product Data (linked/related SKU’s)
Merchandising Plan
Full Shelf Location D4.4
Customer Data (preference)
! D4.5 ! Full Cart Ready for Checkout D4.6
Promotional Plan
Point of Sale Data (Daily) P4.1
! D4.6 !
Full Cart Ready for Checkout D4.5 Full Cart (Empty Cart)
Customer Profile/Data Satisfied Customer
Promotion Event Calendar Loyalty Customer Profile Changes
Customer Loyalty / Recurring Visits
Consistently High Adoption Rates
D4.7 ! 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.

Supply Chain Responsiveness Generate Stocking Schedule Cycle Time
Supply Chain Costs Cost to Generate Stocking Schedule
Automated Pick List System generated pick-lists based on picking / batching rules.
Labor Scheduling that Matches Workforce management solution with flexible rules.
Product Flow
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 Outputs
Daily Replenishment
Requirements
> D4.1 > Stocking
D4.4
Schedule
S1.4
Shipping Schedules (internal or
3PL)
Stocking Requirements
P4.4
On-demand Replenishment
Requirements

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.

Supply Chain Responsiveness Receive Product Cycle Time
Supply Chain Costs Cost to Receive Product at Store
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 Workforce management solution with flexible rules.
Product Flow
Inputs
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2 Outputs
Production Schedule
M1.1, M2.1, M2.2, M3.2 > D4.2 > S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2
Item Stocking Requirements
P4.1 Item Pick Sheet for Stocking
Schedule
M1.6, M2.6, M3.7
Scheduled Receipts
S1.1, S2.1, S3.3

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.

Supply Chain Responsiveness Pick Product from Backroom Cycle Time
Supply Chain Costs Cost to Pick Product from Backroom
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 None identified
Stock Based on Minimum Stocking
Levels
Defined Stocking Levels and Criteria None identified
Inputs
Replenishment Quantities
On-Order/Backorder Outputs
Inventory in Stock Load Retail Cart or Pallet
Item Pick Sheet for Stocking > D4.3 > D4.4
Schedule Assorted by Shelf Order
D4.2
S1.4, S2.4, S3.6, M1.2, M2.2,
M3.3, D1.8, D4.2

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.

Supply Chain Responsiveness Stock Shelf Cycle Time,
In-stock %
Supply Chain Costs Cost to Stock Shelf
Proof of Performance (Promotion Scan store shelves / bar codes to confirm put-a-way. Scan
Management) using handheld and match with ad.
Scan Displays for Promotion None identified
Conformance
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-A- Scan store shelves / bar codes to confirm put-a-way.
Way
Inputs
Vendor Merchandising / Co-op
advertising agreements
Outputs
Stocking Schedule > D4.4 > Full
D4.5
Shelf Locations
D4.1
Store Shelf Inventory Counts
Plan-o-gram Data
P4.1
Loaded Retail Cart or Pallet
S1.4, D4.3

D4.5
Fill Shopping Cart
Typical set of tasks associated with product selection, storage and movement through to
checkout.

Supply Chain Reliability % Item Location Accuracy
Supply Chain Responsiveness Fill Shopping Cart Cycle Time
Supply Chain Costs Cost to Fill Shopping Cart
Multiple Locations Throughout Planned and tracked via a plan-o-gram system;Location
Store specific product labeling.
Up and Cross Selling and/or Trained staff or automated systems (Internet) that recommend
Substitution up-sell, cross-sell, and/or substitution.
Items Are Relieved from Inventory RFID, smart cart or customer self-service reduces system
When Item is Removed from Shelf 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 DSS or portal tool that shows previous period performance
Same Activity Previous Period 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 Outputs
SKU’s)
Merchandising Plan
> D4.5 > Full
D4.6
Cart Ready for Checkout
Full Shelf Location

D4.4
Customer Data (preference)
Promotional Plan

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.

Supply Chain Responsiveness Checkout Cycle Time
Supply Chain Costs Cost to Checkout
Notification of Existing/Future Event None identified
or Promotions
Customer Profile Drive Recognition None identified
Upon Checkout
Automatic Customer Payment RFID, smart cart or customer self-service charges goods to
card upon store departure.
Outputs
Point of Sale Data (Daily)
Inputs
P4.1
Full Cart Ready for Checkout
Full Cart (Empty Cart)
D4.5
Customer Profile/Data
> D4.6 > Satisfied Customer
Loyalty Customer Profile
Promotion Event Calendar Changes
Customer Loyalty / Recurring
Visits

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.

Supply Chain Responsiveness Deliver and/or Install Cycle Time
Supply Chain Costs Cost to Deliver and/or Install
Provide Product or Service Training None identified
to Employees or FAQ’s Online
Goals / Performance Plans None identified
Measurement, Monitoring and None identified
Adjustment of Service or Product
Installation
Stage Product or Service Adoption None identified
Outputs
Consistently High Adoption
Rates
Inputs
None Identified
> D4.7 > Successful
System
Installation / Live
High Customer Services

Satisfaction Levels
Low Rates of Failure

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)
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.
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.
ED.4: Manage Finished Goods The process of establishing and maintaining finished goods,
Inventories 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.
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.
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).
ED.8: Manage Import/Export The process of recording and maintaining regulations and rates,
Requirements which constrain the ordering and delivering of product
ED.9: Manage Supply Chain Deliver 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 company’s 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…).

ED
Management Process Reports ED.2
! ED.1 !
Configuration Rules ED.1 Order Rules D1.2, D2.2, D3.2, ED.4, ED.5
Planning Decision Policies EP.1 Configuration Rules ED.1
Supply-Chain Performance Metrics ES.4, EM.2, ED.2,
ER.2
! ED.2 !
Carrier Contracts (Customer) Management Process Reports ED.1
Benchmark Data Supply-Chain Performance Metrics ED.1, ED.5, EP.2
Customer Order D1.2, D2.3, D3.2, D3.3 Customer Service Requirements ED.6
Delivery Performance ED.4, ED.5, 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
Credit History D1.2, D2.2, D3.1
! ED.3 ! Customer Master Database/Up to Date ED.4
Purchase History D1.2, D2.2, D3.1
Customer Master Database/Up to Date ED.3

Order Rules ED.1
Finished Goods Inventory Location S1.4, S2.4, S3.6
! ED.4 !
Returns Data ED.8
Finish Goods Inventory Target Levels P4.2
Scrap Authorization ED.8
Delivery Performance ED.2
Product Mix and Plans
Inventory Rules ED.4
Existing Inventory Data S1.4, S2.4, S3.6, D1.8
Integrated Supply Chain Plan
Order Rules ED.1
! ED.5 !
Budgets
Delivery Performance ED.2
Approved Item Master
Warehouse Operating Constraints
Supply-Chain Performance Metrics ES.4, EM.2, ED.2,
ER.2
Contract Carrier Rates ES.8

Air, Ground, Carrier Rate Tables
! ED.6 !
Projected Delivery Requirements EM.7 Delivery Performance ED.2
Standard Practices/Rules Shipping Parameters and Documentation D1.11,
Customer Service Requirements ED.2 D2.11, D3.11
Customer Order Size, Weight, and Freight Class D2.2,
D3.2

Location of Customers D1.2, D2.2, D3.2
Budgets
Government Constraints ED.8
! ED.7 ! Enterprise Distribution Model
Revised Business Assumptions EP.10, EP.5
Shipping Export Parameters and

Shipping History D1.11, D2.11, D3.11 Documentation D1.11, D2.11, D3.11
Government Regulations
Tariffs & Duties
! ED.8 ! Scrap Authorization ED.4
Government Constraints ED.7
Returns Data ED.4
Duty Drawback Claims
Monitoring ! ED.9 ! Risk Management Program for Process Area

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)

Supply Chain Responsiveness Manage Deliver Business Rules Cycle Time
Supply Chain Costs Cost to Manage Deliver Business Rules
Integrated Edit at Order Entry Time Customer Master Record
On-Line Rule Base None identified
Include environmental Include environmental requirements in deliver rules
requirements
Inputs
Management Process Reports
ED.2
Outputs
Configuration Rules
ED.1
> ED.1 > Order Rules
D1.2, D2.2, D3.2, ED.4, ED.5
EP.1 Configuration Rules
ED.1
Supply-Chain Performance
Metrics
ES.4, EM.2, ED.2, ER.2

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.

Perfect Condition
Supply Chain Responsiveness Assess Delivery Performance Cycle Time
Supply Chain Costs Cost to Assess Delivery Performance
Real Time Package Tracking Tracking and tracing
Customer Initiated Package WEB based Shared systems
Tracking
Inputs Outputs
Management Process Reports
Carrier Contracts (Customer)
ED.1
Benchmark Data
Customer Order > ED.2 > Supply-Chain
Metrics
Performance
D1.2, D2.3, D3.2, D3.3 ED.1, ED.5, EP.2

Delivery Performance Customer Service
ED.4, ED.5, ED.6 Requirements
ED.6

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.

Supply Chain Responsiveness Manage Deliver Information Cycle Time
Supply Chain Costs Cost to Manage Deliver Information
Provide Single Source of Information Secure E-Commerce Server and integrated Order
on the Customer (Single Group / Management System (OMS) Warehouse Management System
Owner Responsible for Accuracy / (WMS) and Transportation Management System (TMS)
Quality of Customer Data)
Online Real-Time Customer Entry On-line Customer Service Module CRM (Customer resource
and Edit 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 None identified
Including Geo-Coding
Comprehensive History of Customer None identified
Interactions Including Order History,
Claims, Problems, Etc.
Customer Access to Online Tracking Internet-enabled package/shipment tracking
of Order Status and Shipping
Information

ED.3
Inputs
Booked Order
D2.2
Contract Status
D1.2, D2.2, D3.1
Customer Address Data Outputs
D1.2, D2.2, D3.1
Shipping Preferences > ED.3 > Customer
to Date
Master Database/Up
(Customer) ED.4
D1.2, D2.2, D3.1
Credit History
D1.2, D2.2, D3.1
Purchase History
D1.2, D2.2, D3.1

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

Supply Chain Reliability % of Orders Delivered In Full
Supply Chain Responsiveness Manage Finished Goods Inventories Cycle Time
Supply Chain Costs Finished Goods Inventory Days of Supply,
Cost to Manage Finished Goods Inventories
Supply Chain Asset Management Inventory Days of Supply ,
% of hazardous material in inventory
Manage hazardous inventory Manage hazardous inventory
Spill control Spill control
Industry Benchmarks

ED.4
Inputs
Customer Master Database/Up
to Date
ED.3 Outputs
Order Rules Finished Goods Inventory
ED.1 Location
S1.4, S2.4, S3.6
Returns Data
ED.8
Scrap Authorization
> ED.4 > Finish
Levels
Goods Inventory Target
P4.2
ED.8
Delivery Performance
Product Mix and Plans ED.2
Existing Inventory Data Inventory Rules
S1.4, S2.4, S3.6, D1.8 ED.4
Integrated Supply Chain Plan
Inventory Rules
ED.4

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.

Supply Chain Responsiveness Manage Deliver Capital Assets Cycle Time
Supply Chain Costs Cost to Manage Deliver Capital Assets
Measure Customer Service Advanced Shipping Notices (ASN)Parcel and Container
Routing and Rating Compliance Labeling Real time shipment
tracking
Standard Operating Procedures and None identified
Methodology
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
Outputs
Budgets
Approved Item Master > ED.5 > ED.2
Supply-Chain Performance Warehouse Operating
Metrics Constraints
ES.4, EM.2, ED.2, ER.2
Inventory Rules
ED.4

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.

Supply Chain Responsiveness Manage Transportation Cycle Time
Supply Chain Costs % of vehicle fuel derived from alternative fuels,
Cost to Manage Transportation
Integrated Order Management, Warehouse Transportation Management System (TMS)
Management, and Transportation Maintenance Management
Management Systems View for analysis for
all orders and shipments the following data:
Logistics, Product, Cost, GL Charging
Real-Time Shipment Tracking, (via internet) Transportation Management System (TMS)
Maintenance Management
View for Analysis for All Orders and Transportation Management System (TMS)
Shipments the Following Data: Logistics, Maintenance Management
Product, Cost, GL Charging
Manage Information Across 100% of Transportation Management System (TMS)
Shipments Maintenance Management
Appointment Scheduling for Pickup and Transportation Management System (TMS)
Delivery of Customer Shipments Maintenance Management
Electronic Manifest and Electronic Billing Transportation Management System (TMS)
Automated Documentation for International Transportation Management System (TMS)
Shipments Maintenance Management
Real-Time Optimized Shipment Method Transportation Management System (TMS)
Selection (Air Parcel, Ground Parcel, LTL, etc.) Maintenance Management
Based on Customer Service Requirements

ED.6
Measurement of Carrier Performance for On- Transportation Management System (TMS)
time Delivery and Completeness Maintenance Management
Capture and Maintain Mode Specific Data Transportation Management System (TMS)
Inputs
Contract Carrier Rates
ES.8
Outputs
Air, Ground, Carrier Rate Tables
Projected Delivery ED.2
Requirements
EM.7
> ED.6 > Shipping Parameters and
Documentation
Standard Practices/Rules D1.11, D2.11, D3.11
Customer Service
Requirements
ED.2
Customer Order Size, Weight,
and Freight Class
D2.2, D3.2

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).

Supply Chain Responsiveness Manage Product Life Cycle Time
Supply Chain Costs Cost to Manage Product Life Cycle
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 None identified
Methodology
Plan for proper product disposal Plan for proper product disposal
Inputs
D1.2, D2.2, D3.2
Outputs
Budgets
Government Constraints
> ED.7 > Enterprise Distribution Model
ED.8
ES.3
EP.10, EP.5

ED.8
Manage Import/Export Requirements
The process of recording and maintaining regulations and rates, which constrain the
ordering and delivering of product.

Supply Chain Responsiveness Customs Clearance Cycle Time,
Manage Import/Export Requirements Cycle Time
Supply Chain Costs Cost to Manage Import/Export Requirements
Multi-country Export/Import None identified
documentation compliance
Assessing Export/Import Multi-country Export/Import documentation compliance
Requirements during Time of
Product Development/Manufacture
Documents Generated Electronic documentation submission via EDI and/or internet.
Automatically During Shipment
Preparation.
Manage foreign environmental Manage foreign environmental requirements
requirements
Direct Connection to Customs Electronic documentation submission via EDI and/or internet.
Clearance
Ability to Track Component/ Component/lot tracking (lot trace-ability)
Sub-Component Manufacturing
Country of Origin
Direct Transfer of Documents to Electronic documentation submission via EDI and/or internet.
Recipient and Forwarder

ED.8
Outputs
Inputs Shipping Export Parameters
and Documentation
Shipping History
D1.11, D2.11, D3.11
D1.11, D2.11, D3.11
Government Regulations > ED.8 > Scrap
ED.4
Authorization
Receipt Verification Government Constraints

S1.2, S1.3, S2.2, S2.3, S3.4, S3.5 ED.7
Tariffs & Duties Returns Data
ED.4
Duty Drawback Claims

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
company’s 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…).

Supply Chain Reliability Value at Risk (Deliver),
VAR of product/customer performance - ,
Age of Supplier Risk Data (months)
Hedge Rating (Inventory DOS for risk management),
Internal Event Response (average days)
Supply Chain Costs Mitigation cost by Event ($),
Mitigation Cost ($),
Assessment / Risk Management Costs ($)
Supply Chain Asset Management Gross Risk ($),
Mitigated Risk ($),
Residual Risk ($),
Individual Process Area Event Rating (EVAR) ($)


ED.9
they occur.

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.

ED.9
Inputs Outputs
Internal Information > ED.9 > Risk Management Program for
Process Area
Monitoring

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
SR1: Source Return Defective The return and disposition determination of defective
Product 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.
DR1: Deliver Return Defective The receipt and disposition determination of defective
Product 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.
DR2: Deliver Return Defective The receipt of Maintenance, Repair and Overhaul (MRO)
Product 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.

R
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.
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.
ER: Enable Return The collection of processes associated with managing
and monitoring Return process data, performance and
relationships.

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.

Source Return Cycle Time
Supply Chain Costs Cost to Source Return
Rebuild or recycle rate,

SR1
! SR1.1 !
Warranty Data ER.8 Return Defective Product
Manage Regulatory Return Policy ER.8
Return Inventory Availability SR1.3, SR1.4, SR1.5, SR2.3,

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Returned Defective Product SR1.2, SR1.3, SR1.4, SR1.5
Returned Plans P5.4 ! SR1.2 ! Authorization to Return to Service D1.8
Return Product Location ER.4
Authorization to Scrap D1.8
Ship-to Data SR1.4, SR2.4, SR3.4

Returned Defective Product SR1.2, SR1.3, SR1.4, SR1.5 Defective Product Return Authorization
! SR1.3 !
Returned Schedule Instructions DR1.2, DR2.2, DR3.2 Request DR1.1
Defective Product Return Authorization Historical Return Rates P5.1
Response DR1.1 Validated Return Material Authorization SR1.4, SR3.4
Return Inventory Availability SR1.2, SR2.2, SR3.2, ER.4 Defective Product Disposition Request DR1.1
Credit/Exchange Options SR1.4, SR2.4, SR3.4
Validated Return Material Authorization SR1.3, SR3.3

Return Inventory Availability SR1.2, SR2.2, SR3.2, ER.4
Return Defective Product SR1.2, SR1.3, SR1.4, SR1.5
Credit Exchange Options SR1.3, SR2.3, SR3.3 ! SR1.4 ! Scheduled Defective Product Return SR1.5
Ship-to Data SR1.3, SR2.3, SR3.3, DR1.1, DR2.1, DR3.1
Plan and Build Loads Information D1.5
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

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.

Supply Chain Asset Management Value of Defective Inventory in Disposition Stage/ Total
Inventory Value
Supply Chain Costs Cost of identifying the defective condition as a % of total
Source cost
Local Execution
Inputs
Processes
> SR1.1
ES.1, ER.1
Warranty Data > Return Defective
Outputs
Product
ER.8
Manage Regulatory Return
Policy
ER.8

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.

Inventory Value
Supply Chain Costs Defective product disposition costs as % total Source Return
cost
Confirm Changes in Condition None identified
Code Policies Are Promptly
Communicated to All Employees
and Supply-Chain Partners.
Confirm Asset Return Condition None identified
Codes Are Clearly Understood by
All Employees, Especially Those
Who Are New to the Process
Drive Returns Directly to Return Specify return disposition location and time.
Stock Point of Disposition to
Reduce Cost and Cycle Time
Outputs
Return Inventory Availability
SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5
Inputs
Service
Returned Defective Product
SR1.2, SR1.3, SR1.4, SR1.5 > SR1.2 D1.8
> Return Product Location
Returned Plans ER.4
P5.4
SR1.2, SR1.3, SR1.4, SR1.5
D1.8

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.

Supply Chain costs Ratio of Authorization Cost to Total Source Return cost
Supply Chain Costs Cost per request authorization
Supply Chain Asset Management Value of Defective Product Inventory in Request Return
Clarify Point of Contact and Return Electronic rules for business relationships and transactions.
Location
Develop and Clarify Mutually Clarification as to who will pay in-bound and out-bound
Understood Cycle Times to Process freight cost.
Return Authorizations
Long-Term Return Agreements / None identified
Partnerships
Enable Customer-Service Clarification of policy if authorizations are not processed
Representatives to Complete the within the expected cycle time.
Bill Of Lading for the Customer
Including Carrier Routing, Weight,
Description and Class to Minimize
Guesswork & Wrong Estimates

SR1.3
Outputs
Ship-to Data
Inputs SR1.4, SR2.4, SR3.4
Returned Defective Product Defective Product Return

SR1.2, SR1.3, SR1.4, SR1.5 Authorization Request
DR1.1
Returned Schedule
Instructions Historical Return Rates
DR1.2, DR2.2, DR3.2
Defective Product Return
> SR1.3 > Validated Return Material
P5.1
Authorization Response Authorization

DR1.1 SR1.4, SR3.4
Return Inventory Availability Defective Product Disposition

SR1.2, SR2.2, SR3.2, ER.4 Request
DR1.1
SR1.2, SR1.3, SR1.4, SR1.5
Credit/Exchange Options
SR1.4, SR2.4, SR3.4

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.

Supply Chain Reliability % Shipping Schedules that Support Customer Required Return
by Date
Supply Chain Costs % Defective Product Scheduling Cost to Total Source Return
Cost
Supply Chain Asset Management Value of defective product in scheduling stage/ total defective
product
Transportation Modeling and Rate None identified
Analysis
Consolidation of Return Carriers Outbound logistics software to assist with route.
Carrier Selection Based on Scheduling, carrier selection, and rating
Performance Criteria at Least Cost
Inputs
Validated Return Material
Authorization
SR1.3, SR3.3
SR1.2, SR2.2, SR3.2, ER.4 Outputs
Return Defective Product Scheduled Defective Product
SR1.2, SR1.3, SR1.4, SR1.5
Credit Exchange Options > SR1.4 > Return
SR1.5
SR1.3, SR2.3, SR3.3 Returned Defective Product
Ship-to Data SR1.2, SR1.3, SR1.4, SR1.5
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
Plan and Build Loads
Information
D1.5

SR1.5
Return Defective Product
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.

Supply Chain Reliability % Error-free Returns Shipped,
Return Shipments Shipped on Time
Supply Chain Costs Return transportation costs,
Cost per request authorization
Supply Chain Asset Rebuild or recycle rate,
Management Value of defective product inventory in physical return
Advanced Shipping Notice Integrated data sharing with repair facility.
Inputs
Return Defective Product
SR1.2, SR1.3, SR1.4, SR1.5
Return Defective Product Outputs
> SR1.5
SR1.2, SR2.2, SR3.2, ER.4
> Returned Defective Product
Shipment Documents
Scheduled Defective Product
Return SR1.2, SR1.3, SR1.4, SR1.5
SR1.4
Credit Information
D1.11

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.

Deliver Return Cycle Time
Supply Chain Costs Cost to Deliver Return
Value of defective product inventory/ total defective product
inventory value,
Return Rate

DR1
Information DR1.1, DR2.1, DR3.1 Manage Integrated Supply Chain Inventory
Defective Product Return Authorization Information DR1.1, DR2.1, DR3.1
Request SR1.3
Business Rules for Return Processes ES.1, ER.1 !DR1.1! Valid Returns Request DR1.2, DR2.2
Historical Return Rates P5.1
Return Plans P5.4
Defective Product Disposition Request SR1.3 Defective Product Return Authorization
Pruduct Return Capabilities P5.4 Response SR1.3
!DR1.2!
Return Schedule Instructions DR1.1, DR2.1, DR3.1
Valid Returns Request DR1.1, DR2.1 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

!DR1.4!
Sourcing Plans P2.4 Defective Products S1.2, S2.2
Returned Defective Product SR1.2, SR1.3, SR1.4, SR1.5 Return Inventory Transfer Data P5.2, S1.1, S2.1, S3.3,
Return Inventory for Transfer ER.4 ER.4

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.

Supply Chain Responsiveness Authorize Defective Product Return Cycle Time
Supply Chain Costs Cost to Authorize Defective Product Return
Supply Chain Asset Management Value of Defective Product Inventory in Request Return
Communicate with Customer None identified
before the Return to Establish What
Types of Returns Are Acceptable
Avoid returns beyond economic Estimate damage to product and do not physically return
repair product that is beyond economical repair or offers no
diagnostic value
Set Up Electronic or Pre-authorized None identified
Returns
Use an Exchange System Where None identified
Customer is Issued a Serviceable
Item Upon Submitting an
Unserviceable Item

DR1.1
Inputs
Manage Integrated Supply
Chain Inventory Information Outputs
DR1.1, DR2.1, DR3.1 Manage Integrated Supply
Defective Product Return Chain Inventory Information
Authorization Request DR1.1, DR2.1, DR3.1
SR1.3 Valid Returns Request
Processes > DR1.1 > Historical Return Rates
DR1.2, DR2.2
ES.1, ER.1 P5.1

Return Plans Ship-to Data
P5.4 SR1.4, SR2.4, SR3.4
Defective Product Disposition Defective Product Return
Request Authorization Response
SR1.3 SR1.3
Pruduct Return Capabilities
P5.4

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.

Supply Chain Responsiveness Schedule Defective Return Receipt Cycle Time
Supply Chain Costs Cost to Schedule Defective Product Receipt
Integrate Return Planning with Both customer and Service Provider departments
Maintenance and Inventory Planning are alerted at the same time and viewing the same
to Optimize the System information.
Outputs
Return Schedule Instructions
Inputs DR1.1, DR2.1, DR3.1
Valid Returns Request
DR1.1, DR2.1
> DR1.2 > Valid Returns Request
SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3

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.

Supply Chain Responsiveness Receive Defective Product Cycle Time
Supply Chain Costs Cost to Receive Defective Product,
Energy Costs
Develop Local Receiving Process Minimize time spent in product movement.
Close to Repair
Receivers on the Dock Buyer’s name for every receipt is clearly visible on Receiver.
Communicate Directly with the
Buyer to Efficiently Resolve Any
Discrepancies
Pre-Certify Supplier Capability to t Push inspection to SOURCE
Send Return Products Correctly t Receiving quality criteria connected to ISO 9000 practices
to Minimize the Need for Receipt
Verification
Customer Sends Receiving Electronically link Return authorization, Return schedule and
Advanced Shipment Notification shipping documents. .
Prior to Shipment
Electronically Track Shipment from None Identified
Customer to Service Provider
Accuracy t Product serial number used as identifier
t RFID

DR1.3
Inputs
Return Transportation
Guidelines, Policies, &
Agreements
ER.6
Returned Defective Product Outputs
> DR1.3
SR1.2, SR1.3, SR1.4, SR1.5
Receipt Data > Receipt Discrepancy
Notification
ER.3, ER.4
DR1.2, DR2.2, DR3.2
Return Regulatory
Requirements
ER.8

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.

Supply Chain Responsiveness Transfer Defective Product Cycle Time
Supply Chain Costs Cost to Transfer Defective Product
Defective Products Scheduling Utilize electronic links
Identifies Next Destination (Source,
Make, or Deliver) on Return
Authorization
Receiving Equipment and Include packaging materials in inventory management system
Packaging Materials to Transfer and treat as any other inventory to minimize potential of
Product Are Planned for In Advance stock-out.
and Readily Available When
Needed
Return Process Electronically Tracks Utilize Bar coding
Transfer from Station to Station
Review Transfer Cycle Time Trends Periodic review of capital asset plan to determine if additional
and Determine If Equipment equipment, if needed, can be funded.
Capacity is Properly Balanced with
Projected Usage
Inputs
Sourcing Plans Outputs
P2.4 Defective Products
SR1.2, SR1.3, SR1.4, SR1.5
> DR1.4 > Return Inventory Transfer Data
S1.2, S2.2
Return Inventory for Transfer P5.2, S1.1, S2.1, S3.3, ER.4

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.

Supply Chain Costs Total Source Return Costs
Rebuild or recycle rate,

SR2
! SR2.1 !
Manage Regulatory Return Policy ER.8
Warranty Data ER.8 Returned MRO Products SR2.2, SR2.3, SR2.4, SR2.5,
Business Rules for Return Processes ES.1, ER.1 DR2.3, DR2.4

SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Returned MRO Products SR2.1, SR2.2, SR2.3, SR2.5
Return Plans P5.4 ! SR2.2 ! Authorization to Return to Service D1.8

Retrun Inventory Availability SR1.2, SR2.2, SR3.2, ER.4 MRO Return Authorization Request DR2.1
MRO Return Authorization, Response DR2.1
! SR2.3 ! Historical Return Rates P5.1
MRO Disposition Request DR2.1

Returned Inventory Availability SR1.2, SR2.2, SR3.2,
ER.4
! SR2.4 ! Scheduled MRO Return SR2.5
Plan And Build Loads Information D1.5
Scheduled MRO Return SR2.4
! SR2.5 !
Returned Inventory Availability SR1.2, SR2.2, SR3.2,
Returned MRO Product SR2.1, SR2.2, SR2.3, SR2.5
ER.4
Shipping Documents

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.

