Scorecard Concept Description

Global Scorecard.net

Guide to ECR concepts

Demand Management

Supply Management

Concepts

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Supply Management

S3. Integrated Demand Driven Supply

	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
Synchronized Production	The ability to integrate consumer and/or retailer and intermediary demand signals into the planning and production process, and to then repsond to those changes as they occur.	No forward recognition of actual consumer or customer demand. No recognition of need to synchronize production with this demand signal.	Production and material plans based on past history. Marketing and sales forecasts are used as input to adjust production and material requirements.	Supply chain planning processes have started to use customer demand forecasts. Single item forecast communicated to supply chain planning process. Capable of weekly production planning.	Customer demand forecasts are used for supply chain planning for most categories. Capable of forecasting production and material requirements in weekly time brackets by item, by location.	Demand communication processes fully working to take into account planned variances in demand. Planning and production processes completely integrated. Capable of flexible planning, optimising run lengths, stock and costs.
Integrated Suppliers	Manufacturers and suppliers of ingredients, raw materials and packaging working together to enable all parties to optimise costs, quantities and timing of deliveries and production in order to move to real collaboration in the fulfillment of consumer demand.	Relationship between manufacturer and supplier based on order and price negotiations. Supplier not involved in the manufacturer's demand management or management of inventory level.	Acceptance by both manufacturer and supplier that benefits can be achieved by integration in the areas of product change management, demand communication, supplier managed inventory, production, supply and invoicing. Plans developed to start integration but no action yet.	Manufacturer communicates future demand to preferred suppliers. Suppliers manage the inventory levels of materials at the manufacturer's side. Performance and reliability of suppliers is monitored.	Key suppliers are involved in the product change process and into the manufacturer's demand management process. Suppliers manage the inventory levels at the manufacturer's side by replenishment. Self billing operational as way of invoicing. Performance between partners is measured for further improvement.	All the key suppliers are fully integrated into the manufacturer's product change and demand management process and use efficient replenishment and other collaborative techniques. Performance and reliability of production and supply is systematically controlled and consistently achieving required standards. Invoicing is done by self billing.

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