Apics CSCP2022 Mod 8 - Sec A
Apics CSCP2022 Mod 8 - Sec A
OPTIMIZATION, SUSTAINABILITY,
AND TECHNOLOGY
Section A Introduction
Section A Key Processes: Section A Topics:
▪ Evaluate and optimize the supply ▪ Topic 1: Business and Supply
chain. Chain Strategy
– Optimize the supply chain ▪ Topic 2: Supply Chain Strategic
strategy. Value and Optimization
▪ Evaluate existing supply chain
strategy.
▪ Redesign strategy for
optimization.
– Optimize the supply chain
network and processes.
▪ Evaluate existing supply chain
network and processes.
▪ Redesign network and
processes for optimization.
Module 8, Section A ■ 2 © 2022 APICS Confidential and Proprietary
Topic 1: Business and Supply Chain Strategy
Alignment of Strategies
A plan for choosing A plan for how a A plan for how the
how to compete company will supply chain will
function in its function in its
environment environment to
meet business
goals and
strategies
S2 S1 Nucleus C1 C2
firm End
user
Objective 1 Objective 1 Objective 1 Objective 1 Objective 1
…2 …2 …2 …2 …2
…3 …3 …3 …3 …3
…n …n …n …n …n
Business Plan
Statement of long-range strategy and revenue, cost,
and profit objectives with budgets and projected
financial statements
Core Competencies
▪ Best at?
– Decision making (plan, enable)
– Execution (source, make, deliver, return)
▪ Relative to competition
▪ Because
– Economies of scale
– Geography/culture
– Technology
– Resources
The Three Vs
Value
Value Value
stream
chain stream
mapping
Financial Value
▪ Cut costs to yield net gains at the bottom line.
Customer Value
Resources are invested in creating the value of greatest
importance to the market.
Service Sustainability
Social Value
Deliver
Avoid Integrate
socially
negative sustainability in
desirable
side effects. supply chain.
goods.
▪ Effectiveness:
– Right product and right
amount to right customer
at right time.
▪ Efficiency:
– Actual compared to
standard output.
– How well performing
relative to standards.
Objective
Recognition Change
analysis
Culture
rewards or Anonymous
Watch trends
punishes surveys
failure?
Change
Critics needed Consultants
management
Brainstorm
worst cases
Processes
Maximum
Optimum (top
objectives) Outputs
Minimum
Module 8, Section A ■ 30 © 2022 APICS Confidential and Proprietary