SUPPLY MANAGEMENT DASHBOARD
Transcript of SUPPLY MANAGEMENT DASHBOARD
i
SUPPLY MANAGEMENT DASHBOARD
This Project Report is submitted to the Center for Executive Education at IBA
Karachi as partial fulfillment of Postgraduate Diploma in Supply Chain Management
by
Beenish Akhter (21160),
Gohar Rafiq (21163),
Mohammad Aqib (21171),
Umair (18328) and
Usama Hamid (21154)
Advised by
Dr. Rameez Khalid
Director IBA- CEE
PGD Supply Chain Management Program
Institute of Business Administration (IBA), Karachi
2020
Institute of Business Administration (IBA), Karachi,
Pakistan
IBA/CEE/SCM-Put/Report-00
ii
Acknowledgements
All praise is due to Almighty Allah, The Omnipresent, The Omnipotent, and
Omniscient, who enables the authors to pursue his education in Procurement and
Supply Management & to Complete the Research Work as well as to submit this thesis
for the degree of Post-Graduation Certification of Supply Chain Management.
The author expresses his/ her sincere thanks and deep gratitude to his honorable
Supervisor Sir Dr. Rameez Khalid (Director- IBA-CEE)- IBA University Karachi,
for his creative help, Scholastic guidance, valuable suggestions and Constructive
criticism throughout the Research work as well as reviewing the manuscript. The
Authors are profoundly grateful to him.
Finally, the authors also pay a gratitude to his/ her family members who relentlessly
give courage and sacrifice a lot for doing the research work.
iii
Table of Contents
Acknowledgements ........................................................................................................ ii
Table of Contents .......................................................................................................... iii
List of Figures .............................................................................................................. vii
Executive Summary: ...................................................................................................... 1
Chapter 1: Introduction .................................................................................................. 5
1.1 Visibility-A Major Supply Chain Challenge: ....................................................... 5
1.2 Scope of Study: ..................................................................................................... 7
1.3 Problem Statement: ............................................................................................... 7
1.4 Research Objectives: ............................................................................................. 8
Chapter 2: Literature Review ......................................................................................... 9
2.1 Significance of Knowing Your KPI: ..................................................................... 9
2.2 KPI Need to Boost Business Revenue: ................................................................. 9
2.3 KPI Can Reveals the Planning and Execution Gap: ........................................... 10
2.4 Essential KPIs for Every Industry/Sector: .......................................................... 11
2.5 Monitoring of Supply Chain Resilience Elements: ............................................ 11
2.6 Transition of Supply Chain to Lean Supply Chain: ............................................ 12
2.7 Possible Reporting Levels in KPI Monitoring: ................................................... 12
2.8 Challenges for Selecting Right KPI: ................................................................... 13
2.9 Visibility through KPI Dashboard: ..................................................................... 14
2.10 Application Significance of BI Tools in KPI Monitoring: ............................... 14
2.11 SCOR (Supply Chain Operations Reference) and AHP (Analytic hierarchy
process) Based Monitoring System: ......................................................................... 15
2.12 There Are No Right and Wrong KPIs: ............................................................. 16
2.13 Comprehensive KPI Map-Sector Specific Indicators: ...................................... 17
2.14 Gaps Identification / Opportunities for Improvements: .................................... 18
2.141 The Oil & Gas Sector: ................................................................................ 18
2.142 The Textile Sector: ..................................................................................... 18
2.143 The FMCG Sector: ..................................................................................... 18
2.144 The Pharmaceutical Sector: ........................................................................ 19
2.145 KPI Generalization to Customization: ........................................................ 19
Chapter 3: Methodology .............................................................................................. 20
iv
3.1 Research Approach: ............................................................................................ 20
3.2 Systematic Map:.................................................................................................. 21
3.3 Target Population: ............................................................................................... 22
3.4 Sampling: ............................................................................................................ 22
3.5 Sample Size:........................................................................................................ 22
3.6 Data Collection Methods: ................................................................................... 23
3.7 Adaption of Business Analytics for Dashboard: ................................................. 23
Chapter 4: Results ........................................................................................................ 24
4.1 Case of Pharma Industry: ....................................................................................... 24
4.11 Industrial Sector’s Introduction ........................................................................ 24
4.12 Companies’ Introduction: ................................................................................. 25
4.13 Dashboard Need: ............................................................................................... 26
4.14 Gap Analysis: .................................................................................................... 26
4.141 Finding KPI and Prevailing Challenges: .................................................... 26
4.142 Supplier Evaluation & Order Planning Metrics in Supply Management: .. 27
4.2 Case of Oil & Gas: ................................................................................................. 27
4.21 Industrial Sector’s Introduction: ....................................................................... 27
4.22 Companies’ Introduction: ................................................................................. 28
4.23 Dashboard Need: ............................................................................................... 28
4.24 Gap Analysis: .................................................................................................... 29
4.241 Finding KPI and Prevailing Challenges: .................................................... 29
4.242 Supplier Evaluation & Order Planning Metrics in Supply Management: .. 30
4.3 Case of FMCG: ...................................................................................................... 30
4.31 Industrial Sector’s Introduction ........................................................................ 30
4.32 Companies’ Introduction: ................................................................................. 32
4.33 Dashboard Need: ............................................................................................... 32
4.34 Gap Analysis: .................................................................................................... 33
4.341 Finding KPI and Prevailing Challenges: .................................................... 33
4.342 Supplier Evaluation & Order Planning Metrics in Supply Management: .. 33
4.4 Case of Textile: ...................................................................................................... 34
4.41 Industrial Sector’s Introduction ........................................................................ 34
v
4.42 Companies’ Introduction: ................................................................................. 35
4.43 Dashboard Need: ............................................................................................... 35
4.44 Gap Analysis: .................................................................................................... 35
4.441 Finding KPI and Prevailing Challenges: .................................................... 35
4.442 Supplier Evaluation & Order Planning Metrics in Supply Management: .. 36
Chapter 5: Discussion and Recommendations ............................................................. 37
5.1 Case of Pharma Industry: ....................................................................................... 37
5.11 Why Do we need an Interactive Dashboard: .................................................... 37
5.12 KPI Dashboard visual: ...................................................................................... 38
5.2 Case of Oil & Gas: ................................................................................................. 39
5.21 Why Do we need an Interactive Dashboard: .................................................... 39
5.22 KPI Dashboard visual: ...................................................................................... 40
5.3 Case of FMCG: ...................................................................................................... 41
5.31 Why Do we need an Interactive Dashboard: .................................................... 41
5.32 KPI Dashboard visual: ...................................................................................... 42
5.4 Case of Textile: ...................................................................................................... 43
5.41 Why Do we need an Interactive Dashboard: .................................................... 43
5.42 KPI Dashboard visual: ...................................................................................... 43
5.3 Comparison of KPI of Different Industry’s KPI: .................................................. 44
5.4 Recommendations: ................................................................................................. 44
5.6 Further Study Area:................................................................................................ 46
Chapter 6: Conclusion.................................................................................................. 47
Chapter 7: Thematic Analysis:..................................................................................... 48
7.1 Interview coding Levels:........................................................................................ 48
7.2 Themes coding: ...................................................................................................... 49
7.3 Summary of Thematic Analysis: ........................................................................... 50
