SCOR Investment Business Case

Adopt SCOR Standard Processes to Support Supply Chain Management
Sponsor: Kate Jarvis; DMC Chief Operating Officer (COO)

New Requirement: In support of DMC Strategic Goal to incorporate LEAN manufacturing process, Operations has determined that it is necessary to adopt the standard supply chain management process detailed in the Supply Chain Operations Reference (SCOR) model.

Existing Solution Check: The legacy operating processes are not capable of supporting the integration of subcontractor management processes.

New Solution Business Case

• Business Need: In support of DMC Strategic Goal to incorporate LEAN manufacturing process, the COO is looking to adopt standard manufacturing industry processes for supply chain management across all DMC lines of business.  Implementation of LEAN concepts as applied to the SCOR model would provide the ability to establish strong supplier relationships, negotiate best-possible costs and deliveries, and increase profit margins across all lines of business within DMC.   
• Impact if Not Resolved: Inability to go apply LEAN concepts to supply chain management.  Lines of business and operating processes would continue to establish separate supplier relationships.  In some cases, this separation would increase inventory margins, raise supply costs, and incorporate duplicity in operating processes.  More difficult to implement the supply chain management reporting module of the WELLCO application suite. 
• Alternative Analysis:
  • Supply Chain Operations Reference model
  • Augmented existing processes incorporated with supplier process (The Scooby Doo Model, AKA it is a Mystery)
  • Existing Processes
• Cost-Benefit Analysis:
  • In Work, currently collaborating with Legal to determine all ramifications of the alternatives
• Return on Investment:
  • TBD
• Net Present Value Adjustment:
  • TBD