Scorecard Concept Description

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Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Supply Management

S1. Supply Strategy & Capabilities

	Score	0	1	2	3	4
Concepts	General Meaning	Nothing Planned	Plans agreed but have not yet started implementation	Pilot tests being conducted	Roll out of implementation started	Fully Implemented
Strategic Direction	Strategy aligned with the supply management principle to maximize points of sale product availability and balance total supply chain capabilities, cost and inventory levels, as well as taking into account demand side strategies.	Traditional push-mentality with little regard for the effects on the supply chain. Current capabilities not actively challenged.	Early indications of willingness to work with trading partners to improve supply chain capabilities and reduce cost using pull demand signals.	Pilot projects started for working with trading partners to improve supply chain capabilities and reduce cost using actual demand signals. Good understanding of the linkaged in the supply chain and the relatively between service and cost. Change of supply	The supply chain is managed using actual information for major trading partners, linkages being build along the supply chain. Results improving in the supply chain.	Supply chain managed according to actual consumer demand information, strong linkages built along the entire chain of trading partners, delivering superior service and lowest possible cost.
People & Organization	The degree to which the structure, knowledge, HR planning and culture of the organization, as well as people skills and remuneration policies have changed to support supply management. Decisions and rewards based on overall services levels, balanced with cost and inventory.	Traditional organization structures - (e.g. silo management at each stage of supply chain)	Silo Management of the supply chain but with plans to change. Traditional barriers understood and organization moving towards an integrated supply chain focus.	Total Supply Chain teams assume responsibility for logistics planning. Plans in place to restructure organization. Relationships with trading partner's logistics organization starting to emerge.	Total Supply Chain teams assume responsibility for total logistics system. Building direct links with counter-part teams in key trading partners.	Joint Total Supply Chain teams assume responsibility for total supply chain for items of common interest. Changes to structure, HR planning, culture and remuneration policies are completed. Decision made in context of overall supply management strategy. Preferred partnerships are considered the way of doing business. Employees work actively with trading partners and are often swapped on project teams.
Information Management	The degree to which the information systems have changed to provide information that is structured to support supply management.	Traditional information management that does not support cross-functional co-operation.	Plans to implement integrated supply chain exchange of information with trading partners.	Some supply chain data communicated manually with some trading partners.	Sharing of point-of-sale transaction data between key trading partners. Supply chain data communicated electronically with key trading partners.	Integrated support systems are used to share supply chain information with all relevant trading partners on a continuous basis.

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