APQC Releases Enhanced Supply Chain Section of its Process Classification Framework

Free-of-Charge, Tool Helps Supply Chain Executives Solve the Supply Chain Metrics Language Barrier

(Houston, TX - September 26, 2007) - Several dozen supply chain practitioners, from across the globe have developed definitions for a number of supply chain metrics based on real-world experience. The project was sponsored by APQC, an internationally recognized resource for process and performance improvement that will now enable supply chain executives to improve manufacturing and logistical processes and performance within their organizations.

APQC engaged practitioners, consultants, and academics to enhance the supply chain section of its Process Classification FrameworkSM (PCF), which organizes operating and management processes into 12 enterprise-level categories. The result of this project is a comprehensive listing of each of the supply chain processes with definitions and their corresponding key performance indicators. Now, organizations can talk specifically about the same activity and know what is included in that activity. 

The document is available, free of charge at www.apqc.org/pcf/sc.

"The purpose of this project was to take some of the pain out of trying to define processes by bringing in experts to help define a baseline," said John Tesmer, PCF manager for APQC. "We chose to pilot the supply chain section of the PCF because it was the most commonly used area and faces increasing market pressure to extract greater value."

The supply chain process categories that were studied and enhanced included:

  • Supply chain planning,
  • Procurement of materials and services,
  • Production/manufacturing and delivery of product,
  • Delivery of  product service to customer, and
  • Management of logistics and warehousing.

This project helps solves the problem of the supply chain language barrier," said Karen Butner, global supply chain leader, IBM Institute for Business Value. "With the diversity and complexity of global supply chains, we often find organizations aren't on the same page when it comes to talking about even the most common processes and measurements, like inventory turns or days sales outstanding."

The PCF is the foundation of APQC's Open Standards Benchmarking CollaborativeSM (OSBC), the first global set of common standards for business processes, giving organizations an independent, authoritative resource for benchmarking and improving business practices.

According to supply chain management thought leader Kate Vitasek, "The enhanced content can help organizations quickly see and more tangibly relate the PCF to their everyday work."

Industry leaders who participated in APQC's supply chain pilot included JB Bryant, Ohio Gratings, Inc.; Gustava da Cunha Vieira, CVRD; David Durtssche, Tranzact; Anthony Roberton, Fonterra Co-operative Group, Limited;  and Lew Soloway, Jet Propulsion Laboratory.  Noted academics included Larry Lapide, MIT; Karl Manrodt, Georgia Southern University; Ray Mundy, University of Missouri; and James Stock, University of South Florida.

And industry consultants included Peter Bolstorff, SCE Limited; George Borza, Computer Sciences Corp.; David Drickhamer; Nick Edwards, River Oaks Resources; Paul Nuzum, Supply Chain Insights, LLC; Chuck Poirier, Computer Sciences Corp; Kate Vitasek, Supply Chain Visions; Al Zorner, Chain Connectors. IBM provided a team that included Karen Butner, Georgeann Fears, Jack Parsio, Philip Rains, Melanie Schmucker, and Christina Turczyn.

About the PCF

APQC and its members developed the Process Classification FrameworkSM (PCF), which is updated by a global advisory council of industry leaders. As a common language, the PCF allows organizations to see and discuss their activities from an industry-neutral viewpoint. Regardless of size, industry or geography, organizations can use the PCF to benchmark and improve processes.  It is updated twice per year to ensure relevancy and continuous improvement.

About APQC 

A global resource for process and performance improvement, APQC discovers improvement methods, identifies benchmarks and best practices, disseminates findings and connects individuals. Spearheaded by APQC, the global Open Standards Benchmarking CollaborativeSM (OSBC) research helps executives benchmark comparable business processes. Founded in 1977, the member-based nonprofit serves more than 500 organizations. For information, visit www.apqc.org or call 800.776.9676 or 713.681.4020.