APPENDIX-A.............................................................................................................. 52
References .................................................................................................................... 64
APPENDIX-B .............................................................................................................. 67
PGD-SCM Project Group Members’ Introduction ...................................................... 71
PGD-SCM Project Supervision Log ............................................................................ 73
vi
List of Tables Table 1-KPI Measure for Selected Sectors in Previous Studies .................................. 17
Table 2- Mapping of Objectives with Method.............................................................. 20
Table 3-Pharmaceutical Companies’ Introduction ..................................................... 25
Table 4-Dashboard Need Grid of Pharmaceutical Industry ....................................... 26
Table 5 Top 3 KPI of Pharmaceutical Industry ........................................................... 27
Table 6-Oil & Gas Companies’ Introduction .............................................................. 28
Table 7 Dashboard Need Grid of Oil & Gas Industry................................................. 29
Table 8 Top 3 KPI of Oil & Gas Industry .................................................................... 29
Table 9-FMCG Companies’ Introduction ................................................................... 32
Table 10-Dashboard Need Grid of FMCG Industry.................................................... 32
Table 11 Top 3 KPI of FMCG Industry ....................................................................... 33
Table 12-Textile Companies’ Introduction .................................................................. 35
Table 13-Dashboard Need Grid of Textile Industry .................................................... 35
Table 14 Top 3 KPI of Textile Industry ....................................................................... 36
Table 15- Themes Color Coding .................................................................................. 49
Table 16- Interview Question Guide’s Thematic Coding ............................................ 49
Table 17- Interview Question Guide ............................................................................ 52
Table 18- Pharmaceutical Industry Answer Script ...................................................... 54
Table 19-Oil & Gas Industry Answer Script................................................................ 56
Table 20-FMCG Industry Answer Script ..................................................................... 60
Table 22- Textile Industry Answer Script .................................................................... 62
vii
List of Figures
Figure 1 - Procurement Dashboard .............................................................................. 6
Figure 2-Supplier Compliance Dashboard ................................................................... 6
Figure 3-Proposed KPI based on ISPO/ RSPO & Expert Judgement......................... 13
Figure 4- three Level of Aligned Metrics ..................................................................... 14
Figure 5- Procurement Quality Dashboard ................................................................ 15
Figure 6- Research Methodology Systematic map ...................................................... 21
Figure 7- Sample Size Criteria from Organization ..................................................... 22
Figure 8- Supply Chain Analytics ................................................................................ 23
Figure 9- Proposed Supply Management Dashboard for Pharmaceutical Industry ... 38
Figure 10- Proposed Supply Management Dashboard for Oil & Gas Industry .......... 40
Figure 11- Proposed Supply Management Dashboard for Oil & Gas Industry .......... 42
Figure 12- Proposed Supply Management Dashboard for Textile Industry ............... 43
Figure 13 Thematic Coding Analysis .......................................................................... 48
Figure 14- AHP Hierarchical Model of Verified Metrics Judgement ......................... 67
Figure 15- Supply chain stages-sourcing KPI ............................................................. 68
Figure 16- Supplier Management Categories and Metrics ......................................... 69
Figure 17- SAP Report (Me2M) .................................................................................. 70
Supply Management Dashboard
1
Executive Summary:
In any supply chain model, there are three main components i.e. Material, Information
and Cash. All these components should be observed & analyzed for agile and efficient
Supply chain, But the question is how, the most critical issue in the Pakistani industry
is the lack of proper measurement tools and supply chain visibility that makes the
Supply chain more dependent on person rather on standard process & practices, and
this lack in visibility result in poor decision making. The solution to this problem is the
performance dashboard, not only dashboard but integrated dash board. As supply chain
management integrates supply and demand within and across the companies, therefore
the purpose of this capstone project is to develop an integrated dashboard that can be
implemented with ease across different industrial sectors. Addition to our purpose of
this capstone, it is very important to keep in mind that there are many dashboards
available that organization use internally and many can be accessed on different
consulting portals but those lacks optimal KPI that needed to be tracked by specific
function, specific sector or specific region. For this reason, the aim of this research is
to develop a comprehensive supply analytics dashboard which can be used in all areas
of supply management irrespective of industry complexity. Growing of global
competition, outsourcing of companies’ non-core activities and the demanding shorter
product life cycles have increased businessperson’s interest towards strong Supply
chain. Yet the recent development of supply chain literature discovered that supply
chain management is not just about simple and physical order fulfilment but more than
that and it’s an integrated network of various activities & stages which includes
procurement and purchasing, materials management and manufacturing, logistics and
distribution, marketing, IT and most important knowledge transfer (Laura & Julia,
2019). A good business need to detect, track, and manage its Supply Chain’s Key
Performance Indicators (KPI) so that it can offer timely and reliable delivery for its
products and this also enable a business to perform benchmarking to improve practices
and current & future performance, which can be a competitive advantage for any
business in this dynamin environment. Usually, there are two types of benchmarking
and one Results Benchmarking which emphases on quantitative performance measures
and second is Best Practices Benchmarking which emphases on qualitative side that is
Supply Management Dashboard
2
how well processes are being executed. (Lee, 2014), we will discuss both types of
benchmarking for our dashboards. This leads to another question that benchmarking of
what metrics and KPI is important. Particularly, the supply chain KPI measuring and
its performance monitoring unveils the gap between planning and execution and help a
business to identify opportunity areas for further improvement. Though identifying
potential area and development of required KPI or metrics is really very challenging
task because no set of practical specific guidelines is readily available for business and
for supply chain management mangers. Potential KPIs should be developed for each of
the supply chain operations-reference (SCOR) model's four meta-processes (plan,
source, make, and delivery) and need to be hierarchically grouped such as primary and
secondary metrics (Chae, 2009), or KPI can be developed using both SCOR and AHP
(Analytic hierarchy process) method. (Novar, Ridwan, & Santosa, 2018) used the
SCORs four performance attributes, (1) Reliability, (2) Responsiveness, (3) Cost, and
(4) Asset Management and they concluded that Reliability attribute comes at the Top
in all supply metrics, forecast accuracy, rejection rate, supply rule and supplier roles
comes in reliability attribute. As per one research, (Eckerson, 2011) divides the
performance dashboards into three categories; Strategic Dashboard, which are for
executives’/Board members for monitoring; Tactical Dashboard, for middle managers
concerned with for analysis; Operational Dashboard, for frontline users to manage daily
operations. The tailored dashboard shall enable the company to measure and determine
the capability of a process to achieve its objectives and shall help a company to trace
and track the efficacy and efficiency, and potential failures which leads to a better
decision making.
We have Chosen the Purposive methodology for our research, target population for this
study is CPOs, Procurement managers, Supply chain managers and Operation level
people and four different sectors of Textile, lubricants, FMCG, and pharmaceuticals
from each of these sectors, who rightly represent organization from all three layers
Strategic to Operational.
After series of interview, it has been concluded that in Pharmaceutical Procurement
department does not feel any need to dash board in supply management and they are
very much comfortable with ERP Reporting, to them four areas are important which
make their Order planning process reliable & responsive; PR to PO Conversion for Fast
Orders; Shorter Lead times; Availability and Purchase Price Variance. The
Pharmaceutical Industry Shall require to work Reduce dependency upon china; we have
Supply Management Dashboard
3
witnesses the Covid-19 situation and it is now important for to work GLoCal networks,
and spreading Procurement base. Also at least three months forecast accuracies are must
do for making Order planning process stable. Pharmaceutical sectors need to work on
Supplier issues, as it has been noticed that every time on quality issue, procurement
team change the supplier.
On the contrary, in Oil and gas sector mostly the MNCs are using interactive dashboards
at every levels. The supply of base oil till it in the final phase of Finished goods is being
visible to the procurement persons or stock analytic person to keep tracking all the KPIs.
These dashboards are linked with the ERP solutions as well as SAP. Oil and Gas sector
has similar KPIs like any other sector, but it cannot be compared with other sectors due
to high Quality, Safety measures and HES requirements. Procurement in the Oil and
Gas Industry faces many challenges especially because of the volatility of oil price,
supply and demand; however, with the right effective procurement strategy and sharp
analysis, they could overturn the crisis into opportunity.
In FMCG, based on the interviews it is established that the consumer good
multinationals organizations are more towards productivity enhancement and cost
savings initiatives. Many have developed the systems to achieve their yearly saving
targets, which are synchronized and shared with department personnel top to bottom.
