Supply Chain Maturity Matrix

Purpose

To objectively measure your level of supply chain maturity, so that you can easily identify areas for improvement.

Instructions

There are 9 dimensions against which your supply chain maturity will be measured.
You should provide your answer to each dimension in the online Survey, that will be revealed once you login below.
You simply select the most appropriate answer to each question. Your result will be sent to you via email at the end of the survey!

Start Test

Forecasting

How is forecasting and demand planning handled within the business?

Approach based on gut feel. Informal process of little use

Some forecasting. No Clear ownership. Not integrated. Short Cycle ie. Weekly or Monthly

Some forecasting. No clear ownership. Not integrated. Quarterly cycle.

Some integration of forecast. Some analysis. Clear ownership. Limited focus on outcome.

Single Universally used forecast across business and customers. Detailed analysis of accuracy

How is Sale and Operations Planning ( S&OP) driven within the business?

Focus on today and each transaction. No formal S&OP process.

Period based planning ie. Monthly. Parts of a S&OP process, tactical and no formal measurement

Extended period planning ie. 3 months. S&OP established but not a main business driving process.

S&OP is key process and senior management is driven with regular horizon planning. KPI's drive process.

S&OP is key process and senior management driven. Rolling (short term) periods, structured and formal Synchronised

How well are the information capabilities aligned to support the business?

Transaction focused, limited data, no analysis capability

Report period's financial results. Fragmented data with little analysis capability.

Useful data not universally available. One off analysis capabilities ie. Spreadsheets.

Useful data universally available, typically not in real time. Some analysis and extraction flexibility.

Real time, visible data connected to other supply chain players electronically. Analysis and extraction flexibility.

How developed is collaboration towards providing more reliable forecast inputs?

No collaboration in working towards a reliable forecast. Different forecasts exist across business

Some collaboration of forecast inputs between some functions, not key driver of business.

Good collaboration across business but leading to one forecast. No strategic focus

Strong collaboration delivers one forecast. Updated regularly and communicated to most parts of the business.

One forecast in business & with suppliers & customers. Strategic focus, updates communicated to all business.

What process exists re: continuous improvement of forecasting process?

No process to improve forecasting process

Some education about importance of forecasting. No KPIs of forecasting accuracy

Understanding of forecast importance. KPIs for forecasting established but aggregate only. Some target set

Forecast key part of improvement drive. KPIs at SKU & other levels. Part of S&OP process. Targets set.

Forecast accuracy seen as key driver of SC service and cost performance. Formal targets sets & managed.

What process exists to ensure rough cut capacity planning is regularly reassessed?

No process to review rough cut capacity planning. Reactive process only

Still reactive but some planning occurs to manage capacity. Functional focus (prod'n) only & short term

Proactive and reactive process to capacity planning. Cross functional impacts considered, focus next month

Proactive, cross functional capacity planning is part of S&OP Horizon planning is regular.

Proactive cross functional capacity planning is part of S&OP, Horizon is 1 to 3 years out. Trade off analysis is conducted

How effective are customers requirements and direction understood?

Transactions at local level is basis of customer relationship. No strategic awareness of customer direction

Promises to customer delivered by a Division. Not linked to strategic customer requirement. No integrated planning.

Promises to customer delivered by the company. Know strategic customer requirement. No integrated planning.

Focus upon delivery of value in addition to promises delivered by the company. Integrated internal planning.

Partnership focus maximising value for both customer & you, financial impacts known & managed.

What process exists re: understanding current performance & opportunities with customers?

No process in place to understand current performance & opportunities with customer

Ad hoc customer research. Results not used as input for supply chain planning.

Current research conducted annually. Some results used as input for SC planning and design.

Customer research conducted more frequently than annually. Results used for SC planning & design

On -going market research linked to SC strategy. Dynamic real time links, joint planning & sharing of resources.

How is customer service management approached by the business?

Each transaction treated separately with ad hoc operational focus.

All customers treated the same with focus on internally set goals. Limited service level appreciation.

Service level measurement implemented across all transactions.

Strategic customers get special attention. Rest treated equally order. Order line & unit service tracked.

Segmented customer service plans with customer choosing service level they pay for.

