THE
FIVE KEY ATTRIBUTES
OF
SUPPLY CHAIN
EXCELLENCE
1
3
2
4
5
By Jeanne Reisinger
Global Supply Chain Improvement Strategist
(retired Global Supply Chain Director, Procter & Gamble)
In partnership with TRACC Value Chain Improvement Solution
Jeanne Reisinger
Jeanne worked as a Supply Chain Leader at Procter &
Gamble for 32 years. She has turned supply chains from
non-strategic ‘costs to be managed’ into valuable assets that
drive competitive advantage. Her scope of work extended
from strategic network design to operational excellence
across the entire value chain. Jeanne’s footprint is visible
from North America Paper and Health & Beauty businesses
to Asia Logistics, from the P&G Walmart Customer Team to
the Corporate Center of Excellence and the Global Household
Care business. She consistently delivered breakthrough
change that improved service, reduced cost and cash, and
accelerated sales growth. Today, Jeanne is a trusted Value
Chain Advisor to companies around the globe looking
to transform their value chains through an integrative
continuous improvement approach.
ONE /
There must be
“
constant outreach
to customers to
understand evolving
trends so your
company can lead
the way as the
bar is raised.
”
CUSTOMER FOCUS — BY THE ENTIRE COMPANY
The most important attribute of an excellent supply chain
is constant focus on the customer. It starts with a deep
understanding of each customer segment and their
service requirements. Customer service requirements and
buying behaviours are differentiated so it is clear what
features are the ‘price of entry’, and which features allow
you to ‘win in the market’. This knowledge must be shared
broadly so every function knows their role in satisfying
the customers’ needs. Supply chain capability is created
to meet the requirements, resulting in customised value
chain solutions. There must be constant outreach to
customers to understand evolving trends so your company
can lead the way as the bar is raised.
The Value Chain Alignment TRACC leads you through the
steps to segment your customers, identify their service
requirements and then analyse the capability of your
existing supply chain to meet those needs and make the
necessary adjustments. It drives alignment by all functions
to the core mission of understanding and meeting everchanging customer requirements.
The Five Key Attributes of Supply Chain Excellence l
1
TWO /
and
“ Collaboration
integration across
functions are critical.
”
COLLABORATION AND INTEGRATION ...
OF ALL FUNCTIONS
Supply chain excellence is not just about excellence by
the Supply Chain function, but excellence by all functions
working together, focused on the customer. Collaboration
and integration across functions are critical.
This collaboration and integration comes naturally when
the following conditions are in place:
There is a formal process to share knowledge about
current customer requirements and future evolving
trends
Work is organised around the core horizontal processes
that run the business and cross-functional boundaries
There are common measures between functions for
each of the shared work processes
Each TRACC best practice involves members of multiple
functions working together to better align the company’s
capabilities to meet customer requirements.
THREE /
Excellent supply
“chains
set targets
that use the creative
tension of these
seemingly conflicting
measures to win in
the market.
”
MEASURES LINKED TO BUSINESS OUTCOMES
It is critical that all parts of the business understand
how their work processes contribute to achieving the
company’s revenue, cash flow and profit goals. Since ‘you
get what you measure’, it is important to choose both
the measures and the targets wisely. As an organisation
matures, it should focus on input and process measures
in addition to output measures. Supply chains are a
balancing act between cost, service and responsiveness.
Excellent supply chains set targets that use the creative
tension of these seemingly conflicting measures to win in
the market.
A foundation of TRACC is the balanced scorecard. Each
function, work process, and supply chain must select the
KPIs that reflect the needs of their internal and external
customers.
The Five Key Attributes of Supply Chain Excellence l
2
FOUR /
“ Horizontal Process
Excellence is all
about the seamless
integration of people
working towards
common goals.
”
HORIZONTAL PROCESS EXCELLENCE
Each company is driven by a set of operational processes that
run the business. These processes range from demand and
supply planning to sourcing, making and delivery. Creating
a formal or informal organisational structure between the
people who run these processes, allows the experts in the
process to work on the process. The people, who come from
multiple functions, create common goals and measures and
feel a sense of ownership for the continuous improvement
of their process. Horizontal Process Excellence is all about
the seamless integration of people working towards
common goals.
