Steps 7 and 8

Step 7: Internal assessment and KPI collection

Prior to the audit each company is expected to carry out
a self-assessment, through the cross functional team

What needs to be done: Read the background materials on eSCM background, SCOR framework and the eSCM assessment standard As a team, based on the ‘assessment scope’ defined under step 4, identify what processes (at level 2) would be relevant for the assessment Check if the team can adequately cover all those selected processes. If not, identify additional people required to answer those Read through the questions and try to score - Within the selected processes at level 2, try to score. To do this, whatever information is required, collect the same or talk to anyone else internally - For any processes / questions under this, that are perceived to be not relevant, please mark them. Note down areas that needs clarification Coordinator to make sure all sections which are relevant have been completed

KPIs: Understand the KPIs, definitions and formulae Select the ones which are relevant based on the scope of the assessment Collect data and calculate performance on KPIs, over a 12 month period Be ready to share the logic of calculations and data sources with the auditors Complete and submit the scorecard and KPIs on-line.

Step 8: Auditor to carry out 2 day audit and workshop

IBM Business Consulting Services will carry out a 2 day audit Prior to the audit, the auditor would review the scorecard and KPIs submitted on-line What is the objective of the audit? To ensure that the questions have been understood and interpreted in the intended way To verify that the self-scoring is valid To look for evidence to back up the scores What would be done during the audit? 1st hour of the 1st day will be a kick-off meeting with the team. During this: - The auditor will quickly go through the guidelines and expectations - Coordinator will confirm the activity schedule for the next 2 days (who will be interviewed when...) - Answer any questions prior to the audit Interviews with the supply chain head to provide the auditors with a business background, define the scope of supply chain operations and to understand a overall view of e-enablement of the supply chain. Areas covered would include: - What business is the company in and out of that which one is being audited - Scope of operations in Singapore, to make sure we choose the right processes for audit - Who are their main customers and suppliers and what is the nature of relationship with them - What is his overall perception on how enabled the supply chain is and what are the future plans

What would be done during the audit? (continued) Interviews with the team members would cover - Further detailed questions, in relation to the main questions on the scorecard - Asking that the e-enablement be demonstrated (look for process maps, communication samples, screen shots, live data flow etc.) - To test the extent of prevalence (minimum/ limited/significant), question if this been correctly understood. Also, question logic followed in calculating the prevalence percentage or ask for sample workings - If a questions is felt to be ‘not relevant’, then review the validity of that - Any internal KPIs relevant to the particular process, that are being already tracked by the company (these are not for publication or sharing and also these are not required to be specifically calculated for the audit) - During the interviews, the team members would immediately know where they stand on the maturity scale for each question, for most of the areas. In a few areas, this decision will be taken by the auditor later (may be in consultation with co-auditors or other members of the cross functional team) On the SCOR KPIs and e-prevalence indicators - Review the numbers and run a consistency check at a gross level. For example, if the supply chain response time is long and inventory turns are high, check how a high order fill rate is being achieved - Check if the formula has been understood correctly and explore their interpretations of the component - Look for samples of workings.

eSCM Auditor would carry out ½ a day workshop

After the 2 day audit, eSCM auditor would summarise   The scoring by question and the reasons Work out the average scores at level 2 and level 1 Identify key improvement areas The workshop should be attended by The cross functional team members The senior supply chain management team Any other interested internal personnel

Workshop would Review the scores and reasons Discuss any divergent points of view and come to a conclusion Review the key improvement areas and modify, if necessary Approve the scores and findings for going into the audit report.