ABSTRACT

The advantage of applying the supply chain operations reference model, or comparable standardised models, is that the results of supply chain management improvements become more readily visible. The ability of an organisation to distinguish itself is increasingly coming to lie in the area of customer service. This places heavy pressure on the logistical supply chain. A supply chain is simply a network of material processing cells with the following characteristics: supply, transformation and demand. The transformation of an organisation into one with a supply chain mindset and part of an inextricably linked supply chain requires a lot of effort and takes quite some time. The supply chain will become increasingly flexible, moving in the direction of value networks and virtual enterprises. Advanced planning and scheduling has the potential to effect rapid evolutionary changes in organisations that are part of the supply chain.