Supply Chain Reliability Total # of Confirmed MRO Conditions/Total # of MRO Service
Requests Initiated
Supply Chain Costs Cost of Identifying the MRO Condition as a % of Total Source
Return Cost
Supply Chain Asset Management Value of Unserviceable MRO Inv. in Identification Stage/ Total
MRO Inv. Value
Inputs
Policy Outputs
ER.8
Warranty Data > SR2.1 >
Returned MRO Products
SR2.2, SR2.3, SR2.4, SR2.5,
ER.8 DR2.3, DR2.4

Processes
ES.1, ER.1

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.

Supply Chain Reliability % Identified MRO Products Returned To Service
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
Returned MRO Products Service
SR2.1, SR2.2, SR2.3, SR2.5
Return Plans
> SR2.2 > D1.8
P5.4 D1.8
SR2.1, SR2.2, SR2.3, SR2.5
Return Product Location
ER.4

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.

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
Supply Chain Asset Management Value of Unserviceable MRO Inventory in Request Return
Outputs
Inputs SR1.4, SR2.4, SR3.4
Retrun Inventory Availability
MRO Return Authorization
SR1.2, SR2.2, SR3.2, ER.4
Request
Return Schedule Instructions DR2.1
DR1.2, DR2.2, DR3.2
MRO Return Authorization,
> SR2.3 > Historical
P5.1
Return Rates
Response
DR2.1
SR2.1, SR2.2, SR2.3, SR2.5
MRO Disposition Request
SR2.1, SR2.2, SR2.3, SR2.5
DR2.1
Ship-to Data
SR1.4, SR2.4, SR3.4

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.

Supply Chain Reliability % Shipping Schedules that Support Customer Required
Return by Date
Supply Chain Costs % MRO Scheduling Cost to Total Source Return Cost
Supply Chain Asset Management Value of Unserviceable MRO Inventory in Scheduling Stage/
Total MRO Inventory
Analysis
Inputs
Ship-to Data
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1
SR1.3, SR2.3, SR3.3 Outputs
Returned Inventory
Availability
> SR2.4 > Scheduled
SR2.5
MRO Return
SR1.2, SR2.2, SR3.2, ER.4

SR2.1, SR2.2, SR2.3, SR2.5
Plan And Build Loads
Information
D1.5

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.

Supply Chain Reliability Return Shipments Shipped on Time,
% Error-free Returns Shipped
Supply Chain Costs Cost per request authorization,
Return transportation costs
Supply Chain Asset Management Value of unserviceable mro inventory in physical return and
transportation stage/
Inputs
Scheduled MRO Return
SR2.4
Returned Inventory Outputs
Availability
SR1.2, SR2.2, SR3.2, ER.4
> SR2.5 > Returned MRO Product
SR2.1, SR2.2, SR2.3, SR2.5
SR2.1, SR2.2, SR2.3, SR2.5 Shipping Documents

Credit Information
D1.11

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.

Supply Chain Reliability % of MRO returns delivered to the correct service provider
location
Deliver Return Cycle Time
Supply Chain Agility Upside Deliver Return Flexibility,
Supply Chain Costs Cost to Deliver Return
Value of Unserviceable MRO Inventory In Disposition Stage/
Total MRO Inventory Va,

DR2
!DR2.1!
Return Plans P5.4 Valid Returns Request DR1.2, DR2.2
MRO Disposition Request SR2.3 Manage Integrated Supply Chain Inventory
Product Return Capabilities P5.4 Information DR1.1, DR2.1, DR3.1
MRO Return Authorization Request SR2.3 MRO Return Authorization Response SR2.3
Business Rules for Return Processes ES.1, ER.1 Historical Return Rates P5.1
Manage Integrated Supply Chain Inventory Ship-to Data SR1.4, SR2.4, SR3.4
Information DR1.1, DR2.1, DR3.1
Valid Returns Request DR1.1, DR2.1

!DR2.2! Return Schedule Instructions SR1.3, SR2.3, SR3.3,
DR1.3, DR2.3, DR3.3
Receipt Data ER.3, ER.4

Agreements ER.6
Returned MRO Product SR2.1, SR2.2, SR2.3, SR2.5
!DR2.3! Receipt Discrepancy Notification
Return Schedule Instructions DR1.2, DR2.2, DR3.2,
!DR2.4!
Return Inventory for Transfer ER.4 Return Inventory Transfer Data P5.2, S1.1, S2.1, S3.3,
Returned MRO Product SR2.1, SR2.2, SR2.3, SR2.5 ER.4
Sourcing Plans P2.4 MRO Products S1.2, S2.2

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.

Supply Chain Responsiveness Authorize MRO Product Return Cycle Time
Supply Chain Costs Cost to Authorize MRO Product Return
Avoid returns beyond economic Estimate damage to product and do not physically return
repair product that is beyond economical repair or offers no
diagnostic value
Returns
Use an Exchange System Where None identified
Customer is Issued a Serviceable
Item Upon Submitting an
Unserviceable Item

DR2.1
Inputs
Return Plans Outputs
P5.4 Valid Returns Request
MRO Disposition Request DR1.2, DR2.2
SR2.3 Manage Integrated Supply
Product Return Capabilities Chain Inventory Information
P5.4
MRO Return Authorization > DR2.1 > MRO Return Authorization
DR1.1, DR2.1, DR3.1
Request Response
SR2.3 SR2.3
Business Rules for Return Historical Return Rates
Processes P5.1
ES.1, ER.1 Ship-to Data
Manage Integrated Supply SR1.4, SR2.4, SR3.4
Chain Inventory Information
DR1.1, DR2.1, DR3.1

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.

Supply Chain Responsiveness Schedule MRO Return Receipt Cycle Time
Supply Chain Costs Cost to Schedule MRO Product Receipt
Consolidate shipments where Consolidate shipments where possible
possible
Integrate Return Planning with Both customer and Service Provider departments are alerted
Maintenance and Inventory at the same time and viewing the same information.
Planning to Optimize the System
Inputs Outputs
Valid Returns Request > DR2.2 > Return Schedule Instructions
SR1.3, SR2.3, SR3.3, DR1.3,
DR1.1, DR2.1
DR2.3, DR3.3

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.

Supply Chain Responsiveness Receive MRO Product Cycle Time
Supply Chain Costs Cost to Receive MRO Product
Close to Repair
Prior to Shipment
Discrepancies
Accuracy t Product serial number used as identifier
t RFID
Send Return Products Correctly t Receiving quality criteria connected to ISO 9000 practices
to Minimize the Need for Receipt
Verification

DR2.3
Inputs
Receipt Data
ER.3, ER.4
Agreements
Outputs
> DR2.3
ER.6
Returned MRO Product > Receipt Discrepancy
Notification
SR2.1, SR2.2, SR2.3, SR2.5
Return Regulatory
Requirements
ER.8
DR1.2, DR2.2, DR3.2,

DR2.4
Transfer MRO Product
The process where the service provider transfers the MRO product to the appropriate
process to implement the disposition decision.

Supply Chain Responsiveness Transfer MRO Product Cycle Time
Supply Chain Costs Cost to Transfer MRO Product,
Energy Costs
Projected Usage
Receiving Equipment and Include packaging materials in inventory management
Packaging Materials to Transfer system and treat as any other inventory to minimize potential
Product Are Planned for In Advance of stock-out.
and Readily Available When Needed
MRO Scheduling Identifies Next Utilize electronic links
Destination (Stores or Repair
Station) on Return Authorization
Inputs
Return Inventory for Transfer Outputs
ER.4
Returned MRO Product > DR2.4 > Return Inventory Transfer Data
P5.2, S1.1, S2.1, S3.3, ER.4
SR2.1, SR2.2, SR2.3, SR2.5 MRO Products
Sourcing Plans S1.2, S2.2
P2.4

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.

Supply Chain Reliability % of Excess Product Returns Delivered Complete to the
Designated Return Center
Source Return Cycle Time
Supply Chain Costs Total Excess Material Return Costs,
Cost to Source Return
Supply Chain Asset Management Value of excess inventory/ total inventory value,
Average age of Excess Inventory,
Enable customer direct shipments Enable direct shipments between customers to reduce overall
transportation and handling.

SR3
Manage Regulatory Return Policy ER.8 ! SR3.1 ! Returned Excess Product SR3.2, SR3.3, SR3.4, SR3.5,
DR3.3, DR3.4

Authorization to Return to Service D1.8
Returned Excess Product SR3.1, SR3.2, SR3.4, DR3.3
Return Plans P5.4 ! SR3.2 ! Returned Excess Product SR3.1, SR3.2, SR3.4, DR3.3
SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Excess Product Return Authorization Request SR3.3 Excess Product Return Authorization Request SR3.3
! SR3.3 ! Return Schedule Instructions DR1.2, DR2.2, DR3.2
Validated Return Material Authorization SR1.3, 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

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.

Supply Chain Reliability Number of occurences where excessive inventory is returned
and followed
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
Automated Inventory Visibility Automated inventory planning package linked to real time
and Planning System to Highlight demand data and inventory business rules.
Inventory in Excess of Requirements
Local Execution
Inputs
Business Rules for Return Outputs
Processes
ES.1, ER.1
> SR3.1 > Returned Excess Product
SR3.2, SR3.3, SR3.4, SR3.5, DR3.3,
DR3.4
Policy
ER.8

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.

Supply Chain Reliability Number of occurrences of incorrect designated return center
Supply Chain Costs Excess product disposition costs as % total Source cost
Supply Chain Asset Management Value of Excess Inventory in Disposition Stage/ Total Inventory
Value
Drive Returns Directly to Return Specify return disposition location and time.
Stock Point of Disposition to Reduce
Cost and Cycle Time
Automated Registry of Inventory None identified
Return Locations by Item to Speed
Identification of Proper Return
Location
Outputs
D1.8
Inputs Authorization to Return to
Returned Excess Product Service
SR3.1, SR3.2, SR3.4, DR3.3
Return Plans
> SR3.2 > Returned Excess Product
D1.8
P5.4 SR3.1, SR3.2, SR3.4, DR3.3

Return Product Location
ER.4
SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
SR2.5, SR3.3, SR3.4, SR3.5

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.

Supply Chain Costs % of authorization request transmitted error-free/total
authorization requests,
Ratio of Authorization Cost To Total Source Cost,
Supply Chain Asset Management Value of Excess Product Inventory in Request Return
Authorization Stage/ Total Ex
Clarify Point of Contact and Return Electronic rules for business relationships and transactions.
Location
Develop and Clarify Mutually Clarification as to who will pay in-bound and out-bound
Understood Cycle Times to Process freight cost.
Return Authorizations
Enable Customer-Service Clarification of policy if authorizations are not processed
Representatives to Complete the within the expected cycle time.
Bill Of Lading for the Customer
Including Carrier Routing, Weight,
Description and Class to Minimize
Guesswork & Wrong Estimates
Long-Term Return Agreements / None identified
Partnerships

SR3.3
Outputs
Excess Product Return
Inputs Authorization Request
SR3.3
Excess Product Return
Authorization Request Ship-to Data
SR3.3 SR1.4, SR2.4, SR3.4
Excess Product Disposition
> SR3.3
DR1.2, DR2.2, DR3.2 > Request
DR3.1
SR1.2, SR2.2, SR3.2, ER.4 Credit/ Exchange Options
SR1.4, SR2.4, SR3.4
Returned Excess Product
SR3.1, SR3.2, SR3.4, DR3.3 Validated Return Material
Authorization
SR1.4, SR3.4
Historical Return Rates
P5.1

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.

Supply Chain Reliability % Shipping Schedules that Support Customer Required
Return by Date
Supply Chain Costs % Excess Product Scheduling Cost to Total Source Return Cost
Supply Chain Asset Management Value of excess product in scheduling stage/ total excess
product inv
Arrange for Shipping Insurance in Preventative management
Case Of In-Transit Loss or Damage
Analysis
Inputs
Validated Return Material
Authorization
SR1.3, SR3.3
Credit/ Exchange Options
SR1.3, SR2.3, SR3.3
Outputs
Scheduled Excess Product
SR3.1, SR3.2, SR3.4, DR3.3
Plan and Build Loads > SR3.4 > Return
SR3.5
Information
D1.5 Returned Excess Product
SR3.1, SR3.2, SR3.4, DR3.3
SR1.2, SR2.2, SR3.2, ER.4
Ship-to Data
SR1.3, SR2.3, SR3.3, DR1.1,
DR2.1, DR3.1

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.

Supply Chain Reliability % Error-free Returns Shipped,
Return Shipments Shipped on Time
Supply Chain Costs Return transportation costs,
Supply Chain Asset Management Value of excess product inventory in physcial return and
transportation stage/tot
Inputs
Credit Information
D1.11
SR3.1, SR3.2, SR3.4, DR3.3 > SR3.5 Outputs
> Shipment Documents
SR1.2, SR2.2, SR3.2, ER.4
Scheduled Excess Product
Return
SR3.4

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.

Supply Chain Reliability % of Excess Product Returns Delivered Complete to the
Designated Return Center
Supply Chain Agility Upside Deliver Return Flexibility,
Supply Chain Costs None Identified
Supply Chain Asset Management Return for Recycle Rate,
Enable customer direct shipments Enable direct shipments between customers to reduce overall
transportation and handling.

DR3
Excess Product Return Authorization Request SR3.3
!DR3.1!
Excess Product Disposition Request SR3.3
Historical Return Rates P5.1
Product Return Capabilities P5.4
Excess Product Return Authorization Response
Return Product Authorization DR3.2
Return Plans P5.4
Return Product Authorization DR3.1

!DR3.2! Return Schedule Instructions SR1.3, SR2.3, SR3.3,
DR1.3, DR2.3, DR3.3

Receipt Data ER.3, ER.4 Receipt Discrepancy Notification
!DR3.3! Returned Excess Product SR3.1, SR3.2, SR3.4, DR3.3
Return Inventory Transfer Data P5.2, S1.1, S2.1, S3.3,
ER.4
Agreements ER.6
!DR3.4!
Sourcing Plans P2.4 Excess Products S1.2, S2.2
Returned Excess Product SR3.1, SR3.2, SR3.4, DR3.3 Return Inventory Transfer Data P5.2, S1.1, S2.1, S3.3,
Return Inventory for Transfer ER.4 ER.4

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.

Supply Chain Responsiveness Authorize Excess Product Return Cycle Time
Supply Chain Costs Cost to Authorize Excess Product Return
Returns
Inputs
Processes Outputs
ES.1, ER.1
Excess Product Return Chain Inventory Information
Authorization Request DR1.1, DR2.1, DR3.1
SR3.3
Historical Return Rates
Excess Product Disposition
Request
SR3.3
> DR3.1 > Ship-to Data
P5.1
SR1.4, SR2.4, SR3.4

Product Return Capabilities
P5.4 Excess Product Return
Authorization Response
Chain Inventory Information Return Product Authorization
DR1.1, DR2.1, DR3.1 DR3.2
Return Plans
P5.4

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 Center’s Receiving department when to expect the
shipment and where to send the product, for disposition, upon receipt.

Supply Chain Responsiveness Schedule Excess Return Receipt Cycle Time
Cost to Schedule Excess Product Receipt
Establish Designated Processes for None Identified
Scheduling and Receiving Excess
Inventory
Outputs
Inputs
Return Product Authorization
DR3.1
> DR3.2 > Return Schedule Instructions
SR1.3, SR2.3, SR3.3, DR1.3,
DR2.3, DR3.3

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.

Supply Chain Responsiveness Receive Excess Product Cycle Time
Supply Chain Costs Cost to Receive Excess Product
Discrepancies
Close to Repair
Send Return Products Correctly t Receiving quality criteria connected to ISO 9000
to Minimize the Need for Receipt practices
Verification
Prior to Shipment
t RFID

DR3.3
Inputs
Return Regulatory
Requirements
ER.8 Outputs
Receipt Data Receipt Discrepancy
> DR3.3
ER.3, ER.4
Return Schedule Instructions > Returned Excess Product
Notification
DR1.2, DR2.2, DR3.2 SR3.1, SR3.2, SR3.4, DR3.3

Returned Excess Product Return Inventory Transfer Data
SR3.1, SR3.2, SR3.4, DR3.3 P5.2, S1.1, S2.1, S3.3, ER.4
Agreements
ER.6

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.

Supply Chain Responsiveness Transfer Excess Product Cycle Time
Supply Chain Costs Cost to Transfer Excess Product
Receiving Equipment and Include packaging materials in inventory management
Packaging Materials to Transfer system and treat as any other inventory to minimize potential
Product Are Planned for In Advance of stock-out.
and Readily Available When Needed
Projected Usage
Excess Products Scheduling Utilize electronic links
Identifies Next Destination (Source,
Authorization
Inputs
Sourcing Plans Outputs
P2.4 Excess Products
SR3.1, SR3.2, SR3.4, DR3.3
> DR3.4 > Return Inventory Transfer Data
S1.2, S2.2
Return Inventory for Transfer P5.2, S1.1, S2.1, S3.3, ER.4

ER.4

ER
Enable Return
The collection of processes associated with managing and monitoring Return process data,
Process Categories
ER.1: Manage Business Rules for The process of establishing, maintaining, and enforcing
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.
ER.2: Manage Performance of The process of measuring actual Return Process performance
Return Processes against internal and/or external standards to develop and
implement a course of action to achieve targeted performance
levels.
ER.3: Manage Return Data The process of collecting, integrating and maintaining the
Collection accuracy of return execution information necessary to plan the
recovery of supply chain resources.
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.
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.
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.
ER.7: Manage Return Network The process where customer and service provider locations
Configuration 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.

ER
ER.8: Manage Return Regulatory The process of identifying and complying with regulatory
Requirements and Compliance documentation and process 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.
ER.9: Manage Supply Chain Return 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 customer’s 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.

ER
! ER.1 !
Business Rules for Return Processes P5.1, P5.2, ES.7,
Process Procedures P5.4 SR1.1, SR2.1, SR3.1, DR1.1, DR2.1, DR3.1, ER.4, ER.5, R.7,
Return Rules and Policies P5.4 ER.8
MRO Product Return Capabilities ER.2, ER.5 Return Product History ER.3
Return Benchmark Data
Process Procedures P5.4
Receipt Data ER.3, ER.4
! ER.2 ! Supply-Chain Performance Metrics EP.2, ED.1, ED.5
Return Performance ER.5, ER.6
MRO Product Return Capabilities ER.2, ER.5
! ER.3 !
Data Cleansing Procedure
Data About Return Capabilities P5.2
Data System Requirements
Receipt Data DR1.3, DR2.3, DR3.3, ER.2
Return Product History ER.2
Receipt Data DR1.3, DR2.3, DR3.3, ER.2

Return Inventory Transfer Data DR1.4, DR2.4, DR3.3, Return Inventory Availability SR1.3, SR1.4, SR1.5, SR2.3,
! ER.4 !
DR3.4 SR2.4, SR2.5, SR3.3, SR3.4, SR3.5
Return Plans P5.4 Assess and Aggregate Return Resources
Return Product Location SR1.2, SR2.2, SR3.2, ER.4 Return Inventory for Transfer DR1.4, DR2.4, DR3.4
Business Rules for Return Processes ES.1, ER.1 Return Product Location SR1.2, SR2.2, SR3.2, ER.4
Return Inventory Targets P5.4
! ER.5 !
Return Performance ER.2 MRO Product Return Capabilities P5.2, ER.2
Return Plans P5.4
Return Performance ER.2

Return Plans P5.4 ! ER.6 ! Return Transportation Guidelines, Policies, &
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
Warranty Data SR1.1, SR2.1
! ER.8 !
Manage Regulatory Return Policy SR1.1, SR2.1, SR3.1
Return Network Configuration ER.7
Return Regulatory Requirements P1.2, P5.1, P5.2,
Process Procedures P5.4
DR1.3, DR2.3, DR3.3
Monitoring
Internal Information ! ER.9 ! Risk Management Program for Process Area
Internal Adjusments

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.

Supply Chain Responsiveness Manage Business Rules for Return Processes Cycle Time
Supply Chain Costs Cost to Manage Business Rules for Return Processes
Standard Inventory Policy to None Identified
Determine Excess
Utilize Real-World Cases in Employee None Identified
Training
Publish Return Policy Easy access to return business rules.
Electronic Reminders of Possible Pull signals.
Scheduled Maintenance
Evaluate the Benefits of Out- Enables customer to focus on core competencies.
Sourcing the Excess Material Return
Process
Outputs
Inputs
Process Procedures Processes
P5.4
Return Rules and Policies
> ER.1 > P5.1, P5.2, ES.7, SR1.1, SR2.1,
SR3.1, DR1.1, DR2.1, DR3.1, ER.4,
P5.4 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.

Supply Chain Responsiveness Manage Performance of Return Processes Cycle Time
Supply Chain Costs Cost to Manage Performance of Return Processes
Business Rules Are Clearly Convenient availability to business rules and return criteria.
Communicated with the Customer
Continuous Improvement is Avenue to receive customer comments.
Planned through Process Reviews
and Customer Feedback
Outputs
Inputs Return Product History
MRO Product Return ER.3
Capabilities Supply-Chain Performance
ER.2, ER.5 Metrics
Return Benchmark Data > ER.2 > Return Performance
EP.2, ED.1, ED.5
Process Procedures
P5.4 ER.5, ER.6
Receipt Data MRO Product Return

ER.3, ER.4 Capabilities
ER.2, ER.5

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.

Supply Chain Responsiveness Manage Return Data Collection Cycle Time
Supply Chain Costs Cost to Manage Return Data Collection
Automated Update of Customer t Use trend analysis to influence inventory level decisions.
Excess Material Return Transaction t Web-based alerts to identify update occurred and when
History pre-determined thresholds are exceeded.
Data Accessibility across the Web based access to various levels of enterprise data
Enterprise for Visibility by Discrete
Business Units
Inputs Outputs
Data Cleansing Procedure Data About Return Capabilities
Data System Requirements > ER.3 > Receipt Data
P5.2
Return Product History
ER.2 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.

Supply Chain Responsiveness Manage Return Inventory Cycle Time
Supply Chain Costs Cost to Manage Return Inventory
Unique Identifier Tag for Each Asset management software using bar code, RFI tag, etc.
Repairable Asset
Industry Benchmarks
Outputs
Inputs Receipt Data
DR1.3, DR2.3, DR3.3, ER.2
DR1.4, DR2.4, DR3.3, DR3.4 Return Inventory Availability
SR1.3, SR1.4, SR1.5, SR2.3, SR2.4,
Return Plans SR2.5, SR3.3, SR3.4, SR3.5
> ER.4
P5.4
Return Product Location > Assess and Aggregate Return
Resources
SR1.2, SR2.2, SR3.2, ER.4
Return Inventory for Transfer
Business Rules for Return DR1.4, DR2.4, DR3.4
Processes
ES.1, ER.1 Return Product Location
SR1.2, SR2.2, SR3.2, ER.4
Return Inventory Targets
P5.4

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.

Supply Chain Responsiveness Manage Return Capital Assets Cycle Time
Supply Chain Costs Cost to Manage Return Capital Assets
Integrated Transportation Visibility t Advanced shipping notices
t Real time shipping tracking
Automated Disposition Instructions Advanced planning and scheduling capability coupled with
for Returns Based on Data decision support logic.
Interchange with Strategic Providers
Outsource If Not a Core Competency Use 4PL to manage and move.
Automated Data Entry Scanning with RFID/Bar-codes systems
Inputs
Processes Outputs
ES.1, ER.1
Return Performance > ER.5 > MRO Product Return
Capabilities
ER.2 P5.2, ER.2
Return Plans
P5.4

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.

Supply Chain Responsiveness Manage Return Transportation Cycle Time
Supply Chain Costs Cost to Manage Return Transportation
Develop Proactive Transit Damage None Identified
Programs
Integrated Order Management, Transportation Management System (TMS) Maintenance
Warehouse Management, and Management
Transportation Management
Systems View for analysis for all
orders and shipments the following
data: Logistics, Product, Cost, GL
Charging
Automated Documentation for Transportation Management System (TMS) Maintenance
International Shipments Management
Segregate In-Bound Carcass Return None Identified
Cost from Other Transportation
Costs
Involve Your Other Supply-Chain Utilization of transportation management system (TMS) to
Partners If Possible to Leverage manage returns. Maximization of TMS use, both intra and
Transportation throughout the inter-company within the supply chain.
Chain
Electronic Manifest and Electronic Transportation Management System (TMS) Maintenance
Billing Management
Utilize Invoice-less Freight Payment None Identified
Capture and Maintain Mode Specific Transportation Management System (TMS) Maintenance
Data Management

ER.6
Limit the Number of Carriers, Treat Utilization of transportation management system (TMS) to
Them as Partners and Build a Strong manage returns. Maximization of TMS use, both intra and
Relationship with Each One Geared inter-company within the supply chain.
Toward Continually Improving
Service and Lowering Cost
Consolidate Shipments Through None Identified
Cross Docking - Coordinate with
Other Shipments
Utilize Internet-Based Freight None Identified
Bidding Built Around Shared
Shipping Volume Projections
Measurement of Carrier Transportation Management System (TMS) Maintenance
Performance for On-time Delivery Management
and Completeness
Appointment Scheduling for Transportation Management System (TMS) Maintenance
Pickup and Delivery of Customer Management
Shipments
Real-Time Shipment Tracking, (via Transportation Management System (TMS) Maintenance
internet) Management
Manage Information Across 100% of Transportation Management System (TMS) Maintenance
Shipments Management
Real-Time Optimized Shipment Transportation Management System (TMS) Maintenance
Method Selection (Air Parcel, Management
Ground Parcel, LTL, etc.) Based on
Customer Service Requirements
Inputs Outputs
Return Performance Return Transportation
ER.2
Return Plans
> ER.6 > Guidelines, Policies, &
Agreements
P5.4 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 chain’s business rules. (See ER1)

Supply Chain Responsiveness Manage Return Network Configuration Cycle Time
Supply Chain Costs Cost to Manage Return Network Configuration
Service Provider Utilizes Web-Based Continuously updated authorized repair sites
Communicate to Identify New
and Discontinued Repair Sites to
Customers
Utilize Web-Based Collaboration Total return asset visibility throughout the network
between Asset Manager and Repair
Sites Regarding Capacity and
Scheduling
Utilize Web-Based Collaboration to Shared knowledge of resource availability and bottlenecks
Identify Potential New Repair Sites
Prior to Their Selection
Utilize Web-Based Collaboration Shared return forecasts
between Customer and Service
Provider on In-Bound Return
Forecasts and Asset Tracking
Inputs Outputs
Business Rules for Return Return Network Configuration
Processes
ES.1, ER.1
> ER.7 > ER.8
Return Process Workflow
Return Plans Definition and Policies
P5.4 P5.2

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.

Supply Chain Responsiveness Manage Return Regulatory Requirements and Compliance
Cycle Time
Supply Chain Costs Cost to Manage Return Regulatory Requirements and
Compliance
Confirm All Documentation and None Identified
Inspection Requirements Before
Shipping
Compare Local Customs None Identified
Requirements to Your Process
Procedures to Ensure All
Requirements Are Accounted for
Before Shipping
Clarify in Advance If the Product Participants at all customer and service provider locations
to be Returned Requires Specific, involved clearly understand all regulatory requirements at
Formal Authorization from the each step in the return process .
Service Provider per Federal,
State or Local Regulation, Prior to
Returning
Note and Communicate Shelf Life Hazardous material regulations are given specific attention.
Requirements Carefully Before
Shipping
Clarify in Advance Hazardous Overseas packaging, labeling and shipping regulatory
Material Packaging, Labeling and requirements are given specific attention.
Shipping Requirements

ER.8
Outputs
Inputs Warranty Data
Business Rules for Return SR1.1, SR2.1
Processes Manage Regulatory Return
ES.1, ER.1
Return Network Configuration
> ER.8 > Policy
SR1.1, SR2.1, SR3.1
ER.7 Return Regulatory
Process Procedures Requirements
P5.4 P1.2, P5.1, P5.2, DR1.3, DR2.3,
DR3.3

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
customer’s 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.