How effective is the communication process with customers?

Ineffective communication process, transaction based & complaints driven. Only happens when problems arise.

Ad hoc communication with customer from one function. Still reactive, problem resolution based.

Structured communications process with customer driven by one function. Based on proactive & reactive.

Structured communications involving multi functional team. Joint plans, limited actions.

Real time, electronic communication between established personal relationships at a number of levels.

What process exists for filtering customer requests?

No process, no one person or department responsible for managing all customer requirements

One business unit function has all customer requests referred to it. No filtering or actioning process

Divisional business unit function has all customer requests referred to it. Filtering in place, some actions.

National divisional account managers deal with all customer requests. Formal filtering & actioning process

National company account managers deals with all customer requests. Formal filtering & actioning process.

How effective are the customer communication linkages at each level of the supply chain?

No cross functional customer communication linkages exist within the business

Ad hoc, reactive cross functional customer communication linkages exists within the business.

Some structured cross functional customer communication linkages.

Effective structured cross functional customer communication exist within business & across divisions.

Very effective cross functional customer communications across total company, who need to know, knows.

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Supplier Relationships

How are the relationships with suppliers and service providers managed?

Unmanaged, crisis driven, short term, adversarial and cost price driven

Cost driven, multiple sources, Competitive bid oriented, short to medium, some contracts

Some strategic assessment via product portfolio technique (PPT). Consolidated supply for some major items

Strategic assessment via PPT. Some strategic alliances based on medium term

Strategic assessment via PPT aligns supply & demand partnering, joint programs, collaborative life cycle focus.

Is there a process for performance measurement of suppliers in place?

No measurement of suppliers performance.

Some ad hoc measurement of supplier performance based on complaints. No strategic focus

Some strategic analysis that leads to service level agreement with KPIs. Not managed pro-actively and regularly

Strategic measurement of supplier performance based on requirements & managed through regular evaluation

Strategic assessment via PPT aligns supply and demand Partnering, joint programs, collaborative life cycle focus.

Is there a process to drive joint value creation in the supply chain by the business & its major suppliers?

Strategic importance of SC & major suppliers is not recognised. No process in place for value creation

Strategic importance of SC & major suppliers recognised but no analysis of value

Strategic importance recognised. Analysis of value created by SC occurs but no links to major supplier

SC & major suppliers recognised as key value creators. Analysis of value created is ad hoc.

SC & major suppliers recognised as value creators. Analysis is formal, structured,regular& actioned.

What level of automation (eg. EDI, E commerce… ) of interaction with suppliers in place?

No automation of interaction & limited interactions with suppliers.

No automation of interaction but some interaction with key suppliers but is informal & ad hoc

Some automation of interaction with some key suppliers only, and is formal.

Appropriate levels of automated interaction with all key suppliers. Formal but not strategically based.

Strategic & tactical automated interaction will all key suppliers

How developed is information sharing with suppliers?

No information sharing with suppliers

Some information sharing with some suppliers. Not strategic but tactically based.

Appropriate information sharing with a few key suppliers only. Not strategically based

Appropriate information sharing with all key suppliers. Some based on strategic needs

Sophisticated information sharing with all key suppliers based on strategic needs. Eg. KPI & MRP data.

How effective is the communication process with suppliers?

Ineffective communication process with suppliers. Transaction based only & complaints driven

Ad hoc communication process with suppliers. Reactive, not proactive. Business unit driven.

Communication process with suppliers includes proactive & reactive initiatives. Divisionally driven with periodic reviews

Strategic communication process with suppliers driven by national divisional focus and regular (daily) review.

Company wide strategic, real time communication with national suppliers. Part of evaluation process.

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Management/Business Improvement

How is supply chain (SC) measurement approached within the business?

Tactical & functional. No strategy to determine what to measure

Operational & functional lagging KPIs. Limited strategic links determining what KPIs to use

Divisional strategy, aligned, lagging KPIs down functions but not integrated across

Operational & common above Divisional level. Linked to strategy & leading & lagging KPIs

Single, common, strategy, aligned, integrated KPIs across company. Leading & lagging.

Is benchmarking of business performance frequently performed?

