Moving from Supply Chain Management Maturity Stage II to Stage III, by James B. Ayers

Reduce Supply Chain Costs
Description:	Enact continuous improvement for internal processes. Use needed information technology for process improvement.
Success Defined:	Cost effective customer service makes company a leader.
Client Participation:	Process teams shift from fixing to improving processes. Company restructures around “businesses within the business.”
New Capabilities:	Continuous improvement culture takes hold. Project management proficiency gained. Cross function cooperation expands inside company. Targeted improvements focus on profitable customers.
CGR Role:	Technical support to process teams. Demand-driven supply chain design. Visions for collaboration (Stage IV) and strategy (Stage V).
Consequences of Inaction:	Continuing at Stage II means competing on price -- not supply chains delivering targeted customer benefits.
Stage IV and V:	Improvements show payoffs from collaboration. Attractive partners for collaboration identified.


James B. Ayers Principal	Moving from SCM Maturity Stage II to Stage III

Present Stage: II. Infrastructure Next Stage: III. Cost Reduction