On the other hand, the local FMCG are more tilted towards achieving their yearly
targets based on units and volumes. Recently some of the organizations (local) have
started to use multiple tools including ERP through which they can monitor their
indicators regularly. In FMCG, local consumer good organizations must opt for
centralized procurement operations rather than distributed department wise. This will
result in better operational cost and productivity. And there is a need to focus on
product, research, and development to shift sourcing from single to multiple sources
specially for local industry. MNC working on higher lead time items should develop
alternatives locally to reduce their ordering cost and increase agility and Localized
consumer good industry should opt for better ERP systems to increase supply chain
visibility and improve performance.
Textile sector is largest manufacturing sector in Pakistan. Pakistan is the 8th largest
exporter of textile products in Asia. This abundance of raw material is a big advantage
for Pakistan due to its beneficial impact on cost and operational lead time. Although
this sector is largest manufacturing sector yet hand full of organizations are investing
in improving its supply chain and even fewer understand importance of employee
Supply Management Dashboard
4
training and development, which is a huge gap in the sector and at surface level we
might find this sector is gradually changing but in a closer view we will see even the
companies which are working to adopt world class manufacturing standards its mostly
because of their clients and fashion giants forcing companies to do so. We have tried to
cover over all textile sector from small scale garments manufacturer to large scale
vertical setup to get overall picture of industry and implication of procurement
dashboard. In discussion with all the companies under study it’s found the company is
focused on cost and lead time and there is less focus on relationship management and
long-term planning, they don’t care who is the supplier the only thing matters is on time
availability sometimes even at the cost of quality the reason behind this behavior is
customer’s pressure and short lead times in apparel market the fear of losing orders
leads to this behavior. The Textile Industry will require working on Supplier
relationship management, Employee training, develop hierarchy, introduce of planning
department, Work with fewer number of suppliers and Separate QA assigned to
purchase.
In the end, after secondary research and interview, it has been concluded that shows
that OTIF, Timeliness, PR creation and PPV are the KPIs that are same in any other
industry and if the visibility is there through the dashboard than we are able to make
optimization in sourcing and supplier management.
Supply Management Dashboard
52
APPENDIX-A
Table 17- Interview Question Guide
S No. Section A: Basics-Generalize
1 Number of Warehouse & Factories?
2 Number of Total Staff and Supply chain Staff?
3 Number of Business Lines?
4 Number of Products, How to Manage Big quantum Sourcing
5 Number of Raw Material?
6 What is the strategy of sourcing?
7 Central Procurement or department wise?
Section B:Current Position on Reporting and Future Need
8 Do you use any Dashboard? And on what level?
iv. Strategic Dashboard, which are for executives’/Board members for monitoring,
v. Tactical Dashboard, for middle managers concerned with for analysis,
vi. Operational Dashboard, for frontline users to manage daily operations.
9 What are the 3 Most Important KPI to your supply side? in Daily operations, and
monthly review?
10 Are these Supply chain Resilience elements are important to you?
vi. Trust,
vii. Robustness,
viii. Visibility
ix. Information sharing,
x. Collaboration
11 Mention 3 gaps in your industry’s procurement process that need to improve?
12 Where do you see your industry's procurement as compare to other industries like
FMCG and Pharma? What Benchmark do you use for your KPI?
Section C:Process Reliability
13 Do you use Supplier Performance Evaluation Form? And what areas do you evaluate
?
14 What is the Supplier's Performance Evaluation Frequency?
15 What are the Major Area of Evaluation?
16 Do you visit Supplier or supplier’s Supplier? What areas do you look at visit?
inventory-days-of-supply? Capacity?
17 How many suppliers do you have, and how many are the top 10, and what is the criteria
for selection of top 10?
18 What is the Forecast Accuracy?
19 How you monitor the Supplier's rejection rate? And how?
20 What are the return reason of supply? Do you maintain any log?
21 Level of supplier's defect free deliveries?
22 On time and correctness of Order Rate? How do you evaluate variability in 3rd party
services?
23 Effectiveness of delivery invoice methods?
24 Quality of delivery documentation?
Supply Management Dashboard
53
25 Supplier's booking procedures?
26 Are your system is using API (application programming interface) for Supplier's
system.
Section D:Process Responsiveness
27 Order Planning Lead Time in Days?
28 Order Processing Lead Time in Days?
29 Order Receiving Lead time in Days from date of Order?
30 What is strategy to manage lead times of large Orders?
iv. Just in time
v. hybrid model
vi. Make-to stock
Section E: Cost Management
31 Raw Material Purchase cost
32 Annual Procurement Savings? How do you evaluate performance of procurement
department?
33 Alternative Source availability?
34 What do you think What is your role as Procurement Executive how you give profit
to your company
Section F: Asset Management
35 Inventory Days of Supply?
Supply Management Dashboard
54
Table 18- Pharmaceutical Industry Answer Script
Industry/Sector: Pharmaceutical Pharmaceutical Pharmaceutical Pharmaceutical
Company: Mid-Size MNC 1 Small-Size MNC 2
Date: 20-Jan-21 20-Jan-21 18-Jan-21 18-Jan-21
Interviewer: Beenish Beenish Beenish Beenish
S No. Section A: Basics-Generalize Mid-Size MNC 1 Small-Size MNC 2
1 Number of Warehouse & Factories? 1, 2 2,3 1,1, 3,7
2 Number of Total Staff and Supply chain
Staff? 600,11
3000,25
100-120
700,60
5 Number of Raw Material? (approx.) 300 300 55 500
6 What is the strategy of sourcing? Multi sourcing Multi sourcing Multi sourcing Multi sourcing
7 Central Procurement or department wise? Centralized Centralized Centralized Centralized
Section B:Current Position on Reporting
and Future Need Mid-Size
MNC 1
Small-Size
MNC 2
8 Do you use any Dashboard? And on what
level?/Dashboard-Current Situation no
no
Power BI
no
i. Strategic Dashboard, which are for
executives’/Board members for monitoring,
-
-
Yes
Yearly Goal Monitoring
ii. Tactical Dashboard, for middle managers
concerned with for analysis, -
Yes, Excel based DB
-
-
iii. Operational Dashboard, for frontline users
to manage daily operations. Yes, Excel
Yes, Excel based DB
-
Weekly Reporting, SNOP,
SAP Reporting
9
What are the 3 Most Important KPI to your
supply side? in Daily operations and monthly review?
OTIF
Favorable PPV
Alternate suppliers
PR to PO Conversion-Fast
Order
Delivery as per
approved Specs OTIF
Service Rate
OTIF
PPV, Savings
New Projects
Forecast Accuracy
Favorable PPV
11 Mention 3 gaps in your industry’s
procurement process that need to improve?
Too much rely on
China
1 Interdepartmental
alignment- Lack of
communication from Supplier
1 Alternative suppliers
1 Demand Stability,
Commercial 3 Months
Custom IOCO
approval
2 Broader Vendor
performance evaluation, Due to company Policies
2 Information across
suppliers
2 RM high Price, No Price
Change
DRAP approval for
Quota products
3 Extensive documentation
3 Trust
3 DRAP Regulations on
API,
12
Where do you see your industry's procurement as compare to other industries
like FMCG and Pharma? What Benchmark
do you use for your KPI?
Our (Pharma)
industry is regulated then other industries
One of the best amongst
the lot, we strive for good practices
Its stagnant due to
strict regulations. Reliable suppliers are
benchmark, DRAP
rules for Manufacturer 2 years
KPI Rigors Monitoring,
Internal Historic, 29% Growth, 9% Growth Rate
Section C:Process Reliability Mid-Size
MNC 1
Small-Size
MNC 2
13
Do you use Supplier Performance Evaluation Form? And what areas do you
evaluate ?