No business benchmarking performed as no KPIs in place to compare performance.

Infrequent & reactive to competition. Tends to be general & based on KPIs only. Not improvement focused.

Frequent but reactive to validate opportunities.KPI benchmarking not process based but focus is improvement.

Proactive both inside and outside industry, KPI & process benchmarking. Improvement focused.

Proactive both inside and outside industry, and specifically targeted against strategic capabilities.

How rigorously is progress towards targets & business performance measured?

Minimal measurement. Failures are rarely known & penalised.

Measurement exists but based on past, used to discipline at times, not for decision making

Measurement is geared to whole business. Culture is becoming KPI focused

Explicit measurement at each level of business. Performance based culture.

Explicit measurement at each level of business drives behaviour & decision making

Are business benefits from improvement tracked & celebrated?

Never, no structure for tracking benefits received. Gut feel rather than facts

Cost of savings tracked but not celebrated. No strategic man management of gains delivered.

Expected cost savings built into budgets. Still no overall focus incorporating service & cost.

Cost & service savings built into budget and outcomes tracked. Achievements celebrated

Budgets revised to reflect expected top & bottom line improvement based on facts via KPI

Is installed asset base reviewed for value? ( utilisation & operational effectiveness)

Never reviewed for cost and/ or value

Sometimes reviewed for cost and. or value

Reviewed annually for cost efficiency but not value

Review more than annually for cost efficiency and value

Reviewed regularly to assess business value against cost. Part of business process

How does the business approach SC costs visibility?

Non existent, fragmented approach to SC cost visibility

SC costs identified. Some visibility in functions, but none for SC

SC costs identified, understood. Some visibility, No accuracy

SC costs identified, understood, visible to managers and they are accurate

All relevant people understand & have visibility of SC costs

How well are KPI measurement and management established?

Financial focus only. Cost vs last year. Complaints driven. No data available

Still mostly financial. Cost vs budget. Cost as % of sales. Some data available.

Financial & some operational KPIs in functional areas of business

Consistent financial & operational KPIs. Functional and cross functional KPIs

Balanced, cross divisional & functional & scorecard, integrated & aligned in real time. Linked to objectives.

What measurement approach is taken for business cycle times?

Not measured & little understanding

Some understanding of cycle times but nor formally measured.

Understand cycle times & measured in ad hoc way

On-going measurement of cycle times i.e order fulfillment & NPD

Cycle times feature in strategic goals & performance reporting.

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Culture

How clear is business strategy ? How is it articulated & communicated?

No Clear business strategy so not articulated & communicated.

Short term tactics clear, long term strategy unclear. Communication is ad hoc

Short & medium term business strategy clear, but only understood among top team. No communication strategy

All strategies are clear but only informally communicated down business. Limited structured deployment.

Managers & workers share responsibility for deployment of clear strategies. Constant dialogue with senior management team through forums.

Are solutions developed jointly and shared across the businesses?

No, no joint development of solutions which are shared across business

Some initial joint consultation, but independent development of solutions

Some examples of joint development & communication of solutions , but separate implementation

Coordinated/shared development and implementation for core systems & processes.

All possible solutions developed and implemented jointly. Active screening or new opportunities

How is the work place culture & leadership functioning?

Employees versus management

Limited employee involvement. Management sees people as important but not vital

Employee involvement in work place but is inconsistent across workplace.

Understand work place culture. Some management by fact. Consultation but no real decision making power.

Management by fact, empowered high performance teams, Shared goals and rewards. KPI's driven

Are there rewards & penalties for an individual performance?

Rarely & ad hoc if ever

Failure can be explained away for few from penalties exist for poor performance

Success/failure role & relevant projects are included in employee reviews but not linked to corrective action.

Success/failure role & relevant projects are concluded with reviews & corrective actions

Project and role performance reviewed of cost,timing, functionality ,value & results used as a learning tool

What is the approach to supply chain training?

Limited training, too busy fire fighting. Training seen as cost rather than an investment in people.

Some training but ad hoc. Overlap in training delivered due to no formal skills audit and training plan

Skills audits & training within functions. Limited across functional training. Some individual career plans detail training needs but not always deployed

Functional & cross functional training based on skills audits. Individual training plans for all employees & mostly deployed. Training an investment.

