Speeding up the progress curve towards effective supply chain management

Abstract

Introduces a supply chain “health check” procedure successfully applied in the European automotive sector and presents the results for the analysis of 20 trans‐European value streams covering a wide range of first and second tier suppliers. The health check procedure is activated via a quick scan methodology (QSM) requiring execution by a multi‐disciplinary team working on‐site. The degree of integration within the value chain is estimated by the QS team, using the uncertainty circle concept which apportions observed uncertainties in the product delivery process (PDP) according to source. In our experience the four major contributors are: the demand side; supply side; value added process side; and systems controls. The results clearly demonstrate a well‐trodden and hence proven route for value stream performance improvement. They also identify value chain exemplars and many areas of best practice, but most importantly they provide a list of actions focused on improving the performance of individual value streams. Properly applied, re‐engineering programmes based on these trigger points will speed up the progress curve towards effective supply chain management.