Supply Chain Progression

This model follows a paradigm that s common in supply chain literature. Charles Poirier of Computer Science Corp. (CSC) specializes in supply chain consulting. He has published a model of progression in supply chain management similar to the Hayes/Wheelwright model. Table 4.5 shows the progression.  

The ten categories are useful in characterizing the potential scope of a supply chain improvement effort. In fact, Poirier s experience is that most companies are in stage 1 or 2 as indicated in Table 4.5. These are internally focused programs. Poirier notes that moving from an internal to an external 

Driver VP-Sourdng (under pressure) ClO/Supply Chain Leader Business unit leaders Management team 

Benefits Leveraged savings, FTE reduction Prioritized improvement across network Best-partner performance Network advantage profitable revenue 

Focus Inventory projects logistics freight order fulfilknent Process redesign systems improvement Forecasting planning customer services interenterprise Consumer network 

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Poirier Ch.C., Quinn F.J., 2004, How Are We Doing A Survey of Supply Chain Progress. Supply Chain Management Review, 8(8), pp. 24-31. 

Fourth, companies in earlier stages (followers) will continue to see margin erosion while trying to catch the leaders, unless that is an acceptable level of progress for their business. The gap between leaders and followers shows a one- to two-year advantage. At the same time, very few firms have reached Level 5, although many are in pursuit of this position. Therefore, the opportunity exists to make supply chain progress and thereby close the gap and attain dominance. 

With the matrix as a guide to strategy, tactics must be applied to implement the purposes of the matrix. Figure 3.5 provides a model that matches the five levels of the supply chain progression with the type of tactics that are typical as a sourcing strategy matures. The tactics placed in each sector of the progression are what typically takes place, but a firm is advised to construct its own list of tactics pertinent to local conditions. 

The company determines its unique measurement points along its supply chain and installs probes. The company then programmes the SCEM application to monitor the plan-to-actual supply chain progress, and establishes upper and lower control limits. If any of the control limits are exceeded, or if anomalies occur, the application publishes alerts or alarms so that the functional manager can take appropriate corrective action. ... 

The chemical industry is often the strongest link in the supply chain since they provide the chemical formulations to their buyers and are in control of research into alternatives. The recent emergence of Green Chemistry and its 12 criteria has spurred innovation into safer chemicals. A few examples illustrate the progress taking place and suggest a wider potential for innovation should more market demand for safer chemicals occur. 

Petroleum refining is a central and crucial link in the oil supply chain and has received extensive attention over the last decades. However, despite all the progress that has been made in developing planning and scheduling models, a general... 

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