Stage

Characteristics

I

Dysfunctional

Low supply chain awareness in management team.
Many “broken” processes.
Fire fighting, ad hoc decision-making.
Little supply chain information available.
Minimal communication with partners.
Poor project management capabilities.

II

Infrastructure

Some management team supply chain awareness.
Basic supply chain processes in place and working.
Functional focus with department-level implementation.
Arms length relationships with partners.
No cooperative efforts with partners.
Able to implement some projects successfully.

III

Cost Reduction

Supply chain view takes root among managers.
The supply chain a “cost center” not a contributor to strategy.
Improvement projects goal is cost reduction.
IT investments not linked to cross-department processes.
Most implemented projects viewed as successes. 

IV

Collaboration

Multicompany projects under way justified by operating savings.
Internal supply chain function has traditional departments.
Information exchange with selected partners.
Standard project management processes followed.

V

Strategic Contribution

Multicompany projects justified strategically.
IT projects tied to multicompany processes.
Benefit sharing arrangements in place with selected partners.
Excellent project management capabilities.