Supply Chain Maturity Model
Supply Chain Maturity Model gives a framework to assist companies in assessing their current maturity level regarding demand-driven processes. Furthermore, Maturity Model provides a roadmap to set SC strategies to progress towards superior levels of maturity.
Companies situate at each maturity stage based on their positioning in the MM Dimensions of Demand Management (forecast, S&OP, CPFR, VMI), Supply and Operations Management (procurement, manufacturing, warehousing, distribution, customer service), and Product Lifecycle Management (new product forecast, supply chain for new products, risk assessment and management, product tracking and portfolio optimisation).
Within the demand management dimension, statistical forecast evolves from incipient to mature processes, incorporating judgmental and statistical techniques and gradually moving from forecast-based to actual demand-pulled systems. S&OP evolves from non-existent and informal processes to formal and event-driven systems, as expected when S&OP practices mature. The adoption of CPFR and VMI reinforces joint demand management in the SC, with both customers and suppliers, making extensive use of advanced IT and communication tools.
Supply and operations management mature with the integration of lean management and agile supply chain techniques in manufacturing, distribution, and customer services. Procurement and distribution become aligned with suppliers and customers. Senior management plays a key role in operations and customer service.
The stages of product lifecycle management evolve from incipient to become closely based on demand for new products, with differentiated strategies for new product introduction, formal risk assessment and management for NPD, integrated with VMI and CPFR initiatives. Cross-functional portfolio optimization is backed with the active participation of senior management.
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