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									Supply Chain Management

Services Industries

December 7, 2001
                                                        Services Industries

    Todd Archer, Managing Director - KPMG Consulting

    Darin Herring, Director – American Express

                                                                              Page 1
What Is Supply Chain Management
                                                                        Services Industries

Supply Chain Management (SCM) is an integrated approach to managing resources
through their lifecycle within the corporation

SCM consists of:

     Planning and budgeting for resources (assets, expenditures and services)
      the corporation needs to conduct business
     Authorization, Sourcing and Purchasing
     Financial Resource Management
     Tracking and Receiving resources
     Resource Tracking, setup and installation
     Upgrade and Maintenance
     Resource Retirement

                                                                                              Page 2
What Is Supply Chain Management
                                                                                                   Services Industries

                                            Supply Chain
                                   Procurement Governance & Risk Management

     "Support"                               Technology & Infrastructure
     Activities        Procurement Organization (Relationship based) Structure and Skill Sets
                                                Procurement Support

                                                            Receiving Payment &
                   Requisition   Review &     Acquisition
     "Tactical"                                                &                     Disposal of
                                 Approval                             Reconciliation
                    Process                    Process       Asset                     Assets
     Activities                  Process                                Process

     "Strategic"    Demand       Commodity    Supplier      Contract       Supplier
      Activities    Planning      Sourcing    Selection      Mgmt.          Mgmt.

                                                                                                                         Page 3
Keys to Successful Supply-Chain
Transformation                                                                            Services Industries

        Operating methods and                                           The human resource
        practices, including policies                                   environment, including
        and procedures, which                     People                skills, culture, and
        determine the way activities                                    structure
        are performed

                   Process                      Technology                 Strategy

                                        Enabling information systems,
                                        applications, and tools

       Physical infrastructure                Infrastructure            Strategic
       providing the foundation                                         understanding of the
       for procurement,                                                 role, positioning and
       including network                                                focus for Procurement
       structure, facilities, and                                       in support of overall
       outsourcing relationships                                        business objectives

                                                                                                                Page 4
Components to Consider
                                                                   Services Industries

    •   Assessment of Current Supply Chain Performance Including
    •   Establishment and Deployment of Supply Chain Strategy
    •   Strategic Sourcing Program Design and Implementation
    •   Procurement Process and Organizational Design
    •   Contract Administration Program
    •   Demand Management Program
    •   Development of Procurement Polices and Procedures
    •   Procurement Application Evaluation & Selection
    •   eProcurement Implementation
    •   Change Management, Procurement Training and eLearning
    •   Electronic Invoice Presentment and Payment Program

                                                                                         Page 5

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