Supply Chain Manager

Supply Chain Manager

When to Use

• Define supply chain operating model — make vs buy, single vs multi-source, regional strategy
• Run sourcing — RFQ/RFP, supplier qualification, should-cost, award recommendation
• Set inventory policy — safety stock, reorder points, ABC/XYZ, slow-mover disposition
• Align demand forecast with sales, ops, and finance horizons
• Manage logistics — 3PL selection, lanes, Incoterms, customs, lead-time buffers
• Build supplier scorecards — quality, delivery, cost, responsiveness
• Mitigate supply risk — sole source, geopolitical, concentration, continuity plans
• Resolve exceptions — stockouts, late POs, quality holds, invoice/PO mismatches (ops view)
• Prepare QBR materials with strategic suppliers

When NOT to Use

• MSA, liability, indemnity redlines → commercial-counsel
• Vendor SOC2, access, security questionnaire → information-security-engineer
• DC MW/rack construction critical path → senior-data-center-capacity-delivery-manager
• Server/GPU utilization and stranded kW → data-center-compute-supply-efficiency
• Capex accounting, depreciation, cloud CUR to GL → compute-accounting-manager
• CRM quote, order form, billing handoff → deal-operations-administrator
• Customer support and subscription ops → customer-ops-specialist
• AI model vendor bake-offs → ai-lead-ops
• Issue-tree strategy without supply execution → business-consultant
• Multi-team software integration TPM → technical-program-manager

Related skills

Core Workflows

1. Strategy and operating model

Scope, KPIs, governance.

See `references/supply_chain_strategy_framing.md`.

2. Sourcing and suppliers

RFQ, qualification, scorecards.

See `references/sourcing_supplier_management.md`.

3. Inventory and demand

Forecast, policies, exceptions.

See `references/inventory_demand_planning.md`.

4. Logistics and fulfillment

3PL, lanes, lead times.

See `references/logistics_fulfillment.md`.

5. Risk and resilience

Continuity, dual source, buffers.

See `references/supply_risk_resilience.md`.

6. Cost and performance

TCO, OTIF, dashboards.

See `references/cost_and_performance_metrics.md`.

Outputs

• Supply plan — demand, supply, gap by period
• Sourcing recommendation — award matrix with risks
• Inventory policy sheet — SKU rules and parameters
• Supplier scorecard — quarterly metrics and actions
• Risk register — sole source, lead time, mitigation owner
• Executive summary — cost, service, risk trade-offs

Principles

• Service level before lowest unit price — total cost includes stockout and expedite
• Forecast is a process — bias and error tracked, not a one-time spreadsheet
• Contracts follow commercial counsel — SCM owns business terms input, not legal sign-off
• Measure what suppliers control — clear OTIF and quality definitions
• Resilience has a price — document buffer and dual-source cost for leadership

Cost and performance metrics

Table of contents

1. Total cost view 2. Should-cost and savings 3. Scorecard template 4. Reporting cadence

Total cost view

Landed cost includes:

• Unit price
• Freight, duties, insurance
• Quality cost (scrap, rework, returns)
• Inventory carrying cost
• Expedite premium
• Obsolescence write-down

Compare suppliers on TCO, not invoice price alone.

Should-cost and savings

Methods:

• Should-cost model from BOM, labor, materials index
• Benchmark peer quotes and market indices
• VA/VE workshops with engineering
• PPV (purchase price variance) vs standard

Track savings validated in P&L — finance confirms, not procurement self-score only.

Hardware invoice classification → compute-accounting-manager for GL, not sourcing strategy.

Scorecard template

RAG status and top 3 actions per supplier QBR.

Reporting cadence

Dashboard build → bi-analyst; narrative for steerCo → align with business-consultant if strategic.

Inventory and demand planning

Table of contents

1. Forecasting 2. ABC and segmentation 3. Inventory policies 4. Exception management

Forecasting

Inputs:

• Sales pipeline and bookings (lag adjusted)
• Historical shipment/consumption
• Promotions, seasonality, product lifecycle
• Engineering BOM and build plan for hardware

Reconcile top-down finance target vs bottom-up SKU forecast.

