South-Western - Management  
The Supply-Chain Council, APQC and IBM Collaborate an Open Standards for SCOR(R) Model Benchmarking
Topic Planning
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Key Words Benchmarking, best practices, metrics
News Story

The Supply Chain Council (SCC), a trade association of companies from multiple industries responsible for the supply-chain Operations Reference (SCOR(R)) Model, has partnered with the APQC, a global resource for best practices and benchmarking to provide a new benchmarking portal and report service for their members.

In 2007, organizations implementing the SCOR(R) Model will have access to the new no-cost benchmarking portal. APQC will collect, validate, and report benchmarking data, as well as provide analysis, insight and best practices information. Members will receive a report that will outline their performance improvement plans as they move through SCOR(R) implementations, or begin a new LEAN or Six Sigma project.

Benchmarking is an important tool for supply-chain performance improvement. Participating Supply-Chain Council members will be able to select the metrics that are most critical to their organizations, such as reliability, responsiveness, flexibility, and cost or asset management. Each participating company can generate a report that will let them see the gap between where they are and where they wish to be. The report will also show other useful comparisons such as by industry, geography, or primary supply chain activity.

Members can shorten the benchmarking cycle time with the new portal. They can also proactively monitor trends and plan for any problems in their supply-chain cycle.

Questions
1.

What is benchmarking and how do companies use this technique as a planning tool?

2.

Define performance metrics and list at least three metrics that a company can use to measure its performance as it compares to others.

3.

Name at least three categories that a company could use to benchmark its performance against others.

Source “The Supply-Chain Council, APQC and IBM Collaborate an Open Standards for SCOR(R) Model Benchmarking,” Business Wire, Dec.14, 2006, p NA.
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