Supply-Chain Maturity Model

Consider these questions in the context of your overall company, business units, and IT department. Do you have: 

  • A focused approach to managing alliances?
  • A formal process for creating service strategies?
  • A formal process for maximizing sourcing and distribution?
  • A new-product development process that considers standard components and processes, and includes suppliers and customers?
  • A way to incorporate changing customer needs and new technologies in your processes and supply chain?
  • Benchmark tests to measure supply-chain performance?
  • A willingness to take advantage of supplier and customer expertise in collaborative planning, delivery, and forecasting?
  • Alignment between supply-chain performance objectives and your overall competitive strategy?
  • The necessary resources to globalize your supply and demand?
  • A systematic process to categorize suppliers based on their capabilities, competencies, and performance?
  • Supply-chain systems that link logistics, operations, and procurement with external customers and suppliers?
  • A formal supply-chain management function?
  • A system for identifying cost drivers and costs across the supply chain?

Reducing Costs Across the Supply Chain
by Robert Handfield
Optimize, December 2002, Issue 14

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