Stages of Supply Chain Development

Where are We, Where Do We Want to Go?
Next Steps

Companies that should change their supply chain must first understand that they really need to take their medicine. Catalysts can include revenue growth, revenue decline, mergers, competitive pressure, new processes, new products, or some combination of these factors. Once the need is accepted, there are many barriers to success. These include supply chain complexity, company cultures, poor project management capabilities, and the difficulty of picking from available options.

CGR helps clients decide what to do next. To establish our starting point, we ask clients to self-assess their current situation. Among other tools, that assessment includes a model with five stages of SCM maturity, shown here and described in the book Supply Chain Project Management.

Stage I.    Dysfunctional
Stage II.   Infrastructure
Stage III.  Cost Reduction
Stage IV.  Collaboration
Stage V.   Strategic Contribution

Parts of a supply chain initiative can move beyond the next stage directly to higher levels of maturity. For example, a company at Stage II, because of business-driven urgency, can implement Stage IV and V strategies. Companies need new skills to make this happen. CGR’s “active learning” approach provides tailored programs to upgrade skills to assure progress to the next level and beyond.

Click here to assess your level of SCM maturity and explore the five SCM maturity stages.