scprime® drives a focused and effective improvement programme, hard-wired to strategy and objectives. It has been proven to achieve a step-change in performance, with long term improvements already seen in over 20 countries on five continents, by aligning supply chain strategy with business strategy. Benefits are significant: operating costs are often reduced by 15-20% and working capital by 10-15%; responsiveness and service levels are improved and are more consistent, allowing greater innovation and driving increased sales; staff are developed according to the specific needs of the role, focusing on capabilities rather than job descriptions so they are equipped to carry out what is expected of them.

The focus of scprime® is to drive improvement rather than simply provide scores on a scale of excellence. scprime® impacts a business in two stages:

  • Functional improvement – getting better at making, moving and buying, for example
  • Cross functional improvement – developing more effective planning and other business wide processes

The potential supply chain benefits are considerable, especially in multinational businesses.

Functional Cross-Functional

Administration
overhead

Less crisis management, progress chasing
15% saving

Freight

Load fill optimisation
30% saving

Warehousing/
inventory

3PL contract/productivity management
15% saving

Stock reduction
50% finished goods reduction

Factory overhead

Lean manufacturing
40% less waste

Less crisis management, progress chasing
15% saving

Factory direct

Reduced downtime
40% increase in productivity

Less disruption, better run strategies
10% less waste

Packaging

Best practice procurement procedures
2% price reduction

VMI (where appropriate), flow optimisation
1% price reduction

Ingredients

Effective supplier interaction
Price reductions

Demand visibility
Price reduction

This has a direct positive impact on a company's financial statements:

Functional Area

Balance Sheet P&L

Buy

Lower working capital
(raw materials) 30-40%

Lower raw materials costs 3-5%
Lower indirect materials costs 5-10%

Make

Higher return on capital employed
(ROCE) 5-10%

Lower manufacturing costs 10-15%

Plan

Lower working capital
(finished goods) 30-40%

Lower supply chain costs 10-15%

Deliver

Lower distribution costs 10-15%

Demand

Increase in sales 3-5%