Cross functional skills audits & deployment. See training as critical to business success. Focus on skills & interpersonal needs to succeed in job for now and future. Part of succession plan

What is approach to quality management in the business?

Fragmented & ad hoc approac. Left to individual people, no business strategy

Improvement focused but no structured approach. Crisis management strong

Divisional led. Process management is a strategy. Overall planning however. Fragmented execution

Strategically led. Links between vision, plans, policies, process, disciplines & outcomes/KPI

Formal business process. Performance based culture, decisions based on facts.

What is the approach to performance management within business?

Fragmented, ad hoc, No structured performance management system.

Some performance management processes in place

Performance management processes established for all employees. Some deployment

Divisional performance management system drives people's behaviour.

Company wide performance management system drives business & people behaviour

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Process Integration

How effectively are supply chain functions ( planning, prod’n, purchasing, dist’n, customer service) aligned within the business?

Conflict between functions & within functions. Disconnects between strategy & operations

Some alignment within a function but none across functions. KPI's between people, processes & functions not aligned

Cross functional process focus building but functions still control business. Operational/individual KPI's are aligned within functions and across some functions.

Strong process management supported by functions. Operational/individual KPI's aligned within functions & across functions.

Strong process management supported by functions. Functional & cross functional KPI's aligned to business objectives. Decision making aligned to strategic objectives.

How is process improvement driven within the business?

Quick fix driven. Crisis management with no strategic improvement immediate focus.

No strategic focus, no alignment across business short term. ( 1-3 months focus)

Some strategic focus driving continuous process improvement on a fragmented basis across business. Longer term usually annual planning.

Seeking breakthrough change. Re-engineering structured approach. Continuous review of internal operations.

Relentless drive to improvement goals . Functions & projects aligned across business including supplier and customer integrated process management outcome driven

How is innovation approached within the business? – Product

Products developed do not always match business capability so high levels of support required for success

R&D activities only. Long lead times due to low integration remanufacturing and marketing

R&D driver of process but other functions are involved. No total business commitment.

R&D driver of process but other functions are involved. Low total business commitment

Internal & customer research driving formal cross functional innovation. Lead time for development short.

What project planning & management methodology is used?

No common project methodology used

A single project methodology exists but not used by all

Single project methodology exists irrespective of project scale

More than 1 methodology exists and is deployed in business

Contingent approach depending on the project characteristics

How are the business managers involved in specifying SC IT components?

Business throws it over the wall to IT

IT driven, business manager approval.

Business specifies, IT group builds to specification

Project liaison group works with businesses.

IT responsible for technical delivery, business responsible for project liaison.

How is the strategic focus planned in each division?

Location specific

Co-ordinated across Divisional locations

Co-ordination above divisional locations

Common processes with local variations

Global supply chain process

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Organisational Structure & SC Network

How is organisational structure determined?

No method redetermining structure.

Some functional planning used to determine organisational structure.

Some cross functional planning used to determine structure. Consideration of some suppliers & customers

Structure determined & set-up according to cross functional divisional business needs. Customer & supplier included in analysis.

Structure determined & set-up according to cross divisional business needs with customer & supplier consideration.

Is responsibility clearly defined?

No, often controversial, ad hoc and often reactive

Informal understanding of roles & responsibilities. Not part of formal performance management system (PMS)

Roles & responsibilities only articulated in performance management system

Roles & responsibilities, functionality & value delivered in performance management system.

Roles & responsibilities functionality & value articulated & communicated , understood & agreed to. Targets set

Is supply chain change effectively sponsored ?

No, no clear sponsor

Executive assigned, but responsibility delegated

Executive assigned and involved in 'big decisions'

Executive sponsor. Published KPIs across SC

Executive sponsor drives strategy & delivery

How are technical standards managed? Ie. Product, product tracking, crisis management, product standards, environmental issues and waste?

No standards. Synergies not managed

Standards set for each business, no link across enterprise. Consultation across the business , no effective outcome.

Steering committee proposes standards and attempts to enforce them, but enforcement mandate is weak

Steering committee proposes standards & enforces them, & enforcement mandate is strong.