TRACC best practices are designed around horizontal
processes and use Implementation Task Force structures
to bring people from different functions together to drive
integrative improvement.
FIVE /
“ Excellent supply
chains can create
capabilities that
enable a shift in the
business strategy,
which can then open
new markets and
grow the business.
”
SUPPLY CHAIN STRATEGY INFLUENCES
BUSINESS STRATEGY
It is clear that a supply chain strategy must be aligned to
the business strategy – that is essential. The opportunity
is created when supply chains move from being
reactive to proactive and actually influence a change
in the business strategy. Increased line flexibility and
quick changeovers can allow a broader SKU offering
that meets the need of a new customer channel.
A change in the distribution network can bring the full
product line-up closer to the customer, allowing broader
category penetration of the customer. Excellent supply
chains can create capabilities that enable a shift in the
business strategy, which can then open new markets
and grow the business. Supply chains are an asset to be
leveraged.
The TRACC maturity model takes you to World Class where
your company delivers best-in-class results and is leading
the way in defining Best in Class for the future.
The Five Key Attributes of Supply Chain Excellence l
3
ONE
SOLUTION TO ACHIEVE YOUR
IMPROVEMENT STRATEGY
Why ONE solution to achieve your operational
improvement strategy?
Meeting the ever-changing demands of markets,
shareholders and customers means constantly evolving
and improving every aspect of your global organisation. To
drive business performance improvement and standardised
efficiency gains across your support network, you need an
integrative best practice and process improvement system.
You also need to create a culture of empowerment, while
at the same time upskilling work teams using the same
playbook. If you don’t, your organisation will experience
pockets of excellence that are not replicated. To outperform
your competitors, all your improvement projects and
processes need to be collapsed into ONE standardised
tried-and-tested solution that allows everyone in your
value chain to continuously improve and share its practices
and core processes.
TRUSTED BY:
AkzoNobel, Anglo American, Astrapak, Beam, CCU, Coca-Cola
Bottlers, COFCO, Diageo, DuPont, Heinz, Incitec Pivot, Kellogg’s,
Lion, MillerCoors, SABMiller, SCMC, Swire, Weetabix, and many
more.
The Five Key Attributes of Supply Chain Excellence l
4
T he TRACC V alue C hain I mprovement S olution
TRACC follows an integrative improvement approach. Integrative improvement is the new approach to sustainable continuous
improvement. Without this approach, performance improvement using methodologies such as Lean, Six Sigma and Supply Chain
Optimisation are not sustainable. Integrative, in the sense of continuous improvement, must relate to each and every part of your
organisation ­­­­— including its people, processes and systems.
With TRACC, your people own the improvement process and can apply it across multiple operations, cultures and languages ­—
simultaneously. Never before has it been possible to collapse all your improvement projects across your entire value chain into
one solution which engages all your people in your improvement strategy.
To achieve accelerated business performance improvement that is both notable and sustainable, and to continuously increase
value, you need to improve everything and enable everyone across your PLAN, SOURCE, MAKE, and DELIVER processes.
TRACC provides
the following solutions for your business
TRACC IMPROVEMENT STRATEGY AND
ENABLEMENT BEST PRACTICES
...
TRACC PLANNING
BEST PRACTICES
You need to balance the interaction between demand
needs and supply capability. You need a solution
that enables your people to secure alignment and
cooperation across functions and departments,
and builds and supports the human capital that is
necessary to reach world class.
[3 best practices]
You need to guarantee both planned production that
meets forecast demand and the availability of the
appropriate amount of raw materials and goods for
planned production runs. You need a solution that
builds a more agile, flexible and responsive supply
chain with an integrated and structured approach to
planning.
[7 best practices]
TRACC SOURCING BEST PRACTICES
TRACC OPERATIONS BEST PRACTICES
You need to manage complex data, compliance and
risk across increasingly global, multi-tier supply chains.
You need a solution that helps you reduce the total
cost of ownership (TCO) and enables your people to
deliver to supply chain KPIs.