Quality
Price, Quality, Delivery
Yes, all there we use
Quality Monitors, (ISO), Cost and Lead (no need to
go for form).
14 What is the Supplier's Performance
Evaluation Frequency? Monthly
2-5 supplier/month
Order basis
annually (Review Month
on Month 10 Supplier)
15 What are the Major Area of Evaluation? Quality, Delivery
then Cost Pricing, timely delivery
Quality
quality, KAPA, on site ,
Pricing , timeline
16
Do you visit Supplier or supplier’s
Supplier? What areas do you look at visit?
inventory-days-of-supply? Capacity?
Yes, Quality & Capacity
Yes/Both
Supplier and visit its
production area and warehouse to see
capacity
yes, Local Monthly, International (critical),
auditors, remote audits (preset of defined
Question), Quality
Questionnaire, LDPA
Supply Management Dashboard
55
(process and in out ,
Policies)
17
How many suppliers do you have, and how
many are the top 10, and what is the criteria for selection of top 10?
400
70 Top Sale Brands
>1000 suppliers, Approx.
85% of vendors are reliable.
18, criteria for
selection is quality and cost
400 Plus
18 What is the Forecast Accuracy? 70 to 80%
0.9
10-20% (Varies in different quarters)
0.85
19 How you monitor the Supplier's rejection rate? And Frequency?
RM rejection rate is almost
zero, while 15% rejection
observed in PM
orderly basis
Quality
20 What are the return reason of supply? Do
you maintain any log? Quality, Yes
Quality/appearance/Yes
shelf life since it’s the factor which decide
production
Quality
21 Level of supplier's defect free deliveries? Always free
Yes
No
ABC ,Quality base,
Availability
22
On time and correctness of Order Rate?
How do you evaluate variability in 3rd party services?
Order base
Delivery time varies while
correctness is 99%
Quarterly basis
23 Effectiveness of delivery invoice methods? within 1 week
Proper guidance provided
to vendors for invoicing PO accuracy
Important
24 Quality of delivery documentation? COA
Wonderful in
Import/average in local
various docs like FDA
approved sources etc. etc.
25 Supplier's booking procedures? email & Call email Email
26
Are your system is using API (application
programming interface) for Supplier's
system.
No
NO
No
Nope
Section D:Process Responsiveness Mid-Size MNC 1 Small-Size MNC 2
27 Order Planning Lead Time in Days? 1 day
Auto MRP
4-8 days
60, 90,120 (Local, Import,
Lead
28 Order Processing Lead Time in Days? 3 days Implemented /As per SOP 6-10 days 5 days
29 Order Receiving Lead time in Days from date of Order?
Vary
Implemented /As per SOP
20-40 days
30
30 What is strategy to manage lead times of
large Orders?
i. Just in time
ii. hybrid model Yes Yes Yes
iii. Make-to stock Yes
Section E: Cost Management Mid-Size MNC 1 Small-Size MNC 2
31 Raw Material Purchase cost, Monthly, Annually (estimated)
200M/month
Not particular
Not particular
Not particular
32
Annual Procurement Savings? How do you
evaluate performance of procurement
department?
90 M/year
KPI, 50M
1M – 2M
105M,
33 Alternative Source availability? Yes Yes Yes
34
What do you think What is your role as
Procurement Executive how you give profit
to your company
CI projects
Critical
Getting reliable suppliers onboard that
provide quality
materials and cost-effective as well
Saving
Section F: Asset Management Mid-Size MNC 1 Small-Size MNC 2
35 Inventory Days of Supply? 45days 70-120 Days 4 months 90, 30 45 , 120 critical
Supply Management Dashboard
56
Table 19-Oil & Gas Industry Answer Script Industry/Sector: Oil Industry Oil Industry Oil Industry Oil Industry Oil Industry Oil Industry Oil Industry
Company MNC1- Response 1 MNC1- Response
2 MNC 2-Response 1
MNC 2-Response
2 MNC 3-Response 1 MNC 4 MNC 5
Date: 18/1/2021 18/1/2021 18/1/2021 18/1/2021 26-Jan-21 26-Jan-21 26-Jan-21
Interviewer: Gohar Gohar Gohar Gohar Gohar Gohar Gohar
S
No.
Section A: Basics-
Generalize
1 Number of Warehouse &
Factories?
6 Terminals And 1
Port 7 + 1
6 Warehouses & 1
Plant
7 Storage
Terminals
4 Warehouses , 01
Plant ( LOBP )
7 Storage
Terminals
2 Number of Total Staff and
Supply chain Staff?
450 In Total, 5 In Procurement And 4
In Supply Chain
1000 + 50
<200
100+ Engaged In
Terminal Operations And
Managing Supply
Chain
Over 2000 ,
Supply Chain 10
100+ Engaged In
Terminal Operations And
Managing
Supply Chain
3 Number of Business Lines? 1 2
3
Supplying
Petroleum Product
To 700+
Many
Supplying
Petroleum
Product To 700+
4
Number of Products, How
to Manage Big quantum
Sourcing
N/A 50 +
50+
2 (Diesel And
Petrol), Through Local Refineries
And Imports
Multi Sourcing
2 (Diesel And
Petrol), Through Local Refineries
And Imports
5 Number of Raw Material? N/A
Major Raw
Material Are Base Oil And Additives
N/A
Confidential N/A
6 What is the strategy of sourcing?
Multi Sourcing
Multi Sourcing Multi Sourcing Long Term Supply Contracts
With Local Refineries And
Overseas
Suppliers
Multi Sourcing
Long Term Supply Contracts
With Local Refineries And
Overseas
Suppliers
7 Central Procurement or department wise?
Department Wise Central
Centralized For
Direct, Department Wise
For Indirect
Centralized
Procurement Centralized
Centralized Procurement
Section B:Current
Position on Reporting
and Future Need
8
Do you use any
Dashboard? And on what level?
Power BI Sync
With ERP And SAP
On All Levels
Yes, Dashboard
Visibility
Available At All Levels In Supply
Dept.
Strategic
Dashboard
Yes, Dashboard
Visibility
Available At All Levels In Supply
Dept.
i. Strategic
Dashboard, which are for executives’/Board
members for monitoring,
No ERP
Yes
Tactical Same Dashboard
Available To Executives And
Board Members
Yes
Same Dashboard
Available To Executives And
Board Members
ii. Tactical Dashboard, for middle
managers concerned with for analysis,
Yes ERP
Yes
Detailed Working
Of Analysis And
Data Through SAP
Yes
Detailed
Working Of
Analysis And Data Through
SAP
iii. Operational
Dashboard, for frontline
users to manage daily operations.
Yes ERP
Yes
Detailed Working
Of Analysis And Data Through
SAP
Detailed
Working Of Analysis And
Data Through
SAP
9
What are the 3 Most Important KPI to your
supply side? in Daily
operations, and monthly review?
1. Seeking Discounts Through Negotiation
Cost Effective Solution
HES
On Time Delivery
Stocks Available
At Depots V/S
Normal Demand For The Day,
Week And Month
Quality
Stocks Available
At Depots V/S
Normal Demand For The Day,
Week And
Month
2. Procure To
Payment Process Quality
Quality
Complaint Resolution Time
Stock In Transit V/S Lead Time On Time Deliver
Stock In Transit
V/S Lead Time
Supply Management Dashboard
57
To Reach
Destination
To Reach
Destination
3. Timely Deliveries Timelines
Timeliness
Yes
Stock Cover V/S
Procurement Plan
Stock Cover V/S
Procurement
Plan
10
Are these Supply chain Resilience elements are
important to you?
i. Trust, Yes Yes Yes Yes Yes Yes
ii. Robustness, Yes Yes Yes Visibility Yes
iii. Visibility Yes Yes
Yes Yes Information
Sharing Yes
iv. Information
sharing, To Limited Extent Yes
Yes Yes
v. Collaboration Not In Our Industry Yes Yes Yes Yes
11
Mention 3 gaps in your
industry’s procurement
process that need to improve?