Businesses structure sets & enforces standards using an accepted governance process. Deployment as part of the process

Is there a defined project management process?

No defined process

Process varies depending on which business sponsored the project

Commonly followed process

Defined process, broadly adhered to

Documented process with clear matrics and decision points, with light touch for smaller projects

Who is responsible for ensuring project benefits are reaped?

No one is responsible ad hoc process

Co-ordinated a cross Divisional locations Responsibility is unclear

Responsibility for delivery, business responsible for benefits delivery. Part of project management methodology.

IT responsible for technical delivery, business responsible for benefits delivery, both responsible for linkages

Business users & IT jointly & severally responsible for everything. Part of project management methodology

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Technology

How does the business develop and execute its strategy regarding supply chain technology?

Business 'throws it over me wall' to IT

IT driven, business manager approval

Business specifies, IT group builds to specification

Project Liaison group works with businesses

IT responsible for technical delivery, business responsible for project integration

How is electronic commerce (EC) applied? (including EDI)?

Limited electronic commerce with no strategy & ad hoc deployment

Electronic commerce in some parts of business but no formal strategy planning and analysis

Strategic planning for electronic commerce deployment based on cost/benefits. EC is much of the business

Electronic commerce linkages in place on total business basis. Deployment structured & benefits measured. Process is standardised across all divisions.

Integrated EC supporting real time supply chain interaction.Exception management. Advanced deployment. Standardised systems across all divisions

Is there a process for managing the overall supply chain architecture hardware?

No process in place. Ad hoc development not linked to strategy

Consultation across the business, no effective deployment outcomes. Not linked to strategy.

Periodic review by technical architects based on strategic objectives. Deployment still weak, seen as IT rather than business

Regular review by technical architects based on strategic objectives. Deployment is project based with IT & business

Strategic objectives regular review & dialogue between business & technical architects concerning options & implications

Are the post implementation audits performed for supply chain investments?

No, no post implementation audit to assess success of capital ( technology related) projects

Projects reviewed for project cost & timing only. Part of the capital project planning process

Projects reviewed for project cost & expected functionality as part of capital project planning process

Cost savings promised from IT projects built into budgets. Revenue savings reviewed but not enforced. Capital project planning process

Projects reviewed for cost, timing, functionality & value & results used as a learning tool for future projects. Integrated process.

How does the business identify software adoption opportunities & monitor technological change?

No process in place. Ad hoc development not linked to strategy

Consultation across the business , no effective deployment outcomes. Not linked to strategy

Period review by technical architects based on strategic objectives. Deployment is project based with IT & business.

Regular review by technical architects based on strategic objectives. Deployment is project based with IT & business.

Strategic objectives regular review & dialogue between business & technical architects concerning options & implications

How is the company approaching IT systems to support operation of the supply chain?

Manual with local systems. Limited visibility & performance data available

Functional system, interface problems. Information is entered twice.

Common ERP but limited analysis tool and flexibility

Common ERP with analysis tools. Some extraction & analysis capability

Common ERP with analysis & internet tools. Real time information facilities decision making

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Business Strategy

How effective is the development of medium term planning in the business?

Ineffective, fragmented, and hocinformal planning. Removed from operations

Ineffective, done infrequently provides some SC directions. Functional scope but 1 year horizon only.

Done frequently & provides some supply chain direction. Tend to be functional, 1-3 year horizon

Functional & cross functional supply chain planning done frequently. Major decisions tested against plan

Integrated SC plan drives decisions & actions includes suppliers & customers, horizon 1-5 years

How formalised is the business strategy development process?

Not formalised. No integrated business strategy planning & deployment across business

Some integrated business strategy planning. Deployment limited. Process is ad hoc & not formal

Integrated business strategy planning process. Deployed in ad hoc fashion, not structured process.

Integrated business strategy planning. Structured deployment down business mostly just managers

Integrated business strategy planning. Deployment sophisticated including all employees. Actions aligned

What linkage exists between business strategy and functional strategies?

