Operating at the highest supply chain maturity level of “Innovative” enables the achievement of best-in-class supply chain standards. In this article we define the “Innovative” supply chain maturity goal for each of the five core supply chain capabilities: Supply Chain Performance, Strategy, Network, Processes and Resources.
Five core supply chain capabilities (Supply Chain Performance, Strategy, Network, Processes and Resources) are required at expert levels to establish world-class supply chains and operations that grow substantial endless value. Our Vision is to make Australian companies the most competitive companies in the world. This article identifies how to link and define “competitive standards” and “highest levels of supply chain maturity”.
Best-in-class Supply Chain Standards
To be the most competitive, a company and its supply chain partners need to be the best at everything that is highly important to their strategic customers, shareholders and key stakeholders.
Here are the best-in-class standards that need to be achieved:
Supply Chain PERFORMANCE: Superior Supply Chain Performance
Supply Chain STRATEGY: Globally-competitive Supply Chain Strategy
Supply Chain NETWORK: World-class Supply Chain Network
Supply Chain PROCESSES: Best Practice Supply Chain Processes
Supply Chain RESOURCES: Optimised Supply Chain Resources
Supply Chain Maturity Levels
A supply chain maturity assessment allows us to broadly assess the maturity of supply chain capability. We can do this quickly qualitatively by using the following supply chain maturity levels (5 being the highest) to assess each of the five core supply chain capabilities:
1 Initial: Unpredictable, poorly controlled, reactive, inconsistent
2 Managed: Some consistency, closely managed, repeatable, satisfactory
3 Standardised: Competent, proactive, documented, trained, productive
4 Predictable: Measured, controlled, capable, stable, quantitative results
5 Innovative: Optimised, integrated, continuously creates substantial value
Operating at the highest supply chain maturity level of “Innovative” enables the achievement of best-in-class supply chain standards.
When a company is able to achieve a 99.9% DIFOT, whilst this is fantastic, it doesn’t mean that everything is rosy. For example, are we relying on Jack to pull a 19 hour shift every Friday to achieve the DIFOT target so that our weekly report card looks good? Data alone should not be totally relied upon – we need to take a deeper look beneath the iceberg to identify whether current practices are sustainable, regardless what the report card says.
Our infographic qualitatively defines the “Innovative” level of maturity for each of the five core supply chain capabilities. We want sustainable practices that consistently achieve performance targets.
We have now established the link and positive correlation between competitive “best-in-class supply chain standards” and “highest level of supply chain maturity”; and have qualitatively defined “Innovative” maturity goals. This is a great starting point to quickly rate the overall maturity of the five core supply chain capabilities at your company using the maturity levels legend and these goals. How does your company rate? How many levels are you away from level 5 “Innovative”?
Taking a deeper look would require the following steps:
- Customise the qualitative “Innovative” maturity goals to your company’s requirements and to your industry’s best-in-class standards, and include quantitative performance targets (overall and/or per supply chain)
- Assess, measure and identify the current state of maturity and performance (qualitatively and quantitatively)
- Identify gaps from goals and targets
- Prioritise the order to close the gaps (read how)
- Implement initiatives to close the gaps in order of priority
- Track and sustain goals and targets
Learn more about the five core supply chain capabilities.
Supply Chain Manager™ helps companies to: assess supply chain maturity; develop capabilities to “Innovative” level; achieve best-in-class standards; and manage their supply chains. On our team we maintain an expert-level inventory of the 60 supply chain skill sets that are required to establish world-class supply chains and operations that grow substantial endless value. We’d love to hear from you. Call us on 0411 204 334 to discuss your requirements or email us at firstname.lastname@example.org.