Supply Chain Reliability Age of Supplier Risk Data (months),
VAR of product/customer performance - ,
Value at Risk (Return)
Supply Chain Agility Internal Event Response (average days),
Industry Benchmark Comparison (%),
Hedge Rating (Inventory DOS for risk management)
Supply Chain Costs Mitigation cost by Event ($),
Assessment / Risk Management Costs ($),
Mitigation Cost ($)
Supply Chain Asset Management Residual Risk ($),
Mitigated Risk ($),
Individual Process Area Event Rating (EVAR) ($),
Gross Risk ($),
Event Risk (EVAR) ($)
they occur.

ER.9

Configured to Minimize Risk 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 network’s performance.
Risk Management Programs The process of coordinated risk management places a strong
Coordination with Partners 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.

ER.9

organization.
Inputs Outputs
Monitoring
> ER.9 > Risk Management Program for
Process Area
Internal Adjusments

Inputs/Outputs
Input/Output Definition Process
Actual Sales History Amount of past sales spanning any D2.2: Receive, Configure, Enter and
specified period of time (weeks, months, Validate Order
years, etc.) and expressed in any D1.2: Receive, Enter and Validate Order
specified increments (per day, week, D3.3: Enter Order, Commit Resources
month, year, etc.) Launch Program
P5.1: Assess and Aggregate Return
Requirements
Actual Shrink Reductions of actual quantities of items P4.1: Identify, Prioritize and Aggregate
in stock, in process, or in transit. The Delivery Requirements
loss may be caused by scrap, theft,
deterioration, evaporation, etc.
Advanced Ship Notice An EDI notification of shipment of D2.11: Load Product & Generate
product. Shipping Documentation
2.13: Receive and Verify Product by
Customer
Air, Ground, Carrier Rate Rates charged by common carriers to ED.6: Manage Transportation
Tables move goods, or freight.
Approved Contract Acceptance of an agreement between D3.2: Negotiate and Receive Contract
two or more competent persons or D3.3: Enter Order, Commit Resources
companies to perform or not to perform Launch Program
specific acts or services or to deliver
merchandise. A contract may be oral or
written.
Approved Item Master The “master” record for an item. ED.5: Manage Deliver Capital Assets
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 ER.4: Manage Return Inventory
Return Resources
Assorted by Shelf Order The function of physically separating D4.3: Pick Product from Backroom
a homogeneous subgroup from a
heterogeneous population of items
Authorization to Return Permission to return to service an item SR3.2: Disposition Excess Product
to Service that has been repaired and found to be SR2.2: Disposition MRO Product
within specifications and operable. D1.8: Receive Product from Source or
Make
SR1.2: Disposition Defective Product
Authorization to Scrap Permission to scrap material or item SR2.2: Disposition MRO Product
outside of specifications and possessing SR3.2: Disposition Excess Product
characteristics that make rework SR1.2: Disposition Defective Product
impractical. D1.8: Receive Product from Source or
Make

Inputs/Outputs
Available to Promise Date The uncommitted portion of a D2.3: Reserve Inventory and Determine
company’s inventory and planned Delivery Date
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
Benchmark Data A set of measurements (or metrics) ED.2: Assess Delivery Performance
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 P2.1: Identify, Prioritize and Aggregate
of all the materials or parts needed to Product Requirements
produce a particular finished product, P3.1: Identify, Prioritize and Aggregate
assembly, subassembly, manufactured Production Requirements
part, whether purchased or not. EP.7: Manage Planning Configuration
Booked Order The process of accepting and ED.3: Manage Deliver Information
translating what a customer wants D2.3: Reserve Inventory and Determine
into terms used by the manufacturer Delivery Date
or distributor. The commitment should D2.2: Receive, Configure, Enter and
be based on the available-to-promise Validate Order
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
Budget Constraints A plan that includes an estimate of EP.10: Align Supply Chain Unit Plan with
future costs and revenues related to Financial Plan
expected activities. The budget serves P5.2: Identify, Assess, and Aggregate
as pattern for and a control over future Return Resources
operations.
Budgets A plan that includes an estimate of EM.5: Manage Make Equipment and
future costs and revenues related to Facilities
expected activities. The budget serves ED.7: Manage Product Life Cycle
as a pattern for and a control over future ED.5: Manage Deliver Capital Assets
operations.

Inputs/Outputs
Business Plan A document resulting from a process EP.10: Align Supply Chain Unit Plan with
of linking the long-range strategy with Financial Plan
projections of revenue, activity, cost and EM.1: Manage Production Rules
profit. This process develops objectives EP.1: Manage Business Rules for Plan
usually accompanied by budgets, Processes
projected balance sheet, and a cash EM.2: Manage Production Performance
flow statement.
Business Rules for Return Rules for conducting business, i.e. ER.1: Manage Business Rules for Return
Processes developing and maintaining customer Processes
and channel performance standards P5.2: Identify, Assess, and Aggregate
of an return processes such as service Return Resources
levels, given service requirements by ER.4: Manage Return Inventory
supply chain stakeholders/trading SR3.1: Identify Excess Product Condition
partners. Business rules align Return ER.7: Manage Return Network
process policies with business strategy, Configuration
goals, and objectives. DR1.1: Authorize Defective Product
Return
SR2.1: Identify MRO Product Condition
ES.1: Manage Sourcing Business Rules
SR1.1: Identify Defective Product
Condition
DR2.1: Authorize MRO Product Return
Requirements
DR3.1: Authorize Excess Product Return
Business Rules for Source Rules that are translated into guidelines ES.1: Manage Sourcing Business Rules
Processes and policies for conducting business S3.2: Select Final Supplier (S) and
within the enterprise and other legal Negotiate
entities. Sourcing business rules include: S3.1: Identify Sources of Supply
supplier selection and negotiation ES.4: Manage Product Inventory
processes, fulfillment and delivery
performance and relationship definition
for specific levels of collaboration and
partnership.
Capacity Constraints A capacity constraint is said to exist EP.4: Manage Integrated Supply Chain
when the available capacity at a Inventory
resource may be insufficient to meet EP.6: Manage Integrated Supply Chain
the workload necessary to support Transportation
the desired throughput. A capacity EP.5: Manage Integrated Supply Chain
constraint is often a bottleneck. Capital Assets

Inputs/Outputs
Capacity Requirements The resources needed to produce the EM.6: Manage Transportation (WIP)
projected level of work required from EM.4: Manage In-Process Products (WIP)
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.
Capital Assets Physical objects that are held by an ES.5: Manage Capital Assets
organization for its production potential ES.8: Manage Import/Export
and that costs more than some Requirements (Source)
threshold value (APICS)
Carrier Contracts Contracts that customers have with ED.2: Assess Delivery Performance
(Customer) 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 D3.1: Obtain and Respond to RFP/RFQ
to the a request for proposal from D3.2: Negotiate and Receive Contract
a customer with all the terms and
conditions of sale of a product or service
Configuration Rules The rules for the management of D2.2: Receive, Configure, Enter and
product configuration, which includes Validate Order
the management of critical sub ED.1: Manage Deliver Business Rules
processes needed to manage the ED.1: Manage Deliver Business Rules
life cycle of individual item numbers
including item masters, routings,
rationalization, and bill of materials.
Conformance Plan Courses of action and processes that are EM.8: Manage Make Regulatory
established to meet the requirements Environment
placed on production by external
entities.
Conformance Rules An affirmative indication or judgment EM.8: Manage Make Regulatory
that a product or service has met Environment
criteria translated into rules for meeting
external regulatory requirements
Consistently High Indication of product and service D4.7: Deliver and/or Install
Adoption Rates quality, i.e. customer satisfaction.
Consolidated Orders The process of analyzing orders to D2.4: Consolidate Orders
determine the groupings that result in D2.5: Build Loads
least cost/best service fulfillment and
transportation.

Inputs/Outputs
Continuous Improvement A process that identifies opportunities EP.2: Manage Performance of Supply
Process for performance improvement and Chain
facilitates their realization through the
use of metrics, process development
methodologies/approaches, project
management principles, and reporting
tools that support strategic and
business plans.
Contract Carrier Rates The rates charged by a carrier that D.6: Manage Transportation
does not serve the general public, but ES.6: Manage Incoming Product
provides transportation for hire for one ES.8: Manage Import/Export
or a limited number of shippers under a Requirements (Source)
specific contract.
Contract Status Customer profile, which include D2.2: Receive, Configure, Enter and
address data, credit and purchase Validate Order
histories, customer preferences ED.3: Manage Deliver Information
including shipping, status, and delivery D3.1: Obtain and Respond to RFP/RFQ
requirements, etc. D1.2: Receive, Enter and Validate Order
Contract Terms All the provisions and agreements of a D2.2: Receive, Configure, Enter and
contract. Validate Order
Contractual Obligations A promise in a contract that binds one P5.1: Assess and Aggregate Return
to a specific course of action. These Requirements
promises maybe made by either the
buyer of seller.
Corporate Objectives and Corporate objectives are the goals and EM.2: Manage Production Performance
Strategies mission of an organization. EM.8: Manage Make Regulatory
Environment
EM.1: Manage Production Rules
Cost to Produce The cost to produce and item during EM.7: Manage Production Network
a given period of time.Includes: the
amount of direct materials, direct labor,
and allocated overhead.
Credit/ Exchange Options The options available on the return of SR3.4: Schedule Excess Product
a repairable item, credit for the cost of Shipment
the item, repair of the repairable item, SR2.3: Request MRO Return
receipt of a serviceable item from stock. Authorization
SR2.4: Schedule MRO Shipment
SR3.3: Request Excess Product Return
Authorization
SR1.4: Schedule Defective Product
Shipment

Inputs/Outputs
Credit History Report that portrays a potential D2.2: Receive, Configure, Enter and
customer’s payment history and debt, Validate Order
indicating the ability to pay in a timely D2.2: Receive, Configure, Enter and
manner in the future. Validate Order
ED.3: Manage Deliver Information
D3.1: Obtain and Respond to RFP/RFQ
D1.2: Receive, Enter and Validate Order
Current Inventory Source Data which will provide measurement S3.2: Select Final Supplier (S) and
Data of actual supplier performance against Negotiate
internal and or external standards ES.3: Maintain Source Data
to provide feedback to achieve and ED.7: Manage Product Life Cycle
maintain the performance required to ES.7: Manage Supplier Network
meet the customer’s needs. S3.1: Identify Sources of Supply
Customer Address Data Customer profile, which include D3.1: Obtain and Respond to RFP/RFQ
address data, credit and purchase ED.3: Manage Deliver Information
histories, customer preferences D2.2: Receive, Configure, Enter and
including shipping, status, and delivery Validate Order
requirements, etc. D1.2: Receive, Enter and Validate Order
Customer Data Customer profile, which includes D4.5: Fill Shopping Cart
(preference) history, customer preferences, status,
and delivery requirements, etc.
Customer Inquiry General customer inquiries for D1.1: Process Inquiry and Quote
information concerning products, D2.1: Process Inquiry and Quote
availability, cost, and requests for
quotes.
Customer Loyalty / Input to customer profile, frequency D4.6: Checkout
Recurring Visits of visits, recurring, time frame, what
purchased, numbers and rings. Measure
of customer satisfaction with products
and service.
Customer Master This database contains all information ED.4: Manage Finished Goods
Database/Up to Date relative to customers as a group or Inventories
singly and is updated when ever ED.3: Manage Deliver Information
new information is received about a
customer, includes customer profiles.
Customer Order An order from a customer for a D3.3: Enter Order, Commit Resources
particular product or a number of Launch Program
products. It is often referred to as an D3.4: Schedule Installation
actual demand to distinguish it from a D3.2: Negotiate and Receive Contract
forecasted demand. D1.2: Receive, Enter and Validate Order
D2.3: Reserve Inventory and Determine
Delivery Date
ED.2: Assess Delivery Performance
Customer Order Size, Coupled with cube and route, these ED.6: Manage Transportation
Weight, and Freight Class criteria determine type of carrier and D2.2: Receive, Configure, Enter and
cost of shipment Validate Order
D3.2: Negotiate and Receive Contract

Inputs/Outputs
Customer Profile/Data Customer profile, which includes D4.6: Checkout
history, customer preferences, status,
and delivery requirements, etc.
Customer Quote A statement of price, terms of sale, and D1.1: Process Inquiry and Quote
description of goods or services offered D1.2: Receive, Enter and Validate Order
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 Replenish Signal D1.2: Receive, Enter and Validate Order
Signal
Customer Requirements The part of the supply chain P1.1: Identify, Prioritize and Aggregate
requirements related to the customer’s SC Requirements
needs, including sales forecasts and
actual orders and backorders
Customer Service Supply chain requirements related to ED.2: Assess Delivery Performance
Requirements the customer’s needs, including service ED.6: Manage Transportation
requirements, sales forecasts and actual
orders/backorders.
Daily Replenishment Resources needed to meet Item D4.1: Generate Stocking Schedule
Requirements stocking schedule requirement. S1.4: Transfer Product
Daily Shipment Volume Daily Shipment Volume categorized by D1.5: Build Loads
customer, source, traffic lane, carrier, etc. D1.4: Consolidate Orders
Data About Return Information required in the process P5.2: Identify, Assess, and Aggregate
Capabilities of integrating and maintaining the Return Resources
accuracy of return execution. ER.3: Manage Return Data Collection
Data Cleansing Procedure The procedure that outlines the ER.3: Manage Return Data Collection
cleansing of return data to insure its
validity and accuracy during the return
process.
Data System List of requirements of the data system ER.3: Manage Return Data Collection
Requirements 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 P4.1: Identify, Prioritize and Aggregate
elapses between the time an order Delivery Requirements
is received and the time the order is
shipped.
DC/Vendor Transit Time A standard allowance that is assumed P4.1: Identify, Prioritize and Aggregate
on any given order for the movement of Delivery Requirements
items from one operation to the next.
Defective Product The customer request for disposition DR1.1: Authorize Defective Product
Disposition Request instructions for a defective product from Return
the appropriate source. SR1.3: Request Defective Product

Inputs/Outputs
Defective Product Return The customer request for disposition DR1.1: Authorize Defective Product
Authorization Request instructions for a defective product from Return
the appropriate source. SR1.3: Request Defective Product
Defective Product Return The approved or disapproved Return R1.3: Request Defective Product Return
Authorization Response Product Authorization (RPA) for excess Authorization
inventory, unserviceable products and/ DR1.1: Authorize Defective Product
or serviceable or obsolete products as Return
defined by the terms and conditions of
a customer/supplier contract.
Defective Products Maintenance, Repair and Overhaul S1.2: Receive Product
spare parts used to support of S2.2: Receive Product
operations and maintenance. DR1.4: Transfer Defective Product
Deliver Contract Terms Deliver Contract Terms D1.2: Receive, Enter and Validate Order
Delivered End Items Products that have been acknowledged 2.11: Load Product & Generate Shipping
as received by the customer. Documentation
Shipping Docs
Deliver Return A determination or projection of the P5.4: Establish and Communicate
Requirements requirements the supply chain must Return Plans
meet in the handling and execution of P4.1: Identify, Prioritize and Aggregate
returns. (i.e. quantity, mix, timing) Delivery Requirements
Delivery Resources
Delivery Date Those stocks or items on hand used D2.4: Consolidate Orders
to support production (raw materials D1.3: Reserve Inventory and Determine
and work in process items), supporting Delivery Date
activities (maintenance, repairs and D1.4: Consolidate Orders
operating supplies), and customer D2.3: Reserve Inventory and Determine
service (finished goods and spare parts). Delivery Date
Determination of the time required
from the receipt of the order until the
item should be delivered.
Delivery Performance The process of measuring actual ED.2: Assess Delivery Performance
supplier performance against internal ED.5: Manage Deliver Capital Assets
and/or external standards, providing ED.6: Manage Transportation
feedback to achieve and maintain the ED.4: Manage Finished Goods
performance required to meet the Inventories
customers’ business and/or competitive
needs.

Inputs/Outputs
Delivery Plans A plan for a course of action over D3.3: Enter Order, Commit Resources
specified time periods that involves Launch Program
a projected appropriation of P3.1: Identify, Prioritize and Aggregate
supply resources to meet delivery Production Requirements
requirements. D2.3: Reserve Inventory and Determine
Delivery Date
P5.2: Identify, Assess, and Aggregate
Return Resources
Delivery Date
P1.2: Identify, Prioritize and Aggregate
SC Resources
P4.4: Establish Delivery Plans
Product Requirements
Requirements
M1.5: Stage Product
Delivery Requirements As a whole with constituent parts, all P4.3: Balance Delivery Resources and
sources of demand in the delivery of a Capabilities with Delivery Requirements
product or service. P4.1: Identify, Prioritize and Aggregate
Delivery Resources and As a whole with constituent parts, all P4.2: Identify, Assess and Aggregate
Capabilities things that add value in the delivery of Delivery Resources
a product. P4.3: Balance Delivery Resources and
Capabilities with Delivery Requirements
Duty Drawback Claims Claims for the refund of duties as a ED.8: Manage Import/Export
result of a ruling by the a government Requirements
agency.
Engineering Design Final drawings, specifications, formulas, M3.1: Finalize Production Engineering
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.
Enterprise Distribution Model of the distribution enterprise ED.7: Manage Product Life Cycle
Model including the flows, processes, inputs,
outputs, metrics, and best business
practices.
EOQ/ESQ’s Economic Order Quantity - Result of a P4.1: Identify, Prioritize and Aggregate
calculation that determines the most Delivery Requirements
cost effective to quantity to order or
produce. Economic Shipping Quantity
- Result of a calculation that determines
the most cost effective quantity to ship.

Inputs/Outputs
Equipment and Facilities Equipment and facility traits and EM.8: Manage Make Regulatory
Characteristics specifications required to meet external Environment
entities requirements.
Equipment and Facilities The process of documenting of the EM.5: Manage Make Equipment and
Maintenance History timing and maintenance of equipment Facilities
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
Equipment and Facilities Data gathered by measuring, EM.5: Manage Make Equipment and
Monitoring Information examining, testing, or gauging one or Facilities
more characteristics of equipment and
facilities and comparing it to planned.
Equipment and Facilities Actions relating to the planning, EM.5: Manage Make Equipment and
Replacement and financing and disposition of capital Facilities
Disposition Plans outlays for such purposes as the EM.6: Manage Transportation (WIP)
purchase of new equipment, the P3.2: Identify, Assess and Aggregate
introduction of new product lines, and Production Resources
the modernization of plant facilities
Equipment and Facilities Time-phased plans of present and M1.1: Schedule Production Activities
Schedules and Plans future load (capacity required) on all M2.1: Schedule Production Activities
resources (Equipment and Facilities) EM.5: Manage Make Equipment and
based on the planned and released Facilities
supply authorizations (i.e., orders) M3.2: Schedule Production Activities
and the planned capacity (capacity
available) of these resources over a span
of time.
ETO Proposal A proposal that may contain final S3.2: Select Final Supplier (S) and
drawings, specifications, formulas, Negotiate
part programs, etc.that describe
requirements of a product
ETO Request for Proposal A document used to solicit vendor S3.1: Identify Sources of Supply
responses when the functional
requirements and features are known.
ETO Spec or Design A clear, complete and accurate S3.1: Identify Sources of Supply
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 Request disposition instructions for an
Disposition Request excess item from the Supplier. SR3.3: Request Excess Product Return
Authorization

Inputs/Outputs
Excess Product Return The process of a customer requesting DR3.1: Authorize Excess Product Return
Authorization Request authorization from a service provider, SR3.3: Request Excess Product Return
for the return of excess. In addition to Authorization
discussing the excess, the customer and SR3.3: Request Excess Product Return
service provider would discuss enabling Authorization
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
Excess Product Return The process of a customer obtaining DR3.1: Authorize Excess Product Return
Authorization Response authorization, from a service provider,
for the return of excess product
Excess Products Material in excess of the current S1.2: Receive Product
requirements. S2.2: Receive Product
DR3.4: Transfer Excess Product
Existing Inventory Data Available data that characterizes and ED.4: Manage Finished Goods
quantifies raw material, work in process, Inventories
and finished goods inventories S1.4: Transfer Product
D1.8: Receive Product from Source or
Make
S2.4: Transfer Product
External Regulatory Documentation and process standards EM.8: Manage Make Regulatory
Information set by external entities (i.e. government, Environment
trade officials, etc.)
Finished Goods Inventory The physical storage location where ED.4: Manage Finished Goods
Location Finished Product inventory is held in Inventories
stock prior to use or shipment. S3.6: Transfer Product
Finished Product Release The authorization to ship a finished M3.7: Release Product to Deliver
product that has been ordered. D3.9: Pick Product
D4.2: Receive Product at the Store
M2.6: Release Finished Product to
Deliver
Make
D2.9: Pick Product
Finish Goods Inventory In a min-max inventory system, the ED.4: Manage Finished Goods
Target Levels equivalent of the maximum. The target Inventories
inventory is equal to the order point P4.2: Identify, Assess and Aggregate
plus a variable order quantity. Delivery Resources

Inputs/Outputs
Full Cart (Empty Cart) Completion of customer checkout, sale D4.6: Checkout
of the selected goods, cart transitions
from full to empty.
Full Cart Ready for Customer selected goods transferred to D4.5: Fill Shopping Cart
Checkout the point of sale. D4.6: Checkout
Full Shelf Locations Determination of the best retail D4.5: Fill Shopping Cart
locations for implementation of full D4.4: Stock Shelf
shelf equipment.
Government Constraints Requirements established by a ED.8: Manage Import/Export
government which must be met before Requirements
allowing the shipping, delivery of a ED.7: Manage Product Life Cycle
product or manufacture of an item.
Government Regulations Documents the implement law ED.8: Manage Import/Export
and requirements concerning the Requirements
import and export of items and the
manufacture of item.
High Customer Services Indication of product and service D4.7: Deliver and/or Install
Satisfaction Levels quality.
Historical Return Rates A judgmental forecasting technique DR3.1: Authorize Excess Product Return
based upon the a return history that SR1.3: Request Defective Product
is analogous to a present situation, Return Authorization
such as the return history on a similar SR3.3: Request Excess Product Return
product, and using the past pattern to Authorization
predict future returns. SR2.3: Request MRO Return
Authorization
Requirements
DR1.1: Authorize Defective Product
Return
Import/Export Requirements established by a ES.10: Manage Supplier Agreements
Requirements government or trading areas (i.e EU, ES.5: Manage Capital Assets
NAFTA etc) which must be met before ES.8: Manage Import/Export
allowing the shipping or delivery of a Requirements
product across national boundaries. ES.6: Manage Incoming Product
Incoming Product Data concerning product on order and EM.4: Manage In-Process Products (WIP)
Information due to be delivered to location agreed
in the order.

Inputs/Outputs
Information Feedback The flow of information back into M3.4: Produce and Test
the control system so that actual M3.7: Release Product to Deliver
performance can be compared with M3.6: Stage Finished Product
planned performance. M1.4: Package
M2.4: Package
M3.5: Package
M3.3: Issue Sourced/In-Process Product
M1.5: Stage Product
M2.6: Release Finished Product to
Deliver
M3.2: Schedule Production Activities
Information from Data arranged or presented from a set EM.3: Manage Make Information
Business Processes 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 A plan outlining the processes required EM.3: Manage Make Information
Infrastructure Plan for managing, collecting, maintaining,
and communicating information and
masterdata to support planning and
execution processes.
Information Needed to Interrelated computer hardware EM.3: Manage Make Information
Create and Maintain IT and software along with people and
processes designed for the collection,
processing, and dissemination of
information for planning, decision
making, and control.
Information Needs Specifying the inputs, files, processing, EM.3: Manage Make Information
Analysis businesss rules and outputs for a
new system, but without expressing
computer alternatives and technical
details.
Installed Product The process of preparing, testing and D1.14: Install Product
installing the product at the customer D2.15: Invoice
site. The standalone product is fully D1.15: Invoice
functional upon completion, but there D3.14: Install Product
may be requirment for subseqent D2.14: Install Product
integration.

Inputs/Outputs
Integrated Managing the flow of raw materials EP.4: Manage Integrated Supply Chain
Supply Chain and products in a supply chain based Inventory
Inventory on uncertain demand for the finished EP.4: Manage Integrated Supply Chain
Information products. Inventory
Integrated Supply Chain Communication of courses of action ED.4: Manage Finished Goods
Plan over the appropriate time-defined Inventories
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.
Internal Adjustments 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
Internal Capacity The organic capability of an EM.7: Manage Production Network
organization to produce output per
time period.
Internal Information ES.9: Manage Supply Chain Source Risk
EM.9: Manage Supply Chain Make Risk
Inventory In business management, inventory P1.2: Identify, Prioritize and Aggregate
consists of a list of goods and materials SC Resources
held available in stock. Also, those
stocks or items used to support
production (raw materials and work-
in-process items), supporting activities
(maintenance, repair, and operating
supplies), and customer service
(finished goods and spare parts)

Inputs/Outputs
Inventory Availability Those stocks or items on hand used M2.2: Issue Sourced/In-Process Product
to support production (raw materials D2.9: Pick Product
and work in process items), supporting S1.4: Transfer Product
activities (maintenance, repairs and S2.4: Transfer Product
operating supplies), and customer D1.8: Receive Product from Source or
service (finished goods and spare parts). Make
D4.3: Pick Product from Backroom
D3.9: Pick Product
Delivery Date
Product Resources
Delivery Date
Production Resources
D1.9: Pick Product
Make
Inventory Availability/ Those stocks or items on hand used P4.2: Identify, Assess and Aggregate
Delivery Date to support production (raw materials Delivery Resources
and work in process items), supporting D1.3: Reserve Inventory and Determine
activities (maintenance, repairs and Delivery Date
operating supplies), and customer D2.3: Reserve Inventory and Determine
service (finished goods and spare parts). Delivery Date
Determination of the time required
from the receipt of the order until the
item should be delivered.
Inventory Capacity Maximum rate of output for the EM.2: Manage Production Performance
inventory managment and warehouse EM.1: Manage Production Rules
process
Inventory in Stock Stored products or service parts ready D4.3: Pick Product from Backroom
for sale, as distinguished from stores,
which are usually components or raw
materials.
Inventory Rules The rules that determining the desired ED.4: Manage Finished Goods
levels of items, whether raw materials, Inventories
work in process, or finished products ED.4: Manage Finished Goods
including order quantities and safety Inventories
stock levels. ED.5: Manage Deliver Capital Assets

Inputs/Outputs
Inventory Status A periodic report showing the inventory D2.3: Reserve Inventory and Determine
on hand and usually showing the Delivery Date
inventory on order and some sales or
usage history for the products that are
covered in the stock status report.
Inventory Strategy The total supply chain inventory EP.4: Manage Integrated Supply Chain
strategy. Contains the plan for total Inventory
inventory limits or levels (including Raw P1.3: Balance Supply Chain Resources
Material, Work In Process, Finished and with SC Requirements
Purchased Finished Goods) including P5.2: Identify, Assess, and Aggregate
replenishment models, ownership, Return Resources
product mix, and stocking locations,
both inter and intra company.
Item Master A record of specific information for P2.1: Identify, Prioritize and Aggregate
each product, which defines the system Product Requirements
parameters with which to effectively P4.1: Identify, Prioritize and Aggregate
plan and execute using ERP (MRP, etc) Delivery Requirements
systems. P5.1: Assess and Aggregate Return
Requirements
EP.7: Manage Planning Configuration
Item Pick Sheet for A document that lists the material to D4.2: Receive Product at the Store
Stocking Schedule be picked to meet the schedule for the D4.3: Pick Product from Backroom
planned movement of material from
a bulk storage area to an order pick
storage area.
Item Stocking The activities and techniques of D4.2: Receive Product at the Store
Requirements determining the desired levels of P4.1: Identify, Prioritize and Aggregate
items, whether raw materials, work in Delivery Requirements
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, The function that performs tasks SR2.5: Return MRO Product
and Credit Information for the outgoing shipment of parts, SR1.5: Return Defective Product
components, and products. It includes SR3.5: Return Excess Product
packaging, marking, weighing, and D1.11: Load Vehicle & Generate
loading for shipment. Also, verify Shipping Docs
the shipment and customer credit
information.
Loaded Retail Cart or Customer selected retail finished goods D4.3: Pick Product from Backroom
Pallet transferred to the point of sale. S1.4: Transfer Product
D4.4: Stock Shelf

Inputs/Outputs
Load Information Information relative to a load that is P4.2: Identify, Assess and Aggregate
built and shipped, i.e. customer, items, Delivery Resources
destinations, weight, etc D3.5: Build Loads
D2.5: Build Loads
D1.5: Build Loads
Location of Customers Customer profile, which includes D2.2: Receive, Configure, Enter and
address and location data, credit Validate Order
and purchase histories, customer D1.2: Receive, Enter and Validate Order
preferences including shipping, status, ED.7: Manage Product Life Cycle
and delivery requirements, etc. D3.2: Negotiate and Receive Contract
Logistics Selection Carrier selection and management for ES.6: Manage Incoming Product
inbound or outbound shipments (linked S2.1: Schedule Product Deliveries
to terms of delivery) S3.3: Schedule Product Deliveries
Lost or Dropped On-line orders that are missing due D4.5: Fill Shopping Cart
Shopping Carts to internet, software, or hardware
malfunctions.
Low Rates of Failure Indication of quality in workmanship D4.7: Deliver and/or Install
and design.
Loyalty Customer Profile More units, higher average ring, etc. D4.6: Checkout
Changes
Make/Buy Decision The output of the process used to P5.2: Identify, Assess, and Aggregate
determine whether a demand will Return Resources
be supplied with internal capacity P1.2: Identify, Prioritize and Aggregate
or purchased through contract SC Resources
manufacturing and/or contracted EP.5: Manage Integrated Supply Chain
services externally. Capital Assets
Manage Integrated Managing the flow of raw materials DR3.1: Authorize Excess Product Return
Supply Chain Inventory and products in a supply chain based DR1.1: Authorize Defective Product
Information on uncertain demand for the finished Return
products DR2.1: Authorize MRO Product Return
Return
Management Process Reports which provide management ED.2: Assess Delivery Performance
Reports with the process information required ED.1: Manage Deliver Business Rules
to evaluate prescribed activities to
ensure that the stated objectives of a
project, manufactured good, or service
are achieved.

