What are the 5 stages of supply chain maturity curve?
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By: Marleen Sebbaha - January 12th, 2022




Authored by: Andrei Colonescu  

SUPPLY CHAIN: MATURITY CURVE

When companies want to start a supply chain transformation project they might find it difficult to envision how that journey should look like. The supply chain transformation process is about aligning the supply chain with the companies overarching business goals for maximum efficiency, but without a clear framework behind, supply chain leaders may find themselves stuck. Before embarking on the journey to supply chain excellence, organizations need to define the level of the supply chain maturity. Gartner has created a five-stage maturity model against which supply chain leaders can measure their organization’s maturity, and then develop a clear, long-term vision.

Stage 1: React – Siloed Autonomous Operation

In this stage of Maturity, organizations are best characterized by autonomous departments, heavy firefighting with no centralized analysis and control plus a lack of clarity as to the goal of S&OP.

Stage 2: Anticipate – Functional Scale and Efficiency

At this stage, there is a focus on creating standardized processes and methods to benefit from economies of scale and increased efficiency. Performance is internally focused on scaling and cost efficiency within each function. Organizations start introducing regular S&OP cycles, but they have a moderate understanding of the scope of S&OP.

Stage 3: Integrate – Integrated with the Supply Chain

The focus now is on functional excellence and integration across core supply chain processes. Organizations in this stage start implementing best practices of the S&OP Process.

Stage 4: Collaborate – Collaborating with the Value Chain Network

By this stage, there is collaboration and visibility with suppliers and customers, as well as strategic partnerships with logistics providers. The focus is on integration across the extended value chain to make profit-driven decisions. Organizations in this stage look outside-in perspective of S&OP.

Stage 5: Orchestrate – Network orchestrator of Profitable Customer Value

Supply Chain facilitates processes across a network of partners to capitalize on unique business opportunities. As a result, information flows across the supply chain network in real-time and enables broader visibility, translating innovation into execution, which increases market share and growth opportunities. 

 

Supply Chain Maturity Curve

 

How can Krypt help you?

Krypt is an SAP preferred partner and has assisted in the success of global businesses across industries & geographies. We have helped businesses through the successful integration & implementation of SAP IBP, SAP GTS, SAP TM & SAP EWM. If your organization is regularly requires to plan supply chain activities on a weekly or monthly basis in advance, then Krypt can help you implement/integrate SAP IBP to quickly analyze & respond to any scenario in near real-time using an informed decision.

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