Post Award
Contract
Management
Visibility
1. Approval
Processes In
Purchase Order Creation
Clarity On The
Needs/Demands
Monitoring And
Control Of KPI
Supplier
Diversity
Unexpected
Variation In
Demand
Long Terms
Commitment
Unexpected Variation In
Demand
2. Online Tender
Processing (Mostly
Vendors Are Not Aware Of
Technology)
Manual Invoice
Processing
Supplier
Relationship
Management
Regulatory
Barriers
Regulatory
Barriers
3. Online Invoicing
And Payment
Process
They Have A
Different Model
Of Working And We Can
Compare With
OMCS
3 Transportation Of
Product(S)
It Varies From
Different Sectors Since We Have
Change In Supply
Line Unlike Any Other Industry To
Meet The Demand
Transportation Of Product(S)
12
Where do you see your
industry's procurement as compare to other industries
like FMCG and Pharma?
What Benchmark do you use for your KPI?
Procurement In Oil
Industry Cannot Be
Compared To Any Other Industry
Owing To Their
Highly HSE Critical Practices And
International Pricing.
Timely Supply of
Petroleum Products to End
Customers Is Far
More Critical in Petroleum
Industry Than
FMCG or Pharma as The Demand Is
Very Inelastic in
Nature. Secondly,
The Supply Chain
of All Industries
Is Directly Related to
Petroleum
Industry as Only Timely Supply of
Petroleum
Products Can Ensure Movement
of Road, Rail, Sea
and Air Traffic. Hence, Almost
All Industries
Depend Upon Smooth And
Efficient Running
Of Petroleum Industry.
Timely Supply
of Petroleum
Products to End Customers Is Far
More Critical in
Petroleum Industry Than
FMCG or Pharma as The
Demand Is Very
Inelastic in Nature.
Secondly, The
Supply Chain of All Industries Is
Directly Related
to Petroleum Industry as Only
Timely Supply
of Petroleum Products Can
Ensure
Movement of Road, Rail, Sea
and Air Traffic.
Hence, Almost All Industries
Depend Upon
Smooth And Efficient
Running Of
Petroleum Industry.
Supply Management Dashboard
58
Section C:Process
Reliability
13
Do you use Supplier
Performance Evaluation
Form? And what areas do you evaluate ?
Yes, We Use Vendor
Score Card To Keep Track Of Timely
Delivery, Best
Pricing, Quality Of Product And
Following Safety
Protocols.
HSE, Performance &
Price
Yes. Quality, Delivery,
Responsiveness,
Safety, Technical Assistance
Quality, Cost,
Delivery
Yes, Timely
Supply Of
Products
Quality, Delivery
Time And Cost.
Yes, Timely Supply Of
Products
14
What is the Supplier's
Performance Evaluation Frequency?
As Per Need Basis
(Upon End User's Request)
Annual
Yearly
Yearly
Quarterly Quality Quarterly
15 What are the Major Area of
Evaluation?
Quality And HSE
Protocols HSE
Quality, Delivery,
Safety
Feedback From
The End Users
On The Overall Performance Of
A Vendor
During The Contractual
Period
Reliability
Capacity Reliability
16
Do you visit Supplier or
supplier’s Supplier? What areas do you look at visit?
inventory-days-of-supply?
Capacity?
Yes, Implementation
Of Safety Protocols
(HSE) In Their Premises
Ethical Audits
Yes.
Capacity,
Technology Competitiveness
In The Related
Industry
No Top 10 No
17
How many suppliers do
you have, and how many
are the top 10, and what is the criteria for selection of
top 10?
Approx. 1200, Top 10 Are Selected If
Vendors Is She
Cleared, And Performed Highest
Value Of Business
With Us
1000 + (She
Best Practices & Performance)
250+ Supplier.
Top 10 Are Based On Overall Spend
150 Plus
4 Local And 2
Overseas 90% 4 Local And 2
Overseas
18 What is the Forecast
Accuracy? N/A 80% +
Remaining Questions
Pertains To
Operations In Chevron, Not
Procurement
80% For Local Purchases And
90% For Imports Supplier
Evaluation
80% For Local Purchases And
90% For Imports
19
How you monitor the
Supplier's rejection rate?
And how?
By Technical And HSE Evaluation
Before Even
Considering Vendor In Selection Pool
Based On Their
Performance During The
Projects
Sample Based
Observation Is Done, If Any
Defects the Whole
Lot Is Returned. Later Complete
Lot Is Inspected
To See Number Of Defected
Pieces That Will
Be Rejected
Very Rare As
Products Are Procured As Per
Government
Specifications And All Supplies
Are Subject To
Pre Shipment Tests And Only
Product
Conforming To
Specifications Is
Procured.
SAP
Very Rare As
Products Are Procured As Per
Government
Specifications And All Supplies
Are Subject To
Pre Shipment Tests And Only
Product
Conforming To
Specifications Is
Procured.
20 What are the return reason of
supply? Do you maintain any
log?
N/A
If Not As Per The
Required
Standards/
Specifications,
Yes
Damaged/Defected
Products. Yes.
Only Off Specs.
Product Is Rejected.
Yes Complete
Record Of Test
Reports Is
Maintained.
None
Only Off Specs.
Product Is
Rejected. Yes
Complete Record
Of Test Reports Is
Maintained.
21 Level of supplier's defect
free deliveries? No No
Almost 100% Monitor In SAP
And ERP Almost 100%
22
On time and correctness of
Order Rate? How do you evaluate variability in 3rd
party services?
TPPL Doesn’t
Evaluate 3rd Party. Only Deal With
Main Vendor
Daily Monitored. A Log Is
Maintained
Against The Order Placed And
Order Received
To Review The
Variability
The Product Available in
Company Storage
Tanks Is On Specs. At All
Time.
Yes
The Product
Available in
Company Storage Tanks Is
On Specs. At All
Time.
23 Effectiveness of delivery
invoice methods?
Very Low, As Its
Being Performed Manually
ERP Based
System For
Receiving Of Goods &
Invoices
N/A Yes N/A
Supply Management Dashboard
59
24 Quality of delivery documentation?
Delivery Note
DN &
Supporting
Docs
N/A Yes N/A
25 Supplier's booking
procedures? In SAP System Based
Re-Ordering To Local Refineries
Against Monthly
Allocations And To Overseas
Suppliers Through
L/C
Yes
Re-Ordering To Local Refineries
Against Monthly
Allocations And To Overseas
Suppliers
Through L/C
26
Are your system is using
API (application programming interface) for
Supplier's system.
Yes ERP
No
No
Section D:Process
Responsiveness
27 Order Planning Lead Time in Days?
As Per Business Units' Demand
Based On Forecast
7 To 10 7 To 10
28 Order Processing Lead Time in Days?
10-15 Days
(Depending On
Project)
Po Issuance
Same
Same
29
Order Receiving Lead time
in Days from date of
Order?
Depending On Project
Based On
Agreed
Timelines
3 Days For Local
Sourcing, 10 To 15 Days For
Imports
3 Days For Local
Sourcing, 10 To 15 Days For
Imports
30 What is strategy to manage
lead times of large Orders?
i. Just in time JIT Just In Time
ii. hybrid model Make To Stock
iii. Make-to stock Yes
Stocks Are
Maintained To
Meet Customers Demand + Govt.
Mandatory Stocks
Stocks Are
Maintained To
Meet Customers Demand + Govt.
Mandatory
Stocks
Section E: Cost
Management
Monthly
31
Raw Material Purchase
cost, Monthly, Annually (estimated)
N/A In Millions
N/A
Yes N/A
32
Annual Procurement
Savings? How do you evaluate performance of
procurement department?
5% Of Total Purchases.
