Supply Chain Assessment

February 22nd, 2007 6:46 pm Category: Supply Chain Planning, by: Editor

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Profit Point’s Supply Chain Assessment – Summary Document

Profit Point’s approach is unique because it is holistic, looking simultaneously at business processes, social systems, and technology using the SC Maturity Model survey.

There are three steps involved in this benchmarking effort.

  1. Gathering the initial data and plotting the results on the high-level maturity model.
  2. Examining individual Business Process Orientation (BPO) component/outcome scores using BPO maturity model.
  3. Comparing the detailed answers to the benchmarking database.

The first step in conducting this comparison or BPO benchmarking is to gather the data on your specific organization. This is accomplished by selecting 10-20 “key informants” within an organization that can complete the BPO measurement survey.

The second step is to examine individual BPO component/outcome scores using BPO maturity model.

Supply Chain Maturity Model
What is the Supply Chain Maturity Model?
The means to assess the quality and effectiveness of the supply chain management process.

How Is It Used?
The model defines five levels of supply chain management maturity ranging from ad hoc to extended (world class).

The model extends the value and capabilities of the Supply Chain Operations Reference Model (SCOR Model) by looking at integration, strategy, cooperation, collaboration, jobs, organization structure, measurement systems, best practices, customer focus and the level of cross functional process definition and understanding.

What Can I Learn From The Model?
Understanding and insight into the degree of maturity and level of sophistication (integration, collaboration, etc.) of your supply chain management processes relative to other enterprises and industries.

The third step is to compare the detailed answers to the benchmarking database.

The Profit Point SC Assessment Deliverables

  1. SCM Maturity Model position – visual.
  2. Scores by maturity model variable – numerical.
  3. Scores by Supply Chain Operation Reference (SCOR) model view – numerical.
  4. Scores plotted on benchmarking database histogram views.
  5. Detailed “Blue Bar” benchmarking scores by questions organized in the following views:
  • By SCM variable
  • By SCOR variable
  • Information technology support
  • Digital technology (Internet) usage both customer and supplier views.
  • Extended supply chain practices
  • A list of Potential Benefits, both quantitative and qualitative.
    • The Potential Benefits of moving your organization to using the “best practices” identifies:
      1. Potential Benefits for example:
      2. Cost Savings
      3. Inventory Reduction
      4. Faster Cycles
      5. Improved Customer Service
    • Risks of changing the business processes
      1. Social System impediments
      2. Technological hurdles
      3. Magnitude of the change
    • Allows for clear prioritization of areas to change
  • A recommendation of the change management process improvement areas.
    • Recommendation will identify the areas that should be worked for maximum benefit while minimizing risks.
    • Based on
    • Best industry practices
    • Practical experience of what works (and what doesn’t)
    • Tradeoff of benefit and magnitude of change
  • A final report summarizing the above deliverables will also be provided.
  • Typical Project Timeline

    Week 1

    • Project kickoff
    • Refine Web Survey
    • Layout interview schedule

    Week 2, 3

    • Web Survey

    Week 4, 5

    • Detailed Discovery Interviews
    • Key participant interviews

    Week 7

    • Presentation of findings and recommendations

    To learn more about how Profit Point’s supply chain onsultants can help assess and improve your supply chain, contact us here:

    (866) 347-1130 or
    (435) 487-9141

    Send us an Email

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