Implementing Supply Chain Operations Reference (SCOR) model made easy using Anaplan:

SCOR is the acronym for the Supply Chain Operations Reference model. It is a process used to evaluate an organization’s supply chain. The SCOR model was developed by the supply chain council with the assistance of 70 of the world’s leading manufacturing companies. SCOR is based on a static model that defines the supply chain structure along with supplychain metrics and scorecards used to evaluate performance and identify areas for improvement.

SCOR Definition:        

The SCOR model describes the business activities associated with satisfying a customer’s demand, which include Plan, Source, Make, Deliver, Return, and Enable. Use of the model includes analyzing the current state of a company’s processes and goals, quantifying operational performance, and comparing company performance to benchmark data. SCOR has developed a set of metrics and best practices information that companies can use to evaluate their supply chain performance.

The model is based on 4 major “pillars”:

  • Process modelling and re-engineering.
  • Performance measurements.
  • Best practices.
  • Skills.

There are four stages to the evolution of such a supply chain network:

  1. Stage 1: Supply Management. The most basic stage, built around an internal MRP system that is lead-time driven.
  2. Stage 2: Supply Chain Management.
  3. Stage 3: Supply Chain Integration.
  4. Stage 4DemandSupply Network Collaboration.

Connected supply chain planning for synchronized outcomes using Anaplan:

In today’s constantly changing market, a supply plan must be resilient to meet demand consistently and efficiently. Supply chain planning with Anaplan provides real-time, end-to-end visibility and   “what-if” scenario planning to ensure an accurate supply forecast across your entire network and to empower teams, including suppliers and other network partners, to collaborate across your business.

What is Anaplan:

With Anaplan’s Optimizer hyperscale computing, Supply chain leaders can convert complex decisions into actionable choices by harnessing real-time signals with enterprise-wide line of sight.

as a purpose-built platform connecting people, data, and plans, Anaplan delivers a unified real-time, cloud-based environment to optimize planning and democratize decision-making across all lines of business and business activities, from strategic to operational levels.

product is a cloud computing, multi-tenant data architecture SaaS platform with a patented, in-memory calculation engine (the Hyperblock).

Anaplan applies hyperscale computing across planning in supply, demand, sales and operations and Finance. Orchestrate actionable insights into action by converting constant change to your advantage.

Anaplan: Functionality for the entire strategic planning process

The functionality and flexibility of the Anaplan platform means it can be used at every stage of the strategy formulation and implementation process. They can also quickly integrate data from other parts of the business to see the recent history of key drivers that underpin the longer-term strategic planning model. Since Anaplan is designed for self-management, users can quickly create and test new scenarios delivering just the type of agility and understanding that is frequently lacking in Supply Chain Management (SCM) today.

Model your supply chain with intelligence:

A resilient supply chain should be your competitive advantage. It should be enabled to real-time collaboration across departments, functions, suppliers, and customers.

  • Create a complete, high-fidelity digital twin of your supply chain to unlock end-to-end visibility and control.
  •   Establish planning horizons, from daily to long-term, that match the pace of your business.
  • Aggregate data into a single source of truth, allowing changes in one area to immediately roll to all others.

At Solvanni, we have made the life simple for customers building the SCOR model in Anaplan platform that you can easily consume and implement by integrating your data and standardizing your processes across Plan, Source, Make, Deliver, Return and Enable processes

  • Anaplan also negates the need to resort to a stand-alone solution for Supply Chain Management, Integration and Demand-Supply Network Collaboration. Anaplan based Supply Chain and Operations Solutions helps management teams to deconstruct their strategy (i.e., identify what factors are critical to a Supply Chain Management success and track them by monitoring the appropriate key performance indicators [KPIs]).
  •  Critically, Anaplan based SCOR Framework Implementation in Supply Chain also monitors the assumptions that underpin strategy and progress against strategic imperatives so that the management team gets the early warnings needed to react and change course before it is too late

Anaplan delivers rapid time to value.  By contrast, Anaplan’s flexible data architecture and built-in intelligence means implementations can be rapid and iterative, with changes and enhancements being made at any time. This also helps you adapt rapidly when your demand and supply changes.

Source: SCOR model and SCRO Implementation Racetrack images from ASCM/ APICS

Why an organization needs SCOR?

