Analyzing supply chain processes using process frameworks

- What is a supply chain anyway? The truth is that there are a lot of different definitions, but it often helps to think about a supply chain as a series of processes. You have a process to order raw materials, then you have manufacturing processes, sales processes, and delivery processes, and all of these processes are connected to one another, like the links in a chain. In order to analyze all of the processes in that chain, we need a framework. So in this video, we'll look at three of the most widely-used supply chain process frameworks. First is the Global Supply Chain Forum, GSCF, framework. It breaks the supply chain into eight processes: customer relationship management, supplier relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, product development and commercialization, returns management. The GSCF framework emphasizes how important it is to manage the transactions between companies and to manage the relationships with customers and suppliers. Next is the Supply Chain Operations Reference, or SCOR model for short, which is curated by the Association for Supply Chain Management. The latest version, called the SCOR Digital Standard, defines seven groups of supply chain processes: plan, source, transform, order, fulfill, return, and orchestrate. These process groups can be broken down into more detailed sub-processes and activities. Finally, we have the American Productivity and Quality Center framework. The APQC process classification framework has 13 categories that they call process groups: develop vision and strategy, develop and manage products and services, market and sell products and services, manage supply chain for physical products, deliver services, manage customer service, develop and manage human capital, manage information technology, manage financial resources, acquire, construct, and manage assets, manage enterprise risk, compliance, remediation, and resiliency, develop and manage business capabilities, and manage external relationships. Like the SCOR model, each of these process groups can then be broken down into processes, activities, and tasks. All three of these frameworks try to capture the most important steps needed for creating and delivering value in a supply chain. There are a lot of similarities between them because they're really just different ways to try to describe the same supply chain processes. The truth is, you'll probably only use one of these frameworks on any particular project, but since different companies prefer different frameworks, it's helpful to be familiar with all of them. Using a process framework to analyze the steps in a supply chain can help you pinpoint trade-offs and ensure that your decisions align with the results that you want. And frameworks also make it easier to focus on the key metrics that will help you measure the success of your projects.