Inputs/Outputs
Manage Regulatory The process of identifying and SR2.1: Identify MRO Product Condition
Return Policy complying with regulatory SR1.1: Identify Defective Product
documentation and process standards Condition
set by external entities (i.e. government, ER.8: Manage Return Regulatory
trade officials, etc.) when planning for Requirements and Compliance
the Return and Recovery of Assets. SR3.1: Identify Excess Product Condition
Manufacturer’s The scheduled activities, including EM.5: Manage Make Equipment and
Recommended adjustments, replacements, and basic Facilities
Maintenance Schedules & cleanliness, that are recommended by
Specifications the manufacturer to forestall machine
breakdowns.
Markdown Plans Part of the Market Plan, which P4.1: Identify, Prioritize and Aggregate
establishes an allowance or deduction, Delivery Requirements
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/ The categorization of goods based upon P4.1: Identify, Prioritize and Aggregate
Classification the range of specifications met during Delivery Requirements
the manufacturing process.
Merchandising The merchandising plan includes the D4.5: Fill Shopping Cart
Plan 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, Methods, procedures and processes M3.2: Schedule Production Activities
Processes required to produce distinct items, M3.1: Finalize Production Engineering
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 EM.9: Manage Supply Chain Make Risk
ES.9: Manage Supply Chain Source Risk
MRO Disposition Request Request disposition instructions for an DR2.1: Authorize MRO Product Return
MRO item from the Supplier. SR2.3: Request MRO Return
Authorization

Inputs/Outputs
MRO Parts Availability The on-hand MRO inventory balance EM.5: Manage Make Equipment and
minus allocations, reservations, Facilities
backorders, and (usually) quantities held ES.4: Manage Product Inventory
for quality problems.
MRO Product Return See “Product Return Capagilities” P5.2: Identify, Assess, and Aggregate
Capabilities Return Resources
ER.2: Manage Performance of Return
Processes
Processes
MRO Products Maintenance, Repair and Overhaul S1.2: Receive Product
spare parts used to support of S2.2: Receive Product
operations and maintenance. DR2.4: Transfer MRO Product
MRO Return The process of a customer requesting SR2.3: Request MRO Return
Authorization Request authorization from a service provider, Authorization
for the return of an MRO product. In DR2.1: Authorize MRO Product Return
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
MRO Return The process of a customer obtaining DR2.1: Authorize MRO Product Return
Authorization Response authorization, from a service provider, SR2.3: Request MRO Return
for the return of an MRO product Authorization
On-demand Requirements for the triggering of D4.1: Generate Stocking Schedule
Replenishment material movement to a work center
Requirements only when that work center is ready to
begin the next job.
On-Order/Backorder An unfilled customer order or D4.3: Pick Product from Backroom
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 D3.2: Negotiate and Receive Contract
partial or in full. D1.2: Receive, Enter and Validate Order
D2.2: Receive, Configure, Enter and
Validate Order

Inputs/Outputs
Order Backlog Orders that have been received and P4.1: Identify, Prioritize and Aggregate
entered into the order processing Delivery Requirements
system and are in a queue waiting to be D2.3: Reserve Inventory and Determine
processed and shipped. Delivery Date
SC Requirements
Shipping Docs
Delivery Date
D3.3: Enter Order, Commit Resources
Launch Program
Order Information The function encompasses receiving D3.3: Enter Order, Commit Resources
and entering all data necessary on Launch Program
orders, so the order can be finalized and M3.1: Finalize Production Engineering
entered into the order system.
Order Quote (CUSTOMER) A statement of price, terms of sale, and D2.1: Process Inquiry and Quote
description of goods or services offered D2.2: Receive, Configure, Enter and
by a supplier to a prospective purchaser; Validate Order
a bid. When given in response to an
inquiry, it is usually considered an offer
to sell.
Order Rules Rules for the function that encompasses ED.4: Manage Finished Goods
receiving, entering, and promising Inventories
orders from customers, distribution D2.2: Receive, Configure, Enter and
centers, and interplant operations. Validate Order
D3.2: Negotiate and Receive Contract
ED.1: Manage Deliver Business Rules
ED.5: Manage Deliver Capital Assets
Order Signal Reserved inventory and/or planned D2.3: Reserve Inventory and Determine
capacity and delivery date for a specific Delivery Date
order. P2.1: Identify, Prioritize and Aggregate
Launch Program
Outsource Plan A plan that describes how a company P1.2: Identify, Prioritize and Aggregate
will utilize third party business partners SC Resources
to provide products and services which EP.5: Manage Integrated Supply Chain
the company chooses not to provide Capital Assets
with internal capacity. Outsource Plans EP.6: Manage Integrated Supply Chain
can vary in detail from simple policy Transportation
statements to highly detailed plans with P5.2: Identify, Assess, and Aggregate
specifics about the third party business Return Resources
partners, specifications for products and
services, performance expectations, and
contract considerations.

Inputs/Outputs
Parts and Services The items and services utilized to ES.4: Manage Product Inventory
Consumed manufacture a product. EM.5: Manage Make Equipment and
Facilities
ES.8: Manage Import/Export
Requirements
ES.5: Manage Capital Assets
Payment Receipt of payment for goods and D3.15: Invoice
services per contract or purchase order. D2.15: Invoice
D1.15: Invoice
Payment Terms The process of authorizing payments S3.7: Authorize Supplier Payment
and paying suppliers for product or S1.5: Authorize Supplier Payment
services. This process includes invoice S2.5: Authorize Supplier Payment
collection, invoice matching and the ES.10: Manage Supplier Agreements
issuance of checks.
Plan and Build Loads Transportation modes are selected and D1.5: Build Loads
Information efficient loads are built. SR3.4: Schedule Excess Product
Shipment
Shipment
Planning Data Execution information necessary to plan P2.2: Identify, Assess and Aggregate
the balance of supply chain resources Product Resources
to demand requirements at both the P1.1: Identify, Prioritize and Aggregate
highest aggregate and lowest SKU SC Requirements
planning levels. EM.7: Manage Production Network
EP.3: Manage Plan Data Collection
Return Resources
SC Resources
Requirements
Delivery Resources

Inputs/Outputs
Planning Decision Any company policies that affect how a P1.3: Balance Supply Chain Resources
Policies planning process is defined, approved, with SC Requirements
and performed. ED.1: Manage Deliver Business Rules
EP.5: Manage Integrated Supply Chain
Capital Assets
EP.1: Manage Business Rules for Plan
Processes
P3.3: Balance Production Resources
with Production Requirements
P5.3: Balance Return Resources with
Return Requirements
Inventory
P4.3: Balance Delivery Resources and
Capabilities with Delivery Requirements
P2.3: Balance Product Resources with
Transportation
Plan-o-gram Data Data required to develop and build a D4.4: Stock Shelf
Plan-O-Gram display to help minimize
setup time by showing specific
placement of all items, by product
number, on the display.
Point of Sale Data (Daily) The relief of inventory and computation D4.6: Checkout
of sales data at the time and place of P4.1: Identify, Prioritize and Aggregate
the sales, generally (may be manual) Delivery Requirements
through the use of bar-coding, or
magnetic media and equipment.
Preventative Planned and scheduled activities, M2.1: Schedule Production Activities
Maintenance and including adjustments, replacements, M3.2: Schedule Production Activities
Calibration Schedule and basic cleanliness, that forestall EM.5: Manage Make Equipment and
machine and facility breakdowns. Also, Facilities
the established frequency to change M1.1: Schedule Production Activities
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.)
Process Procedures A planned series of actions or ER.2: Manage Performance of Return
operations that advances returns from Processes
one stage to another, or established ER.1: Manage Business Rules for Return
procedures to manage and execute all Processes
activities in the process. P5.4: Establish and Communicate
Return Plans

Inputs/Outputs
Procurement Signal Any signal that indicates when to S1.1: Schedule Product Deliveries
(Supplier) produce or transport Items in a pull S3.3: Schedule Product Deliveries
replenishment system, or the signal that S2.1: Schedule Product Deliveries
sends the estimated need of parts or S3.2: Select Final Supplier (S) and
services to the supplier. Negotiate
Product The end object of a transformation S2.2: Receive Product
process that includes physical objects, 1.13: Receive and Verify Product by
information or services. Customer
D2.13: Receive and Verify Product by
Customer
Customer
Product/Category The time from initial research and P4.1: Identify, Prioritize and Aggregate
Lifecycle development to the time at which the Delivery Requirements
sales and support of the product to
customers are withdrawn.
Product Availability Availability of a product by location that P2.2: Identify, Assess and Aggregate
is reserved, scheduled or available for Product Resources
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 Data (linked/ The properties and characteristics of D4.5: Fill Shopping Cart
related SKU’s) 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
SKU’s.
Product Design The product design is the translation EM.1: Manage Production Rules
of a set of functional requirements
into an operational product that meets
both the enterprise and customer
expectations.
Product Design/Claims The product design is the translation EM.8: Manage Make Regulatory
of a set of functional requirements Environment
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

Inputs/Outputs
Product Design/Quality A product design approach that uses EM.2: Manage Production Performance
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 The physical storage location where S1.4: Transfer Product
Location product inventory is held in stock prior ES.4: Manage Product Inventory
to use or shipment. S3.6: Transfer Product
Product Inventory Target The target for the total product ES.4: Manage Product Inventory
Levels inventory, including e.g. raw material, P2.2: Identify, Assess and Aggregate
work in progress and finished goods. Product Resources
Production The highest, sustainable output rate EP.5: Manage Integrated Supply Chain
Capacity which can be achieved with the current Capital Assets
product specifications, product mix, EM.1: Manage Production Rules
worker effort, plant, and equipment. EM.2: Manage Production Performance
Production Orders A statement of the output of a EM.4: Manage In-Process Products (WIP)
Planned & Actual Reports production facility for a specified EM.6: Manage Transportation (WIP)
period, comparing planned to actual
production.
Production Plans A master production plan used to P1.2: Identify, Prioritize and Aggregate
allocate capacity among manufacturing SC Resources
resources and schedule finite P3.4: Establish Production Plans
manufacturing activities or executing P5.1: Assess and Aggregate Return
the performance of a service.Production Requirements
Plan includes production capability. P4.2: Identify, Assess and Aggregate
Delivery Resources
EM.2: Manage Production Performance
Return Resources
Launch Program
EM.5: Manage Make Equipment and
Facilities
M1.5: Stage Product
Delivery Date
Delivery Date

Inputs/Outputs
Production EM.2: Manage Production Performance
Quality &
Policies
Production Quality and The operational techniques and EM.5: Manage Make Equipment and
Policies planned and systematic activities used Facilities
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.
Production As a whole with constituent parts, all P3.3: Balance Production Resources
Requirements sources of demand in the creation of a with Production Requirements
product or service.
Production Resources As a whole with constituent parts, all P3.3: Balance Production Resources
things that add value in the creation of with Production Requirements
a product or performance of a service. P3.2: Identify, Assess and Aggregate
Production Rules The rules directing or regulating the EM.2: Manage Production Performance
movement of goods through the EM.1: Manage Production Rules
entire manufacturing and repair cycle
(parameters of production) from the
requisitioning of raw material to the
delivery of the finished products.

Inputs/Outputs
Production Schedule A plan that authorizes the factory to D1.8: Receive Product from Source or
manufacture or repair a certain quantity Make
of a specific item. M2.2: Issue Sourced/In-Process Product
D3.9: Pick Product
D2.9: Pick Product
Delivery Date
Delivery Date
Launch Program
Production Status Feedback on the production schedule EM.7: Manage Production Network
allowing for corrective action to a EM.5: Manage Make Equipment and
production problem, or an indication Facilities
of how far in the production process a
specific part has progressed
Product Location Attributes of the product’s storage EM.6: Manage Transportation (WIP)
Information location. M1.2: Issue Material
Product Mix and Plans The proportion of individual products ED.7: Manage Product Life Cycle
that make up the total production or ED.4: Manage Finished Goods
sales volume and plan that authorizes Inventories
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.
Product On Order Product on order with a selected source. S2.1: Schedule Product Deliveries
ES.10: Manage Supplier Agreements
Product Resources

Inputs/Outputs
Product Requirements As a whole with constituent parts, all P2.1: Identify, Prioritize and Aggregate
sources of demand for a product or Product Requirements
service in the supply chain. P2.3: Balance Product Resources with
Product Return The capability of a system or resources DR3.1: Authorize Excess Product Return
Capabilities to produce a quantity output in a P5.4: Establish and Communicate
particular time period; and, any element Return Plans
or factor that constrains the system DR1.1: Authorize Defective Product
or resources from achieving a higher Return
level of performance in respect to its DR2.1: Authorize MRO Product Return
goal. The ability the supply chain has to
return products in a valid and accurate
way.
Product Routings Product routings represent the way P3.1: Identify, Prioritize and Aggregate
products are made and are integrated Production Requirements
with the Bill of Materials. Key elements EP.7: Manage Planning Configuration
of proper Routings include proper EP.4: Manage Integrated Supply Chain
sequence of operations, work center Inventory
identification, relevant tolerances, EP.6: Manage Integrated Supply Chain
run times, lot size and setups. The Transportation
equivalent concepts for services are the P2.1: Identify, Prioritize and Aggregate
workflow processes and rules. Product Requirements
Requirements
Capital Assets
Product Sources As a whole with constituent parts, all P2.3: Balance Product Resources with
material and other resources used to Product Requirements
add value in the supply chain for a P2.2: Identify, Assess and Aggregate
product or services. Product Resources
Projected Delivery The company’s goal for the time to EM.6: Manage Transportation (WIP)
Requirements ship the product after the receipt ED.6: Manage Transportation
of a customer’s order. The policy is EM.7: Manage Production Network
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 An estimate of the amount of product EP.6: Manage Integrated Supply Chain
External Capacity or service a particular part of the Transportation
business (internal capacity) or a third EP.5: Manage Integrated Supply Chain
party business partner (external Capital Assets
capacity) is capable of producing over P5.2: Identify, Assess, and Aggregate
a particular period of time when all Return Resources
factors that control the production
processes are working optimally.

Inputs/Outputs
Promotion/Event Plans Promotion activities - other than P4.1: Identify, Prioritize and Aggregate
advertising, publicity, and personal Delivery Requirements
selling - that stimulate, interest, trial or
purchase by final customers or others in
the marketing channel.
Promotional Plan The plan for a promotional product D4.5: Fill Shopping Cart
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 Time phased promotion / event D4.6: Checkout
Calendar 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.
Purchase History The amount of purchased products for
a certain time in history per specific D2.2: Receive, Configure, Enter and
intervals Validate Order
D3.1: Obtain and Respond to RFP/RFQ
ED.3: Manage Deliver Information
Quality & The process of measuring actual ES.3: Maintain Source Data
Delivery supplier performance against internal
Performance and/or external standards, providing
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.

Inputs/Outputs
Quality and Delivery The process of measuring actual ES.2: Assess Supplier Performance
Performance 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.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 D2.6: Route Shipments
by commodity, lane, mode, etc. for D3.6: Route Shipments
shipments. D1.6: Route Shipments
Receipt Data A collection of related receipt data ER.4: Manage Return Inventory
records organized in a specific manner. DR1.3: Receive Defective Product
DR2.3: Receive MRO Product
DR3.3: Receive Excess Product
ER.3: Manage Return Data Collection
Processes
Receipt Discrepancy Notification of a discrepancy relating to DR1.3: Receive Defective Product
Notification a receipt, including: damage, packaging, DR3.3: Receive Excess Product
quantity, etc. DR2.3: Receive MRO Product
Receipt Verification Acknowledgement that the product ED.8: Manage Import/Export
received conforms to specified Requirements
requirements and criteria. ES.2: Assess Supplier Performance
ES.6: Manage Incoming Product
ES.8: Manage Import/Export
Requirements
Regulatory Requirements Requirements dictated by process EP.8: Manage Plan Regulatory
standards set by external entities (i.e. Requirements and Compliance
government, trade officials, etc.). P5.2: Identify, Assess, and Aggregate
Return Resources

Inputs/Outputs
Replenishment In a fixed-reorder quantity system of D4.3: Pick Product from Backroom
Quantities 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.
Replenishment Signal Any signal that indicates when to M3.3: Issue Sourced/In-Process Product
produce or transport Items in a pull M1.2: Issue Material
replenishment system. D2.3: Reserve Inventory and Determine
Delivery Date
Delivery Date
Launch Program
Reports, Information, and Collecting data and organizing, EM.3: Manage Make Information
Documents arranging or presenting the data so
that they yield an understanding not
available from any single data element.
Resource Availability The capability of a system or resource D3.3: Enter Order, Commit Resources
to produce a quantity of output in a Launch Program
particular time period, or the available D4.1: Generate Stocking Schedule
resources at a point in time able to P4.2: Identify, Assess and Aggregate
generate an output. Delivery Resources
Return Benchmark Data Data relative to the return process ER.2: Manage Performance of Return
utilized to compare the company’s Processes
actual results to selected values
identified as reference.
Return Defective SR1.1: Identify Defective Product
Product Condition
Returned Defective Product being returned that is in a SR1.4: Schedule Defective Product
Product defective condition. Shipment
Shipment
DR1.4: Transfer Defective Product
SR1.5: Return Defective Product
R1.3: Receive Defective Product

Inputs/Outputs
Returned Excess Product Product being returned as defined by SR3.1: Identify Excess Product Condition
the terms and conditions of a customer/ DR3.3: Receive Excess Product
supplier contract as available inventory DR3.4: Transfer Excess Product
and disposition excess not usable for SR3.5: Return Excess Product
sale. SR3.2: Disposition Excess Product
Authorization
SR3.4: Schedule Excess Product
Shipment
SR3.2: Disposition Excess Product
Shipment
Returned MRO Product Product being returned for SR2.3: Request MRO Return
maintenance, repair, or overhaul. Authorization
SR2.2: Disposition MRO Product
SR2.5: Return MRO Product
Authorization
SR2.1: Identify MRO Product Condition
Returned Product Data concerning the return and EM.4: Manage In-Process Products (WIP)
Information disposition of defective products,
excess inventory and/or serviceable or
obsolete products, or MRO product.
Return Inventory Inventory relative to return process SR1.3: Request Defective Product
Availability available for use. Return Authorization
ER.4: Manage Return Inventory
Authorization
SR3.5: Return Excess Product
Shipment
Shipment
Authorization

Inputs/Outputs
Return Inventory for Inventory relative to return process DR2.4: Transfer MRO Product
Transfer available for transfer to other DR1.4: Transfer Defective Product
destination. ER.4: Manage Return Inventory
Return Inventory Targets The goals and approach to the P5.2: Identify, Assess, and Aggregate
management of return inventories. Return Resources
Return Inventory Transfer The process of receipt and verification S3.3: Schedule Product Deliveries
Data of the returned item against the return P5.2: Identify, Assess, and Aggregate
authorization and other documentation Return Resources
and prepares the item for transfer. DR3.3: Receive Excess Product
Return Network The business rules that govern the flow ER.7: Manage Return Network
Configuration of unserviceable material through the Configuration
network, i.e. the network configuration. ER.8: Manage Return Regulatory
Return Performance Performance measurement information ER.2: Manage Performance of Return
for the Return Process (the actual value Processes
of measured for the criterion). ER.5: Manage Return Capital Assets
ER.6: Manage Return Transportation
Return Plans Courses of action over specified time DR3.1: Authorize Excess Product Return
periods that represent the projected ER.4: Manage Return Inventory
appropriation of required return SR2.2: Disposition MRO Product
resources and or assets to meet the DR2.1: Authorize MRO Product Return
return process requirements. ER.5: Manage Return Capital Assets
Configuration
Return
P5.4: Establish and Communicate
Return Plans
Return Process The capability of a system or resources P5.2: Identify, Assess, and Aggregate
Capabilities to produce a quantity output in a Return Resources
particular time period EP.2: Manage Performance of Supply
Chain
Return Process Workflow Definition and maintenance of the ER.7: Manage Return Network
Definition and Policies information flow about the Returns Configuration
supply chain network for a group of P5.2: Identify, Assess, and Aggregate
similar or complimentary items through Return Resources
out their life cycle

Inputs/Outputs
Return Product Permission to accept an excess product DR3.1: Authorize Excess Product Return
Authorization return for the designated return center, DR3.2: Schedule Excess Return Receipt
after communicating with the customer.
Return Product History The return history of product including ER.3: Manage Return Data Collection
failure rates, failure causes, etc. ER.2: Manage Performance of Return
Processes
Return Production As a whole with constituent parts, all P3.1: Identify, Prioritize and Aggregate
Requirements sources of demand in the creation of a Production Requirements
product or service. P5.4: Establish and Communicate
Return Plans
Return Product Location The physical location where the SR1.2: Disposition Defective Product
returned product inventory is held prior ER.4: Manage Return Inventory
to disposition SR3.2: Disposition Excess Product
Return Regulatory Return requirements dictated by DR2.3: Receive MRO Product
Requirements process standards set by external P5.2: Identify, Assess, and Aggregate
entities (i.e. government, trade officials, Return Resources
etc.). DR3.3: Receive Excess Product
Requirements
SC Resources
Return Requirements As a whole with constituent parts, all P5.1: Assess and Aggregate Return
sources of demand for the return of a Requirements
product. P5.3: Balance Return Resources with
Return Requirements
Return Resources All resources that add value to, execute, P5.3: Balance Return Resources with
or constrain the processes for the return Return Requirements
of a product. P5.2: Identify, Assess, and Aggregate
Return Resources
Return Rules and Policies Rules and Policies for conducting ER.1: Manage Business Rules for Return
business, i.e. developing and Processes
maintaining customer and channel P5.4: Establish and Communicate
performance standards of return Return Plans
processes such as service levels, given
service requirements by supply chain
stakeholders/trading partners. Rules
and policies align the Return process
with the organization’s business
strategy, goals and objectives.

Inputs/Outputs
Return Schedule A list of operations and procedures for DR2.3: Receive MRO Product
Instructions scheduling the return of product. DR1.2: Schedule Defective Return
Receipt
DR3.2: Schedule Excess Return Receipt
Authorization
DR2.2: Schedule MRO Return Receipt
Authorization
Returns Data The properties, characteristics and ED.8: Manage Import/Export
information relating to returns, Requirements
including failure information, excess, ED.4: Manage Finished Goods
obsolete, MRO, customer, etc. Inventories
Return Transportation Guidelines, policies and agreements DR1.3: Receive Defective Product
Guidelines, Policies, & for the transportation activities around DR3.3: Receive Excess Product
Agreements return process. ER.6: Manage Return Transportation
Return Transportation Guidelines, policies and agreements P5.2: Identify, Assess, and Aggregate
Guidelines, Policies, for the transportation activities around Return Resources
and Agreements return process.
Revised Aggregate An update to the aggregate Supply- EP.10: Align Supply Chain Unit Plan with
Forecast and Projections Chain Forecasts of Demand by Product Financial Plan
Family supporting the Market/Channel P1.1: Identify, Prioritize and Aggregate
Plans. Corresponding Projections, SC Requirements
supporting Make, Source, Deliver, P5.1: Assess and Aggregate Return
Inventory and Response Time Plans Requirements
through the Supply-Chain are produced
from these Forecasts Together, they
represent balanced Supply and
Demand.
Revised Business An update to the expected cause and P5.1: Assess and Aggregate Return
Assumptions effect statements that are the base Requirements
for the Revised Aggregate Forecast P1.1: Identify, Prioritize and Aggregate
and Projections. These are reviewed SC Requirements
periodically with actual results to verify EP.5: Manage Integrated Supply Chain
the linkage of actual cause and effect. Capital Assets
ED.7: Manage Product Life Cycle
EP.10: Align Supply Chain Unit Plan with
Financial Plan

Inputs/Outputs
Revised Capital Plan A revision to plan for capital EP.6: Manage Integrated Supply Chain
expenditures necessitated by either Transportation
changes in specific business plans or EP.5: Manage Integrated Supply Chain
factors and assumptions affecting a Capital Assets
business plan. P5.2: Identify, Assess, and Aggregate
Return Resources
SC Resources
RFQ/RFP Request for Quote - A document used to D3.1: Obtain and Respond to RFP/RFQ
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 ES.9: Manage Supply Chain Source Risk
Program for Process Area ED.9: Manage Supply Chain Deliver Risk
EM.9: Manage Supply Chain Make Risk
Routing Guide Information used to select modes, D3.6: Route Shipments
transportation lanes, available carriers, D2.6: Route Shipments
etc. Listing or routes, carriers & rates. D1.6: Route Shipments
Satisfied Customer Customers who are satisfied with the D4.6: Checkout
product or service delivered by the
suppliers, including the aspects such as
time, quality, cost, etc.
Scheduled Defective Planned or scheduled returning of SR1.5: Return Defective Product
Product Return material deemed defective for some SR1.4: Schedule Defective Product
certain time or times Shipment
Scheduled Deliveries The required or agreed time or rate of D3.5: Build Loads
delivery of goods or services purchased D1.7: Select Carriers and Rate Shipments
for a future period. D2.6: Route Shipments
D1.9: Pick Product
Scheduled Excess Planned or scheduled returning of SR3.4: Schedule Excess Product
Product Return material deemed in excess of current Shipment
requirements for some certain time or SR3.5: Return Excess Product
times.
Scheduled Installation The process of evaluating the design D3.5: Build Loads
and build schedules relative to D3.4: Schedule Installation
customer requested installation date to
determine installation schedule.
Scheduled MRO Return Planned or scheduled act of installing SR2.5: Return MRO Product
something for some certain time or SR2.4: Schedule MRO Shipment
times.