[4 best practices]
You need to improve operational efficiency and cut
costs without reducing value. You need a solution that
standardises and integrates best practice, and enables
your people to implement efficiency improvement
simultaneously across multiple plants.
[13 best practices]
TRACC LOGISTICS BEST PRACTICES
TRACC TRANSACTIONAL SERVICES
BEST PRACTICES
Your processes are misaligned and there are activities
in your warehouses and across transportation that
compromise the management and delivery of your
products. You need a solution that organises and
coordinates all activities regarding the receiving,
storage, preparation and distribution of your products
to be on time and delivered in full.
[5 best practices]
You need to ensure a high level of transactional
service in order to increase profit margins, attract
new customers and retain existing ones. You need a
solution that improves processes, and embeds Lean in
the high-volume transactional areas of your business.
[4 best practices]
The Five Key Attributes of Supply Chain Excellence l
5
WHAT MAKES
TRACC
UNIQUE
?
TRACC is the only solution that provides an integrative improvement system
that delivers sustainable business improvement results through best practice
and work process improvement. It also creates a culture that enables your
people to drive up operational effectiveness and efficiency, maximising value
TRACC
Improve Everything Enable Everyone
to your customers.
TRACC
SYSTEM , SERVICES AND SUPPORT
SYSTEM
TRACC Platform
TRACC’s Integrative Improvement System provides a
secure online platform (digiTRACC) and application
that enables you to assess your organisation’s practice
gaps, maps out the recommended sequence of best
practice and process improvement steps, and provides
the work packages to action these improvement steps.
TRACC Reader
The system includes an application for tablets (iPad
and Android) and Windows PC that provides TRACC
users with easy, mobile and electronic access to
the TRACC best practice steps, shared learning and
resources.
services
TRACC Trusted Advisors
TRACC Trusted Advisors walk every step of the way
with your internal implementation and training teams,
guiding them through the process, and coaching and
training them on how to implement TRACC, build
capability, achieve your improvement strategy and
sustain the improvements.
SUPPORT
TRACC Training
The TRACC platform includes training programmes and
materials designed to be customised and delivered by
internal trainers. The training methodology enables
companies to be competitive by unlocking the inherent
capabilities of employees at all levels.
TRACC System Support
To ensure rapid deployment, TRACC provides secure
online platform set-up and virtual training. As part
of the secure platform set-up, various user groups
are created for your organisation. This enables your
business to control access rights such as creating and
conducting assessments, viewing specific business
areas, and system administration.
TRACC eLearning Cogs
The TRACC Solution provides online learning with
overviews of each best practice, to ensure newcomers
or latecomers to the process are given the opportunity
to accelerate their understanding of each practice and
work process improvement.
TRACC Community
The TRACC online community of best practice provides
a mechanism for TRACC users to see photographic
examples of what good looks like. This support service
also provides peer networking and discussion forums
for shared learning.
The TRACC Integrative Improvement System allows
you to:
ASSESS your best practice and identify opportunities
and losses
PLAN your step-by-step performance improvement
process
TRACK your progress and benchmark your operations
MANAGE your implementation plan against a proven
improvement methodology
SHARE best practice and build internal capability
TRACC Events
TRACC events are hosted all around the world,
attracting thousands of people to collaborate and
innovate around business performance improvement.
These events are designed to foster collaboration and
networking in order to maximise the opportunity for
leaders and industry experts to learn from each other’s
business improvement programmes, experiences and
insights.
The Five Key Attributes of Supply Chain Excellence l
6
Supply Chains should be …
CCI
The People
Behind TRACC
an engine that drives value creation.
Our reputation for building competitive capability is reinforced
by our ability to enable our clients’ global workforce. Our
focus on value-based solutions for our clients brings about
process and practice improvements, efficiency gains and also
substantial bottom line growth.
We have delivered sustainable results for over 25 years,
in 70 countries, 14 languages, and across more than
2000 operations.
FOR MORE INFORMATION on the TRACC Value Chain Improvement Solution
contact us on the relevant details below:
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