CHAPTER TWO
DEVELOP AN END-TO-END PROCESS ARCHITECTURE
The first step in executing a supply chain strategy involves designing a process architecture that maps out the activities of the entire supply chain. Companies with high-performing supply chains design an integrated architecture, in which Plan, Source, Make, Deliver, Return, and Enable processes work together in a highly coordinated fashion to provide an important source of competitive advantage. Although a daunting undertaking, it’s critical to getting the most out of your supply chain.
Once the supply chain strategy is in place, the next step is to assemble the supply chain processes that will allow the company to realize that strategy. Fundamentally, at the heart of every supply chain are six main processes planning, procurement, production, order fulfillment, returns, and enablers. Each of these processes comprises a set of subprocesses and activities the thousands of steps required to produce a product or service and deliver it to customers. And the steps must be integrated and coordinated into a coherent workflow.
Getting the different pieces to fit together seamlessly is no easy task. For this reason, it is critical to develop a supply chain process architecture that is, a blueprint of the six main supply chain processes. This blueprint also provides the basis for selecting and operating supporting information systems, which are fundamental for supply chains to function.
The architecture must map out how the entire supply chain will operate, not only during normal conditions but also in the event of an unanticipated disruption. The best process architectures are flexible, reliable, and adaptable to changes in the business environment.
Most important, the best process architectures support a company’s basis of competition. For example, Amazon competes on customer experience. As a result, while it