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For many years, companies were focused on how to increase sales and market share. In the last years, the pendulum has swung back to operational excellence. Especially in connection with customer satisfaction as a key driver of sales, companies have realized that they need to do more than just produce the right product for the right price.
Instead, companies need to have the right product for the right price in the right place at the right time. The SCOR-model describes how this can be achieved:
Based on this approach, the supply chain becomes the heart of the organization. Any disorder has impacts not only on costs and margins, but also on the top line. Understanding any disruptions and deterioration on performance is also very complex as it spans many different internal functions and possibly thousands of external partners. Westernacher believes that a Supply Chain Control Tower is the best way to understand how SCPA can be achieved: it addresses the above-mentioned capabilities and provides a real-life analogy. It also highlights the function of providing visibility and insight but does not necessarily take away decision making responsibilities from functional managers. Ultimately, benefits come from the improved ability to reduce different latencies:
What you will take out of this.
- Why is SCPA important for my organization?
- Is this just another IT tool?
- What are the main benefits?
- Who needs to be involved?
- Is there a way to see how SCPA works for my organization?