The SCOR process can go into many levels of process detail to help a company analyze its supply chain. It gives companies an idea of how advanced its supply chain is and when an organization is into activities pertaining to Globalization like

  1. Introducing innovative new products.
    1.  Acquiring Companies.
    1. Enabling new business model.
    1. New Go-To-Market Strategy 

Also, when an organization is affected by changing market conditions due to

  1. Global pandemic impact like COVID -19.
  2. Changing relationship between U.S and rest of the world (Eg.- China).
  3. Natural disaster across the globe

It makes it imperative for the organization to get in place quickly a new supply chain strategy

  1. To align to changing business strategy based on current prevailing scenarios.
  2. To support different business model.
  3. To build agility and flexibility to adopt to changing market conditions.
  4. To establish metrics to measure progress and be a best-in-class supply chain in the industry.

We at Solvanni help organizations to Implement SCOR model in the supply chain management by ensuring we satisfy the above said important supply chain requirements and at the same time we take a cross-enterprise integrated approach, by tightly integrating with other processes and systems.

How to implement SCOR model metrics and performance measurements:

There are three levels used to measure supply chain performance. These levels help standardize supply chain performance metrics so that companies can be evaluated against other businesses, even if they are operating differently. A smaller organization can be compared to a bigger organization, or businesses can judge supply chain performance against companies in other industries.

The three levels include:

  • Level 1: Defining scope, including geographies, segments and context. At this level, the focus is on the six main process configurations: plan, source, make, deliver, return and enable.
  • Level 2: Configuration of the supply chain, including geographies, segments and products. At Level 2, metrics are high level and evaluated across multiple SCOR processes. This level includes subtype categories that fall under the “parent” categories found in Level 1.
  • Level 3: Process element details, identifying key business activities within the chain. At this level, you can associate any Level 2 process or subcategory with a Level 3 process.

Challenges faced by Organizations in Data collection and implementing SCOR Metrics:

Every organization is challenged with measuring the industry standard way and data collection and measuring the right way. Solvanni’s expertise in Data management, deep Supply chain expertise and Anaplan ready App solution brings the value to customers in terms of time to value, ease of implementing SCOR processes, metrics and measuring KPIs to drive internal organizational process excellence and with external partner customers, suppliers, logistics partners and transportation providers.

Solvanni’ s SCOR model in Anaplan helps companies:

  • Benchmark against peers, best-in class and laggards.
  • Translate business strategy to supply chain strategy: How closely is the supply chain strategy meeting business plan objectives?
  • Measure supply chain performance: How are you doing, how are you trending?
  • Understand relative performance compared to competitors: How are you doing compared to your supply chain strategy
  • Identify and monitor processes that most likely cause the performance gaps: What improvement targets should you pursue?

The Solvanni’s SCOR model in Anaplan  can be easily configured into many levels of process detail to help a customers analyse its supply chain,  gives idea of how advanced their supply chain processes are. The helps customers understand how the 5 steps repeat and connected between suppliers, the company, and customers. Each step is a link in the supply chain that is critical in getting a product successfully along each level.

Solvanni’s SCOR Model in Anaplan delivers

 1) Building a technology investment roadmap.

 2) In search of return on investment (ROI) for capacity creating a supply chain strategy.

 3) Implementing supply chain performance improvements.

 4) Improving sales and operations planning.

 5) Developing organizational talent, support, and competence.

 6) Maximize use of existing technology.

 7) Achieving operational excellence.

 8) Due diligence as part of a merger or acquisition.

 9) Globalizing and managing business processes.

10) Integrating with the greater value chain, lean, six sigma, and SCOR to build a better project portfolio for an effective and efficient supply chain organization.

