Supply Chain 21, is an initiative that was launched within the defence and aerospace sector to try to improve the performance achieved within the supply chain. So is SC21 limited to be used within this sector alone, or does it have a wider application?
In essence SC 21 is a programme to manage change, with an overall aim of improving competitiveness through creating a supply chain that can accommodate rapid improvements with the minimum of disruption. It is also a framework in which organisations operate, as opposed to being a very prescriptive set of rules. It is also implemented on a national basis.
Signatories then sign up to the framework and make specific pledges or commitments, stating that they will bring about a new culture and way of doing business. This focuses on transparency, sharing data and information and working together to bring about improvements.
There are various other commitments such as being keen to implement change at an accelerated rate and being responsible ethically and in terms of leadership etc. Signatories also have to be prepared for their adherence to the pledges being annually tested and additionally, performance will be assessed and then the results of the assessments are published. So there is no room to hide in SC 21.
A principal aim of SC 21 is to make sure that Lean becomes much more integral to all aspects of supply chain performance; so Lean becomes essential and fundamental to the supply chain in all its forms. SC 21 also seeks to eliminate waste on an almost ruthless basis.
Benefits Of SC 21
Companies can reap a number of benefits from this scheme. When it was first launched the number of companies who were keen to join doubled within only 2 months of the launch, so it was immediately seen as beneficial. It is free to join and although some resources are required to implement the change programme, the number of audits and ‘quality checks’ that companies need to undertake are reduced, so savings are made there.
In addition, companies that can adhere to this programme clearly indicate that they are a market leader within their field and that they are keen to establish constructive and long term relationships with suppliers and customers.
Due to the improvements that will happen within the supply chain, additional benefits will be gained by participating companies.
Widespread Appeal of SC 21?
Companies have already picked up on the fact that there are advantages to be gained from implementing SC 21, so although it was initially developed for the aerospace industry, the principles can be applied anywhere that a supply chain exists.
Indeed, even if companies are too small to actually sign up to such a scheme, the principles can still be applied, to ensure that Lean becomes an inherent part of the company and its philosophy.
Consequently,while SC 21 is a distinctly aerospace/defence initiative its principles should not be viewed as being limited to the aerospace sector, the tools it offers are used outside of this section of industry and they will continue to spread rapidly into different sectors as time progresses. It is far from being a ‘flash in the pan’ it is a radical way of improving performance, embedding Lean within the bones of an organisation so that Lean becomes the overwhelming driving force within it.