A01 chaf6542 06 se fm indd

Continuous

improvement

Process

improvement

Radical

transformation

(BPR)

Process

integration or

disintegration

Limited

(individual processes)

Extensive

(entire supply chain)

Change scope

Strategy element

SCM approach of Hughes et al. (1998)

Situation analysis

Gather the data:

•  Internal assessment of current approaches to the supply chain

•  External analysis of marketplace trends and customer opportunities

Objective setting

Set the objectives

•  Definition of required target returns and release of shareholder value

Strategy

Frame the strategies:

•  Development of supply chain strategies to achieve these goals (actions)

Tactics

Prioritisation of operational improvement strategies and quick wins

Actions

Implement the change and challenge the thinking:

•  Formation of a supply chain strategy forum to assess the needs

•  Analysis of value- added, cost and cycle time of supply chain activities

•  Cascade of executive- led project groups to scrutinise key processes

•  Allocation of business development strategies to sponsor executives

Control

Measure the outcome:

•  Integration of supply chain measurement in corporation- wide reviews

•  Baselining to maintain pressure for performance delivery

Table 6.3

A SOSTAC™ approach to supply chain management

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Chapter 6  Supply chain management

   Goal-  setting  and  performance  management  for  e-SCM 

 In an earlier section we discussed the benefits of e‑supply chain management. To manage 

e‑SCM effectively, the type of benefits such as time and cost savings and an improved service 

to customers should be developed into a performance management framework. Sambasivan 

 et al  . (2009) have consolidated performance measures described by other supply chain man‑

agement researchers. In their measurement framework, they identified these categories of 

measures and gave examples of metrics within each: