PLAN cases, they also handle procurement for the day-to-day

PLAN is the only process
that is inside each of the processes in the SCOR model. This structure is in
charge of designing the whole supply chain based on changing customer needs.
Inside the operational activities, they handover the demand planning based on
customer needs, supply planning based on external and internal manufacturers
and join these two inputs in Sales & Operations Planning (S&OP). We
will focus on this process for DePuy Synthes specifically. Starting by the
upstream of the chain, SOURCE is the functional structure that manages
suppliers, both internal and external. They must strategically choose suppliers
depending on product strategy, e.g. standard or make-to-order products. Then,
Source handles suppliers’ relationship management for contractual contracts and
prices negotiation. In some cases, they also handle procurement for the
day-to-day business. MAKE begins its activities once they obtained all raw
components needed. The main activities are production execution, quality
inspection, maintenance of resources and guarantee inventory in stock. DELIVER
ensures the distribution of goods to customers, either another hub inside the
chain or the end customer. This functional structure manages warehouse
activities such as picking, repackage, final quality inspection; and
transportation activities like traffic or freight management. Here, Johnson
& Johnson also includes the Return process inside the SCOR model.
Therefore, they also manage reverse logistics when a supplier or internal
manufacturer did not meet all quality requirements and need to be reproduced.
Finally, SERVICE is included in the SCOR model as the customer is the most
important in the organization. For medical devices, this functional structure
interacts directly with hospitals in order to get installed all medical devices
needed, replace damaged parts, and do trainings to doctors in order to
correctly use the products. 

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