Register Monthly
Savings Against Every Project
Kips Set For Performance
Estimated 5-10%.
Usually On the
Basis of Projects and Global
Agreements.
Performance Is Measured On The
Basis Of Annual
Targets Set
Savings Are
Captured On
Each Transaction.
These Include
First Cost, Cost Avoidance,
Total Cost Of
Ownership.
None, As
Marketing Of
Petroleum Products Through
An Oil Marketing
Company Is Regulated By The
Govt.
Yes
None, As
Marketing Of
Petroleum Products
Through An Oil
Marketing Company Is
Regulated By
The Govt.
33 Alternative Source
availability?
Yes, TPPL Has A
Pool Of Vendors Yes
Yes Alternatives Are Used Where
Available
Imports Through Spot Market Yes
Imports Through
Spot Market
34
What do you think What is
your role as Procurement Executive how you give
profit to your company
Coming Up With
Huge Discounts Or Any Bi-Lateral
Business Options
By Adding
Competitive
Supplier Base And Enhancing
Competition
Among Them
By Helping Business Reduce
Cost of Direct and
Indirect Material Which Eventually
Becomes Part of
the Balance Sheet. Less Cost Of
Purchase Directly
Enhances The
Bottom-Line
Procurement Support The
Business In
Achieving Their Goals In A Cost
Effective,
Reliable Manner.
Availability of Products in Time
to Satisfy
Customer Demands. Procure
Products When
Price In International
Market Is Low.
Availability of
Products in Time
to Satisfy Customer
Demands.
Procure Products When Price In
International
Market Is Low.
Section F: Asset
Management
35 Inventory Days of Supply? N/A 30 Govt. mandated
inventory level
Govt. mandated
inventory level
Supply Management Dashboard
60
Table 20-FMCG Industry Answer Script
Industry FMCG FMCG
Company: MNC Local (Large)
Date: 10th Jan 2021 18th Jan,2021
Interviewer: Umair Samad Umair Samad
S No. Section A: Basics-Generalize
1 Number of Warehouse & Factories? 1 Factory and 2 internal Warehouse 2 Factories (Pakistan) and 3 (Main Warehouses)
2 Number of Total Staff and Supply chain Staff? 10 Permanent Staff and 60 Temporary Staff 100 + both temp and permanent. 15 SC Staff
3 Number of Business Lines? Powdered Beverage TANG Spice Mixes, Deserts, Pickle, Recipe Mix,, Vegetables
4 Number of Products, How to Manage Big
quantum Sourcing 15 SKUs produced for local market 250 + SKUs both in Local and Export variants
5 Number of Raw Material? 7 Core Raw Materials 20 Core Raw Materials
6 What is the strategy of sourcing? Few or Many suppliers Few or Many Suppliers, Low Cost, Vertically
Integrated only in Recipe Mixes
7 Central Procurement or department wise? Centralized Region Wise MEA Centralized
Section B:Current Position on Reporting and
Future Need
8 Do you use any Dashboard? And on what level?
i. Strategic Dashboard, which are for
executives’/Board members for monitoring, Yes Yes
ii. Tactical Dashboard, for middle managers
concerned with for analysis, Yes Yes
iii. Operational Dashboard, for frontline users to
manage daily operations. Yes Yes
9 What are the 3 Most Important KPI to your supply side? in Daily operations, and monthly review?
DIOH Days Inventory on Hand Net Sales vs Target & OTIF
GE % & OTIF Logistics Spend vs Net Sales %
Compliance to Schedule CTS % Compliance to Schedule CTS %
10 Are these Supply chain Resilience elements are
important to you?
i. Trust, Yes
ii. Robustness, Yes NA
iii. Visibility Yes Yes
iv. Information sharing, Yes Yes
v. Collaboration Yes Yes
11 Mention 3 gaps in your industry’s procurement
process that need to improve?
Global Sourcing Multiple Sourcing
Product Development Vendor Development
12
Where do you see your industry's procurement as compare to other industries like FMCG and
Pharma? What Benchmark do you use for your
KPI?
Top of the line KPIs in MNC manufacturing
sector comparable with P&G and Unilever.
When it comes to local FMCG's, Shan Foods is at
verge of achieving top of the line performance indicators.
Section C:Process Reliability
13 Do you use Supplier Performance Evaluation Form? And what areas do you evaluate ?
Lead Time, Rejection Rate, Cycle Time, Continuous Improvement,
Yes. Supplier Performance Related KPIs, Gap Analysis,
14 What is the Supplier's Performance Evaluation
Frequency? Once a Year. Embedded Year End Review once an year
15 What are the Major Area of Evaluation? Cost Reduction and JIT Supplier Performance and Cost Reduction.
Supply Management Dashboard
61
16
Do you visit Supplier or supplier’s Supplier? What
areas do you look at visit? inventory-days-of-
supply? Capacity?
Supplier Continuous Improvement. Yes
17
How many suppliers do you have, and how many are the top 10, and what is the criteria for selection
of top 10?
Around 30 main suppliers including RM and
PM.
More than 100 core suppliers out of 30 are the at the top. Rating is performed based on indicators like, lead
time, returns, continuous improvement
18 What is the Forecast Accuracy? 85% NA
19 How you monitor the Supplier's rejection rate?
And how?
RFT Right First Time from operations is communicated to procurement and supplier is
involved.
Supplier Rejection Rate is calculated on monthly basis.
20 What are the return reason of supply? Do you
maintain any log?
Mainly in Packaging lamination issues are
observed. In Raw Material no specific rejection is observed over an year.
In Packaging mostly defected or deviation from art
work are rejected. In Raw any deviation from recipe, physical appearance and sensory is conducted.
21 Level of supplier's defect free deliveries? NA 90%
22 On time and correctness of Order Rate? How do you evaluate variability in 3rd party services?
90%
23 Effectiveness of delivery invoice methods?
Since the implementation of Coupe ERP
system delivery invoices are posted via ERP
and reviewed.
24 Quality of delivery documentation? Synchronized with ERP Delivery documentation is finalized at the time of each
delivery.
25 Supplier's booking procedures? Embedded in Accenture ERP System Embedded in localized in system.
26 Are your system is using API (application
programming interface) for Supplier's system. Yes No
Section D:Process Responsiveness
27 Order Planning Lead Time in Days? Advance Planning of 3 Months and ordering
is done as per the data,
28 Order Processing Lead Time in Days? Depends upon the material
29 Order Receiving Lead time in Days from date of
Order? Pack Mat 60 days and Raw Material 30 Days Raw Material Avg. 7 Days. Packaging Avg. 4 Days
30 What is strategy to manage lead times of large
Orders?
i. Just in time
ii. hybrid model Mixture of JIT and MTS Mixture of JIT and MTS
iii. Make-to stock
Section E: Cost Management
31 Raw Material Purchase cost, Monthly, Annually (estimated)
600 Million PKR Annually More than 1000 Million PKR
32 Annual Procurement Savings? How do you evaluate performance of procurement department?
Procurement department has been trained on
latest purchasing methods. Team has a great potential to deliver the targets during stringent
times.
Procurement department has been trained on latest
purchasing methods. Team has a great potential to
deliver the targets during stringent times.
33 Alternative Source availability? Not Applicable. Started working mostly in Pack Mat
34
What do you think What is your role as Procurement Executive how you give profit to
your company
Placing bulk orders Through Negotiation and implementing best practices.
Section F: Asset Management
35 Inventory Days of Supply? 60 days 45 days
Supply Management Dashboard
62
Table 21- Textile Industry Answer Script Industry Textile Textile Textile
Company: Medium -Size Small-Size Medium -Size
Date: 19/01/2021 20/1/2021 20/1/2021
Interviewer: M. Aqib Rajper M. Aqib Rajper M. Aqib Rajper
S No. Section A: Basics-Generalize
1 Number of Warehouse &
Factories?