Business strategy non existent, if exists not communicated down to functional areas

Ad hoc deployment of existing business strategy into functional areas

Formal links that track progress of business strategy and functional strategies. No clear formal alignment & deployment links

Business strategy deployed down through all of business. Management systems (KPIs Processeses) connected.

Business strategy deployed down through all of business. Feedback loops link strategy, policies, processes & KPIs

How is progress tracked against the business strategy?

Ad hoc tracking of progress against balanced score card. (BSC)

Some formal tracking of progress against BSC. Measurement of some outcomes linked to strategy

Formal links that track progress of business strategy. Performance management system (PMS) links strategies

Formally track progress of business strategy. Alignment of PMS with business outcome annually.

Formally track progress of business strategy. Aligned to PMS & reviewed regularly, Supported by KPIs

What process exists to facilitate the review of strategy components & fine tuning where necessary?

No process in place. No fine tuning of strategy

One off strategy deployment planning with senior management team (SMT). Not followed up later . No fine tuning

Deployment of strategy part of planning process. Only involves SMT & only the big issue. Some fine tuning.

Strategy deployment is forma & involves all employees initially. Fine tuning with SMT only.

Strategy deployment is formal & integrated & involves all employees. Fine tuning via KPI & on-going workshops.

Finish Quiz

Back

Supply Chain Maturity Matrix

Forecasting

How is forecasting and demand planning handled within the business?

How is Sale and Operations Planning ( S&OP) driven within the business?

How well are the information capabilities aligned to support the business?

How developed is collaboration towards providing more reliable forecast inputs?

What process exists re: continuous improvement of forecasting process?

What process exists to ensure rough cut capacity planning is regularly reassessed?

Customer Interaction

How effective are customers requirements and direction understood?

What process exists re: understanding current performance & opportunities with customers?

How is customer service management approached by the business?

How effective is the communication process with customers?

What process exists for filtering customer requests?

How effective are the customer communication linkages at each level of the supply chain?

Supplier Relationships

How are the relationships with suppliers and service providers managed?

Is there a process for performance measurement of suppliers in place?

Is there a process to drive joint value creation in the supply chain by the business & its major suppliers?

What level of automation (eg. EDI, E commerce… ) of interaction with suppliers in place?

How developed is information sharing with suppliers?

How effective is the communication process with suppliers?

Management/Business Improvement

How is supply chain (SC) measurement approached within the business?

Is benchmarking of business performance frequently performed?

How rigorously is progress towards targets & business performance measured?

Are business benefits from improvement tracked & celebrated?

Is installed asset base reviewed for value? ( utilisation & operational effectiveness)

How does the business approach SC costs visibility?

How well are KPI measurement and management established?

What measurement approach is taken for business cycle times?

Culture

How clear is business strategy ? How is it articulated & communicated?

Are solutions developed jointly and shared across the businesses?

How is the work place culture & leadership functioning?

Are there rewards & penalties for an individual performance?

What is the approach to supply chain training?

What is approach to quality management in the business?

What is the approach to performance management within business?

Process Integration

How effectively are supply chain functions ( planning, prod’n, purchasing, dist’n, customer service) aligned within the business?

How is process improvement driven within the business?

How is innovation approached within the business? – Product

What project planning & management methodology is used?

How are the business managers involved in specifying SC IT components?

How is the strategic focus planned in each division?

Organisational Structure & SC Network

How is organisational structure determined?

Is responsibility clearly defined?

Is supply chain change effectively sponsored ?

How are technical standards managed? Ie. Product, product tracking, crisis management, product standards, environmental issues and waste?

Is there a defined project management process?

Who is responsible for ensuring project benefits are reaped?

Technology

How does the business develop and execute its strategy regarding supply chain technology?

How is electronic commerce (EC) applied? (including EDI)?

Is there a process for managing the overall supply chain architecture hardware?

Are the post implementation audits performed for supply chain investments?

How does the business identify software adoption opportunities & monitor technological change?

How is the company approaching IT systems to support operation of the supply chain?

Business Strategy

How effective is the development of medium term planning in the business?

How formalised is the business strategy development process?

What linkage exists between business strategy and functional strategies?

How is progress tracked against the business strategy?

What process exists to facilitate the review of strategy components & fine tuning where necessary?

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