Dr. Marijn Dekkers,
As one of the divisional vice presidents of supply chain at your company, I have been able to observe the planning process of forecasting the demand of raw materials. Based on my observations, I have decided the division needs to establish a plan that synchronizes and optimizes production, inventory, distribution, and initial capacity planning. In order to achieve these objectives I will be using SCOR, the Supply Chain Operations Reference model, to assess the aggregate supply resources and demand requirements. SCOR provides a framework and template that links business process, metrics, and best practices into an end-to-end supply. Utilizing SCOR, I will be able to develop a course of action that best meets your planning requirements.
Before I can implement the SCOR model I will need to gain support from your organization. Bayer will need to choose and educate an executive sponsor and a core steering team for the project. This team will need to make a go or no go decision to move the project forward. Afterwards, the core steering team will have to establish a budget and timeline to finish the project and choose a project team that will include members from manufacturing, transportation, customer service, and warehousing.
Next, it will be important to define the number of supply chains served by Bayer in the planning process, and then prioritize them based on revenue, inventory level, gross profit, number of stock-keeping units, and unit volume. This will set the scope for all the other subprocesses within the supply chain. The next step involves setting performance targets. We will use a supply chain scorecard for setting and managing these performance targets, so it will be important to gain internal consensus on these goals. The elements of the scorecard will include metrics definitions, actual and benchmark data, and strategic competitive