barcode using vb.net B The Supply Chain Maturity Model in Software

Encoder ECC200 in Software B The Supply Chain Maturity Model

APPENDIX B The Supply Chain Maturity Model
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As shown in Figure B-2, most companies in the population expect to move forward with their practices and achieve a half-stage advancement to transitional stage 3 with an average stage of 2.9. The most mature companies expect to achieve fully mature stage 3 (32.1 percent) and begin to transition to stage 4, cross-enterprise collaboration. Stage of maturity varies by industry, with the consumer goods, semiconductor, and high-tech industries demonstrating more advanced practices than other industries. The relation between practice and performance was evaluated by dividing the population into two groups based on the overall average score of the population s dominant maturity: stage 2.3. Those with more mature practices (>stage 2.3) represented 44 percent of the population, and those with less mature (<stage 2.3) represented the remaining 56 percent. We analyzed the relative performance of the two groups across the complete set of SCOR level 1 metrics, as well as a variety of supporting level 2 and level 3 component metrics. Our premise was that more advanced practices result in better quantitative performance, and this correlation was true across the majority of metrics. The results are shown in Figure B-3, along with selected results cited in s 2 and 5.
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F I G U R E B 2
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Average stage for dominant and emerging practices.
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Practice Maturity 40% 35% 30% % of Participants 25% 20% 15% 10% 5% 0% 1-1.4 1.5-1.9 2-2.4 2.5-2.9 Stage Dominant Emerging 3-3.4 3-3.5 4
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Copyright 2004 The Performance Measurement Group, LLC
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F I G U R E B 3
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Summary results of population comparisons.
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Population Characteristic Higher SC Maturity More Advanced Planning Practices Best-in-Class Companies
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Metric
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On-Time Delivery Performance to Request
On-Time Delivery Performance to Committed Date X X
Scheduled to Custom Request Date
Fill Rate % by Order (MTS Only)
Order Fulfillment Lead Time
Forecast Accuracy Unit
Forecast Accuracy Dollar
278 X inconclusive X
Copyright 2004 The Performance Measurement Group, LLC
Upside Production Flexibility
Total Supply Chain Management Costs
Inventory Carrying Cost
Inventory Days of Supply
Cash-to-Cash Cycle Time inconclusive
Net Asset Turns
Revenue Growth
Profitability
: Indicates that the subpopulation of companies with higher SC maturity, more advanced planning practices, or BIC performance, showed better performance in the metric cited : Indicates data not available because question was not asked in this survey X: Indicates that the subpopulation of companies with higher SC maturity, more advanced planning practices, or BIC performance, showed no better performance in the metric cited
A P P E N D I X
Comparison of Characteristics for Levels 2 and 3 SCOR Metrics
he metrics contained within the Supply-Chain Operations Referencemodel (SCOR) are hierarchical, just as the process elements are hierarchical. Level 1 metrics are high-level measures that may cross multiple SCOR processes; they do not necessarily relate to a specific SCOR level 1 process (plan, source, make, deliver, and return). Each of the 13 level 1 metrics is associated with one of five specific performance attributes supply chain reliability, supply chain responsiveness, supply chain flexibility, supply chain costs, and supply chain asset management. The performance attributes are the characteristics of the supply chain that enable evaluation against other supply chains with competing strategies. For example, without these characteristics, it would be extremely difficult to compare an organization that chooses to be the low-cost provider against an organization that chooses to compete on reliability and performance. Figure C-1 shows this alignment. Level 1 metrics are typically assigned to the plan supply chain process category and then decomposed into lower-level metrics. Level 2 metrics are associated with a narrower subset of processes. Level 3 metrics (also called diagnostic metrics) are used to identify variations in performance against plan. Each level 2 and level 3 metric is also associated with one of the five performance attributes.
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Strategic Supply Chain Management
F I G U R E C 1
Performance Attributes of SCOR Level 1 Metrics.
Performance Attribute Performance Attribute Definition
Level 1 Metric
Supply Chain Delivery Reliability
The performance of the supply Delivery Performance chain in delivering: the correct Fill Rates product, to the correct place, at Perfect Order Fulfillment the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer. Order Fulfillment Lead Times
Supply Chain The velocity at which a supply Responsiveness chain provides products to the customer. Supply Chain Flexibility
The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage. The costs associated with operating the supply chain.
Supply Chain Response Time Production Flexibility
Supply Chain Costs
Cost of Goods Sold Total Supply Chain Management Costs Value-Added Productivity Warranty/Returns Processing Costs Cash-to-Cash Cycle Time Inventory Days of Supply Asset Turns
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