We help Customers to start measuring the top performance attributes a company is looking forward to focus and its related Level-1, Level-2, level-3 metrices and the data that are needed to measure at all these levels. Below is a sample depth of metrics and count of data points we work with customers to integrated SCOR model in Anaplan with enterprise source systems

Performance AttributesLevel-1 Metric(s)Level-2 Metric CountLevel-3 Metric CountData Points
ReliabilityPerfect Order Fulfillment41329
ResponsivenessOrder fulfillment cycle time53233
AgilityUpside/Downside Supply Chain Adaptability Value at Risk15
CostSupply Chain Management Costs Costs of Goods Sold92243
AssetCash-to-Cash Cycle Time & Return on Supply Chain Fixed Assets Return on Working Capital81236

Solvanni can help Customers in Data collection (as in above table) from Source systems, Data sanity check, Cleanup and Governance: All these can happen in parallel for each of the Performance attributes while we help customers to implement and standardize their processes based on SCOR model

The industry standard metrics and how Solvanni helps a Company can measure them:

Solvanni follows a process-oriented approach as recommended by Gartner to measure Supply Chain business capability which provides the ability to measure a Process maturity and related Systems capability.

Solvanni ensures Customer gets to

  • Align Processes with Industry standard practices and enable scalability and agility of related IT applications
    • Standard Metrics to measure and identify areas for improvement – Projects and Enhancements
    • Prioritize improvement initiatives based on quantitative analysis
    • Bring one common definition and language of communication

Using these above Charts, customers can set their internal goals and measure their performances month over month, quarter over quarter and year over year.

The SCOR model has proven to benefit companies that use it to identify supply chain problems. The model enables full leverage of capital investment, creation of a supply chain road map, alignment of business functions, and an average of two to six times return on investment.

Thus, Solvanni can help you with its Anaplan based SCOR implementation to achieve real-time line of sight and ensure accurate supply forecasts across your extended enterprise to meet demand consistently and efficiently thus helping to identify critical supply planning patterns and signals with insight and a single source of truth.

Pls call us or send email to contact@solvanni.com for a demo and discuss your process standardization and excellence through SCOR Implementation journey

How you can leverage Solvanni’s unique Positioning & Capabilities to reduce your current supply chain risks?

The unprecedented supply chain disruption caused by COVID-19 has had severe operational and financial consequences, with decision makers and planners having to address issues related to

  • Demand drops
  • Surges by segment
  • Supply shortages
  • Inventory placement challenges
  • Reduced productivity & lot more.

Manufacturing Companies must focus on the immediate challenges of keeping their businesses stable. They must form rapid response teams to gain a better understanding of their production demand changes, labor support challenges and supply chain ecosystem constraints.

They also need to focus on building a business that is as future-proof as possible, using new resilient working model to increase reliability, responsiveness and cost management, sustaining the product operations, and human capital workforce through the crisis. As well as being essential now, these future-proofing actions will also help sustain competitive advantage to accelerate business growth once economies rebound.

Three immediate actions to build agility now and in the future:

  1. Understand the impact of demand disruptions. 
  2. Ensure manufacturing ecosystem viability.
  3. Rebalance physical production network assets.

  1. Understand the impact of demand disruptions

Manufacturers must rapidly identify the products that are most critical for stabilization and growth, shore up associated supply chains, and reconcile critical skills to meet near term and future demand.

Demand priorities in product portfolios have changed drastically. We see three key scenarios affecting manufacturing assets:

  • Manufacturers are shifting to address opportunities for hypergrowth (e.g., canned, shelf stable and frozen goods, respirators, personal protective equipment).
  • Manufacturers are transitioning and repurposing legacy lines to make new products to support the community (e.g., distillers producing hand sanitizers).
  • Manufacturers are slowing or shutting down production volumes, where demand has drastically fallen off or supply chains have been disrupted,

In all scenarios, manufacturers need to rapidly identify the products that are most critical for stabilization and growth, shore up associated supply chains, and reconcile the critical skills to meet near term and future demand.

2. Ensure manufacturing ecosystem viability:

Manufacturers must understand the implications of COVID-19 and contract provisions for each critical ecosystem player, including

  • Sourcing Material suppliers
  • Sourcing Contractor companies
  • Sourcing Co-manufacturers
  • Sourcing Logistics providers.

Ecosystem relationships typically suffer the most during massive market disruptions. Given the increasing adoption of ecosystem-based global supply chains, this is a challenge for manufacturers.