01 Factory Pakistan And 01 Warehouse In
Canada
3 Productions Units In Karachi And 1
Ware House In UK 1 And 1
2 Number of Total Staff and Supply
chain Staff? 300 Total And 10 People SCM 450 Total 12 Person In SC 1100 And 06
3 Number of Business Lines? 8 Lines 6 Lines Home Textile & Terry Towel Yarn , Socks,
Health Care And Institutional Textile
4 Number of Products, How to
Manage Big quantum Sourcing
All Men's Ladies And Toddlers Top And
Bottom Knits, Categories By Process (Dry
And Wet)
All Knitted Products 55 Million Dollar
5 Number of Raw Material? 08 Type Of Raw Material Fewer Supplier For Yarn And Many
For Trims Safety Stock Of 6 Month
6 What is the strategy of sourcing?
Pack Mat (Cash) , Yarn On Forecast, Material
Wise Different, Yarn Thread SRM Call
Supplier On Floor(Quality And Quantity),
Carton Bust, Bulk Order For Year,
Central Customer Wise Central
7 Central Procurement or
department wise? Central(Material Wise)
Section B:Current Position on
Reporting and Future Need
8 Do you use any Dashboard? And on
what level? No No Yes
i. Strategic Dashboard, which
are for executives’/Board members
for monitoring,
ii. Tactical Dashboard, for
middle managers concerned with for
analysis,
Yes
iii. Operational Dashboard, for
frontline users to manage daily
operations.
Yes
9
What are the 3 Most Important KPI
to your supply side? in Daily
operations, and monthly review?
1-Delivery Accuracy(Quality/Quantity) 1-Cost Per Order 1- Time Delivery
2-Number Of Errors 2- Delivery Time 2- Error Rate
3- Cost (With In Cost)/Payment Terms 3- Defects Rates 3-Back Supplier 8 For Cotton
10 Are these Supply chain Resilience
elements are important to you?
i. Trust, No No Yes
ii. Robustness, No No No
iii. Visibility No No Yes
iv. Information sharing, No No No
v. Collaboration No No No
11
Mention 3 gaps in your industry’s
procurement process that need to
improve?
1- Lack Of Planning 1- Supplier Relationship Area
Neglected 1- Marketing Uncertainty
2- Info Sharing
2- Unavailability Of Dedicated Quality
Person 2-
3- Quality Control By Visiting 3- Planning 3-
12
Where do you see your industry's
procurement as compare to other
industries like FMCG and Pharma?
What Benchmark do you use for
your KPI?
Skill Set, Qualification, Planning ,Training
With Exception of Few Companies
Textile Is Far Behind Other Sectors
Bench Mark Info Sharing Is Non
Existing - No Collaboration - No
Involvement of Purchasing Dept. In
Product Development
No Comparison
Section C:Process Reliability
13
Do you use Supplier Performance
Evaluation Form? And what areas do
you evaluate ?
Standard Form From ISO () Yes, Quality, Delivery Time And
Product Accuracy
Yes, Quality Cost, Grading, Social Compliance,
Error Rate. Returns
14 What is the Supplier's Performance
Evaluation Frequency? Once In Start Not Standard Annual
Supply Management Dashboard
63
15 What are the Major Area of
Evaluation?
Capacity, Financial Condition, Lead Time
Timely Delivery, Quality , Quality Cost Quality And Delivery Time Minimum Criteria;
16
Do you visit Supplier or supplier’s
Supplier? What areas do you look at
visit? inventory-days-of-supply?
Capacity?
Only Supplier To Check Capacity , Status
Accuracy , Out Sourcing Yes Only For Service
Yes, Sub Supplier , Technical Area , Safety,
Documentation Agreement (Management
Maturity)
17
How many suppliers do you have,
and how many are the top 10, and
what is the criteria for selection of
top 10?
24 Suppliers (RM) Knitting Dying 10 4 Point Criteria For Scoring 40 , Top 10 Evaluation Form
18 What is the Forecast Accuracy? ?? Common Yarn And Common Color Of Fabric
19 How you monitor the Supplier's
rejection rate? Qc Check In Store By 10% Check Qc Check And Department Feedback Supply Report, Qc Visit And Inter Check
20 What are the return reason of supply?
Do you maintain any log? Log Is Maintained In ERP(Quality Reason) Varies Quality
21 Level of supplier's defect free
deliveries? -
22
On time and correctness of Order
Rate? How do you evaluate
variability in 3rd party services?
Manual Record(3 Times Continues Error Will
Be Rejection)/Merchandiser 4 Point Criteria For Scoring Evaluation Form
23 Effectiveness of delivery invoice
methods? PO And Invoice Matching 2 Level Verification Yes
24 Quality of delivery documentation? PO And Invoice Matching 2 Level Verification Yes
25 Supplier's booking procedures? Steps Sop In Process
26
Are your system is using API
(application programming interface)
for Supplier's system.
No No No
Section D:Process Responsiveness
27 Order Planning Lead Time in Days? PP Dept. TNA As Per Order Standard In For Both And New And Running
28 Order Processing Lead Time in
Days? Depends On Order (Continues) As Per Order
29 Order Receiving Lead time in Days
from date of Order? 8 To 12 Days
30 What is strategy to manage lead
times of large Orders? Hybrid Model Hybrid Model
i. Just in time
ii. hybrid model Hybrid Model
iii. Make-to stock
Section E: Cost Management
31 Raw Material Purchase cost,
Monthly, Annually (estimated) Order Dependent: (Estimated) 0.65 Million
32
Annual Procurement Savings? How
do you evaluate performance of
procurement department?
No Of Supplier/Costing Vs Actual/
Relationship/Cost And Quality/ Mostly On Response Time
Saving By Collaboration Training Lean,
Quality Time Cost
33 Alternative Source availability? Yes 2 Sources Yes Always Yes
34
What do you think What is your role
as Procurement Executive how you
give profit to your company
RM Is Major Component Cost And Role Of
PE Is Crucial In It
It’s Very Important Not Just In Material
Cost But Overall CCC Huge
Section F: Asset Management
35 Inventory Days of Supply? Order Base Order Wise Not Available
Supply Management Dashboard
64
References
Behrouzi, F., & Wong, K. Y. (2011). An investigation and identification of lean
supply chain performance measures in the automotive SMEs. Scientific
research and essays, 6(24), pp. 5239-5252.
Bracio, K., & Szarucki, M. (2020, Oct 27). Mixed Methods Utilisation in Innovation
Management Research: A Systematic Literature Review and Meta-Summary.
Risk Financial Manag. 2020, 13; doi:10.3390/jrfm13110252, p. 252.
Chae, B. (. (2009, Nov). Developing key performance indicators for supply chain: an
industry perspective. Supply Chain Management: An International Journal,
Volume 14, pp. 422–428.
Charkha, ,. P., & Jaju, S. (2015, Sep). Identification of Performance Measures for
Textile Supply Chain: Case of Small & Medium Size Enterprise. Int. J Sup.
Chain. Mgt. Vol. 4 No.
Creswell, J., & Clark, V. P. (2017). Designing and Conducting Mixed Methods
Research. New York: SAGE Publications, lnc.
Eckerson, W. (2011). Performance Dashboards: Measuring, Monitoring, and
Managing Your Business. Second Edition, John Wiley & Sons, Hoboken, U.S.,
pp. 29, pp. 1-318.
Gobbi, L., & Massa, I. (2015). Supply chain management in textile sector: the case of
the Italian T-fashion traceability system. . International Journal of
Environment and Health, 7(4), , pp. 359-370.
Hafeez, J., Khalid, R., & Mir, S. (2017, January-March). SCOR Implementation in
Oil and Gas Company from an Emerging Market. International Journal of
Operations Research and Information Systems,Volume 8, Issue 1.
