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SINGAPORE - The Singapore Manufacturer's Federation (SMa) has announced a S$1 million pilot project to encourage Singapore companies - particularly small and medium-sized enterprises (SMEs) - to improve supply chain capabilities.
The improvement is being sought through the implementation of SCOR (or Supply Chain Operations Reference) model. This is a framework for business processes, performance measurements, and best practices, endorsed by the Supply Chain Council, an international non-profit organization.
SMa's e-Supply Chain Management (eSCM) centre of excellence wants to use this model to upgrade the supply chain of manufacturers, logistics and services providers.
According to Lauw Kok Keen, acting director, eSCM Council, the SCOR model help a company gain 10 times the amount invested in terms of benefits over three years based on efficiency and best practices.
"One of the conditions of the funding is that companies must show benefits that are at least 10 times the funding received," said Lauw. "But we will ensure that participants are capable of making the grade."
The award, which is sponsored by SPRING Singapore will financially help up to 15 SMEs move up the value chain through supply chain excellence.
"Up to 70 per cent of manpower costs can be funded on a reimbursement basis up to a cap of S$250,000," said Lauw.
John Paul, managing director of iCognitive, a consultancy specializing in the SCOR model, said that the programme was most timely in face of the current recession.
"How can companies keep afloat?" he asked. "It is by reducing cost, and this programme is most relevant in helping companies streamline and do just that."
Another particularly relevant aspect of SCOR is that the latest version 9.0 includes GreenSCOR, which encompasses concepts that enhance eco-friendly practices.
GreenSCOR capabilities include:
-- Best practices for making the supply chain more eco-friendly, such as reducing energy consumption, and minimizing packaging materials;
-- Metrics to measure the effects of greening, including carbon and environmental footprint, emissions costs, and energy costs; and
-- Processes to address waste management.
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