Product Description

Supply Chain Capabilities Model: CIOPages.com offers a comprehensive, customizable, industry-agnostic, and multi-purpose supply chain capabilities model. Our supply chain capabilities framework spans all critical areas of the supply chain and is a hierarchical decomposition of “What” supply chain function does. The supply chain capabilities matrix is a business architecture construct and helps in transforming supply chains to the digital age.

Supply Chain Capabilities Model

Supply Chain Management Business Capability Model

What do I get?

  • A Supply Chain Capabilities Model with ~120-125 capabilities

    Formats:

    Spreadsheet

    Presentation Slide

    Word processing document

Why do we need a Supply Chain Capabilities Matrix?

The value of business capabilities, an integral part of the business architecture, is multi-dimensional as they help bridge the gap between business and IT, provide transparency into the essence of what a supply chain function does, and align development efforts to strategic priorities, which helps evolve and enhance the supply chain capabilities.

Ideally, your firm should have a structured and well-defined enterprise business capability model, of which supply chain capabilities should be an integral part. And furthermore, for the supply chain capability model to the actionable, it should be decomposed to a slightly granular level of capabilities (Level 3 or 4) for it to be useful in streamlining operations and leveraging in IT enablement projects.

One of the core functions of an enterprise is Supply Chain, particularly in light of the exponential growth in e-commerce. In today’s highly competitive markets, providing right product/service at the right time, at the right price, at the right location has become ever more critical. And a well-decomposed supply chain capabilities framework provides visibility and structure for planning.

CIOPages Supply Chain Capabilities model intends to capture a detailed view and a nuanced perspective of what Supply Chain does. It includes the nuts and bolts function as well as emerging and value-add functions/capabilities.

The supply chain business reference model will help provide a jumpstart to envision a future state, conduct a gap analysis, identify capabilities which are needed/improved, and help focus efforts on capabilities that matter!

What is a Supply Chain Management Capability Model?

The supply chain capabilities model is decomposed to a minimum of two levels across the spectrum of the source to pay capabilities and many a time to levels 3 and four as well, depending on the granularity and modularity required.

The sample supply chain capabilities model is structurally sound, internally coherent and maintains principles of MECE (mutually exclusive and collectively exhaustive), for the most part.

Supply Chain Capabilities Model – Level 1 (Strategic supply chain capabilities)

Supply Chain Planning Procurement Management Manufacturing Warehousing
Transportation and 3rd Party Logistics Sales Order Management Governance and Risk Management

Example Decomposition of a sliver of the Supply Chain Capabilities Model

Level 1

Supply Chain Planning
Procurement Management
Manufacturing
Warehousing
Transportation and 3 Party Logistics
Sales Order Management
Governance and Risk Management

Level 2

Strategic Sourcing
Procurement Methods
Category Management
Mobile Enablement
Supplier Cost Benchmarking

Level 3

Spot Buying
Tender Management
E-Auctions
Procurement Networks
Just-in-Time Ordering
Procurement Outsourcing

Level 4

Order Forecasting
Demand-based Material Pull
Transportation Network Optimization
Total Cost of Material Analysis
Real-Time Communication and Visibility

What else do you get to help jump-start your business architecture and capability modeling?

FREE BONUS Deliverables
General Intro to Capability Modeling
Business Architecture Framework
Business Capability Profile Template
Capability Assessment Template - Criteria and Notes
Role and Responsibilities of Business Architecture Leader

Caveats:

  • As the Supply Chain Management Business Capabilities Model is a digital product, there are absolutely NO Returns.
  • Depending on your industry, the type of processes and principles, policies and practices you have, and the scope of your transformation, some of the supply chain capabilities may not be relevant to you.
  • If you are a consultant or a consulting company, there is different pricing, license, and terms.
  • Sold on an as-is basis and no warranties
  • This sale does not include implementation help or support. If you need professional services assistance, please contact us.
  • Please review our standard terms of service.

Need Customization Help?

Contact Us

What are Business Capabilities?

Business capabilities are the foundational building blocks or Rosetta Stone for business and technology alignment. Business Capabilities describe “What” business does.

How should I use the Supply Chain Capability Model?

  • Understanding the essence of a supply chain function and what it does and can do.
  • Link supply chain strategy and segmentation to the supply chain capabilities
  • Map supply chain capabilities to inform, influence, and shape the supply chain value streams and processes
  • Alignment between business and technology with a common language
  • Mapping to supply chain applications/services to understand the footprint and coverage
  • Creating a gap analysis between current state and future state of the supply chain value chain based on capability maturity
  • Understanding business needs for supply chain for IT enablement based on stable entities
  • Conducting vendor analysis of supply chain software platforms using capabilities to compare apples and apples
  • Leveraging in M&A to compare capabilities and their maturity between two firms

But, our Company is unique – will a generic supply chain model fit us?

Of course, every business is slightly different regarding some capabilities as well as how they work. However, while there may be divergence at the edges, there is a lot of convergence at the core between most firms. The differences may be in part due to differences in industry, geography, types of products and services, and business model — furthermore, the relative emphasis of the critical value streams and the absence or presence of specific capabilities and competencies based on your unique needs.

Last but not the least, we don’t expect our supply chain reference model (or any other model in fact) to fit you 100%. We hope you to take this as a straw model or a base and a springboard to achieve the level customization and specificity you desire.

If you need professional services to help customize and tailor the supply chain model to your needs and capture your firm’s unique essence, we can help.

Contact Us for Advisory Service details.

When should we buy a supply chain capability Model?

Anytime is a good time! However, there are always triggers which may necessitate a supply chain capabilities reference model.

  • When there is a strategic review of the Supply Chain Management function for transformation
  • When Supply Chain systems replacement or re-architecture is envisaged.
  • When Supply Chain processes are re-engineered.
  • When there is an endeavor to create an enterprise business architecture, and a part of the scope includes Supply Chain.

But, we have a Supply Chain Business Capability Model already?

Well, in that, case either you can go with the list of supply chain capabilities your team has developed, or if you require validation and cross-reference, you will still find our framework valuable. After all, the price is less than the one-hour of time spent on the brainpower assembled in the room.

What is my ROI?

The Value of Time Spent:

Typically, it takes a team of 4-5 to draft a supply chain business capability framework.

  • Product Manager
  • Business Architect
  • Enterprise ArchitectSupply
  • Functional Experts – 2 or 3 to represent the broad spectrum of supply chain functional areas.

Now you can multiply the average hourly cost of the team and the hours spent, and you’ll get the story.

Opportunity Cost:

In addition to the time spent and the associated costs of drafting routine supply chain capabilities, you also have an opportunity cost.

By quickly adding/deleting/modifying the base set of supply chain business capabilities, it will allow you the luxury of spending the balance of your quality time in conceptualizing and crafting the unique and specific source to pay capabilities, which capture the core essence of your company and its practices, principles, and perspectives.

Of course, let’s not forget the “Day Job” each of the SMEs (subject matter experts) could be doing.

Acceleration:

Instead of spending countless hours stretched across weeks or months, you can have a baseline of supply chain management capabilities in a couple of sittings. That helps you expedite and accelerate the digital transformation of supply chain value streams.