Supply Chain Management

Capability Assessment Tool

Identifying and Measuring the Gap
to Move to the Next Phase of
Supply Chain Maturity
Capability Maturity Concept
Stages of improvement that is assessed by the
extent to which the characteristic of each
stage is explicitly defined, managed,
measured, and controlled
Achieving next level of maturity establishes a
higher level of capability for an organisation
Organisations wishing to improve their existing
SCM performance need a framework against
which to benchmark their current practices

The Assessment Tool
Showing clear maturity stage nuances to
achieve
Covering the main components of a Supply
Chain function to perform
Describing enough detail and characteristics of
a Supply Chain process to realise
Maturity Stages
Taken from The development of a supply chain management process maturity model using the
concepts of business process orientation by Lockamy and McCormack
Main Components
Strategy is the roof part
of the Supply Chain
building, covering the
whole building as one
Process, People &
Organisation, and
Metrics & Improvement
Tools are the 3 main
pillars of the building
Data and system is the
foundation of the
building of which the
pillars are based on

Details and Characteristics
Taken from Oliver
Wights Class A
checklist for
Business
Excellence

The checklist is
direct and
practical, referring
to what
excellence is
Sample of the Details
Element Short Remark Characteristics Ad hoc Defined Linked Integrated Extended
Managing
Supply
Chain
Distribution
and Logistics
Distribution and
logistics plans are
integrated with the
aggregate- and
detail-level supply
chain plans.
The delivery
process is a key
requirement in
achieving perfect
order fulfillment
and availability for
use.
No formal
distribution and
logistics plan.
Distribution and
logistics cost and
resource never
been reviewed.
(1) There is an
operational process
that maintains valid
daily distribution
schedules, along with
control processes that
communicate priorities
through the
warehouse schedules,
supplier schedules,
and/or pull trigger
mechanisms
(2) The warehouse
management system is
applied, supporting
control and
management of
picking, stocking, space
management, and
orderliness.
Point (1), and (2) are applicable
and
(3) All logistics, warehousing,
distribution, and transportation
requirements are derived from the
formal supply chain plans.
(4) A logistics operations
coordination process is perpetually
managed in order to ensure a
balance of stability and
responsiveness. The resource
deployment plan is reconciled
monthly with the monthly
aggregate logistics supply plan
resulting from the Sales and
Operation Planning process
(5) Delivery is seen as an
integrated key competency, and
this is reflected in the attention,
standards, and budget afforded to
distribution and logistics.
(6) Transportation routing
optimization techniques are used
to determine the most cost-
effective modes of delivery,
including sea, air, rail, and ground.
Routing schedules are optimized,
based on lead time considerations
ensuring customer service levels
are attained.
Point (1), (2), (3), (4) and (5) are
applicable and
(6) Mid- to long-term distribution
and logistics resource plans are
based on the supply chain
business plan numbers of
demand, and replenishment of
supply.
(7) Where product is delivered via
a distribution network,
Distribution Resource Planning is
employed as the process for
planning and control.
Transportation optimization
techniques are utilized to
facilitate full truckloads and
containers for inbound and
outbound, including backhauls
(8) Distribution scenario and and
shipping priorities are regularly
reviewed with main suppliers and
or key customer. Distribution
center optimization techniques
are utilized, including but not
limited to cross-docking and
picking linearity.
Point (1), (2), (3), (4),
(5), (6), (7) and (8) are
applicable and
(9) A strategic
decision of
distribution scenario
and shipping
priorities was applied
by a set of supply
chain network to
maintain the
competitiveness of
distribution
effectivity
T
h
e

S
t
r
u
c
t
u
r
e

o
f

S
C

C
A
T

Main Component Element Short Remark
Data, Information and System Data Sharing (blank)
Master Planning Data Integrity (blank)
Dynamic Data Integrity (blank)
Metrics and Improvement Tools Improvement Tools Assets Management
Benchmarking
Continuous Improvement
Failure Free Process
Knowledge Management
Lean and Pull Concept
Responsiveness to Customers
KPI Strategy Alignment
People and Organisation Behavioral Charactersitics (blank)
Change Management and Learning (blank)
Communication (blank)
Consistent Working Practices (blank)
People Development (blank)
Team Development (blank)
Process Managing External Sourcing Continuity of Supply
External Sourcing Strategy
Supplier Analysis and Selection
Supplier Relationship Management
Total Cost of Ownership
External Sourcing to S&OP Integration
Managing Internal Supply Master Planning
Material Resource Planning
Schedule Execution
Internal Supply to S&OP Integration
Managing Supply Chain Distribution and Logistics
Supply Chain Design
Supply Chain Effectiveness
Supply Chain Integration
Supply Chain Management
Supply Chain Planning
Total Cost Concept
Demand Strategy
Lot Size Design
Lead Time Design
Strategy Strategy Alignment Internal Supply Strategy
Sourcing Strategy
Supply Chain Strategy