Inputs/Outputs
Scheduled Receipts Product due to arrive. S3.3: Schedule Product Deliveries
Make
Scrap Authorization Permission to scrap material or item ED.8: Manage Import/Export
outside of specifications and possessing Requirements
characteristics that make rework ED.4: Manage Finished Goods
impractical. Inventories
Service Levels Performance targets in service related P4.1: Identify, Prioritize and Aggregate
measures (i.e. delivery performance, Delivery Requirements
lead times, etc.) compared to the EP.1: Manage Business Rules for Plan
established service requirements. Processes
Service levels are established by
balancing requirements against
operational strategy.
Service Requirements A set of minimum acceptable values EP.1: Manage Business Rules for Plan
that describe service requirements of Processes
a particular industry, channel, and/or
customer segment.
Shipment Documents Legal documentation of the contents of SR1.5: Return Defective Product
a shipment (e.g. way bill, bill of lading, SR3.5: Return Excess Product
export papers, etc....).
Shipment Routes Routes for shipping by consolidating D2.7: Select Carriers and Rate Shipments
loads. D1.7: Select Carriers and Rate Shipments
Shipments Transactions related to sending the D1.3: Reserve Inventory and Determine
product to the customer. Delivery Date
SC Requirements
Shipping Docs
Shipping Documents Legal documentation of the contents of D2.11: Load Product & Generate
a shipment (e.g. way bill, bill of lading, Shipping Documentation
export papers, etc....). SR2.5: Return MRO Product
Shipping Documents
Shipping Docs

Inputs/Outputs
Shipping Export Shipping and documentation D3.11: Load Product & Generate
Parameters and requirements established by a Shipping Documents
Documentation government which must be met before D1.11: Load Vehicle & Generate
allowing the shipping or delivery of a Shipping Docs
product across national boundaries. ED.8: Manage Import/Export
Requirements
Shipping History The transaction history of the physical D2.11: Load Product & Generate
shipment of an item to another internal Shipping Documentation
location or to a customer. D1.11: Load Vehicle & Generate
Shipping Docs
Shipping Documents
Requirements
Shipping Parameters and Shipping parameters, such as weight, D2.11: Load Product & Generate
Documentation size, cube and route decide carrier Shipping Documentation
and cost. Legal documentation of the D1.11: Load Vehicle & Generate
contents of a shipment (e.g. way bill, Shipping Docs
bill of lading, export papers, etc.) are ED.6: Manage Transportation
required. D3.11: Load Product & Generate
Shipping Documents
Shipping Preferences Customer preferences including D2.2: Receive, Configure, Enter and
(Customer) shipping, status, and delivery Validate Order
requirements, etc., and customer profile, D1.2: Receive, Enter and Validate Order
which includes address data, credit and D3.1: Obtain and Respond to RFP/RFQ
purchase histories, ED.3: Manage Deliver Information
Shipping Schedules Scheduling of direct deliveries of D4.1: Generate Stocking Schedule
(internal or 3PL) 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 SR1.3: Request Defective Product
delivery. Return Authorization
Shipment
Shipment
Authorization
Return
Authorization

Inputs/Outputs
Source Execution Data Data which will provide measurement S2.1: Schedule Product Deliveries
of actual supplier performance against M2.2: Issue Sourced/In-Process Product
internal and or external standards
to provide feedback to achieve and
maintain the performance required to
meet the customer’s needs.
Source Return All sources of demand in the Source P5.4: Establish and Communicate
Requirements Return of a product or service. Return Plans
Sourcing Plans An aggregate material requirements S3.1: Identify Sources of Supply
plan used to schedule material D2.3: Reserve Inventory and Determine
deliveries to meet production plan. Delivery Date
ES.3: Maintain Source Data
Delivery Date
P2.4: Establish Sourcing Plans
Delivery Resources
Requirements
Launch Program
Return Resources
SC Resources Function allocation
diagram
Standard Practices/Rules Industry established common practices, ED.6: Manage Transportation
rules, and methods of doing business.
Stocking Requirements The activities and techniques of D4.1: Generate Stocking Schedule
determining the desired levels of P4.4: Establish Delivery Plans
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.

Inputs/Outputs
Stocking Schedule A timetable for the planned movement D4.4: Stock Shelf
of material from a bulk storage area to D4.1: Generate Stocking Schedule
an order pick storage area.
Stock-out History History of a lack of materials, P4.1: Identify, Prioritize and Aggregate
components, or finished goods that are Delivery Requirements
ordered.
Store Allocation A list of operations and procedures for D4.1: Generate Stocking Schedule
Instructions allocating storage needs for items in
inventory.
Store Shelf Inventory The determination of inventory quantity D4.4: Stock Shelf
Counts by actual count. Physical inventories P4.1: Identify, Prioritize and Aggregate
can be taken on a continuous, periodic Delivery Requirements
or annual basis.
Strategic Plan A longer range, high-level plan that EP.1: Manage Business Rules for Plan
describes how a company intends to Processes
conduct business. Improve its market EP.10: Align Supply Chain Unit Plan with
and competitive position, and increase Financial Plan
its earnings performance.
Successful Installation / The installation of product is completed D4.7: Deliver and/or Install
Live System at the customer site, and the product is
fully functional.
Supplier Agreement An agreement between supplier and ES.5: Manage Capital Assets
purchaser to perform or not to perform EM.6: Manage Transportation (WIP)
specific acts or services or to deliver ES.10: Manage Supplier Agreements
merchandise, such as purchase order or S3.3: Schedule Product Deliveries
supplier contract. S3.2: Select Final Supplier (S) and
Negotiate
Supplier Data Data or information about the supplier. ES.2: Assess Supplier Performance
This data can be organizational , ES.10: Manage Supplier Agreements
product, information , financial. S3.2: Select Final Supplier (S) and
Structured supplier data is needed to Negotiate
set up and implement ERP or similar ES.1: Manage Sourcing Business Rules
systems. ES.7: Manage Supplier Network
S3.1: Identify Sources of Supply
ES.3: Maintain Source Data
Supplier Performance The results of measuring the actual S1.1: Schedule Product Deliveries
supplier performance on cost, S3.3: Schedule Product Deliveries
quality, engineering, purchasing, ES.2: Assess Supplier Performance
and so on, based on an agreed set of S2.1: Schedule Product Deliveries
measurements. ES.7: Manage Supplier Network
Supply Chain Execution Information necessary to plan the EP.3: Manage Plan Data Collection
Data balance of supply chain resources to
demand requirements at both the
highest aggregate and lowest SKU
planning levels.

Inputs/Outputs
Supply Chain A plan that describes goals and P5.3: Balance Return Resources with
Performance objectives for a supply chain and the Return Requirements
Improvement Plan steps that will be taken to reach those P1.3: Balance Supply Chain Resources
goals and objectives from the current with SC Requirements
performance levels. EP.2: Manage Performance of Supply
Chain
Supply-Chain Standard measures that indicate how ED.2: Assess Delivery Performance
Performance Metrics well a supply chain performs within ES.4: Manage Product Inventory
certain categories of performance ED.1: Manage Deliver Business Rules
known as Performance Attributes, EP.2: Manage Performance of Supply
e.g. delivery reliability, flexibility Chain
and responsiveness, cost, and asset ED.5: Manage Deliver Capital Assets
management. EM.2: Manage Production Performance
Processes
Supply Chain Plans Courses of action over specified time P4.1: Identify, Prioritize and Aggregate
periods that represent a projected Delivery Requirements
appropriation of total supply-chain EM.7: Manage Production Network
resources to meet total supply-chain P2.1: Identify, Prioritize and Aggregate
demand requirements. Product Requirements
Requirements
P1.4: Establish & Communicate Supply-
Chain Plans
Supply Chain Sources of demand for the integrated P1.3: Balance Supply Chain Resources
Requirements supply chain of a product or service with SC Requirements
at the appropriate level, horizon and P1.1: Identify, Prioritize and Aggregate
interval. SC Requirements
Supply Chain Resources As a whole with constituent parts, all P1.2: Identify, Prioritize and Aggregate
sources of supply that are required SC Resources
to add value in the supply chain of a P1.3: Balance Supply Chain Resources
product or service at the appropriate with SC Requirements
level, horizon and interval.
Systems Capability The capability of a system to perform its EM.3: Manage Make Information
expected function
Tariffs & Duties Charges established by a government ED.8: Manage Import/Export
which must be met before allowing the Requirements
shipping or delivery of a product across
national boundaries.
Transferred Product Product being tranferred to the S3.6: Transfer Product
appropriate stocking location within the S3.7: Authorize Supplier Payment
supply chain. S2.5: Authorize Supplier Payment

Inputs/Outputs
Transportation Capacity The capability of a trasportation system EM.2: Manage Production Performance
to perform it’s function. EP.6: Manage Integrated Supply Chain
Transportation
Validated Order An order that has had the instructions D1.2: Receive, Enter and Validate Order
/ requirements validated i.e. the D1.2: Receive, Enter and Validate Order
information that the order contains D1.3: Reserve Inventory and Determine
is accurate, consistent with previous Delivery Date
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.
Validated Return Material A validated and approved Return SR1.3: Request Defective Product
Authorization Product Authorization (RPA). Return Authorization
Authorization
Shipment
Shipment
Valid Returns Request Requests for returns that are valid. DR1.1: Authorize Defective Product
Return
DR2.2: Schedule MRO Return Receipt
DR1.2: Schedule Defective Return
Receipt
Vendor/DC inventory Vendor/DC inventory available to a D4.1: Generate Stocking Schedule
availability customer to supply demands. (Where
the customer has access to the
supplier’s inventory and the supplier has
access to the customer’s requirements
and inventory or vendor managed
inventory).
Vendor Merchandising The plan for a promotional product D4.4: Stock Shelf
/ Co-op advertising offering and how it is communicated
agreements to the customer and includes public
relations, advertising, sales promotions,
and other tools to persuade customers
to purchase the product offering.
Warehouse Operating Warehouse constraints are those ED.5: Manage Deliver Capital Assets
Constraints storage items that impact on the supply
chain efficiency, including material
handling equipment and personnel,
equipment maintenance, building
maintenance, and security personnel.

Inputs/Outputs
Warranty Data All data relevant to a warranty claim SR2.1: Identify MRO Product Condition
for a customer for replacement, repair SR1.1: Identify Defective Product
or credit because the product received Condition
did not meet a commitment, either ER.8: Manage Return Regulatory
expressed or implied, concerning a Requirements and Compliance
certain fact regarding the product
WIP Handling Rules, The rules for handling WIP items in EM.6: Manage Transportation (WIP)
Move Information and the production and repair process. EM.4: Manage In-Process Products (WIP)
Methods These rules include the movement M3.3: Issue Sourced/In-Process Product
and accounting for in-process items M1.2: Issue Material
between work locations, in inventory, M2.2: Issue Sourced/In-Process Product
and movement inventory.
WIP Inventory Location Location of inventory that is S1.4: Transfer Product
specified as “work in progress”. This S2.4: Transfer Product
can be intermediate storage in a S3.6: Transfer Product
manufacturing facility prior to final EM.6: Manage Transportation (WIP)
packaging or can be a class of materials
waiting final transformation to finished
products.
WIP Location Rules The process and rules for establishing M2.2: Issue Sourced/In-Process Product
and maintaining in-process item D2.9: Pick Product
inventory ownership and stocking M3.3: Issue Sourced/In-Process Product
locations. M1.2: Issue Material
EM.6: Manage Transportation (WIP)
WIP Move The process of recording and tracking EM.6: Manage Transportation (WIP)
Information the movement of WIP items through
and Metholds the production and repair process. This
process includes item stocking and
accounting requirements.
Year-to-Year for Like SKU/ The sales or demand history that is P4.1: Identify, Prioritize and Aggregate
Subclass analogous to the present situation for Delivery Requirements
similar products, a SKU / Subclass.

Section 4
Best Practices
SCOR
Available-to-Promise (ATP)
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 company’s 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.

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 Visibility of demand vs. production schedule and available inventory can result
Management in better inventory planning and lower inventory levels.
Key Best Practice Success Factors
Technology Available-to-promise requires implementation in an ERP-/SCM-/APS-software
Features solution.
Other Success Appropriate data management guarantees exact ATP quantities.
Factors
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
Schönsleben, P. (2003): Integral Logistics Management – Planning & Control of Comprehensive

Supply Chains, St. Lucie Press, Boca Raton, FL, p. 233-235

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.

SCOR
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 More efficient use of transportation assets to move customer orders.
Management
Technology From the carrier side, their tracking systems support performance measurement
Features to a different degree (EDI, web-enabled carriers). Continuous on line tracking of
shipment would be beneficial.
Other Success Anyone interfacing with the carrier needs to be familiar with the carrier
Factors 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

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-of-
bounds 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.

SCOR
Reliability Better Store in stock 2% - 8%
Better customer service 2% - 8%
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)
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.

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.

SCOR
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.
Other Success Factors None identified
None Identified

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:
SIX SIGMA
TOOLS
PFMEA ANOVA
(Examples Gage R&R SPC Process Simulation
only) Multi-Vari Analysis Regression Analysis
DOE (Design of Experiments)
Control Plans COPQ/Financial Analysis

7 Basic Quality Tools: Program Mgmt
Pareto Multi-Level
Cause & Effect Pareto Analysis/
Histograms SIPOC
Kaizen Project Mgmt Decomposing
Control Charts Metrics
Kanban Process Mapping/
Scatter Diagrams GAP Analysis
Single Minute Value Stream Mapping/
Graphs Voice of the
Exchange of Geographic Mapping/
Check sheets Customer
Die (SMED) Thread Diagram
PDCA/
Takt Time QFD (Quality Function
SDCA
Poke Yoke Deployment)
Standardized Work/
Best Practices
Reference Model
7 Mgmt Tools: Organization Map
Relations Diagram Supplier/Customer SCORcard – Level One
Affinity Diagram Performance Scorecards Operational Process
Tree Diagram Inter-Company Metrics – Level Two
Matrix Diagram Kanban Diagnostic Metrics – Level
Matrix Data-Analysis CPFR Three
Arrow Diagram
PDPC
LEAN SCOR

SCOR
Reliability Convergence of SCOR, Six Sigma and Lean Methodology (with SCOR
as a strategic project identification and prioritization engine) enables
Responsiveness
organizations to improve the right performance attributes, which can be
Flexibility any set of SCOR level one metrics.
Costs
See other SCOR Best Practices and especially the Best Practices “Six
Asset Management Sigma” and “Lean Methodology” for possible impacts.
Technology Features None Identified
Other Success Factors 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.

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
Customer A
Receive Move
A B C 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 Ship
Receive Allocate 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 Ship
Storage
Allocate
Receive Customer A
Customer B
Customer C
(Courtesy: Robert Novack, Penn State University, University Park)

SCOR
SCOR Process(es)
D1.8 (Receive Product from Source or Make), D1.11 (Load Vehicle & Generate Shipping
Documentation), D1.12 (Ship Product)

t Small shipment sizes (economies of scale through bundling shipments)
t Constrained distribution center capacity
t 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.

Reliability None Identified
Responsiveness None Identified
Flexibility None Identified
Costs Reduces transportation costs (compared to transportation without cross-
dock), 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 ASN´s (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

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 system’s 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 drum’s 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 High Work-in-progress (WIP) with deteriorating throughput
t Unpredictable manufacturing lead times (e.g. due to many prioritized production orders)
t Mature serial or mass production running at a fixed rate
t 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 equipment’s 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.)
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.

Reliability Increases perfect order fulfillment, as manufacturing lead time
gets more predictable
Responsiveness Increases with decreasing manufacturing lead time
Costs Higher equipment effectiveness reduces cost of goods sold
Asset Management Reduces WIP, leads to a higher equipment effectiveness
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.

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 1900’s 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 Ford’s 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 system’s 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 Need for process cycle efficiency improvements
t Need to reduce process cycle times
t Elimination of non-value added process steps
t 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.

SCOR
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 organization’s application of lean.
Other Success Factors 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.

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 World’s 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)

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 shipper’s distribution center (DC) or in a carrier’s
terminal.
Merge-in-transit allows the shipper to reduce its inventory levels on selected items in its
DC’s 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 Customer orders require commingling of products from different sources into a single shipment
t 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.

SCOR
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.
Other Success Factors Agreements with suppliers and carriers on:
t Delivery time requirements
t Inventory policies at the supplier locations and DC’s
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 DC’s 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

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 end-
product 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 end-
products. 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 Significant number of variants of an end product with an uncertain split of demand on variants.
t 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.

SCOR
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.
Other Success Factors 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

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 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, 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
company’s 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 Variability or misbalance in demand and/or supply, need to balance supply and demand across
the supply chain.
t Conflicting measures and behavior in various departments
t Inventory unbalanced across the supply chain
t Asset Utilization below industry norms
t Especially important if operations are to a large extend planned to forecasts
Additional Comments
None Identified

SCOR
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, co-
packer capacity/costs) would be an important asset to the S&OP process.
Other Success Factors 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.

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 Need for significant improvements for Product Quality or defect reduction
t 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.

SCOR
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.
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.
Other Success Factors 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)

SCOR
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, 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.

SCOR
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.
Other Success Factors 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

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 Significant expenses for raw material and semi-finished products
(compared to own value-add)
t Need to reduce number of suppliers
Additional Comments
Suppliers are an external extension of the manufacturing process. In today’s competitive
environment, processes rely on dependable supply streams that react quickly to variability in
demand.

SCOR
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.
Other Success Factors 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 company’s requirements.
None Identified

SCOR
Vendor Managed Inventory (VMI)
VMI is a concept for planning and control of inventory, in which the supplier has access
to the customer’s 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.

SCOR
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.
http://www.cpfr.org/documents/ppt/VMI_vs._CPFR.ppt (VMI vs. CPFR)

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 DC’s, 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 Low distribution center (DC) labor productivity
t High DC order pick costs
t High transportation costs
t Ideally suited for environments where many customers place large numbers of similar orders.
t Demand is fairly stable throughout the operating period (also be used where seasonality
temporarily increases volume in a DC).
t Not too practical in a pallet pick environment
t Works best with single line orders with the same SKU going to multiple customers.
t Frequently seen in the retail sector where a single DC has many shipping locations, each
receiving a similar product mix.
t 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.

SCOR
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 firm’s 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.
Other Success Factors 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

SCOR
Best Practice Definition Process
ABC Classification None identified EP.7: Manage Planning Configuration
Ability to Track Component/ Component/lot tracking (lot trace- ES.8: Manage Import/Export
Sub-Component ability) Requirements
Manufacturing Country of ED.8: Manage Import/Export
Origin Requirements
Accurate and Approved Electronic document management M1.4: Package
Process Plans, Routings,
Specifications and
Procedures
Accurate and Approved Electronic document management M2.3: Produce and Test
Process Plans/Specifications M1.3: Produce and Test
M2.4: Package
Accurate and Approved Electronic document management that M1: Make-to-stock
Work Instructions/Process maintains current Standard Operating M2: Make-to- Order
Plans Procedures (SOP)
Accurate and Low Electronic batch records M1.6: Release Product to Deliver
Cost Batch Records for M2.6: Release Finished Product to
Regulatory Compliance Deliver
Accurate and Low Cost Electronic batch recording/configuration M1.4: Package
Batch/Configuration M1: Make-to-stock
Records for Warranty and M2: Make-to- Order
Regulatory Tracking M1.3: Produce and Test
M2.4: Package
Additional Capacity for Outsource manufacturing and M3.2: Schedule Production Activities
Overflow Demand work force augmentation providers M2.1: Schedule Production Activities
connected to production schedules via M1.1: Schedule Production Activities
the internet.
Advance Planning Engines Advanced math model “solvers” that P5.3: Balance Return Resources with
Applied to Returns optimize / minimize constraints, routing, Return Requirements
restocking priorities and costs.
Advanced Ship Blanket order support with scheduling S1.1: Schedule Product Deliveries
Notices Allow for Tight interfaces to external supplier systems 3: Schedule Product Deliveries
Synchronization between S2.1: Schedule Product Deliveries
Advanced Shipping Notice Integrated data sharing with repair SR3.5: Return Excess Product
facility. SR2.5: Return MRO Product

SCOR
Advanced Shipping Notices Bar coding; EDI; integrated D3.13: Receive and Verify Product by
& UCC128 Container transportation/warehouse management Customer
Labeling D1.13: Receive and Verify Product by
Customer
Shipping Docs
Shipping Documents
Customer
Alignment of Strategic and None identified EP.5: Manage Integrated Supply Chain
Business Plans with Long- Capital Assets
Term Capacity and Resource EP.6: Manage Integrated Supply Chain
Planning Transportation
All Functions and None identified P1: Plan Supply Chain
Organizations Understand
Their Impact on Supply/
Demand Balancing,
Including Sales, Marketing,
Product Management,
Manufacturing, Customer,
Suppliers, Materials
Management, and Product
Development
All Key Participants in the Supply Chain Event Management P2: Plan Source
Supply Chain, Including Systems
Strategic Partners, Have Full
Visibility of the Demand/
Supply Plan
Allow Source Suppliers Full Shared supply chain forecasting and P5.2: Identify, Assess, and Aggregate
Visibility into the Current event management functionality with Return Resources
Return Situations and the Source suppliers
Forecasted Return Activity
Appointment Scheduling Transportation Management System ED.6: Manage Transportation
for Pickup and Delivery of (TMS) Maintenance Management ES.6: Manage Incoming Product
Customer Shipments ER.6: Manage Return Transportation
Arrange for Shipping Preventative management SR3.4: Schedule Excess Product
Insurance in Case Of In- Shipment
Transit Loss or Damage
Assessing Export/Import Multi-country Export/Import ES.8: Manage Import/Export
Requirements during Time documentation compliance Requirements (Source)
of Product Development/ ED.8: Manage Import/Export
Manufacture Requirements
Attribute-Based Process Computer aided process planning / EM.1: Manage Production Rules
Planning recipe management

SCOR
Authorize Each Operation None identified M3.4: Produce and Test
to Assess the Quality of the M2.3: Produce and Test
Previous Operations M1.3: Produce and Test
Automated Configuration Configuration D2.2: Receive, Configure, Enter and
Management Validate Order
M3.1: Finalize Production Engineering
Automated Conformance Internal automatic notification of EM.8: Manage Make Regulatory
Monitoring And Control conformance, including holding of Environment
product until requirements are met
Automated Conversion of None identified M3.1: Finalize Production Engineering
Engineering Drawings into
Product Specifications
Automated Data Entry Scanning with RFID/Bar-codes systems ER.5: Manage Return Capital Assets
ED.5: Manage Deliver Capital Assets
Automated Directed Picking A pick list displayed on a handheld D4.3: Pick Product from Backroom
device that directs picks and relieves
inventory from backroom locations
Automated Disposition Advanced planning and scheduling ER.5: Manage Return Capital Assets
Instructions for Returns capability coupled with decision
Based on Data Interchange support logic.
with Strategic Providers
Automated Documentation Transportation Management System ER.6: Manage Return Transportation
for International Shipments (TMS) Maintenance Management ES.6: Manage Incoming Product
Automated Engineering Automated Intelligence (Heuristic) - EM.1: Manage Production Rules
Specifications based engineering specifications system
Automated Inventory Automated inventory planning package SR3.1: Identify Excess Product
Visibility and Planning linked to real time demand data and Condition
System to Highlight inventory business rules.
Inventory in Excess of
Requirements
Automated Links To Existing Electronic hypertext or links to existing EM.1: Manage Production Rules
CAD & CAM Information database of detail/parts/setup sketches/
drawings
Automated Notification Interface between production system M1.6: Release Product to Deliver
of Laboratory Regarding and LIMS M2.6: Release Finished Product to
Sample Availability Deliver
Automated Pick List System generated pick-lists based on D4.2: Receive Product at the Store
picking / batching rules. D4.1: Generate Stocking Schedule

SCOR
Automated Registry None identified SR3.2: Disposition Excess Product
of Inventory Return
Locations by Item to Speed
Identification of Proper
Return Location
Automated Replenishment None identified D4.3: Pick Product from Backroom
of Back Stock Based on
Minimum Stocking Levels
Automated Statistical None identified S2: Source Make-to-Order Product
Process Control (SPC)
Automated Update of - Use trend analysis to influence ER.3: Manage Return Data Collection
Customer Excess Material inventory level decisions. - Web-based
Return Transaction History alerts to identify update occurred and
when pre-determined thresholds are
exceeded.
Automated Update of None identified ES.3: Maintain Source Data
Information
Automatic Customer RFID, smart cart or customer self-service D4.6: Checkout
Payment charges goods to card upon store
departure.
Automatic Generation / Parametric driven (Group Technology - EM.1: Manage Production Rules
Configuration Of Tooling / based) manufacturing design system
Set-Up Instructions
Automatic Generation And Software specific to industry regulations EM.8: Manage Make Regulatory
Submission Of Conformance and standards (e.g. may be software Environment
Documents to produce MSDS documents, or FDA
requirements, etc.)
Automatic Identification Bar Coding & Radio Frequency 2.8: Receive Product from Source or
Communications Make
Make
Make
Automatic Label and Seal Automatic interface to inspection M2.4: Package
Verification systems M1.4: Package
M3.5: Package
Automatic Link to Recipe Seamless application interface to EM.1: Manage Production Rules
Management, PLC manufacturing planning documentation
Program, CNC Program and CAM systems
Systems, Etc., to Deliver
New Manufacturing
Documentation

SCOR
Automatic Multi-level Credit Integrated Order/Financial Management D1.2: Receive, Enter and Validate
Checking: Dollar Limits; Order
Days Sales Outstanding; D2.2: Receive, Configure, Enter and
Margin Testing Validate Order
Automatic Notification Workflow/Groupware EM.1: Manage Production Rules
When to Begin and When to
Complete
Automatic Reservation of Integrated order management system D1.3: Reserve Inventory and
Inventory and Dynamic that treats each order line as a separate Determine Delivery Date
Sourcing of Product order with integration to inventory D2.3: Reserve Inventory and
for Single Shipment to source and status; Real-time inventory Determine Delivery Date
Customer management
Available-to-Promise (ATP) See detailed description in beginning of D1.3: Reserve Inventory and
this chapter Determine Delivery Date
D2.3: Reserve Inventory and
Determine Delivery Date
Back Flush Material at Order Flexible back flush logic M1.2: Issue Material
Completion M3.3: Issue Sourced/In-Process
Product
Product
Backhaul Trading Exchange Pooling ER.6: Manage Return Transportation
ES.6: Manage Incoming Product
Bar Coding is Used to - Bar code interface for data collection S3.5: Verify Product
Minimize Handling Time devices.- Generate bar coded receiving S2.2: Receive Product
and Maximize Data documents.- Product serial number used S1.3: Verify Product
Accuracy as identifier.- RFID DR3.3: Receive Excess Product
Blanket Purchase Orders None identified P2.4: Establish Sourcing Plans
Cover Period Requirements
Build Load in Stop Sequence Integrated inbound/outbound D1.5: Build Loads
transportation planning (i.e. 1st truck D2.5: Build Loads
destination loaded last, etc.). D3.5: Build Loads
Build Subassemblies to None identified M3.2: Schedule Production Activities
Forecast at Highest Generic
Level in Bill of Material;
Maintain Flexibility While
Minimizing Cycle Time and
Inventory Position