3. Rebalance physical production network assets:

The rapidly changing demand/product mix, combined with workforce and ecosystem availability challenges, may be substantially disrupting manufacturers’ existing physical production networks. Companies must make fast and accurate decisions on the capital investment, new technology investments with new supply source manufacturers, enabling new suppliers through knowledge sharing collaboratively and effort required to redeploy underutilized assets or build greater flexibility in current assets in the short term. At the same time, they must ensure those decisions do not inhibit future growth.                       

Looking to the future: Solvanni recommends taking the following actions:

Manufacturers must take a hard look at existing operating models – where and how work gets done and for what reason, challenging legacy ways of working, and building in more transparency and intelligence across core ecosystem partners and the entire physical supply chain network.
There are essential steps for manufacturers to reshape themselves into partnership-enabled, resilient, and agile organizations. Manufacturers must drop the idea of suppliers and choose 9*

Important Pointers for the manufacturing companies especially in U.S going forward,

  • Work with planners to confirm customers’ and the market’s actual needs to segment demand of critical products needed for production reprioritization.
  • Drop the idea of suppliers and choose partners instead.

  • Find the right partners who do sourcing, manufacturing capability assessment, proper screening, pilot batch manufacturing and supplier qualification.
  • Be open towards investments with new or strategic partners on new technology and process capability enablement
  • Segment operations based on market outlook, taking into consideration supply chain input for customer demographics, geographies, market sales channels, and decide which production is in high demand which requires repurposing, slowing down, shutting down or re-channeling.
  • Develop rapid demand and supply scenarios to confirm operational feasibility.

  • Develop a road map for the next wave of in-demand changes and product needs.
  • Assess whether co-manufacturing alliance partners and the extended ecosystem are still viable options and whether they can meet any new demand/product mixes.

  • Review contracts to determine if any obligations need to be changed in the light of the current situation i.e., many companies are choosing to lease their equipment instead of selling upfront to give advantage to their customers in terms of cash flow which is the biggest challenge during these crisis situations
  • Analyze the demand/product mix, workforce, and ecosystem to identify critical facilities, equipment and processes.
  • Ensure proper alignment of their Supply chain partner’s deliverables with their overall strategic goals.

Solvanni’ s solution to the present supply-chain debacle:

To overcoming above said challenges, manufacturers are looking beyond their traditional outsourcing destinations.

Sourcing image

Large and small manufacturers in the US have largely been the first movers in this direction. US manufacturers exploring nearshore destinations are stumbling upon human-resource issues within the country and Mexico, and protectionist tariffs in South America. On the other hand, the Asia Pacific region, mainly India, has been emerging as a desirable geography, given the lower costs of operation and higher availability of quality Supply chain partners. Steady FDI inflow into the region over the last decade has also improved its USP as a potential supplier market with a robust manufacturing environment.

Despite the advantages, a nagging concern for manufacturers looking for newer options is finding the right suppliers, who will not only be resource providers but also close partners. Manufacturers are also looking for similar operating-cost environments as in their current locations. They want to ensure proper alignment with their overall strategic goals. To find the right fit, they are loaded with the tedious tasks of

  • Identifying suppliers
  • Evaluating technical and financial ability of the providers.
  • Sourcing, manufacturing capability assessment,
  • Screening
  • Quality checks
  • Pilot batch manufacturing
  • Supplier qualification
  • Ensuring a steady and reliable mass production output capacity with the supplier partners.

Solvanni is the one-stop destination to solve all the above listed tedious tasks. As industry leaders in supply chain efficiencies, our gamut of offerings ranges from physical sourcing, procurement to logistics.

Solvanni have significant presence in India with its own offices and work force. India is fast emerging most sought-after destination for finding the right Supply chain partners. Also, India has been emerging as a desirable geography, given the lower costs of operation and higher availability of wide range of raw materials, semi-finished and finished components. 

Our unique standing in the market as an end-to-end supply chain services provider – covering both the Manufacturing companies of U.S with its head office in Fremont, California, U.S and having good presence and capacity with its branch offices and vibrant work force spread across in the sub-continent of India (APAC)- is a distinct value proposition we bring to the table. Since Solvanni operates globally in the Americas and the APAC region, we are uniquely placed to do the legwork and be the one point of contact to all your sourcing needs. The long process, which could potentially run into several months, can be brought down to a few weeks because of our extensive supplier network.

