Quick Hints on Modelling a Process in Supply Chain
Process Modelling standards in procurement and supply chain turnaround
New management theories, development of technology, easier access to knowledge are just a few factors that enable continuously increasing number of organizations to focus on the transformation and optimization of their processes and structures. There is also an unstoppable pressure on finding new ways to maximize revenues. In result, the function of procurement and supply chain is targeted as an area with substantial opportunities for improvement.
One of the important aspects of procurement and supply chain optimization is the process analysis and design. In fact, defining, visualizing and understanding of existing processes („As Is”) as well as the expected process infrastructure („Should Be”) is the key prerequisite of a successful transformation of the procurement and supply chain function.
Yet, it shall also be underlined that process design does not mean simple drawing of the process workflow. The actual Process Modelling differs from the simple process mapping through the following distinguishing features:
- it uses standard notation, i.e. standard language, descriptions, symbols, rules how to use the symbols and references
- it is precise as much as necessary for the given process level
- it allows manual and automated simulations
- it can be still developed
- it uses connectors between different process levels and functions which create the complete process infrastructure of the organization (Business Process Management System)
- it allows to manage processes, to analyse process efficiency, to manage changes in the process flow
There are numbers of publications and business studies which explore the area of process optimization and define standards for Process Modelling. In the Business Process Management Common Body of Knowledge issued by the European Association of Business Process Management, the most common notations for the process modelling have been listed as follows:
- BPMN 2.0 – Business Process Model and Notation
- EPK – Ereignisgesteuerte Prozessketten
- UML – Unified Modeling Language
- IDEF-O – Input, Output, Enabler, Mechanism
- VSM – Value Stream Mapping
Each of the notations has its unique characteristics and requirements. Each offers different functionality and value in the process optimization. It is sometimes recommended to combine different notations in order to maximize the outcome.
The listed notations can be used when „mapping” the processes from various angles and with different flexibility, but in every case support the standardization and management of the process changes. For the purpose of process design in procurement and supply chain optimization projects, it is often recommended to focus on VSM and BPMN.
Quite often the optimization of procurement and supply chain function might be jeopardized by the complexity of the process infrastructure in the organization. Then, next to the selection of suitable process modelling notation, the identification of the most adequate reference models might ffacilitatethe change.
In such case, apart from supply chain and procurement relevant reference models, such as:
- SCOR – Supply Chain Operations Reference,
- DCOR – Design Chain Operations Reference,
the consideration could be given to neutral reference models as:
- APQC – Process Classification Framework (PCF)
- Value Chain Group – Value Reference Model
The references given above are only a few and the actual selection of the right reference modell requires carefl preparations and study.
All the listed tools may only support the „mapping” of the processes. The most critical factor of the succesful turnaround of the procurement and supply chain function is, however, to delegate a professional team or individual, who is able to use the existing standards and techniques and is equipped with proper resources (i.e. time). No tool can replace that.
Published at Trampolina Sukcesu