Hofman, D., Aronow, S., & Nilles, K. (2013, Sep). Gartner’s 2013 Supply Chain Top
25: Learning From The Industry Leaders. From supplychain247.com:
http://www.supplychain247.com/article/gartners_2013_supply_chain_top_25_
learning_from_the_industry_leaders
Jolphine Kek May Sien. (2019, July 11). Five Best Procurement Practices for FMCG
Sector. From ipmm.edu.sg: https://sipmm.edu.sg/five-best-procurement-
practices-fmcg-sector/
Supply Management Dashboard
65
Karl, A. A., Micheluzzi, J., Leitea, L. R., & Pereira, C. R. (2018). Supply chain
resilience and key performance indicators: a systematic literature review.
Production, 28, e20180020, ISSN 1980-5411 (On-line version).
Krishnadevarajan, P. K., Ravichandran, V., Balasubramanian, S., & Kannan, N.
(2015, Sep). Supplier Management A Framework for Selection, Evaluation
and Performance. International Journal of Management (IJM),Volume 6, Issue
9, pp. pp. 16-28, Article ID: IJM_06_09_003.
Kusrini, E., & Primadasa, R. (2018). Design of key performance indicators (KPI) for
sustainable supply chain management (SSCM) palm oil industry in Indonesia.
MATEC web of conferences (Vol. 159), p. 02068). EDP Sciences.
Laura, H., & Julia, M. (2019, May). Measuring Sustainability in Supply Chain with
Key Performance Indicators. JÖNKÖPING, International Logistics and
Supply Chain Management.
Lee, G. B. (2014, May). Supply Chain Benchmarking: Visualisation of Performance.
From researchgate.net:
https://www.researchgate.net/publication/271770069_Supply_Chain_Benchm
arking_Visualisation_of_Performance
Lofvinga, V. (2013). The Purposes of Performance Dashboard Use: A Case of a
Procurement Performance Management SaaS Provider. Department of
Information and Service Economy Aalto University, Master's thesis.
Novar, M. F., Ridwan, A. Y., & Santosa, B. (2018). SCOR and AHP Based
Monitoring Dashboard to Measure Rice Sourcing Performance at Indonesian
Bureau of Logistics. 12th International Conference on Telecommunication
Systems, Services, and Applications (TSSA), pp. 1-6.
Ortas, E., Moneva, M., & Álvarez, I. (2014). Sustainable supply chain and company
performance: A global examination. Supply Chain Management: An
International Journal, 19(3), , pp. 332-350.
Ponomarov, S., & Holcomb, M. (2009). Understanding the concept of supply chain
resilience. International Journal of Logistics Management, 20(1), pp. 124-143.
Ramona Gligorea. (2020, July 15). Key performance indicators in the oil & gas
industry – British Petroleum. From performancemagazine.org:
https://www.performancemagazine.org/key-performance-indicators-oil-bp/
Supply Management Dashboard
66
Salman Ghouri . (2017, Sep 17). The Single Most Important KPI For Oil & Gas
Companies. From Oilprice.com: https://oilprice.com/Energy/Crude-Oil/The-
Single-Most-Important-KPI-For-Oil-Gas-Companies.html
Sandra Durcevic. (2018, Sep). 10 Supply Chain Metrics & KPIs You Need For A
Successful Business. From https://www.datapine.com/:
https://www.datapine.com/blog/supply-chain-metrics-and-kpis/
Scavarda, L. F., Ceryno, P. S., Pires, S., & Klingebiel, K. (2015). Supply chain
resilience analysis: a Brazilian automotive case. Revista de Administração de
Empresas,55(3), pp. 304-313.
Shabaninejad, H., Mirsalehian, M. H., & Mehralianc, G. (2014, Winter).
Development of an Integrated Performance Measurement (PM) Model for
Pharmaceutical Industry. Iran J Pharm Res, PMCID:
PMC3977072,13(Suppl), pp. 207–215.
Shepherd, C., & Gunter, H. (2005, Dec). Measuring supply chain performance:
current research and future directions. IJPPM, 55,3/4.
Stefanovic, N. (2014). Proactive Supply Chain Performance Management with
Predictive Analytics. The Scientific World Journal, vol. 2014, Article ID
528917, p. 17.
Stephanie Davies. (2015, Jan). 7 critical KPIs for the best supply chain management
process. From linkedin.com: https://www.linkedin.com/pulse/7-critical-kpis-
best-supply-chain-management-process-stephanie-davies/
Supply Chain Benchmarking, Supply Chain KPIs, Articles. (2020, Feb). Supply Chain
Performance Dashboards: 6 KPIs to Keep Them Simple. From
benchmarkingsuccess.com/: https://www.benchmarkingsuccess.com/top-
supply-chain-kpis/
Svensson, G. (2007). Aspects of sustainable supply chain management (SSCM):
conceptual framework and empirical example. Supply chain management: An
international journal, 12(4), , pp. 262-266.
Supply Management Dashboard
67
APPENDIX-B
Figure 14- AHP Hierarchical Model of Verified Metrics Judgement
Source: (Novar, Ridwan, & Santosa, 2018) Pg-04
Supply Management Dashboard
68
Figure 15- Supply chain stages-sourcing KPI
Source: (Shepherd & Gunter, 2005)
Supply Management Dashboard
69
Figure 16- Supplier Management Categories and Metrics
Source: Pg-06 (Krishnadevarajan, Ravichandran, Balasubramanian, & Kannan, 2015)
Supply Management Dashboard
70
Figure 17- SAP Report (Me2M)
Source: SAP ME2M
Supply Management Dashboard
71
PGD-SCM Project Group Members’ Introduction
Beenish Akhter
A Strong Analytical individual with more than 10 Years of successful experience in
Supply Chain Up & Down stream planning & inventory management. Currently
Working with the Dawaai.pk as Senior Lead Supply chain/Head of Department. My
interest area for working are Order Planning, Supply Planning, budgeting &
forecasting, business & Pricing analysis. Hands on SAP, Oracle, Power BI.
Gohar Rafiq
Having 15 years of experience in different industries i.e. Business Processing
Outsourcing, Finance and Procurement. Hands on SAP, ARIBA and MS Power BI.
Working with Chevron Pakistan Lubricants Pvt. Ltd as a Procurement Specialist in
Karachi, Pakistan. My interests are: Supplier Risk Management, Inventory
management, agile behavior, ERP solution provider and problem solving skills.
Muhammad Aqib
An Operations management professional having 5+ experience of operations in Energy
and textile sector. Currently working as head of operations in BlackNwhite Clothing.
My focus areas are cost optimization of end to end supply chain and alignment of third
part operation with In-house operations and budgeting.
Umair Samad
A Mechanical Engineer Six Sigma Green Belt and a Lead Auditor with more than 8+
years of experience in Multinational FMCG/Oil & Energy companies (Monsalwa, Shan
Foods, Unilever & Mondelez International, TOTAL) in Production Planning.
Warehousing. Quality, Process Improvement and maintenance. His interests are:
Continuous and Quality Improvement, Manufacturing, Production Planning,
Maintenance. He is a CSCP. [[email protected]]
Supply Management Dashboard
72
Usama Hamid
Highly Skilled person having Engineering Background and more than 4 years’
Experience in Supply Chain in Wavetec Pvt. Ltd in Karachi Pakistan. My focused areas
are Sourcing and Procurement by employing best business practices that improve
efficiency, reduce operating costs whilst increasing performance, tight time scales and
within budget. Email [ [email protected]]
Supply Management Dashboard
73
PGD-SCM Project Supervision Log
S. No. Date Time
01 2nd July 2020 05:05 PM
02 9th Oct 2020 10:30 PM
03 18th Oct 2020 01:15 PM
04 8th Dec 2020 05:00 PM
05 12th January 2021 05:20 PM
06 26th January 2021 07:45 PM
07 7th February 2021 05:30 PM