Track bias (over-forecast wastes cash; under-forecast causes stockout).

ABC and segmentation

Inventory policies

Safety stock = f(service level, lead-time variability, demand variability).

Document assumptions; refresh when lead time shifts.

Exception management

Hardware forecast alignment → data-center-compute-supply-efficiency for compute nodes.

Logistics and fulfillment

Table of contents

1. Network design 2. Incoterms 3. 3PL management 4. Lead time and buffers

Network design

Options:

• Central DC — scale, longer last mile
• Regional DCs — faster delivery, more inventory
• Cross-dock — high velocity, low storage
• Drop-ship — no inventory; supplier ships to customer

Model lane cost, handling, and inventory carrying cost together.

Incoterms

Common choices (legal defines contract; SCM owns operational impact):

Clarify risk transfer and who books freight/customs.

3PL management

SLA elements:

• Receiving and put-away time
• Pick/pack accuracy and cut-off times
• Inventory accuracy (cycle count agreement)
• Returns processing
• Chargeback model (storage, picks, labels)

Run operational reviews monthly; annual commercial review with commercial-counsel.

Lead time and buffers

Document total lead time:

Supplier LT + inbound transit + receiving + internal processing + outbound transit

Buffer in days of supply at each leg for critical SKUs.

Customer promise dates must exceed cumulative P95 lead time unless expedite budget exists.

Sourcing and supplier management

Table of contents

1. RFQ process 2. Qualification 3. Award criteria 4. Supplier management

RFQ process

1. Scope — specs, volumes, regions, Incoterms, payment terms (commercial input) 2. Supplier list — incumbents + challengers; conflict checks 3. Bid package — drawings, SLA targets, data requirements, timeline 4. Q&A — single channel; log amendments 5. Evaluation — scored matrix; site visit or audit if needed 6. Recommendation — award split, risks, transition plan

Qualification

Minimum gates:

• Financial stability (credit check or statements)
• Quality system (ISO or equivalent where relevant)
• Capacity and lead-time credibility
• Security/compliance — route to information-security-engineer for data access
• References and pilot lot for critical parts

Maintain approved supplier list with category owner.

Award criteria

Typical weighted scorecard:

Document why not lowest bidder alone.

Supplier management

• QBR — scorecard, open CAPAs, roadmap, cost-down ideas
• Escalation path — operational → exec sponsor
• Development — joint improvement, VMI, consignment (if used)
• Exit — second source ramp before termination

Legal executes MSA/SOW — commercial-counsel.

Supply chain strategy framing

Table of contents

1. Operating model 2. Core KPIs 3. Governance 4. Make vs buy

Operating model

Clarify scope:

Document handoffs to finance (forecast), legal (contracts), engineering (BOM).

Core KPIs

Align targets with service tier (A/B/C SKUs).

Governance

• S&OP cadence — demand, supply, inventory, gaps, decisions
• Delegation of authority — PO limits, sole-source approval
• New supplier — qualification checklist before first PO
• Change control — BOM revisions, ECO impact on open POs

Make vs buy

Evaluate:

• Capital and capacity constraints
• IP and quality control needs
• Supplier market depth and geopolitical exposure
• Switching cost and ramp time

Strategic cases → input to business-consultant; legal structure → commercial-counsel.

Supply risk and resilience

Table of contents

1. Risk categories 2. Assessment 3. Mitigations 4. Continuity planning

Risk categories

Assessment

Maintain risk register:

• SKU / supplier / region
• Likelihood and impact (1–5)
• Detection lead time
• Mitigation owner and status

Review quarterly; escalate red items to leadership.

Mitigations

Continuity planning

For tier-1 suppliers:

• Contact tree and escalation
• Minimum inventory or WIP at alternate site
• War room trigger (e.g. 2-week disruption)
• Communication plan for sales and customers

Regulatory export controls — involve legal/compliance early; no circumvention advice.

DC-specific delivery risk → coordinate with senior-data-center-capacity-delivery-manager.