SCOR
Build Subassemblies/ None identified M2: Make-to- Order
Products to Forecast at
Highest Generic Level to
Minimize Make Cycle Time
Business Intelligence (BI) A data warehouse / data mart is the P1.3: Balance Supply Chain Resources
source of all planning (master) data, with SC Requirements
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 Convenient availability to business rules ER.2: Manage Performance of Return
Communicated with the and return criteria. Processes
Customer
Capability to Run Supply chain modeling and visualization P1: Plan Supply Chain
“Simulated” Full-Stream system EP.6: Manage Integrated Supply Chain
Supply/Demand Balancing Transportation
for “What-If” Scenarios
Capability to Run Multiple Supply Chain modeling capabilities, i.e. EP.5: Manage Integrated Supply Chain
“Simulated” Full-Stream Advanced Planning Systems. Capital Assets
Supply/Demand Balancing EP.4: Manage Integrated Supply Chain
Against Long-Term Capacity Inventory
Plans and Scenarios
Capability Transfer to None identified S2.4: Transfer Product
Customer
Capability Transfer to None identified S1.4: Transfer Product
Organization S3.6: Transfer Product
Capacity and Supply None identified P2.2: Identify, Assess and Aggregate
Constraints Are Balanced Product Resources
Against Demand during the P2.1: Identify, Prioritize and
Planning Cycle Aggregate Product Requirements
Capture and Maintain Mode Transportation Management System ES.6: Manage Incoming Product
Specific Data (TMS) Maintenance Management ER.6: Manage Return Transportation
Carrier Agreement See detailed description in beginning of S3.4: Receive Product
this chapter D1.11: Load Vehicle & Generate
Shipping Docs
ES.2: Assess Supplier Performance
Shipping Documents

SCOR
Carrier Selection Based on Scheduling, carrier selection, and rating SR2.4: Schedule MRO Shipment
Performance Criteria at SR3.4: Schedule Excess Product
Least Cost Shipment
Shipment
Carrier/Route Optimization Route scheduling, carrier selection, and D2.6: Route Shipments
Based on Continuous rating D3.6: Route Shipments
Movement and D1.6: Route Shipments
Consolidation/Pooling
Categorize 100% of Total None identified P2.1: Identify, Prioritize and
Inventory (Active, Usable, Aggregate Product Requirements
Excess, Obsolete) for P2.2: Identify, Assess and Aggregate
Appropriate Action Product Resources
Cellular and Demand Pull Support for cellular and demand pull M2: Make-to- Order
Manufacturing manufacturing execution
Cellular Manufacturing Manufacturing is broken into work cells M3.2: Schedule Production Activities
M3: Engineer-to-Order
M1: Make-to-stock
Change in the Demand Event-driven supply chain re-planning P1: Plan Supply Chain
Signal Instantaneously
“Reconfigures” the
Production and Supply
Plans
Changeover Reduction / Changeover process flow element ES.5: Manage Capital Assets
Continuous Improvement identification, instructional directions to EM.5: Manage Make Equipment and
Program conduct changeover, and measurement Facilities
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.
Clarify in Advance Overseas packaging, labeling and ER.8: Manage Return Regulatory
Hazardous Material shipping regulatory requirements are Requirements and Compliance
Packaging, Labeling and given specific attention.
Shipping Requirements
Clarify in Advance If the Participants at all customer and service ER.8: Manage Return Regulatory
Product to be Returned provider locations involved clearly Requirements and Compliance
Requires Specific, Formal understand all regulatory requirements
Authorization from the at each step in the return process .
Service Provider per Federal,
State or Local Regulation,
Prior to Returning

SCOR
Clarify Point of Contact and Electronic rules for business SR3.3: Request Excess Product Return
Return Location relationships and transactions. Authorization
Collaboration among Supply Chain Advanced Planning P1.1: Identify, Prioritize and
Operations Strategy Team Systems, Supply Chain Integration Aggregate SC Requirements
Systems, Integration between supply P1.4: Establish & Communicate
chain advanced planning and ERP Supply-Chain Plans
execution systems, Supply Chain
Capacity Planning Systems
Collaborative Planning, See detailed description in beginning of P1: Plan Supply Chain
Forecasting, Replenishment this chapter
(CPFR)
Collaborative Planning/ Interactive, on-line planning/scheduling EM.7: Manage Production Network
Scheduling systems. Capacity planning systems with
accurate production capability data.
Collaborative Review and Web based access to current spend data ES.1: Manage Sourcing Business Rules
Agreement of Business available from enterprise to part level
Rules Prior to Contract
Execution
Combine Consolidation None identified D1.4: Consolidate Orders
Needs with Other Products/
Divisions/Companies
Communicate with None identified DR1.1: Authorize Defective Product
Customer before the Return Return
to Establish What Types of DR3.1: Authorize Excess Product
Returns Are Acceptable<!> Return
Comparative Analysis of Software application with data analysis ES.2: Assess Supplier Performance
Supplier Performance is capability
Used in Sourcing Decisions
Compare Local Customs None Identified ER.8: Manage Return Regulatory
Requirements to Your Requirements and Compliance
Process Procedures to
Ensure All Requirements
Are Accounted for Before
Shipping
Complete Lot History Inventory by lot of sourced/in-process or M2.2: Issue Sourced/In-Process
discrete order /usage reporting by lot or Product
discrete order M1.2: Issue Material
Comprehensive History None identified ED.3: Manage Deliver Information
of Customer Interactions
Including Order History,
Claims, Problems, Etc.

SCOR
Concurrent Engineering None identified S3.1: Identify Sources of Supply
is Used to Tightly Link
Sourcing into the Product
Development Process
Make/Buy Decision
Process (Outsourcing vs. In
Sourcing)
Confirm All Documentation None Identified ER.8: Manage Return Regulatory
and Inspection Requirements and Compliance
Requirements Before
Shipping
Confirm Asset Return None identified SR1.2: Disposition Defective Product
Condition Codes Are
Clearly Understood by All
Employees, Especially Those
Who Are New to the Process
Confirm Changes in None identified SR1.2: Disposition Defective Product
Condition Code Policies Are
Promptly Communicated to
All Employees and Supply-
Chain Partners.
Consideration of Supplier’s Digital linkage to supplier quoting, P3.1: Identify, Prioritize and
Material Availability planning, configuration and customer Aggregate Production Requirements
in Company’s Supply service applications
Resources (Including
Supplier’s Production Plans
& Capability, Inventory, and
Delivery Plans)
Consignment Agreements Consignment inventory management S3.3: Schedule Product Deliveries
Are Used to Reduce Assets S2.1: Schedule Product Deliveries
and Cycle Time While S1.1: Schedule Product Deliveries
Increasing the Availability of
Critical Items
Consolidate Orders by Integrated load planning and building D1.4: Consolidate Orders
Customer, Source, Traffic with warehouse management D2.4: Consolidate Orders
Lane, Carrier, Etc.
Consolidate Shipments None Identified ER.6: Manage Return Transportation
Through Cross Docking
- Coordinate with Other
Shipments
Consolidation of Carriers Transportation modeling and rate D2.6: Route Shipments
analysis D3.6: Route Shipments
Consolidation of Integrated inbound/outbound D2.5: Build Loads
Inbound and Outbound transportation planning D1.5: Build Loads
Requirements D3.5: Build Loads

SCOR
Consolidation of Return Outbound logistics software to assist SR3.4: Schedule Excess Product
Carriers with route. Shipment
Shipment
Continuous Improvement Historical trending, cause and effect EM.3: Manage Make Information
analysis, and Key Performance Indicators
Scheduling reviews of processes for
possible improvements
Continuous Improvement None identified ES.2: Assess Supplier Performance
and Development is Driven
and Measured through the
Performance Review Process
Continuous Improvement Avenue to receive customer comments. ER.2: Manage Performance of Return
is Planned through Process Processes
Reviews and Customer
Feedback
Continuous Replenishment Integrated demand/deployment D2.2: Receive, Configure, Enter and
Programs; Vendor Managed planning to customer location driven by Validate Order
Inventory, Telemetry to POS; Customer movement data D1.2: Receive, Enter and Validate
Automatically Communicate Order
Replenishment of Chemicals
Cost Accounting System to ABC costing system P5.3: Balance Return Resources with
Determine the Best Return Return Requirements
Process to Follow from a
Cost of Business Perspective
Cost Reduction and None identified ES.2: Assess Supplier Performance
or Cost Avoidance
Are Opportunities Are
Identified, Implemented
and Measured on a Periodic
Basis
Create and Maintain None Identified ES.7: Manage Supplier Network
Multiple Suppliers and
Multiple Supplier Sites to
Record Information about
Individuals and Companies
from Whom You Want to
Purchase Catalogue Goods
and Services
Cross Training/Certification HR/certification support M3.2: Schedule Production Activities

SCOR
Cross-Docking See detailed description in beginning of D3.11: Load Product & Generate
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 Integration with CRP/VMI vendor D3.5: Build Loads
for Utilization systems D1.5: Build Loads
D2.5: Build Loads
CRP/VMI Integrated Load Building; Routing & D2.6: Route Shipments
Scheduling with Advanced Ship Notice D3.6: Route Shipments
(ASN) D1.6: Route Shipments
Customer Access to Online Internet-enabled package/shipment ED.3: Manage Deliver Information
Tracking of Order Status and tracking
Shipping Information
Customer Initiated Package WEB based Shared systems ED.2: Assess Delivery Performance
Tracking
Customer Profile Drive None identified D4.6: Checkout
Recognition Upon Checkout
Customer Relationship Tightly integrated supply chain or P4.1: Identify, Prioritize and
and Digital Linkages (XML, demand planning with point of sale and Aggregate Delivery Requirements
EDI, Etc.) Provide Accurate customer inventory systems
Visibility into Actual
Demand via Customer
Forecasts, Product Plans,
Production Plans, and
Inventory Positions
Customer Relationship Software that provides customer input P1.3: Balance Supply Chain Resources
Management (CRM) and keeps the customer informed with SC Requirements
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.

SCOR
Customer Sends Receiving Electronically link Return authorization, DR2.3: Receive MRO Product
Advanced Shipment Return schedule and shipping DR1.3: Receive Defective Product
Notification Prior to documents. . DR3.3: Receive Excess Product
Shipment
Customer Service Data None identified ED.3: Manage Deliver Information
Validation Including Geo-
Coding
Data Accessibility across the Web based access to various levels of ES.3: Maintain Source Data
Enterprise for Visibility by enterprise data ER.3: Manage Return Data Collection
Discrete Business Units
Defective Products Utilize electronic links DR1.4: Transfer Defective Product
Scheduling Identifies
Next Destination (Source,
Authorization
Defined Stocking Levels and None identified D4.3: Pick Product from Backroom
Criteria
Deliveries Are Balanced None identified S1.2: Receive Product
Throughout Each Working S2.3: Verify Product
Day and Throughout the S1.3: Verify Product
Week S3.4: Receive Product
Delivery Schedules Are Web-based access to plant scheduling M2: Make-to- Order
Collaboratively Developed status, collaborative data-sharing M3: Engineer-to-Order
with Customers environment.
Demand Planning, Demand Software that provides multiple data P1.3: Balance Supply Chain Resources
Flow Leadership models including the business rules with SC Requirements
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 Rules-based distribution planning P4.3: Balance Delivery Resources
Strategic Customer system. Trading partner agreements and Capabilities with Delivery
Relationships as Business Requirements
Policies Are Automatically
Followed in Allocating
Resources; First-In-First-
Out (FIFO) is Utilized as the
Default Scheduling Priority
Demand Pull Mechanisms Repetitive scheduling and sequencing M2.1: Schedule Production Activities

SCOR
Demand-Pull Support of demand-pull mechanisms M2.1: Schedule Production Activities
Manufacturing, Including (Kanban, replenishment signals, etc.) M1.1: Schedule Production Activities
Active Reduction of based on rate schedules and user- M3: Engineer-to-Order
Manufacturing Systems defined minimum/maximum trigger M1: Make-to-stock
Time and WIP Through points
the Use of Demand-Pull
Mechanisms and Visual
Controls
Demand-Pull Mechanisms; None identified M2.2: Issue Sourced/In-Process
Kanban Replenishment Product
Signals from Stockroom, M3.3: Issue Sourced/In-Process
Intermediate Products, or Product
Subassembly Area M1.2: Issue Material
Design For Production Table of manufacturing capacities or EM.1: Manage Production Rules
design envelops (capacities; envelop
sizes; tank, vessel or batch sizes)
Design/Upgrade Production Machine productivity and downtime M2.3: Produce and Test
Equipment to Maximize monitoring M2.4: Package
Flexibility and Avoid Line M1.3: Produce and Test
Stoppages M1.4: Package
M3.5: Package
Develop and Clarify Clarification as to who will pay in-bound SR3.3: Request Excess Product Return
Mutually Understood Cycle and out-bound freight cost. Authorization
Times to Process Return SR1.3: Request Defective Product
Authorizations Return Authorization
Develop Local Receiving Minimize time spent in product DR2.3: Receive MRO Product
Process Close to Repair movement. DR3.3: Receive Excess Product
Develop Proactive Transit None Identified ER.6: Manage Return Transportation
Damage Programs
Digital Linkage (EDI, XML, None identified P2.4: Establish Sourcing Plans
Etc.) is Used to Provide Real-
Time Demand Information
and Handle Routine
Transactions
Digital Links (XML Based, Real-time exchange of supply chain P1.4: Establish & Communicate
EDI. Etc.) Among Supply information between supply chain Supply-Chain Plans
Chain Members members collaborative planning P1.2: Identify, Prioritize and
systems, Internet Trading Exchanges, Aggregate SC Resources
B2B Integration and Application Server P1.1: Identify, Prioritize and
Systems Aggregate SC Requirements

SCOR
Direct Connection to Electronic documentation submission ES.8: Manage Import/Export
Customs Clearance via EDI and/or internet. Requirements
Requirements
Direct Ship from Factory to Share production status with customers M2.5: Stage Finished Product
Customer/Channel and transportation providers via web- M1.5: Stage Product
based tools. Auto-Tendering for direct M3.6: Stage Finished Product
ship utilizing EDI/XML protocols.
Direct Transfer of Electronic documentation submission ED.8: Manage Import/Export
Documents to Recipient and via EDI and/or internet. Requirements
Forwarder ES.8: Manage Import/Export
Requirements
Direct Transfer of Bi-directional Digital Links (XML, EDI, P2: Plan Source
Documents to Recipient and etc) or Internet procurement networks P4: Plan Deliver
Forwarder to customer service linkage
Distinct and Consistent Multi-plant supply/demand planning P3: Plan Make
Linkages Exist to and execution
Ensure Disruptions and
Opportunities in Material
Resources Are Quickly and
Accurately Communicated
and Acted Upon
Document Control Control who can create, revise and EM.1: Manage Production Rules
access information
Documents Generated Electronic documentation submission ES.8: Manage Import/Export
Automatically During via EDI and/or internet. Requirements
Shipment Preparation. ED.8: Manage Import/Export
Requirements
Download P.O. & Advanced Integration with Procurement Systems & D1.8: Receive Product from Source or
Ship Notices for Automated Electronic Commerce with Vendors Make
Receiving and Put Away D3.8: Receive Product from Source or
Make
Make
Drive Deliveries Directly Pay on receipt. Specify delivery location S1.4: Transfer Product
to Stock or Point-Of-Use in and time (to the minute).Specify S2.4: Transfer Product
Manufacturing to Reduce delivery sequence S3.6: Transfer Product
Costs and Cycle Time
Drive Returns Directly Specify return disposition location and SR3.2: Disposition Excess Product
to Return Stock Point of time. SR1.2: Disposition Defective Product
Disposition to Reduce Cost
and Cycle Time
Drum-Buffer-Rope See detailed description in beginning of M3.2: Schedule Production Activities
Scheduling Technique this chapter M2.1: Schedule Production Activities

SCOR
Dunnage Control System data field to specify where EM.4: Manage In-Process Products
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 Advanced planning and scheduling D2.3: Reserve Inventory and
Based on Constraint Based logic with constraint, cost, and resource Determine Delivery Date
Planning and Optimal optimization
Scheduling
Dynamic Location Real time inventory control, stock D3.8: Receive Product from Source or
Assignment Including Lot locator, and rules based picking logic Make
Control, Zoned Picking, D3.9: Pick Product
Quality Assurance D2.9: Pick Product
Make
D1.9: Pick Product
Dynamic Location Real time inventory control, stock D1.8: Receive Product from Source or
Assignment Including Lot locator, and rules based put away logic Make
Control, Zoned Put Away,
Quality Assurance, ABC
Frequency of Access
Dynamic Return Restocking Dynamic prioritization of restocking P5.3: Balance Return Resources with
Management plans in order to rapidly re-sell products Return Requirements
that are in demand thus reducing new
inventory demand.
Dynamic Simulation of Rules based picking logic and simulation D3.9: Pick Product
Picking Requirements D2.9: Pick Product
Optimized for Labor, Cost, D1.9: Pick Product
and Time
EDI Links between None identified D1.3: Reserve Inventory and
Manufacturing and Determine Delivery Date
Distributor to Achieve
Visibility of Complete
Finished Goods Inventory
and Expected Shipments
EDI Links Integrate Supplier Inter-company resource planning with P2: Plan Source
Resource Information EDI/Internet communication
(Inventory, Capacity
Availability, Etc.) with Own
Resources
Efficient and Effective None identified EP.2: Manage Performance of Supply
Benchmarking Process Chain
Leveraging Cross Industry
Metrics and Definitions

SCOR
Efficient Consumer Demand Planning, Deployment, D1: Deliver Stocked Products
Response (ECR); Quick Scheduling
Response
Electronic Catalogues/Malls None identified D1: Deliver Stocked Products
Electronic Commerce EDI applications and integrated order D1.2: Receive, Enter and Validate
(Customer Visibility of Stock management Order
Availability, Use of Hand- D2.2: Receive, Configure, Enter and
Held Terminals for Direct Validate Order
Order Entry, Confirmation,
Credit Approval), On-
Line Stock Check and
Reservation of Inventory
Electronic data collection Reduce non-value added paperwork M3.5: Package
ofcompletion, quality, lot while still maintaining process metrics
trace ability, scrap, and labor
data
Electronic Data Interchange Electronic Data Interchange ES.7: Manage Supplier Network
Can Be Used To Send Rfqs S3.2: Select Final Supplier (S) and
and Technical Information Negotiate
to and from Potential
Suppliers to Determine
Supplier Capability to Fulfill
Requirements So that They
May Be Added to Supplier
Network
Electronic Data Interchange None identified S3.1: Identify Sources of Supply
is Used to Send Technical
Information to and from
Potential Suppliers
Electronic Documentation Graphical display of drawings, diagrams, EM.1: Manage Production Rules
and Imaging recipes/formulas, specifications,
instructions, etc., to all users
Electronic Generation and None identified D2.11: Load Product & Generate
Download of Shipping Shipping Documentation
Documents D1.11: Load Vehicle & Generate
Shipping Docs
Shipping Documents
Electronic Manifest and Transportation Management System ER.6: Manage Return Transportation
Electronic Billing (TMS) Maintenance Management ES.6: Manage Incoming Product
Electronic Matching Integrated Software Systems P4.1: Identify, Prioritize and
Between POS Data and Aggregate Delivery Requirements
Store Inventory (Shelves and
Back Room)

SCOR
Electronic Material Move Automated process control and/or M3.3: Issue Sourced/In-Process
Transactions barcode data collection Product
Product
M1.5: Stage Product
Electronic Reminders Pull signals. ER.1: Manage Business Rules for
of Possible Scheduled Return Processes
Maintenance
Electronic Sourcing and Business Rules for electronic sourcing ES.10: Manage Supplier Agreements
Negotiation process and hierarchy ES.1: Manage Sourcing Business Rules
Electronic Transfer of None identified D3.15: Invoice
Shipment Information to D2.15: Invoice
Finance D1.15: Invoice
Electronically Track None Identified DR1.3: Receive Defective Product
Shipment from Customer to DR3.3: Receive Excess Product
Service Provider DR2.3: Receive MRO Product
Eliminate “Special Deals” None identified P4.1: Identify, Prioritize and
Sales to Reduce Returns and Aggregate Delivery Requirements
Improve Forecast Accuracy
(Reduces Uncertainty,
Lowers Safety Stock
Requirements, Cheaper to
Administer)
Enable Customer-Service Clarification of policy if authorizations SR1.3: Request Defective Product
Representatives to are not processed within the expected Return Authorization
Complete the Bill Of Lading cycle time. SR3.3: Request Excess Product Return
for the Customer Including Authorization
Carrier Routing, Weight,
Description and Class to
Minimize Guesswork &
Wrong Estimates
Enable Real-Time Visibility None identified D1.2: Receive, Enter and Validate
into Backlog, Order Status, Order
Shipments, Scheduled D2.2: Receive, Configure, Enter and
Material Receipts, Customer Validate Order
Credit History, and Current
Inventory Positions
Enterprise Level Policies/ Web based access to enterprise level SR3.1: Identify Excess Product
Rules with Local Execution business rules Condition
SR1.1: Identify Defective Product
Condition

SCOR
Enterprise Level Spend None identified ES.10: Manage Supplier Agreements
Analysis ES.1: Manage Sourcing Business Rules
Establish Designated None Identified DR3.2: Schedule Excess Return
Processes for Scheduling Receipt
and Receiving Excess
Inventory
Establishment of Criteria to Utilize supplier delivery, quality, price ES.7: Manage Supplier Network
Rank Suppliers performance as well as any other criteria
such as terms and conditions
Evaluate Supplier Network Supplier Merge Programs for duplicates ES.7: Manage Supplier Network
for Duplicates
Evaluate the Benefits of Out- Enables customer to focus on core ER.1: Manage Business Rules for
Sourcing the Excess Material competencies. Return Processes
Return Process
Excess Products Scheduling Utilize electronic links DR3.4: Transfer Excess Product
Identifies Next Destination
(Source, Make, or Deliver) on
Facility & Equipment System software to list checklist items, EM.5: Manage Make Equipment and
Environmental / Safety report results of audit & forward actions Facilities
Audit System to be taken ES.5: Manage Capital Assets
Facility Master Plan Automated Item Cubing and Weighting ED.5: Manage Deliver Capital Assets
systems
Factory Floor Electronic Software to capture actual performance EM.5: Manage Make Equipment and
Decision Making history / costs of operations with Facilities
Information System capability of predicting “best cost
action plans” relating to maintaining
equipment and facilities.
First In - First Out Part / WIP location by date received for M.4: Manage In-Process Products
those parts that must be stocked or (WIP)
staged in a holding area
Forecasts Are Replaced B2B Integration and Application Server P4.1: Identify, Prioritize and
with Actual Customer Systems Aggregate Delivery Requirements
Replenishment Signals and
Orders Where Possible
Full Internal (And External Intranet and Extranet communications P5.4: Establish and Communicate
If Source Suppliers Share tools Return Plans
in the Return Process
Responsibilities) Visibility to
Return Plans

SCOR
Full Visibility of Credit None identified D3.11: Load Product & Generate
History by Shipping Shipping Documents
Personnel D1.11: Load Vehicle & Generate
Shipping Docs
Genealogy Tracking Where-used listing of as-planned vs. as- EM.1: Manage Production Rules
built documentation
Goals / Performance Plans None identified D4.7: Deliver and/or Install
Ideal Stock Position Based Pilot by Wal-Mart. IT P4.1: Identify, Prioritize and
on Days/Weeks of Supply Aggregate Delivery Requirements
Identification of Suppliers Electronic Kanban Support ES.7: Manage Supplier Network
Who Will Participate in
Kanban Programs
Identification of Suppliers None identified ES.7: Manage Supplier Network
Who Will Participate in
Procurement Split (Two
or More Suppliers Sharing
Purchase Requirements)
Programs
Identification of Suppliers Supplier managed inventories with ES.7: Manage Supplier Network
Who Will Participate in scheduling interfaces to external
Vendor Managed Inventory supplier systems to replenish
(VMI) Programs
Implement Employee None Identified M3.4: Produce and Test
Involvement Programs
Incorporates leading None Identified EP.7: Manage Planning Configuration
practices such as Efficient
Consumer Response,
Collaborative Planning,
Forecasting, and
Replenishment, Vendor
Managed Inventory, and real
time point of consumption
reporting.
In-Process Product (WIP) Tracking, genealogy EM.4: Manage In-Process Products
Handling Rules (WIP)
Integrate Return Planning Both customer and Service Provider DR2.2: Schedule MRO Return Receipt
with Maintenance and departments are alerted at the same DR1.2: Schedule Defective Return
Inventory Planning to time and viewing the same information. Receipt
Optimize the System

SCOR
Integrated Business and Supply Chain performance dashboard EP.1: Manage Business Rules for Plan
Supply-Chain Planning capability. Processes
Processes Where Cross-
Functional Input is
Leveraged to Set Business
Rules
Integrated Credit Checking Interface to supplier’s shipping system D2.11: Load Product & Generate
to financials Shipping Documentation
Shipping Docs
Shipping Documents
Integrated Demand and Memory based planning systems EP.3: Manage Plan Data Collection
Supply Planning - Demand provide one single data model and
Planning, Supply Planning data mart (including the business rules)
and especially the Supply for the entire supply chain planning
Plan Execution Are no and execution process. Algorithms use
longer disconnected. All the business rules as the driver for the
required planning and planning engine.
execution data is integrated
and shared in between all
functional areas within an
organization.
Integrated Edit at Order Customer Master Record ED.1: Manage Deliver Business Rules
Entry Time
Integrated Facility None identified ED.7: Manage Product Life Cycle
Management
Integrated Order Transportation Management System ES.6: Manage Incoming Product
Management, Warehouse (TMS) Maintenance Management ED.6: Manage Transportation
Management, and ER.6: Manage Return Transportation
Transportation
Management Systems View
for analysis for all orders and
shipments the following
data: Logistics, Product,
Cost, GL Charging
Integrated Transportation - Advanced shipping notices - Real time ER.5: Manage Return Capital Assets
Visibility shipping tracking
Internet Exchanges Internet Exchanges are a hosted, ES.7: Manage Supplier Network
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.