We work closely with various manufacturers in APAC to connect you and establish business operations quickly for raw materials, semi-finished and finished engineered components for manufacturing, high-tech, automotive, wireless, CPG, engineering, and process industries etc.

With our extensive supplier network and vast experience in the procurement arena, we can cater to all your supply-chain needs.

We offer complete solutions right from

The only way out is to develop supply chain resilience and to reduce risk. We understand the difficulties in planning to do so. We are here to help you overcome your supply-chain sourcing and procurement challenges and to be your single-point contact to source, procure, transform, and deliver.

   Identifying suppliers  Testing
   Financial and technical audits  Validation
   Design engineering  Inventory management
   Precision manufacturing  Logistics services

Call us, tell us your challenge. we are here to solve your business problem

Resilient and responsive S&OP- The force behind successful Supply Chains

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The new normal is testing supply chain resiliency and organizations are forced to revisit their demand and supply operations and drive new revenue streams. Sales and Operations planning (S&OP) typically face time, people and monetary constraints. As the new unexpected global crisis tossed aside months of careful planning, business executives were forced to go back to the drawing board, re-planning using traditional tools and solutions. This highlights the glaring gap in S&OP planning as organizations increasingly look at making strategic and data backed decisions now and in the near future.

The need for speed in S&OP decision making

Sales success invariably depends on integrating the right sales behaviors with real-time planning and analytics to maximize returns. S&OP is the backbone for the entire organization, more so in times of crisis, and hence the process needs to build in inherent resiliency and be ready to respond in any situation. Here we look at a few simple tactics to create S&OP processes that stands the test of time.

  1. Integrated S&OP platforms

To empower S&OP teams to make sophisticated planning decisions, and meet continuously changing business realities, the first step is to do away with the decision latency associated with multiple, disconnected supply chain planning systems. Incomplete S&OP processes are more often than not a result of disconnected sales/marketing, finance and other internal systems. A unified platform goes a long way in enhancing collaboration and aligning decisions across departments. An easy-to-use collaborative platform can not only improve service levels and plan accuracy through better customer and supplier collaboration, but also helps maximize market opportunity, profitability and customer satisfaction while reducing supply chain risks.

  1. ML based forecasting that takes accuracy from good to excellent

“The traditional monthly S&OP cycle will no longer cut it. Rapid re-planning and in-cycle adjustments will become the norm.”  Mark Hermans, Managing Director at PwC, Aug 2020

The COVID-19 crisis has well exposed the vulnerabilities of traditional statistical models that cannot portray previously unknown demand patterns. To increase planning efficiency, it is a must to create capabilities that can take into account an entire ecosystem on-demand. There are tools in the market that has the ability to ingest up to multiple data inputs and greatly enhance the quality of the forecast. Inbuilt ML capabilities train forecast models to deliver more tailored outputs. This enables S&OP decision makers to acquire a better understanding of future drivers, predictions, and the impact of different “what-if” scenarios.

  1. Robust, accessible and simple

Many a time the inherent complexity of an S&OP platform dissuades users from leveraging the same to create meaningful reports. Thus, they are left hanging in the face of supply chain disruptions with no ability to anticipate the sudden demand changes. This highlights the need to adopt tools that simplifies the process, allows flexible modeling, and provides a better user interface. Such a tool doesn’t require any intervention from data scientists or ML experts for configuration, deployment or operation, empowering users to go the full length and unlock intelligent insights. Sales teams can also leverage the platform to easily convert customer data into a format that is forecast friendly thus avoiding tedious manual data preparation

S&OP transformation: Infusing resilience and agility

Supply chain resilience is an outcome of an organization’s S&OP resilience.  Transforming the S&OP process not only acts as an insurance against future disruptions but also enhances the daily planning activities. Infusing agility into S&OP improves collaboration among sales, product, innovation, finance, operations, and marketing units, increases productivity with improved processes, facilitates better understanding of the underlying risks and opportunities, and help teams make more informed predictions while expending fewer resources. With detailed P&L interactions, intuitive scenario planning, and near real-time supply-demand balancing at their disposal, such teams are a step forward when it comes to quickly and nimbly responding to supply chain emergencies.

Thanks to COVID to make us realize the reality of Supply Chain Disruptions and how we can work towards mitigating the Supply Chain Risk