SCOR
Internet Ordering None identified D1: Deliver Stocked Products
Internet Pooling Internet Pooling (Electronic brokerage of ED.6: Manage Transportation

(Electronic brokerage shipments ER.6: Manage Return Transportation
of shipments) ES.6: Manage Incoming Product
Inventory Allocation None identified D1.3: Reserve Inventory and
Exception Process is Clearly Determine Delivery Date
Defined and Jointly Owned
by Manufacturing and Sales
Inventory is Planned at the None identified P2.2: Identify, Assess and Aggregate
Part Level, Based on Supply Product Resources
and Demand Variability
Inventory Performance is None identified P2.2: Identify, Assess and Aggregate
Measured at the Dollar and Product Resources
Unit Levels
Inventory targets Are Digital Linkages using XML standards P3.3: Balance Production Resources
Reviewed and Adjusted (RosettaNet, eBXML, OAGI) to with Production Requirements
Frequently automatically query inventory levels. P3.2: Identify, Assess and Aggregate
Product Resources
Involve Your Other Supply- Utilization of transportation R.6: Manage Return Transportation
Chain Partners If Possible management system (TMS) to manage
to Leverage Transportation returns. Maximization of TMS use, both
throughout the Chain intra and inter-company within the
supply chain.
Item/Shelf Scanning Upon Scan store shelves / bar codes to confirm D4.4: Stock Shelf
Put-A-Way put-a-way.
Items Are Relieved from RFID, smart cart or customer self-service D4.5: Fill Shopping Cart
Inventory When Item is reduces system inventory upon item
Removed from Shelf pick.
JIT Environment Schedule visibility, on-line EM.7: Manage Production Network
communications between source and
demand
Joint Service Agreements Collaborative Planning Systems S2: Source Make-to-Order Product
(JSA) P1.2: Identify, Prioritize and
Aggregate SC Resources
S3: Source Engineer-to-Order Product
S1: Source Stocked Product
P1.4: Establish & Communicate
Supply-Chain Plans
P1.1: Identify, Prioritize and
Aggregate SC Requirements

SCOR
Joint Service Agreements Collaborative planning tools with D2.14: Install Product
to Document Acceptable the Source suppliers.(This would D1.14: Install Product
Service Levels in Terms be effective between customer and
of Installation Costs, supplier, and between internal functions
Installation Cycle Time, Etc. such as Field Service, Manufacturing,
Marketing and Order Management)
Joint Service Agreements Collaborative planning tools with the P5.2: Identify, Assess, and Aggregate
with Source Suppliers to Source suppliers Return Resources
Share Responsibilities and
Costs of Returns
Joint Service Agreements None identified P2: Plan Source
with Suppliers Define the
Levels of “Flexibility” or
Resource Upside Available
Within Stated Lead
Times and Agreed Upon
Conditions
Just-In-Time Demand Flow Demand-pull mechanisms M1.3: Produce and Test
Techniques M2.3: Produce and Test
Labor Scheduling that Workforce management solution with D4.1: Generate Stocking Schedule
Matches Product Flow flexible rules. D4.2: Receive Product at the Store
Lead Times Updated None identified P1.2: Identify, Prioritize and
Monthly Aggregate SC Resources
Lean Manufacturing Use a team based systematic approach M1: Make-to-stock
to identifying and eliminating wasteful,
or non-value adding activities within
your manufacturing organization
Limit the Number of Utilization of transportation ER.6: Manage Return Transportation
Carriers, Treat Them as management system (TMS) to manage
Partners and Build a Strong returns. Maximization of TMS use, both
Relationship with Each One intra and inter-company within the
Geared Toward Continually supply chain.
Improving Service and
Lowering Cost
Link Individual Performance None identified M2: Make-to- Order
to Organizational and M1: Make-to-stock
Divisional Goals M3.4: Produce and Test
Long Term Supplier Electronic rules for business ES.10: Manage Supplier Agreements
Agreements/Partnerships relationships and transactions: Vendor- ES.1: Manage Sourcing Business Rules
managed Inventory Agreements,
Fab & Hold Agreements, Just-In-Time
Agreements.

SCOR
Long-Term Return None identified SR1.3: Request Defective Product
Agreements / Partnerships Return Authorization
Authorization
Loyalty Card Data Use for comparison to previous sales D4.5: Fill Shopping Cart
activity/track new consumers, etc.
Maintain Accurate Lot/Batch Electronic data collection of employee M2.3: Produce and Test
History Information actions and sourced/in-process product M3.4: Produce and Test
lot used M1.3: Produce and Test
Maintain Data and System Detailed production model that M1.1: Schedule Production Activities
Integrity by Ensuring synchronizes PLAN and MAKE activities M2.1: Schedule Production Activities
Production Data, Inventory in real time.
Levels, and Schedule
Requirements Are 99+%
Accurate
Maintaining Repository Electronic subscription and publication EM.8: Manage Make Regulatory
of Current Regulatory of conformance documentation. Environment
Requirements Electronic Document Management
System features.
Manage Information Across Transportation Management System ED.6: Manage Transportation
100% of Shipments (TMS) Maintenance Management ES.6: Manage Incoming Product
Master Production None identified P2.1: Identify, Prioritize and
Scheduling Reflects Aggregate Product Requirements
Management of Capacity
and/or Supply Constraints
Matching Shelf Stock to A software based system that corrects P4.1: Identify, Prioritize and
Expectations shelf inventory levels based on actual Aggregate Delivery Requirements
product present (possible RFID solution).
Identifies stock-outs from shrinkage or
item misplacement.
Maximize Data Integrity None identified M3.2: Schedule Production Activities
and System Accuracy by
Ensuring 99%+ Accuracy
of BOM Configuration,
Inventory Levels, and
Schedule Requirements
Measure Customer Service Advanced Shipping Notices (ASN) ED.5: Manage Deliver Capital Assets
Parcel and Container Routing and
Rating Compliance Labeling Real time
shipment tracking
Measured and Compared DSS or portal tool that shows previous D4.5: Fill Shopping Cart
with Same Activity Previous period performance and comparison for
Period store management (whether it is a year
ago, period ago, etc.).

SCOR
Measurement of Carrier Transportation Management System ER.6: Manage Return Transportation
Performance for On-time (TMS) Maintenance Management ED.6: Manage Transportation
Delivery and Completeness ES.6: Manage Incoming Product
Measurement, Monitoring None identified D4.7: Deliver and/or Install
and Adjustment of Service
or Product Installation
Measuring Process Metrics Electronic data collection of completion, M1.3: Produce and Test
and Feedback to Operators quality, scrap, labor and equipment data
and dissemination of information on
factory floor
Mechanical (Kanban) Pull Electronic Kanban support S2.1: Schedule Product Deliveries
Signals Are Used to Notify S3.3: Schedule Product Deliveries
Suppliers of the Need to S1.1: Schedule Product Deliveries
Deliver Product
Merge-in-Transit See detailed description in beginning of D1.8: Receive Product from Source or
this chapter Make
D1.9: Pick Product
Migrate From Build to Stock None identified M1: Make-to-stock
to Configure to Order; Build
Subassemblies to Forecast
at the Highest Generic
Level in the Bill of Material/
Recipe/Formula
Minimize Capital Assets Outsourcing strategies including the use EM.5: Manage Make Equipment and
Required and Maintenance of Application Service Providers (ASPs), Facilities
Costs web-based maintenance/diagnostic
assistance and MRO parts.
Minimize Operator Induced Automatic download of production M2.4: Package
Errors equipment with setup parameters M3.5: Package
Graphical display of setup, changeover, M1.4: Package
or layout
Minimizing In-Process WIP Storage Management System EM.4: Manage In-Process Products
Product (WIP) Efficient Space Utilization Implementing (WIP)
Pull Systems
Minimum Product Handling Move high frequency used inventory EM.4: Manage In-Process Products
close to point of use. For example, the (WIP)
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.
MRO Scheduling Identifies Utilize electronic links DR2.4: Transfer MRO Product
Next Destination (Stores or
Repair Station) on Return
Authorization

SCOR
Multi-country Export/ None identified ED.8: Manage Import/Export
Import documentation Requirements
compliance
Multiple Locations Planned and tracked via a plan-o- D4.5: Fill Shopping Cart
Throughout Store gram system;Location specific product
labeling.
New Items Introductions None identified EP.7: Manage Planning Configuration
Are part of the Sales and
Operations Planning Process
at the General Management
Business Team Level
Note and Communicate Hazardous material regulations are ER.8: Manage Return Regulatory
Shelf Life Requirements given specific attention. Requirements and Compliance
Carefully Before Shipping
Notification of Existing/ None identified D4.6: Checkout
Future Event or Promotions
Obsolete Inventory is None identified P2.2: Identify, Assess and Aggregate
Reviewed at the Part Product Resources
Number Level P3.2: Identify, Assess and Aggregate
D4.4: Stock Shelf
Off Peak Stocking The majority of stocking is completed D4.4: Stock Shelf
with minimal impact to or visibility from
the customer.
On Demand Access of Web based access to current supplier/ ES.3: Maintain Source Data
Supplier/Source Data source data
On Line Access and Delivery of tooling and equipment EM.1: Manage Production Rules
Notification of Tooling and details drawings
Equipment Information
On Line Document ERP S3.2: Select Final Supplier (S) and
Management and Negotiate
Automated Supplier ES.7: Manage Supplier Network
Approval Processes Can
Reduce the Cycle Time
and Costs Associated
With Managing Supplier
Evaluations and Get Them
into the Supplier Network
Faster
On Line RFQ Processes None identified S3.2: Select Final Supplier (S) and
Linked into the Document Negotiate
Management Process S3.1: Identify Sources of Supply
Reduces Cycle Time and
Product Management Costs

SCOR
On-Demand Access of Data Collection and Display Systems EM.3: Manage Make Information
Production Information 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 None identified EM.3: Manage Make Information
Available to Promise (ATP),
Production Schedules and
Inventory Status by Internal
Operations and Customers
On-Line Availability to Internet web sites for financial ES.7: Manage Supplier Network
Supplier Financials to evaluation S3.2: Select Final Supplier (S) and
Determine Potential Negotiate
Supplier Viability to be
Online Real-Time Customer On-line Customer Service Module CRM ED.3: Manage Deliver Information
Entry and Edit (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 ED.1: Manage Deliver Business Rules
On-Line Visibility of All Enterprise resource planning system P1: Plan Supply Chain
Supply-Chain Demand Customer relationship management
Requirements and system
Resources, both Currently
Available and Committed
(Pegged)
Operations and Network None identified ED.7: Manage Product Life Cycle
Analysis
Optimize Packing No packing and unpacking time EM.4: Manage In-Process Products
required. Recyclable or no containers (WIP)
where appropriate. No discarded
material.
Optimized Supply-Chain Web based access to preferred and ES.10: Manage Supplier Agreements
Processes, Optimized recommended suppliers, supplier ES.1: Manage Sourcing Business Rules
Supplier Count, Supplier performance data & spend data
and Part Rationalization stratified by commodity, business unit/
site, supplier, part type, process type

SCOR
Order Entry is Organized None identified D2.2: Receive, Configure, Enter and
by Customer Segment Validate Order
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
Organize to Enhance Support for modular skills inventory M2: Make-to- Order
Flexibility: Few Job with links to training databases, M3: Engineer-to-Order
Classifications, Self- compensations systems, and operator M1: Make-to-stock
Directed Work Force, Flat instructions
Management Structure,
Cross-Functional Work
Teams
Outsource If Not a Core Use 4PL to manage and move. ER.5: Manage Return Capital Assets
Competency
Packaging Operation is an None identified M3.5: Package
Integral Part of the Overall M1.4: Package
Production Process M2.4: Package
Paperless Order Tracking Electronic dispatch and data collection M3: Engineer-to-Order
and Customer Visibility of with external interface to internet. M2: Make-to- Order
Orders M1: Make-to-stock
Paperless Production Electronic dispatch of operations M1.3: Produce and Test
Control M3.5: Package
M2.4: Package
M1.4: Package
Paperless Production Order Electronic dispatch and data collection. M1: Make-to-stock
and Inventory Tracking Allow customer access to production
status and inventories using internet
technologies and web site features.
Partnership with Outside None identified D3.1: Obtain and Respond to RFP/RFQ
Design Firms to Provide
Skills and Capacity, as
Needed
Pay on Receipt Electronic Invoice Processing S2.5: Authorize Supplier Payment

SCOR
Performance Expectations Web based access / availability to ES.2: Assess Supplier Performance
and Business Rules Are business rules and performance criteria
Clearly Communicated Prior
to the Initiation of Business
with the Supplier
Performance Results Data warehouse, report writing, M1: Make-to-stock
that Are Compared to real time database and Executive
Benchmarks (i.e. Capacity, Information systems that are easily
Scheduling) and Readily accessible. Use of web-based
Available to Employees technologies for dissemination of
information.
Periodic Review of Real time view of data. ED.4: Manage Finished Goods
Metrics and Strategy with Inventories
Comparisons to Industry ER.4: Manage Return Inventory
Benchmarks ES.4: Manage Product Inventory
Periodic Review of Process for establishing and maintaining EM.2: Manage Production
Standards review schedules Performance
Planning and Forecasting Collaborative planning and forecasting P5: Plan Return
Outsourced Return process with RETURN outsourcing partners (3PL,
reverse drop shippers, etc.)
Planogram Flexibility for None identified P4.1: Identify, Prioritize and
Seasonal/Promotional Aggregate Delivery Requirements
changes
Plans that Violate Business None identified P4.4: Establish Delivery Plans
Rules (e.g. Joint Service
Agreements) Are Addressed
Cross-Functionally,
Considering Total Business
Impacts (Revenue, Cost,
Quality, Customer Service,
Etc.)
Plans Which Do Not None identified P4.4: Establish Delivery Plans
Violate Business Rules Are
Communicated Openly
and Cross-Functionally for
Execution
Posted Performance Results Data warehouse, report writing, real M3: Engineer-to-Order
time data base and EI systems M1: Make-to-stock
M2: Make-to- Order
Postponement See detailed description in beginning of D1: Deliver Stocked Products
this chapter M2: Make-to- Order
M1: Make-to-stock
D2: Deliver Make-to-Order Product

SCOR
Postponement and Pre- None identified M3.5: Package
Kitting Of Accessories into M2.4: Package
Modular Packages that M1.4: Package
Allow Flexibility While
Maintaining Control
Pre-Certify Supplier - Push inspection to SOURCE - Receiving DR3.3: Receive Excess Product
Capability to Send Return quality criteria connected to ISO 9000 DR2.3: Receive MRO Product
Products Correctly to practices DR1.3: Receive Defective Product
Minimize the Need for
Pre-Defined Manufacturing Libraries of manufacturing capabilities EM.1: Manage Production Rules
Design Rules or design envelopes
Predictive Maintenance Database for equipment to contain EM.5: Manage Make Equipment and
Monitoring (Heat, Noise, expected results of analysis, allow entry Facilities
Lubrication Composition & of test readings, and have capability of
Vibration) generating desired reports, which could
highlight suggested actions based upon
readings obtained, track maintenance
completed, contain a help-file to be
consulted
Priority-Based Inventory None identified D1.3: Reserve Inventory and
Reservations, for Key Determine Delivery Date
Customers, with FIFO
Allocation for All Others
Proactive Education None identified P4: Plan Deliver
of Customers to Set
Expectations and Encourage
Close Working Relationships
(Knowledge of Long-Lead
Items, Visibility to Supply
Resources, Agreement on
Levels of Flexibility)
Produce Products to Unique Order entry specifications linked to M2.1: Schedule Production Activities
Customer Requirements manufacturing order M1.1: Schedule Production Activities
M2: Make-to- Order
Product Data Management None identified S3.1: Identify Sources of Supply
& Electronic Document
Management Are Used
to Manage Technical
Documents and
Requirements for Engineer
to Order Product
Product Design On-line design tools facilitated by M3: Engineer-to-Order
Collaboration with internet connections.
Customers

SCOR
Production Level Loading Capacity planning M1: Make-to-stock
M2: Make-to- Order
Production Reporting/ Real time monitoring of production EM.7: Manage Production Network
Status status and In-Process Product (WIP)
Proof of Performance Scan store shelves / bar codes to confirm D4.4: Stock Shelf
(Promotion Management) put-a-way. Scan using handheld and
match with ad.
Provide Continuous Formal Examples would be TQM, Six Sigma. M1.3: Produce and Test
Training to Employees M1: Make-to-stock
M2: Make-to- Order
Provide Product or Service None identified D4.7: Deliver and/or Install
Training to Employees or
FAQ’s Online
Provide Scheduling Output Allow dynamic re-synchronization of M1.1: Schedule Production Activities
Back to Material and Labor MAKE activities by tying in real time
Planning Systems status information to scheduler
Provide Single Source Secure E-Commerce Server and ED.3: Manage Deliver Information
of Information on the integrated Order Management System
Customer (Single Group (OMS) Warehouse Management System
/ Owner Responsible (WMS) and Transportation Management
for Accuracy / Quality of System (TMS)
Customer Data)
Provide Visibility to and Integrated accounts receivables D1.15: Invoice
Quickly Escalate Delinquent D3.15: Invoice
Accounts for Resolution D2.15: Invoice
Publish Return Policy Easy access to return business rules. ER.1: Manage Business Rules for
Return Processes
Push Product on Trailer System prioritization of items coming off D4.2: Receive Product at the Store
Arrival trucks vs. picked from back room. D4.1: Generate Stocking Schedule
Push-Based Forecasts Are Standards Based (RosettaNet, eBXML, P1.1: Identify, Prioritize and
Replaced with Customer OAGI, etc) B2B integration tools and Aggregate SC Requirements
Replenishment “Pull-Based” systems
Signals
Quote Capability, without None identified D1.1: Process Inquiry and Quote
Reserving Inventory, Which D2.1: Process Inquiry and Quote
Can Be Converted into an
Order in a Single Step
Quote Capability, without None identified D2.1: Process Inquiry and Quote
Reserving Inventory, Which
Can be Converted into
an Order, But Does Not
Generate Build Signal or
Reserve Inventory Capacity

SCOR
Rapid Reconfiguration of Use of RETURN tracking and projection P5.2: Identify, Assess, and Aggregate
Return Capacity systems and flexible partner agreements Return Resources
that allow the rapid addition of RETURN
capacity to match unexpected demand.
Rapid Replenishment, VMI, None identified D1: Deliver Stocked Products
EDI
Rapid, Dynamic The ability to reset and reconfigure the P5.4: Establish and Communicate
Reconfiguration of Return RETURN process capacity, routings, etc. Return Plans
Process to Meet Demand 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.
Real Time Data on Current Dynamic calculation of safety stock ER.4: Manage Return Inventory
Status based on actual sales. ES.4: Manage Product Inventory
Inventories
Real Time Feedback from Allow dynamic re-synchronization of M1.1: Schedule Production Activities
Production, Raw Materials, MAKE activities by tying in real time
and Finished Goods status information to scheduler.
Inventory and Test Activities
Real Time Package Tracking Tracking and tracing ED.2: Assess Delivery Performance
Real Time Performance Systems to collect production EM.2: Manage Production

Measurement Reporting information online generate reports Performance
Systems upon request by operators, and
track progress against schedule and
standards.
Real Time quality control Electronic collection of quality data and M1.3: Produce and Test
techniques on-line SPC. M2.3: Produce and Test
Real Time Return Having real time data on return demand P5.1: Assess and Aggregate Return
Anticipation and including it in the plan and forecast. Requirements
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.
Real Time Statistical Control Electronic collection of defect data and M2.3: Produce and Test
Techniques on-line SPC. M1.3: Produce and Test

SCOR
Real-Time Optimized Transportation Management System ED.6: Manage Transportation
Shipment Method Selection (TMS) Maintenance Management ER.6: Manage Return Transportation
(Air Parcel, Ground Parcel, ES.6: Manage Incoming Product
LTL, etc.) Based on Customer
Service Requirements
Real-Time Shipment Transportation Management System ES.6: Manage Incoming Product
Tracking, (via internet) (TMS) Maintenance Management ER.6: Manage Return Transportation
Re-Balancing of Full-Stream Enterprise-wide planning system P1: Plan Supply Chain
Supply/Demand on a Daily customer Relationship Systems
Basis, Including Source-
Make-Deliver Resources
and Requirements from
“Customers’ Customer to
Suppliers’ Supplier”
Receivers on the Dock Buyer’s name for every receipt is clearly DR2.3: Receive MRO Product
Communicate Directly with visible on Receiver. DR1.3: Receive Defective Product
the Buyer to Efficiently DR3.3: Receive Excess Product
Resolve Any Discrepancies
Receiving Equipment Include packaging materials in inventory DR2.4: Transfer MRO Product
and Packaging Materials management system and treat as any DR3.4: Transfer Excess Product
to Transfer Product Are other inventory to minimize potential of DR1.4: Transfer Defective Product
Planned for In Advance and stock-out.
Readily Available When
Needed
Reduce Chances of Operator Automatic download of production M2.3: Produce and Test
Error equipment with batch recipes/part M1.3: Produce and Test
programs
Reduce In-Process Product Reduction of WIP handling through EM.6: Manage Transportation (WIP)
(WIP) Handling automation (i.e. AGVs and ASRS) and
process improvement (i.e. reduction of
handling steps, shorter move paths)
Reduce Non-Value Added Use principals of Lean Manufacturing. M2.3: Produce and Test
Activities, Including Queue, M3.4: Produce and Test
Move, and Set-Up Times M2.3: Produce and Test
Reduce Non-Value Added Electronic data collection of completion, M2.4: Package
Paperwork While Still quality, lot tractability, scrap, and labor M3.4: Produce and Test
Measuring Process Metrics data M1.4: Package
Reliable Continuous None identified EP.2: Manage Performance of Supply
Improvement Process and Chain
Methodology.

SCOR
Remote (Sales, Customers) None identified D2.2: Receive, Configure, Enter and
Order Entry Capability Validate Order
D1.2: Receive, Enter and Validate
Order
Removal of Obsolete Capital Automated Calculation of ABC Velocity ES.5: Manage Capital Assets
Assets Movement
Removal of Obsolete Stock Automated Calculation of ABC Velocity ED.5: Manage Deliver Capital Assets
Movement
Re-Planning Process Exists Business to business Internet capability EP.10: Align Supply Chain Unit Plan
in Multi-Levels of the to share common data. with Financial Plan
Supply-Chain between
Business Enterprises
Re-Planning Process Links None identified EP.10: Align Supply Chain Unit Plan
the Supply Chain Operation with Financial Plan
with the Business Strategy
and the Marketing Strategy
Responsiveness and Integrated process modeling and P1: Plan Supply Chain
Flexibility Are Emphasized software reconfiguration tools
By Developing Expertise in
Making Business Processes
Re-Programmable,
Re-Configurable and
Continuously Changeable
Return Process Electronically Utilize Bar coding DR3.4: Transfer Excess Product
Tracks Transfer from Station DR1.4: Transfer Defective Product
to Station DR2.4: Transfer MRO Product
Review Batch Records by Electronic batch records linked to M2.6: Release Finished Product to
Exception process plans/recipes and exceptions Deliver
flagged M1.6: Release Product to Deliver
Review Product Profitability ABC and cost modeling. P1.2: Identify, Prioritize and
Aggregate SC Resources
Review Transfer Cycle Time Periodic review of capital asset plan to DR1.4: Transfer Defective Product
Trends and Determine If determine if additional equipment, if DR2.4: Transfer MRO Product
Equipment Capacity is needed, can be funded. DR3.4: Transfer Excess Product
Properly Balanced with
Projected Usage
RFID and Other Tagging POG software/field force P4.1: Identify, Prioritize and
Aggregate Delivery Requirements
Sales and Operations Agree None identified P2.1: Identify, Prioritize and
to Limits of Short Term Aggregate Product Requirements
Flexibility
Sales and Operations See detailed description in beginning of P1: Plan Supply Chain
Planning (S&OP) this chapter

SCOR
Scan Displays for Promotion None identified D4.4: Stock Shelf
Conformance
Schedule Includes Interface between maintenance M1.1: Schedule Production Activities
Preventative Maintenance management system and scheduling M3.2: Schedule Production Activities
Program system M2.1: Schedule Production Activities
Schedule Minimizes Algorithms that manage set up times/ M2.1: Schedule Production Activities
Changeover Costs between costs, cleaning times, and ideal job M1.1: Schedule Production Activities
Products sequences (e.g., color sequencing light M3.2: Schedule Production Activities
to dark)
Schedule Optimizes Use Scheduling utilizing optimization M1.1: Schedule Production Activities
of Shared Resources Such techniques Required production M3.2: Schedule Production Activities
as Tooling and Production resources included in routing/process M2.1: Schedule Production Activities
Equipment instructions
Schedule Reflects Current Schedule undated by on line reporting M3.2: Schedule Production Activities
Plant Status (Equipment and status systems and re-sequence M1.1: Schedule Production Activities
Availability, Other Jobs and activities M2.1: Schedule Production Activities
Resource Availability) On
Line
Segregate In-Bound Carcass None Identified ER.6: Manage Return Transportation
Return Cost from Other
Transportation Costs
Select Carriers by Least Cost Rules based carrier selection and actual D3.7: Select Carriers & Rate Shipments
per Shipment and Rate rate database D3.6: Route Shipments
Using Actual Rates Prior to D1.7: Select Carriers and Rate
Release to Billing Shipments
D2.7: Select Carriers and Rate
Shipments (
Service Provider Utilizes Continuously updated authorized repair ER.7: Manage Return Network
Web-Based Communicate sites Configuration
to Identify New and
Discontinued Repair Sites to
Customers
Set Up Electronic or Pre- None identified DR1.1: Authorize Defective Product
authorized Returns Return
DR3.1: Authorize Excess Product
Return
Shipment Tracking None identified D3.12: Ship Product
D1.12: Ship Product
Customer
Customer
Shipping Docs
D2.12: Ship Product

SCOR
Shipment Tracking and Satellite communications, GPS, RFID SR3.5: Return Excess Product
Tracing SR1.5: Return Defective Product
Short Move Paths Software that allows for input of the EM.6: Manage Transportation (WIP)
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 A data warehouse/data mart is the EP.3: Manage Plan Data Collection
Decision Support and source of all planning (master) data,
Business Rules 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 None identified D2.1: Process Inquiry and Quote
for All Order Inquiries D1.1: Process Inquiry and Quote
(Including Order Entry)
SKU Rationalization None identified EP.7: Manage Planning Configuration
Sound Project Management None identified EP.2: Manage Performance of Supply

Process and Methodology Chain
Specific Changes to the None identified P4.4: Establish Delivery Plans
Plan Are Agreed to Cross-
Functionally, According to
Defined Business Rules
Stage Product or Service None identified D4.7: Deliver and/or Install
Adoption
Staging Based on In-store Items are staged for re-stocking D4.3: Pick Product from Backroom
Zones based on zones within the store. This
minimizes restocking effort.
Standard Inventory Policy to None Identified ER.1: Manage Business Rules for
Determine Excess Return Processes
Standard Operating None identified ED.7: Manage Product Life Cycle
Procedures and ED.5: Manage Deliver Capital Assets
Methodology
Standards and Internal/external benchmarking, EM.2: Manage Production
Measurements Aligned to industry standards, customer/supplier Performance
Maximize Supply Chain alignment agreements, visibility of key
Performance performance indicators

SCOR
Statistical Test Count See detailed description in beginning of ER.4: Manage Return Inventory
this chapter EM.4: Manage In-Process Products
(WIP)
Inventories
Stocking is Completed in Each area of the store has its own D4.4: Stock Shelf
Zones stocking plan and items are routed
specifically to that area.
Storage and Configuration Product data management (PDM) or EM.1: Manage Production Rules
Management for Release Electronic Data Management (EDM)
and Revision Control of Final feature set
Documents
Storage Location Zoning Automated or Optimized Slotting ED.5: Manage Deliver Capital Assets
(Storage Location) Systems
Strategic Safety Stock of Use of safety stock algorithms to M1.2: Issue Material
Selected Materials, Items, or minimize stock levels. M2.2: Issue Sourced/In-Process
Subassemblies to Decouple Product
Sourced Product Issuance M3.3: Issue Sourced/In-Process
Cycle Time from Supplier Product
Lead Time
Strategic Sales and None identified EP.10: Align Supply Chain Unit Plan
Operations Planning Process with Financial Plan
in Place and Managed at the
Executive Level
Substitution Trained staff or automated systems D4.5: Fill Shopping Cart
(Internet) that recommend up-sell,
cross-sell, and/or substitution.See Up
and cross selling
Supplier “Cost of Software application to automate data ES.2: Assess Supplier Performance
Nonconformance” Data collection and reporting
is Collected, Analyzed
and Used in Performance
Reporting
Supplier and Material Web based access to supplier/source ES.3: Maintain Source Data
Rationalization data
Supplier Certification Skip lot/sampling inspection logic S3.4: Receive Product
Programs Are Used to S2.3: Verify Product
Reduce (Skip Lot) or S2.2: Receive Product
Eliminate Receiving S1.3: Verify Product
Inspection S3.5: Verify Product

SCOR
Supplier Certification None identified S3.2: Select Final Supplier (S) and
Programs Can Reduce the Negotiate
Cycle Time for Certifying ES.7: Manage Supplier Network
Existing Suppliers to Provide
New Technologies
Supplier certification ES.7: Manage Supplier Network
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 Electronic Tag tracking to Point of Use S1.3: Verify Product
Point of Use (POU) destination S3.5: Verify Product
Supplier Delivers Directly to Electronic Tag tracking to Point of Use S3.4: Receive Product
Point of Use - (Dock to Line (POU) destination
or End Destination)
Supplier Delivery to EDI link to supplier’s sales order and M2.2: Issue Sourced/In-Process
Production Process at Point inventory systems Product
of Use M1.2: Issue Material
Product
Supplier Development None identified S3.1: Identify Sources of Supply
Programs Are Used to
Get Local Suppliers to
Invest in Developing New
Technologies
Supplier Managed VMI agreements allow suppliers to S1.1: Schedule Product Deliveries
Inventories with Scheduling manage (replenish) inventory
Interfacs to External
Supplier Systems
Supplier Managed Inventory E.D.I. linkage of Inventory Information EM.5: Manage Make Equipment and
of Parts Facilities
Supplier Performance See detailed description in beginning of ES.2: Assess Supplier Performance
Assessment System this chapter
Supplier Replaces Defective Electronic Tag tracking to Point of Use S2.3: Verify Product
Material at Customer’s (POU) destination S1.3: Verify Product
Facility with Good Product S3.5: Verify Product
as Required

SCOR
Suppliers Share None identified P2.3: Balance Product Resources with
Responsibility for Balancing Product Requirements
Supply and Demand
through Joint Service
Agreements
Supply Chain Advance Collaboration among Supply Chain P1.4: Establish & Communicate
Planning System partners extends outwards to Supply-Chain Plans
customers, spanning the supply P1.1: Identify, Prioritize and
chain.Planning,Re-planning,Business Aggregate SC Requirements
Rules,Plan Changes
Supply Chain is Designed None identified P1: Plan Supply Chain
to Have Supply Flexibility
Equal to Demand Volatility
Supply/Demand Process Integrated supply chain planning P1: Plan Supply Chain
is Highly Integrated from system with interfaces to all supply/
Customer Data Gathering demand data sources through public
to Order Receipt, through and private digitally enabled supply
Production to Supplier networks.
Request
Systematic Disposition Of Rules for deciding appropriate EM.5: Manage Make Equipment and
Equipment disposition. Facilities
Systems Support Accurate Advance Planning and Scheduling P1.1: Identify, Prioritize and
On-Line Visibility of System, Supply Chain Event Aggregate SC Requirements
Full-Stream Demand Management Software
Systems Support Accurate Advance Planning and Scheduling P1.4: Establish & Communicate
On-Line Visibility of System Supply-Chain Plans
Full-Stream Demand
as Well as Resource
Utilization and Availability
The Demand Plan is None identified P2.1: Identify, Prioritize and
Updated Frequently to Aggregate Product Requirements
Reflect Actual Consumption
or Customer Forecast
Information
To Address Conditions None identified P4.4: Establish Delivery Plans
which Cannot be
Adequately Satisfied During
the Current Planning
Period, Each Functional
Area Develops Prioritized
Recommendations for the
Subsequent Planning Period

SCOR
Tools Support Balanced Supply chain planning optimization P1: Plan Supply Chain
Decision Making (e.g., system
Trade-Off between Service
Level and Inventory
Investment)
Total Preventative Automatically generated TPM repair ES.5: Manage Capital Assets
Maintenance Program schedules integrated with MRP systems, EM.5: Manage Make Equipment and
electronic equipment repair history, Facilities
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.
Transportation Modeling None identified SR3.4: Schedule Excess Product
and Rate Analysis Shipment
Shipment
Two-Bin Floor Stock None identified M3.3: Issue Sourced/In-Process
Located at Work Center for Product
“B” And “C” Components -
Controlled by Operators and
Replenished When One Bin
is Empty
Unique Identifier Tag for Asset management software using bar ER.4: Manage Return Inventory
Each Repairable Asset code, RFI tag, etc.
Unplanned Orders Are Digital Linkages using XML standards P3.4: Establish Production Plans
Accepted and Scheduled (RosettaNet, eBXML, OAGI) to P4.1: Identify, Prioritize and
Only When There is No automatically query production capacity Aggregate Delivery Requirements
Detrimental Impact on and ATP and schedule unplanned
Overall Product Delivery orders.
Plan
Up and Cross Selling and/or Trained staff or automated systems D4.5: Fill Shopping Cart
Substitution (Internet) that recommend up-sell,
cross-sell, and/or substitution.
Up-to-Date Shop Packet/ Electronic Work Instructions M2.4: Package
Specification for Each M1.4: Package
Unique Production Event/
Demand
Up-to-Date Shop Packet/ Electronic work instructions M3.4: Produce and Test
Specifications M2.3: Produce and Test
M3.5: Package

SCOR
Use an Exchange System None identified DR2.1: Authorize MRO Product Return
Where Customer is DR1.1: Authorize Defective Product
Issued a Serviceable Item Return
Upon Submitting an
Unserviceable Item
Use Demand Planning Demand Planning Systems to forecast P5: Plan Return
returns, predict yield rates for reusable
products or components, determine
demand in a resale market, and project a
revenue stream.
Use Historical Based Return None identified P5.1: Assess and Aggregate Return
Rate Forecasts Requirements
Use of CAD/CAE None identified D3.1: Obtain and Respond to RFP/RFQ
Applications to Simulate
Design, Cost and
Manufacturing Process
Use of Cross Functional None identified EP.5: Manage Integrated Supply Chain
Teams to Execute the Capital Assets
Process of Developing Long- EP.6: Manage Integrated Supply Chain
Term Capacity and Resource Transportation
Plans
Use of Platform Teams in the None identified EP.7: Manage Planning Configuration
New Product Development
Process
Use of Speed Racks for None identified D1.9: Pick Product
Automated Material D2.9: Pick Product
Handling
Utilize Concurrent None identified S3.2: Select Final Supplier (S) and
Engineering with Suppliers Negotiate
to Allow Them to Provide
Engineering and Product
Performance Test Data
Utilize Concurrent Internet, EDI, FAX ES.7: Manage Supplier Network
Engineering with Suppliers
to Allow Them to Provide
Engineering and Product
Performance Test Data to
Qualify as Part of Potential
Supplier Network
Utilize EDI and EFT for EDI transaction and network services D3.15: Invoice
Payment to Speed Closing D2.15: Invoice
of Receivables and to D1.15: Invoice
Reduce Processing Costs
Utilize EDI Transactions EDI interface for 830, 850, 856 & 862 S1.1: Schedule Product Deliveries
to Reduce Cycle Time and transactions S3.3: Schedule Product Deliveries
Costs S2.1: Schedule Product Deliverie

SCOR
Utilize Enterprise Enter, Process, and Deliver information EM.3: Manage Make Information
Information Systems about the manufacturing process to
management using information systems
that span the enterprise
Utilize Internet-Based None Identified ER.6: Manage Return Transportation
Freight Bidding Built Around
Shared Shipping Volume
Projections
Utilize Invoice-less Freight None Identified ER.6: Manage Return Transportation
Payment
Utilize Real-World Cases in None Identified ER.1: Manage Business Rules for
Employee Training Return Processes
Utilize Web-Based Total return asset visibility throughout ER.7: Manage Return Network
Collaboration between the network Configuration
Asset Manager and Repair
Sites Regarding Capacity
and Scheduling
Utilize Web-Based Shared return forecasts ER.7: Manage Return Network
Collaboration between Configuration
Customer and Service
Provider on In-Bound
Return Forecasts and Asset
Tracking
Utilize Web-Based Shared knowledge of resource ER.7: Manage Return Network
Collaboration to Identify availability and bottlenecks Configuration
Potential New Repair Sites
Prior to Their Selection
Value Pricing Based on “Cost Activity Based Costing; Integrated Order D2.2: Receive, Configure, Enter and
to Serve”; EDLP; Cost Plus Management by Customer by Line Item Validate Order
Pricing D1.2: Receive, Enter and Validate
Order
Vendor Managed Inventory See detailed description in beginning of S3.4: Receive Product
this chapter D1.5: Build Loads
EM.4: Manage In-Process Products
(WIP)
P1: Plan Supply Chain
P4.1: Identify, Prioritize and
Aggregate Delivery Requirements
D3.5: Build Loads
M1: Make-to-stock

SCOR
View for Analysis for All Transportation Management System D.6: Manage Transportation
Orders and Shipments the (TMS) Maintenance Management
Following Data: Logistics,
Product, Cost, GL Charging
Wave picking See detailed description in beginning of D1.9: Pick Product
this chapter

GreenSCOR
Best Practice Description/Definition Process
Access to supplier environmental Access to supplier environmental management ES.3
data and compliance data
Aggregate requirements Aggregate requirements to minimize P4.1
transportation requirements
Avoid returns beyond economic Estimate damage to product and do not physically DR1.1, DR2.1
repair return product that is beyond economical repair
or offers no diagnostic value
Balance environmental Balance environmental requirements as well as P1.3, P3.3
requirements supply/demand requirements
Benchmark practices Benchmark practices of other firms M1.3, M2.3, M3.4
Bulk Packaging Package larger groups of items in a single package M1.4, M2.4, M3.5
(bulk)
Bundle deliveries Bundle deliveries of different products into single S1.1, S2.1, S3.3
shipment when possible
Collaborate with supply chain Supply chain partners collaborate to improve the P1.4
partners environmental performance of the supply chain
Collaborative environmental Collaborative environmental management ES.1
management processes processes with suppliers, including EMS
integration
Communicate environmental Include environmental requirements in P1.4
requirements communications.
Consider environmental impacts Consider environmental impacts when identifying P1.1, P1.2
requirements
Consider environmental production Environmental constraints are considered as part P3.2
constraints of production capacity
Considerations emissions in Integrate environmental emissions considerations EP . 6
transportation decisions to transportation decisions. Feature: Implement
Environmental Management System
Consolidate shipments where Consolidate shipments where possible DR2.2
possible
Consolidate to minimize energy Consolidate to minimize fuel/energy consumption D1.4, D2.4, D3.5
consumption
Daily HAZMAT inspection Daily inspection of any hazardous waste storage M1.7, M2.7, M3.8
areas
Develop environmental Develop environmental performance standards. EM.2
performance standards.
Develop supplier partnerships Develop a partnership with suppliers to help ES.2
them implement and maintain environmentally
sustainable business practices
Enable customer direct shipments Enable direct shipments between customers to SR.3, DR.3
reduce overall transportation and handling.

GreenSCOR
Energy-efficient buildings Utilize energy-efficient lighting and heating ES.4
systems throughout warehouse and production
areas
Energy-efficient HVAC systems Utilize energy-efficient HVAC systems ES.4
Ensure environmental Ensure all required environmental documentation M1.6

documentation is obtained
Environmental Management System Implement an Environmental Management P1, EP.8
(EMS) System (EMS) to track and manage environmental
performance and to track performance against
regulatory requirements
Environmental performance Develop environmental performance standards. EP.1
standards.
Establish environmental Establish environmental partnerships with S3.2
partnerships suppliers
Establish environmental Establish supplier environmental requirements ES.7
requirements
Establish spill controls Establish spill controls for finished goods D1.3, D2.3
inventory storage
Factor environmental considerations Factor environmental considerations/restrictions EP.5
into planning into capacity planning
Identify and manage environmental Identify and manage environmental aspects and P1
impacts impacts of supply chain operations to mitigate the
impacts mitigate the impacts
Identify green products Identify products that are manufactured to P2.2
minimize environmental impacts
Identify items to return Identify MRO items that will need planned P5.1
maintenance during the planning horizon
Identify recyclable/reusable Identify recyclable/reusable materials P2.2
materials
Identify take-back programs Identify products in take-back programs that are P5.1
near end of life
Implement pollution prevention Implement comprehensive pollution prevention M1.3, M2.3
program program and include environmentally preferable
purchasing.
Implement an EMS Implement an EMS EM.2, EM.8, M1.3,
M2.3, M3.4, EM.1,
M3.7, M1.6, M2.6
Implement HAZMAT “pharmacy” Implement hazardous materials “pharmacy” M1.6, M2.6, M3.7,
system system EM.5

GreenSCOR
Implement pollution prevention Implement rigorous pollution prevention program EM.8, EM.4, EM.6,
program S1.4, S2.4, S3.6,
M1.2, M2.2, M2.7,
M3.3, M3.8
Include environmental costs Include environmental costs in inventory carrying D1.3, D2.3
costs
Include environmental requirements Include environmental requirements in deliver ED.1
rules
Include product’s environmental Include product’s environmental attributes EM.3
attributes information
Include supplier environmental Include supplier environmental information in M1.6
information addition to product environmental information
Infrequent product delivery Minimize need for frequent shipments by S1.1, S2.1, S3.3
accurately determining product needs
Integrate environmental Integrate environmental considerations into the EP.1
considerations business rules.
Manage environmental Manage environmental performance of the supply EP.2
performance chain.
Manage foreign environmental Manage foreign environmental requirements ED 8
requirements
Manage hazardous inventory Manage hazardous inventory ED.4
Material content classification Material content classification (HAZMAT EP.7

recycleable, etc.)
Maximixe Container Loading Re-design container shapes to minimize material M1.4, M2.4, M3.5
used but retain amount of product stored
Maximize loads, minimize runs Maximize load size; minimize transportation runs P4.3, P4.4
Measure environmental impacts Measure environmental impacts of the supply P1

chain
Minimize energy use Plans are created to minimize energy use P3.4
Minimize Make emissions Plans are established to minimize emissions (e.g., P3.4
release VOCs after dark)
Minimize packaging Work with suppliers to minimize packaging P2.2, P4.2
requirements and use reusable packaging
material
Minimize vehicle fuel use Plan the use of high-efficiency, low-emissions,or P4
alternative-fuel vehicles where possible
Monitor product compliance Review product for compliance with S1.3, S2.3, S3.5
environmental specifications, including product
packaging

GreenSCOR
Monitor supplier environmental Determine supplier environmental compliance EP.8
compliance performance/Actively participate in regulation
development
Plan for proper product disposal Plan for proper product disposal ED.7
Pollution prevention program Implement comprehensive pollution prevention M3.4

program and include environmentally preferable
purchasing.
Product “take-back” programs Select firms that offer product “take-back” S.3.2
programs
Provide environmental training Provide environmental training to all employees M2.3, M3.4, M1.3
Purchase environmentally friendly Purchase environmentally friendly materials P2

materials
Purchase previously used supplies Purchase previously used supplies S3.1
Purchase recycled product Purchase products from recyclers or S3.1

remanufactures
Reduce Make environmental Identify processes that reduce environmental P3
impacts impacts of manufacturing
Retrieve packaging after installation Retrieve packaging after installation for reuse D1.12, D2.12,
D3.10, M1.4, M2.4,
M3.5
Reusable pallets Utilize reusable pallets ES.4
Route to minimize fuel consumption Route to minimize fuel consumption D1.6, D2.6
Schedule air emissions after sunset Schedule air emission emitting activities after M1.1, M2.1, M3.2
sunset
Schedule high energy consumption Schedule electricity consuming (large amounts) M1.1, M2.1, M3.2
at night activities from sunset to sunrise
Schedule to maximize Schedule to maximize transportation capacity D3.4
transportation capacity
Select carriers using retread tires Select carriers using retread tires D1.7
Select carriers with EMS Select carriers that have adopted an EMS D1.5, D1.7, D2.5,
or otherwise demonstrated environmental D2.7, D3.6
commitment
Select carriers with good records Select carriers with good environmental records D1.5
Select complaint carriers Select carriers that have not violated D1.7
environmental laws
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
Select suppliers with EMS Select suppliers with active EMS systems P2, S1, S2, S3

GreenSCOR
Spill control Spill control ED.4
Storm water management plans Implement storm water management and spill ES.4
response plans
Stormwater prevention plans Stormwater prevention and spill control plans for M1.7
waste accumulation areas
Supplier environmental Develop a set of environmental performance ES.2
performance criteria criteria for all suppliers
Take-back program Take-back program at end of product life ED.7
Track foreign environmental Maintain and manage current foreign ES.8
requirements environmental regulations
Track supplier environmental Processes to identify suppliers with good P2
records environmental records
Use multi-purpose packaging Use multi-purpose packaging that can be used by M1.4, M2.4, M3.5
customer
Use non-toxic solvents Use non-toxic solvents for machinery cleaning EM.5
Use recyclable packaging Use recyclable packaging M1.4, M2.4, M3.5
Use reusable packaging Use reusable packaging where possible P4.2
Utilize alternative fuel vehicles Utilize alternative fuel vehicles S1.4, S2.4, S3.6,
M1.2, M2.2, M3.3,
EM.6
Utilize energy-star (or similar) Utilize energy-star (or similar) equipment EM.5
equipment whenever possible
Utilize green purchasing practices Utilize green purchasing practices S1, S2, S3
Utilize high efficiency vehicles Utilize high fuel efficiency vehicles S1.4, S2.4, S3.6,
M1.2, M2.2, M3.3
Utilize maintenance free batteries Utilize maintenance free batteries in warehouse/ M2.2, ES.4
short haul vehicles
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 Utilize off-peak shifts for production workers M1.1, M1.2, M3.2
(e.g.,shift 1 = 11:00–19:00)
Utilize retread tires Utilize retread tires EM.6
Waste accumulation EMS EMS covering waste accumulation processes M1.7, M2.7, M3.8

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 network’s 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.

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.

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.
Other Success Factors The risk management process should be carried out cross-functional
and - if possible - together with representatives from all companies of the
supply chain.

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 Zürich (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 info@supply-chain.org, if you would like to contribute to this topic.

Risk Management
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 chain’s
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.

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.

Reliability Identifying risk is the first step towards reducing the potential for risk which
increases the reliability of the supply chain.

Technology Features Non Identified
Other Success Factors 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.

Risk Management
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.
SCOR’s 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
organization’s supply chain.
t Deliver risk monitoring can be done with customer service metrics.
t Make risk monitoring can be done automatically through an organization’s 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

Risk Management
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.
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
Other Success Factors 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

Risk Management
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.
t Risk assessment is typically made up of two measures: Likelihood and Impact.

t 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).
t 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.
t 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
$80,000
Impact
$60,000
$40,000
$20,000
$0
0 0.2 0.4 0.6 0.8 1
Probability
t 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.
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.

Flexibility Good risk assessments will identify the most significant risks to be mitigated
and, therefore, increase the ability to increase flexibility.
Costs Good risk assessments will identify the most significant risks to be mitigated
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.

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.

Other Success Factors 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)

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

Reliability To improve reliability through appropriate mitigation plans
Costs By avoiding various negative outcomes, can avoid costs.
Various Institute for Supply Management (ISM), other documents.

Risk Management
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 (i.e. refer to the Nokia-
Ericssons 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 company’s
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
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
chain’s partners

Risk Management
Technology Features Using intranet to communicate the organization’s efforts and involve all
employees in managing risk.
Risk management portal with access for all required partners.
Other Success Factors t Holding quarterly meetings of a risk management committee to review
and discuss the organization’s exposure and protection measures.
t Promoting awareness of risk management issues through monthly,
quarterly and annual reports.
t 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.

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 customer-
side 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 organization’s 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.

Risk Management
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
Technology Features - Information sharing and communication systems
- Knowledge base management systems
Other Success Factors Coordinated risk management is most effective when coordination is
geared toward shared responses to risk and focused on best meeting
customer requirements.
“Comcover’s 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

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
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.

None Identified

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
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.

Technology Features Information sharing protocols (e.g., EDI, XML. Etc.)
None Identified

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.
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.

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.
Other Success Factors This practice will be most successful when coupled with other risk
management practices such as coordinated programs and visibility of risks.
None Identified

Risk Management
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
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
Reliability To improve reliability through appropriate mitigation plans.
Costs Helps prioritize improvement efforts.

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.
Other Success Factors Management support.
Strategic sourcing references on demand identification, ABC and Risk Analysis, Stakeholders analysis,
and demand segregation per the training materials.

Section 5
Special Applications
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 Tons CO2 This is the unit of measure currently used for green
Emissions Equivalent house gas emissions and is a measure of the climate
impact from CO2 and other global warming air
emissions.
Air Pollutant Tons or kg This would include emissions of major air pollutants
Emissions (COx, NOx, SOx, Volatile Organic Compounds (VOC)
and Particulate). These are the major emissions that
U.S. EPA tracks.
Liquid Waste Tons or kg This includes liquid waste that is either disposed of
Generated or released to open water or sewer systems (these
emissions are generally listed on water emissions
permits).
Solid Waste Tons or kg The total solid waste generated by the process.
Generated
% Recycled Per cent The per cent of the solid waste that is recycled.
waste
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.

GreenSCOR
Total Carbon Footprint
Level 1 Air+Liquid+Solid-% Recyc=Total Environmental Footprint
Tier 3 Tier 2 Tier 1 Your Company Customer

S1 M1 D1 S1 M1 D1
Level 2 D1 S1 M2 D2 S2
S1 M1 D1 S1 M1 D1 Carbon
Air
Liquid
Solid
% Recyc
M2.1 M2.2 M2.3 M2.4 M2.5 M2.6

Schedule Release
Issue Produce Stage
production Package Product to
Level 3 Activities
Product and Test Product
Deliver
Carbon Carbon Carbon Carbon Carbon Carbon

Air Air Air Air Air Air
Liquid Liquid Liquid Liquid Liquid Liquid
Solid Solid Solid Solid Solid Solid
% Recyc % Recyc % Recyc % Recyc % Recyc % 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.

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.
Total Supply Chain Carbon Footprint

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.

GreenSCOR
Plan Carbon Emissions
Process Number: P1, P2, P3, P4, P5
The sum of carbon emissions associated with Plan.
Level 1 Plan Make Carbon Emissions

^
Level 2 Plan 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.

GreenSCOR
Source Carbon Emissions
Process Number: S1, S2, S3
The sum of the carbon emissions associated with Source.
Level 1 Total Supply Chain Management Carbon Footprint

^
Level 2 Source Carbon Emissions
^
Supplier Management
(See processes under Source)
Level 3
Material Aquisition Management
(See processes under Source)

None Identified
Source Carbon Emissions = Sum of Carbon Emissions for (Supplier Management + Material Acquisition
Management)
Calculation
t Supplier Management = material planning + planning procurement staff + supplier negotiation
and qualification + etc.
t 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

GreenSCOR
Make Carbon Emissions
Process Number: M1, M2, M3
The sum of the carbon emissions associated with Make.
Level 1 Total Supply Chain Management Carbon Footprint

^
Level 2 Make Carbon Emissions
^
Indirect Emissions Related to Production
Level 3
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

GreenSCOR
Deliver Carbon Emissions
Process Number: D1, D2, D3
The sum of the carbon emissions associated with Deliver and/or Install
Level 1 Total Supply Chain Carbon Footprint

^
Level 2 Deliver Carbon Emissions
^
Sales (order) Management
Level 3
Customer Management

None Identfied
Deliver Carbon Emissions = Sum of Carbon Emissions of ( Sales order management + Customer
Management )
Calculation
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.
t Customer Management = financing + post-sales customer service + handling disputes + field
repairs + enabling technologies + etc.
Data Collection
sources .
Discussion

GreenSCOR
Return Carbon Emissions
Process Number: SRx, DRx
The sum of the carbon emissions resulting from returning a product to the supplier.
Level 1 Total Supply Chain Carbon Footprint

^
Level 2 Return Carbon Emissions
^
Source Return Carbon Emissions
Level 3
Deliver Return Carbon Emissions

None Identified
Cost to Return = Sum of Cost to Return ( to Sources + from Customers )
Calculation
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.
t 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

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 Environmental Footprint

^
Total Supply Chain Air Emissions
Total Supply Chain Liquid Emissions

Level 2
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.

GreenSCOR
Total Supply Chain Air Emissions
The sum of the Air emissions associated with the SCOR Level 2 processes to Plan, Source,
Make, Deliver, and Return.

^
Level 2 Total Supply Chain Air Emissions
^
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.

GreenSCOR
Total Supply Chain Liquid Emissions
The sum of the Liquid emissions associated with the SCOR Level 2 processes to Plan, Source,
Make, Deliver, and Return.

^
Level 2 Total Supply Chain Liquid Emissions
^
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.

GreenSCOR
The sum of the solid waste emissions associated with the SCOR Level 2 processes to Plan,
Source, Make, Deliver, and Return.

^
Level 2 Total Supply Chain Solid Waste Emissions
^
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.

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 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.


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SCOR ®

Supply Chain Operations

Copyright 2008 Supply Chain Council Inc.

The Supply Chain Council, Inc.

Printed in the United States of America.

Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc.

1.1.1 Copyright 2008 Supply Chain Council Inc.

Suppliers’ Supplier Your Company Customer Customers’

Copyright 2008 Supply Chain Council Inc. 1.2.1

Level Schematic Comments

1 Top Level Plan Level 1 defines the scope and

(Process Types) content for the Supply-Chain

2 Configuration Level A company’s supply-chain

3 Process Element Level Level 3 defines a company’s

4 Implementation Level Companies implement specific

Figure 2 - SCOR is a hierarchical model with specific boundaries in regard to scope.

1.2.2 Copyright 2008 Supply Chain Council Inc.

Business Process Benchmarking Best Practices Process Reference

Quantify the Quantify the

Characterize the Characterize the

Figure 3 - SCOR is a business process reference model.

Copyright 2008 Supply Chain Council Inc. 1.2.3

1.2.4 Copyright 2008 Supply Chain Council Inc.

Performance Attributes and Level 1 Strategic Metrics

Copyright 2008 Supply Chain Council Inc. 1.2.5

Performance Attributes and Associated Level 1 Metrics

Performance Performance Attribute Definition Level 1 Strategic Metric

1.2.6 Copyright 2008 Supply Chain Council Inc.

Copyright 2008 Supply Chain Council Inc. 1.2.7

SCOR Version 9.0 Changes

Process Change summary

1.3.1 Copyright 2008 Supply Chain Council Inc.

XX = Performance Attribute. The possible values for XX are:

Figure 7, Metrics Coding System

Copyright 2008 Supply Chain Council Inc. 1.3.2

1.3.3 Copyright 2008 Supply Chain Council Inc.

The Technical Change Process

Copyright 2008 Supply Chain Council Inc. 1.4.1

Qualitative Relationship Description

Copyright 2008 Supply Chain Council Inc. 2.1.1

For an order to be considered perfect the following standards must be met:

It should also be noted that a corresponding evaluation of suppliers’ performances could be

Hierarchical Metric Structure

Level 1 RL.1.1 Perfect Order Fulfillment

RL.2.1 % of Orders Delivered in Full

RL.2.2 Delivery Performance to Customer Commit Date

RL.2.4 Perfect Condition

2.1.2 Copyright 2008 Supply Chain Council Inc.

% of Orders Delivered In Full

Qualitative Relationship Description

Copyright 2008 Supply Chain Council Inc. 2.1.3

Level 1 RL.1.1 Perfect Order Fulfillment

Level 2 RL.2.1 % of Orders Delivered in Full

Delivery Item Accuracy

2.1.4 Copyright 2008 Supply Chain Council Inc.

Qualitative Relationship Description

Copyright 2008 Supply Chain Council Inc. 2.1.5

Level 1 RL.1.1 Perfect Order Fulfillment

Level 2 RL.2.2 Delivery Performance to Customer Commit date

Customer Commit Date Achievement

2.1.6 Copyright 2008 Supply Chain Council Inc.